Tencent: a case study on expanding through micro-innovation and strategic partnerships

Filip Vedder

    Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

    Abstract

    Tencent is a Chinese IT company that offers a wide variety of products in the e-commerce, online advertising, online games and social network markets. Most of these services are centered around the central hubs of QQ and Weixin/WeChat. This allows for a spillover of users and a brand name that can be used for a variety of products. Most of Tencent’s software products are free to use, but allow users to buy small cosmetic upgrades. For Tencent, these value-added services are the main source of income. This differentiates the company from most of its competitors, which still rely mostly on online advertisements to monetize users of free services. Tencent focuses on ‘micro-innovation’, taking a proven concept and adjusting it to the Chinese market. The company is very strong in the domestic market, but has had trouble in foreign markets. More recently, Tencent started strategic partnerships with companies in segments where the company cannot become market leader on its own. Perhaps the company could also use this strategy for foreign market entry.
    Original languageEnglish
    Title of host publicationMultinational management
    Subtitle of host publicationa casebook on Asia’s global market leaders
    EditorsRien T. Segers
    PublisherSpringer International Publishing Switzerland
    Pages111-130
    ISBN (Electronic)978-3-319-23012-2
    ISBN (Print)978-3-319-23011-5
    DOIs
    Publication statusPublished - 29 Jan 2016

    Keywords

    • strategic management
    • e-commerce

    Cite this

    Vedder, F. (2016). Tencent: a case study on expanding through micro-innovation and strategic partnerships. In R. T. Segers (Ed.), Multinational management: a casebook on Asia’s global market leaders (pp. 111-130). Springer International Publishing Switzerland. https://doi.org/10.1007/978-3-319-23012-2_7
    Vedder, Filip. / Tencent : a case study on expanding through micro-innovation and strategic partnerships. Multinational management: a casebook on Asia’s global market leaders. editor / Rien T. Segers. Springer International Publishing Switzerland, 2016. pp. 111-130
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    abstract = "Tencent is a Chinese IT company that offers a wide variety of products in the e-commerce, online advertising, online games and social network markets. Most of these services are centered around the central hubs of QQ and Weixin/WeChat. This allows for a spillover of users and a brand name that can be used for a variety of products. Most of Tencent’s software products are free to use, but allow users to buy small cosmetic upgrades. For Tencent, these value-added services are the main source of income. This differentiates the company from most of its competitors, which still rely mostly on online advertisements to monetize users of free services. Tencent focuses on ‘micro-innovation’, taking a proven concept and adjusting it to the Chinese market. The company is very strong in the domestic market, but has had trouble in foreign markets. More recently, Tencent started strategic partnerships with companies in segments where the company cannot become market leader on its own. Perhaps the company could also use this strategy for foreign market entry.",
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    Vedder, F 2016, Tencent: a case study on expanding through micro-innovation and strategic partnerships. in RT Segers (ed.), Multinational management: a casebook on Asia’s global market leaders. Springer International Publishing Switzerland, pp. 111-130. https://doi.org/10.1007/978-3-319-23012-2_7

    Tencent : a case study on expanding through micro-innovation and strategic partnerships. / Vedder, Filip.

    Multinational management: a casebook on Asia’s global market leaders. ed. / Rien T. Segers. Springer International Publishing Switzerland, 2016. p. 111-130.

    Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

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    Vedder F. Tencent: a case study on expanding through micro-innovation and strategic partnerships. In Segers RT, editor, Multinational management: a casebook on Asia’s global market leaders. Springer International Publishing Switzerland. 2016. p. 111-130 https://doi.org/10.1007/978-3-319-23012-2_7