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8/20/2019 Tencent at The Forefront of Chinese Innovation
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Michael Gasiorek
Tencent - The Forefront of Chinese Internet Innovation
Consumer Software/Internet Services Industry
Industry & Environment Analysis
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Michael GasiorekDecember 201
!encent " #orefront of China Internet InnovationIntroduction: Sco$e% &ey Services% 'usiness Model% Summary (nalysis
#rom bein) called a *co$y machine* and an *evil em$ire* +*!encent
innovation is,,,*- to hailed as China.s most $romisin) com$any +abkin- with (sia.s
most innovative founder *ony* Ma +*(sia.s Most Innovative*-% !encent has e$loded
from a 13 $ost4colle)e $ro5ect by Ma 6uaten) and 7han) 7hidon) to China.s
lar)est internet com$any with a 89SD:100' market ca$ that $laces it 5ust behind
Goo)le ; (ma> chat client
with ?3M active users% the newly mer)ed S@S@/So)uo rd rankin) search en)ine%
and its new mobile Aa)shi$ social $roduct BeChat +(nnual e$ort-, Su$$ortin)
these $roducts% !encent ca$itali
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovationa sin)le mobile Aa)shi$ $roduct% )reater em$hasis on su$$ortin) innovation at
home and abroad% and more robust a$$lication of a $owerful cash war chest%
!encent may even )ive Goo)le a run for its money,
Company History 'rief Strate)y ; Ma5or Milestones
In summary history% !encent was started by two Shen, >>% as the com$any was
renamed after an I suit% uickly )ained users but was unable to moneti> business
model% !encent started the $roHtable Chinese internet industry, 200 saw !encent
enter its most $roHtable business vertical 4 online )ames 4 as well as build their
advertisin) business before their 200 I@, !encent launched the ma5orly disru$tive
>7one social network in 200J% and be)an to mer)e all services around the sin)le
social lo)in as $art of the com$any.s *internet lifestyle strate)y,*
'y 2010% the com$any had develo$ed a vast $ortfolio of internal $roducts%
but also be)an to see uality rd $arty develo$ers on its frin)es, ( common
Chinese e$ita$h about startu$ success went% *Death% I@% or !encent%* 4 the latter
meanin) an instant hi)h4)rade co$y that destroyed the startu$ +!echCrunch!%
ony Ma-, Bith the 2010 launch of the @$en latform% !encent invited rd $arty
develo$ers to create add4on $roducts for its services in a cohesive% secure% and
moneti
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!encent " #orefront of China Internet Innovation4 and !ecent has been with them almost every ste$ of the way, Bith BeChat% the
rest of the world is in !encent.s reach +Stanford'usiness% Martin Eau-
!oday% !encent )enerates :K,2K' in revenues from online )ames% :2,1' ;
:2,?0' from dis$lay/search ads res$ectively% and :12K,' in )ross merchandise
volume from ecommerce +See =hibits ; -, roHtability is another story, @f its
:K01M 2012 earnin)s% ?JL of revenues came from the ra$idly )rowin) value4add
market +com$ared to the relatively saturated advertisin) se)ment- JL from in4
)ame $urchases and the remainder from I membershi$s to key services or
unlockable cosmetic items like additional emoticons, !oday% !encent has $laced a
ma5or focus additions to its mobile chat $latform% and e$anded o$erations in
browser )ames, It shows the bi))est ad revenues from its $roducts in all of China
and su$$orts it with vast eCommerce covera)e around the world, !he com$any has
)radually moved into tech investments to im$rove its $roduct and market
accessibility% and is Hnancially boomin) +(nnual e$ort-,
Industry & Environment Internet Services% &ey layers% Com$arative Dynamics
Bhile !encent o$erates across multi$le verticals includin) social media%
communication software% ecommerce% and cloud services% the com$any falls under
the com$rehensive umbrella of )lobal software ; internet services alon)side
con)lomerates like Goo)le% ahoo% (ma
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!encent " #orefront of China Internet InnovationCom$anies, IDC antici$ates a continuous )rowth in total uniue Internet users to 2,?
