Chapter 2- Strategic Planning for Competitive Advantage

As I mentioned in the last blog, Tencent, Inc .‘s mission is to enhance people's quality of life through Internet services. Focus on the long-term development of the company by putting consumer value above short-term commercial interests.

 S--During the development, the large user networks and super user relationship chain is the greatest strengths and core competencies of Tencent, Inc. The company has accumulated a large number of users because of the main product QICQ( current QQ),which was created in the early days of the company’s founding. QICO established a large platform for Tencnet ‘s later development. According to the research, currently registered users are over one billion, and active users are more than six million.

Basic on the large relationship on the internet, Tencent can contact the maximum range of users in the meantime. This advantage can let users know the newest products in a short time. When Tencent  opens up a new product, there is a current large group of customers ready to receive the new product information.  So that Tencent can exceed his competitors all the time.

 

Different kinds of products involve wide range of aspects. When users log in QQ, they can use many different kinds of services or function that Tencent provide. And all the function are related, you can find it once you log into the QQ page. First of all, Tencent has portal related to its products, such as the instant QQ message, WeChat,SOSO search, QQ e-mail and Tencent .com. These features satisfy users’ group communication and resources sharing. Second, QQ music, QQ games and QQ pets can satisfy customer’s entertainment requirement and personality. Furthermore, the C2C E-commerce platform is offer for customer’s trading needs. Many business and advertisements are posted and updated every second.

 























W--However, products excessive and investment diversification is either Tencent’s advantage or disadvantage. In addition, most of Tencent’s products imitate existing products on the market. Even though Tencent has good market sharing of its products, it could not be the best without its own creativity.  I have use Tencent’s products since I was an elementary school student. I found that the most part I don’t like is that there are so many plug-in advertisements on my QQ webpage. Ordinary user can not cancel the ads, only Tencent membership can do that. However, you have to pay for the membership every month. These unwanted features and ads would slow down computer’s running and occupy cyberspace.

O--Tencent has very important status in China, especially in the Internet. At the same time, China’s rapid development also provides a good environment for Tencent’s developing. No matter in internet trading or communication. In addition, organizations start to use software to manage and communicate with employees. Tencent released QQ corporation version TM in 2003, in order to help company manage their company more effective. But so far, MSN still has more market share than Tencent TM. It is an opportunity for Tencent to further improve their product.

T--More than that, there are threats in Tencent’s development. First, Tencent excessively depend on the QQ users. Tencent don’t have progress on the product itself or create its new product. Once Tencent lost the QQ users, then no one would like to buy their products because of the huge competition. Further, in the mobile instant messaging aspect, China mobile released Fetion service. Comparing to China Mobile has the advantage of its own mobile communication; Tencent is weaker at this part. At present, there are more and more small companies spring up. More and more instant massagers or apps are launched. And Tencent released WeChat for competition. But their function is so close that the whole market is close to saturation. This is undoubtedly a huge challenge for Tencent at this moment.

 

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