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Tencent Case Study

Tencent Case Study

Here, we shall be conducting the Tencent case study. Now, Tencent is one of the most valuable companies across the world. But this begs the question. What does it do to be so successful? we shall be discussing all of this in this sample. So, without further adieu:

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Tencent: overview

Tencent is one of those modern organizations that are known around the world. One may also refer to it as Tencent Holding Ltd, it was established in the year 1998. The twin-skyscraper “Tencent Binhai mansion” or Tencent Seafront towers is the headquarters of the same. It falls in the Nanshan District of Shenzen, China.

Tencent is a multinational Chinese holding company that mainly concerns the technological industry. Apart from these, Tencent also offers several services as well as products that mainly revolve around the internet. As such, it is the largest vendor of video games in the entire world. In addition, it is also one of the most valuable companies.

Moreover, it is also considered as one of the largest investment corporations as well as venture capital. We shall be discussing the different business segments of the brand later on. Nevertheless, it also owns famous applications like Tencent QQ and WeChat. Plus, one of the largest Web portals in China is also owned by Tencent; Namely QQ.com.

Furthermore, Tencent also owns most of the world’s music services. Consequently, it has as many as 850 million users out of which 120 million are using paid premium services. Moving on, we shall be looking at the market strategy of the same in the next section of the case study.

Market strategy

Tencent is quite a vast organization. Thus, the marketing strategy is also equally large. Consequently, we can divide it into four different categories. These are, as mentioned below:

Product marketing

Product advertising concerns the game’s content. It includes sports gambling, art pics as well as the game’s world view. The product marketing’s principal concept revolves around decorating and bundling these items to make the games even more attractive. This method is generally used prior to launch. Thus, this strategy is considered quite specific and not unusual.

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Entertainment Advertising and marketing

Enjoyment advertising is orientated at publicity and spread of the sport by the use of a few appealing tools. It refers to superstar endorsement, crucial activities, jokes, and some different conversation substances.

Go-border cooperation

As stated inside the literature evaluation, move-border cooperation is a broadly used strategy, in most cases used after the sport enters the mature level. This approach has striking consequences: carry customers greater experience outdoor the game product and accordingly provide a feeling of freshness; acquire go penetration of customers on each side. right here the writer briefly introduces the case of QQ pace.

Intellectual-property advent

for many players, gambling a game is not the handiest due to its center gameplay or photo layout, but also because of its international view architecture, exquisite tale, and characters. based totally on the same subject, specifically the highbrow belongings (IP), recreation can be transformed into movies, comics, or even subject parks. IP is the soul of a recreation.

Business model

In this section, we shall be looking at the business model of Tencent. As such, the brand has a highly innovative business model. This model can be divided into different parts. Here, we shall be looking at the customer segment, revenue streams, as well as key resources. Thus, without further adieu:

Customer segments

Tencent’s main customers can be grouped into; advertisers and consumers. Just like Facebook, the company provides free and engaging services to its users, collects user data, and then sells advertising space to businesses willing to reach its wide array of users. The company generated an excess of RMB 18 billion from advertising in Q2, 2020.

Revenue streams

As we discussed, Tencent is one of the most (Financially) valuable organizations in the whole world. One can say this is due to the innovative business model of Tencent. As such, the brand made over $56 billion alone in 2019.

The corporation makes cash by means of monetizing its games and numerous virtual content materials. The employer additionally makes sales from individuals who join its numerous services.

Key resources

Some of Tencent’s key sources consist of; its intellectual property (IP) upon which its diverse software is built, and its big selection of research & development (R&D) team of workers.

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