billion by 201 4 which will inherently e$and the reach of com$anies like !encent
and Goo)le to $rovide $roducts and services not 5ust to lar)er markets% but ones
with entirely new needs, Bhile the 2001 recession unconventionally limited Internet
industry )rowth to ,KL% forward4lookin) $redictions antici$ate increased internet
consum$tion in develo$in) countries as well as increased smart$hone $roliferation
to fuel new )rowth to 9SD:,22 trillion by 201?, !he industry overall has seen a
com$ound annual )rowth rate of ,3L since 2003% with di$s durin) 2003 ; 2012,
(merica accounts for K,2L of industry revenues% ahead of (sia and =uro$e at
0,2L and 2J,2L% res$ectively +Global 4 Software ; Services% Marketline-, (s the
Chinese market becomes more com$etitive and saturated% !encent will all the more
need to ca$itali
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!encent " #orefront of China Internet Innovation$osted breakaway 2JL / revenue )rowth for ? years via risky M;( and new lines
of business that $aid oN to make the business 2nd lar)est internet com$any behind
Goo)le +&essler-, Meanwhile% (libaba continued stock re$urchases from ahoo to the
tune of :,1' in 2012 ahead of an e$ected I@ in 201, Fo $ublicly available
Hnancial data currently eists on the com$any, #inally in the social s$here% #acebook
is !encent.s key international multi$latform rival to >>/>7one +but sees $oor
$enetration in China due to internet Hlterin)-% while Bats($$ 4 a $rivately held
com$any with J0M users com$ared to BeChat.s 2KM 4 re$resents the bi))est
threat to the BeChat mobile messa)in) $latform, Bith the combined >> ; BeChat
$latform% !encent threatens #acebook with 1%0JM users to 1%11MP however%
!encent is also seein) hu)e )rowth + from $revious year- and a rise in teen users
on mobile% while #acebook is actively losin) teens and shows only 13L user )rowth
/ +!a$$in-,
In considerin) the #ive #orces analysis% research $rovided considers the
market $layers to include any com$anies oNerin) technolo)y ; system inte)ration
services% I! consultin) or mana)ement% and data or business $rocess outsourcin),
'uyers encom$ass individuals consumin) for $ersonal or cor$orate use% businesses
and )overnment entities, In the $rovided ehibits J4% the red overlay indicates
researched $erce$tions of the Chinese market com$arative to the )lobal software ;
services industry market, Summarily% !encent o$erates in a middle4of4the4road
market across all Hve forces that is inAuenced heavily by new innovation and
shiftin) consumer $references but relatively steady business $references, !he
industry is es$ecially ri$e for disru$tion )iven lower barriers to entry amon) niche
entrants by startu$ entre$reneurs, ivalry has historically led to successful new
businesses bein) either out$aced by the increased resources of a ma5or com$any or
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!encent " #orefront of China Internet Innovationacuired for $ur$oses of skill em$loyment and market access, Consumers have a
broad ran)e of o$tions% but successful com$anies utili
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!encent " #orefront of China Internet Innovationhy$er4hostile China environment throu)h its revenue model innovation and
com$etitive core $roducts% but will face entrenched $layers like #acebook $osin)
hi)h switchin) costs, @n su$$lier $ower% as !encent is not only able to satisfy its
own hostin) needs but has direct access to a wide base of hardware su$$liers via
Shen
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!encent " #orefront of China Internet Innovationfacin) ones% there.s a reason why com$uter science de)rees seemin)ly become
very $o$ular, Beak brands may hold back re)ionally4focused com$anies like
!encent% but ultimately consumer4side a$$s live and die by network ado$tion and
deli)ht/ease of use when com$ared a)ainst com$etitors solvin) the same $roblem,
!hese latter $oints are at the core of startu$ culture% but to !encent.s credit% instead
of com$etin) with these small risin) $layers% they have be)un to nurture% invest in%
and sometimes acuire them throu)h a slew of international euity4based
investments and their @$en latform, Bhile the volume of substitutes may be hi)h%
their threat is relatively low )lobally ece$t a)ainst established $layers, Fetwork
eNects kee$ consumers loyal to services that have already en)a)ed their friends
even des$ite $otentially lower costs and diversiHed features due to one additional
factor value added services, !encent has created a ne)ative4feedback tri))er for
$roduct switchers who reali
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!encent " #orefront of China Internet Innovationsi
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!encent " #orefront of China Internet Innovation=conomically% ma5or middle class )rowth in develo$in) countries isn.t 5ust
fuelin) the boom of Chinese internet com$anies% but set to dramatically shift the
economic base of the world to (sia +namely China ; India- and the Middle =ast, =
$ro5ects over 0L of consumer s$endin) will ori)inate in develo$in) countries by
200% with a steady )rowth rate from its current 13L, Bith J00M Chinese enterin)
the middle class in the net decade and as much as ?0L of China.s whole $ro5ected
200 $o$ulation earnin) above 9S:10 euivalent/day% China and India will make u$
over JL of the world middle class alone, !he 9S will re$resent 1L% com$aratively,
!he demo)ra$hic shifts here are im$ossible to i)nore% and !encent has already
be)un $lannin) around (sia, Marketin) eNorts are underway in India% and BeChat is
becomin) very $o$ular across =astern continents, Bhile the com$any now courts
Silicon alley% their true stren)th is their tie to the )rowin) world and their
unbreakable hold on the Chinese market, !he com$any.s bi))est com$etitors will
soon be ori)inatin) in India rather than (merica% meanin) re)ional outreach will
become very im$ortant, Social sharin) is also becomin) a lar)er cultural
$henomenon amon) the risin) middle class who relish sharin) their $ersonal and
national )rowth% with internet use and smart$hone ownershi$ becomin) status
symbols,
#inally% notin) $olitical and le)al factors of China and abroad% !encent faces
the diQculty in eitin) the China bubble to com$ete on a better4re)ulated market
with a no4ecuses demand for uncensored sharin), !encent.s history of Hltration and
blockin) to censor $rovocative s$eech on Beibo has lost them face in the eyes of
forei)n customers% while locals have also shied away from the services after ony
Ma.s claim that R#alse information $osted on micro blo)s is a touchy issue% for
neti
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!encent " #orefront of China Internet Innovationar)uin) * R#alse information he is referrin) to is the CC authoritiesO evildoin)s
uncovered by civilians @ften it is oQcials who deliberately release rumors and
s$read fabricated news,T Fevertheless% !encent has few choices $olitically% it en5oys
a favored eistence within a $rotectionist internet environment that has allowed it
to become lar)e rather than be crushed early% receives favorable ca$ital lendin)%
and is em$owered to en)a)e internationally, Should !encent refuse to com$ly% they
may face the same fate as Goo)le in bein) asked sim$ly to leave, !his causes )reat
frustration in overseas users who refuse to submit to Hltration% and may be
$roblematic in convertin) users to the full !encent suite +!echCrunch% ony Ma-,
#inal thou)hts from Martin Eau discuss the diNerences between the 9S ;
China business environments, #irstly% the 9S customer is in a state of latent
demand their needs are hi)hly s$eciali
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!encent " #orefront of China Internet InnovationBhile com$etitors across s$eciHc verticals were discussed in the =nvironment
section% the only com$etitor euivalent to !encent.s $roduct variety and market
$otential is Goo)le 4 and will serve as the main $oint for com$arative Hnancial
benchmarks, !o reiterate% !encent.s MC( has 5ust hit 9SD:10' to 9SD:'%
rankin) with ahoo% e'ay% and (ma
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!encent " #orefront of China Internet Innovation$roHt at !encent )rew by ?,KL more than Goo)le% with over double the =@
K,JL to Goo)le.s 1K,K1L, !he com$any is oNerin) healthy returns to stakeholders%
amon) them early4sta)e investor Fes$er of South (frica% which continues to hold
over 0L stake in the com$any, !encent.s /= ratio hits an im$ressive ,?2% while
Goo)le clocks in at a 2,K ratio, !he e$ansion of the BeChat userbase and
increases in )ross mar)ins from in4house )ames are $ositive si)nals for at least the
net half year% but hi)h com$etition will necessitate increased ;D a)ainst
com$etition which will lower o$eratin) $roHt until BeChat attains )reater scale
+S;-,
Company Competencies ; Strategy 4 roduct ortfolio% owerful 'rand% #la)shi$
latforms
In seekin) to im$rove the uality of life of internet users% !encent has
established itself as a )lobal leader throu)h a vast $roduct $ortfolio% a $owerful
brand% and a slew of Aa)shi$ $latforms for continuous e$ansion, !hese three
strate)ic com$onents tie to)ether intimately% with stron) $roduct oNerin)s hel$in)
establish !encent as a multi4cate)ory leader and stron) Chinese brand% encoura)in)
develo$ment and usa)e of e$andable or new $latforms like >> or BeChat,
Bhile the historical $ers$ective )ave a summary list of verticals in which
!encent o$erates% the com$any in fact oNers do
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovationdevelo$ment of a Hed identity across multi$le services makes the servin) of
advertisin) more tar)eted, Fet% the diverse $ortfolio eases com$etitive $ressures
by allowin) !encent to have multi$le channels of user acuisition and revenue
)eneration, #inally% the online identity both enables value4add services, Inherent
from the Hrst $urchase% but also in strictly free yet consistent use of these
inte)rated services% is raised switchin) cost, #ew users would $refer a service
reuirin) a second lo)in when !encent is already able to oNer the service, 'y
continuin) to diversify% !encent is also able to continue seekin) new talent and
attract new users in niches% makin) for both resource acuisition and customer
e$ansion,
!hese $roducts re$resent key intellectual $ro$erty resources that have
become leadin) in the industry, Startin) in 13% !encent has )rown its role in the
lives of Chinese users and now re$resents one of China.s to$ brands% and is China.s
most valuable listed technolo)y brand, !he com$any was ranked 21st on the B4
Millward 'rown brand list in 201 even before its recent success with international
e$ansion of BeChat, !he brand has been so $owerful that !encent.s $en)uin
mascot has been leased out to manufacturers and merchandisers for the creation of
$lush toys% suitcases% and more 4 which sell very well% and $rovide !encent with a
new source of revenue, !he com$any has also ali)ned itself with established
celebrities across multi$le re)ions +South (merica% 9S% India% China- in order to
$romote its BeChat $roduct% further stren)thenin) and locali
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!encent " #orefront of China Internet Innovationin the mission and $ro5ects of the com$any% in hel$in) !encent remain an
*as$irational* com$any that attracts youn) develo$ers with ambition% and which
$rovides a stron)er launchin) )round for international entry,
#ramed in the contet of )eneric business strate)ies% !encent has a stated
strate)y of hi)h4uality diNerentiation alon)side a low4cost or 7one-% or $rovide to$4uality
entertainment +considerin) Eea)ue of Ee)ends investments and internally4$roduced
)ames by to$ talent-, !hese $roducts are then made available at no cost to the
user% instead bein) su$$orted by add4value and advertisin) outlets, !encent is a
$owerfully innovative com$any on both $roduct and business model% allowin) them
to win on both diNerentiation and cost savin)s simultaneously, !he brand has been
valued at :'% close to Bal4Mart +euters-, !he reco)nition has also allowed
!encent to become an investor of choice for successful startu$s lookin) to tackle
China% which in turn em$owers innovation within !encent, In a country where
marketin) did not eist until a few decades a)o% !encent has risen above the $ack
to su$$ort its $roducts% em$loyees% and investments with $owerful reco)nition and
a clear mission statement +=hibit 11-, (bove all% considerin) the human resource
com$etitive nature of the technolo)y industry% this stron) brand euity will attract
the best% most creative em$loyees% allowin) !encent to stay ahead of the $ack,
!encent is not 5ust in the business of buildin) )ames and everyday services%
but $latforms on which to continue buildin) new features and s$inoNs as well as
create value4add revenue )enerators, Bhile eam$les eist in >7one and >>%
!encent.s newest mobile $lay is most relevant and their bi))est advanta)e as a
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Michael GasiorekDecember 201
!encent " #orefront of China Internet InnovationBestern4bound Chinese com$any, BeChat is becomin) !encent.s Aa)shi$
international $roduct between May4Se$tember 201% the com$any hasn.t 5ust hit
2KM active users +tri$lin) its $revious year 3JM% and out of K00M downloads-% but
doubled its overseas users to 100M, 'lowin) $ast locali
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!encent " #orefront of China Internet Innovationbe forced to ada$t, (s demo)ra$hics shift to the creation of the )reat (sian middle
class durin) 2020 onwards% BeChat will inevitably end u$ in the hands of the
develo$ed world, !encent continues to develo$ BeChat usin) an iterative lean
a$$roach 4 creatin) the features for the $roduct as they are demanded by users 4 as
they aim for 00M active users durin) early net 201,
!encent.s $latform a$$roach is not constrained to sim$ly their $roducts% but
includes their $rocess, !he @$en Cloud $latform has been a ma5or boon to !encent.s
ima)e and revenue stream by allowin) rd $arty develo$ers to create add4on
$roducts to im$rove !encent.s services for a share of earned $roHts, !encent wins by
bein) able to channel eternal creativity to attract and retain users% and develo$ers
receive the $ower of the develo$ment $latform, 'y creatin) an environment that is
secure% easy to use% $rovides wide distribution% and allows the moneti
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovationbecomin) a )lobal business, @ver 3JL of revenues continue to be )enerated within
China% and des$ite hi)hly successful mana)ers with international accreditation% the
com$any has little e$erience in $erformin) outside of the *China internet,* Bhile
lon)4term $ro5ections show (sia is to uickly become the world focal $oint of the
middle class% !encent needs less the customer base of the 9nited States% and more
so the talent and innovation, !o continue bein) an ambitious and )rowin)
technolo)y com$any% !encent 5ust incubate ideas by skilled en)ineers% be they
internal or eternal to the com$any, !his will not only hel$ !encent establish a
stron) international re$utation for bein) an ecellent com$any to work for in terms
of bein) challen)in) and interestin)% but will contribute directly to their bottom line
by way of new $roduct or new rd $art add4on $ack for an eistin) $ro$erty, Bhile
other strate)ic threats and o$$ortunities eist% these two syner)istic $oints will
most meanin)fully ali)n !encent with future )rowth on an international scale, See
=hibit 12 for full SB@! breakdown,
China has followed the traditional trend of forei)n market entry Hrstly% in
manufacturin)% then in the service sector, In the creation economy% with a currency
of ideas and $assionate skilled workers% !encent must hire% acuire% and invest in
ins$irin) youn) com$anies to )ain local market stake, !he com$any has already
be)un investin) in com$anies +See =hibit 1- that ali)n with is mission )amin)
com$anies like lain anilla% social ; $hoto networks like @ri)ami Eabs% and
eistin)4$roduct diNerentiations like S@G@9, !hese investments% however% reAect
the careful% lon)4term orientation of a com$any with a fraction of the resources
!encent currently $ossesses, 1041JL investments also brin) little in way of
mentorshi$ ; resources without an ad5oinin) su$$ort $ro)ram% leavin) $romisin)
startu$s to ultimately defend for themselves or risk )ettin) co$ied, !o truly
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovationca$itali
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!encent " #orefront of China Internet InnovationBhile considerin) Bestward e$ansion% !encent should also continue to focus
heavily on the world besides (merica, =nterin) this saturated market does not
su))est itself to be es$ecially more $roHtable des$ite bein) incredibly diQcult% and
may be an e$ression of hubris more than of wise investin), !encent has been
seein) incredible )rowth in South (merica% =uro$e% the Middle =ast% (ustralia% and
South =ast (sia, !hese re)ions will be able to collectively e$ort more soft $ower
than the 9nited States% convertin) (merican users by way of )lobal standard, !hese
actions should be taken alon)side% not instead of% a focus on (merican )rowth%
which should continue to receive marketin) su$$ort, Bherever !encent focuses its
ener)y% it may be leavin) its home market o$en to new com$etition from
com$anies like (libaba% and must be careful to watch both fronts,
!o foster both innovation and e$ansion% !encent should overall focus on
becomin) a $latform 4 not $roduct 4 com$any as wa)e e$ectations be)in to eceed
cost savin)s in China, 'y e$ortin) content creation to rd $arties% often $artially
controlled% !encent can focus on its core com$etency of creatin) scalable methods
of connectivity% delivery% and workin) on lar)e% brave innovations rather than hit4or4
miss )ames, Com$etition in online )amin) has be)un to fra)ment the vertical
further% with users movin) from software )ames to web and mobile% creatin) further
demand for ;D that will not be sustainable in the lon) term, Bith a focus on
mobile in the last year% )ame $ublishin) has become a $roHtable outlet to )enerate
hi)h4mar)in returns% but will reuire the ado$tion of outsource develo$ment on the
well4established !encent @$en latform, !he Hrst tar)ets for outsourced creation lie
in vertically s$eciali
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovationwhat is core to !encent.s current team, !he com$any should continue workin) with
its select $artners on the )amin) front while seekin) to buy inAuential control in
others% while also seekin) com$anies skilled at $roducin) video content and others
skilled in $roduct desi)n and eCommerce o$timi
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovationinte)ration amon) a$$s and addons% but it is only with !encent.s direction towards
content $illars +a)ain% video% )ames% and ecommerce- that the ri)ht ty$es of
$roHciencies can be outsourced, Greater robustness with reserve ca$ital should not
o$en !encent u$ to vulnerabilities in China with due dili)ence on com$etitive
analysis, !he com$any is in a stron) Hnancial% strate)ic% and actionable $osition 4
and with time% may become the Goo)le of China yet,
($$endiE!"i#it $ 4 Industry Environment % orter J #orces (nalysisSource ar!et"ine Industr y #ro$le, %&lobal 'oftware ( 'ervices%
E!"i#it % 4 !encent roduct Mi ; Monthly (ctive 9sers +M(9-Source Stanford 'usiness% artin "au, #resident of Tencent +via ou!ube-
Software IndustryGlobal vs, China Forces 'odel
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovation
E!"i#it ( 4 !encent evenue ModelSource Stanford 'usiness% artin "au, #resident of Tencent +via ou!ube-
E!"i#it ) 4 Tencent )usiness ( #ro$t odelSource Stanford 'usiness% artin "au, #resident of Tencent +via ou!ube-
@nline Game revenues
trum$ Dis$lay ; Search
ads combined in China,
%*ill obviously change,%
-"au
eCommerce revenues
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovation
E!"i#it 4 Industry Environment % 'uyer owerSourcear!et"ine
Industry#ro$le,%&lobal'oftware ('ervices%
E!"i#it * 4 Industry Environment % Su$$lier ower
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Michael GasiorekDecember 201
!encent " #orefront of China Internet InnovationSource ar!et"ine Industry #ro$le, %&lobal 'oftware ( 'ervices%
E!"i#it + 4 Industry Environment % Few =ntrantsSource ar!et"ine Industry #ro$le, %&lobal 'oftware ( 'ervices%
E!"i#it , 4 Industry Environment % SubstitutesSource ar!et"ine Industry #ro$le, %&lobal 'oftware ( 'ervices%
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovation
E!"i#it - 4 Industry Environment % Com$etitionSource ar!et"ine Industry #ro$le, %&lobal 'oftware ( 'ervices%
E!"i#it $. Economic Environment % China total income by band 2010 and 2020 +annual income% thousands of $eo$le-
Source: =% iddle class growth in emerging mar!ets
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovation
E!"i#it $. 4 &rowth +ates of Chief #layers China ( ' in Internet 'ervicesIndustry Source &oogle Finance, /ecember 0st 1203
E!"i#it $$ 4 !encent alue Statement
Source Stanford'usiness% artin "au, #resident of Tencent
/encent +@!CM&!S!C!7#-swee$s rivals in Jy)rowth%
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Michael GasiorekDecember 201
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E!"i#it $% SB@! (nalysisSource @ri)inal
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=stablished brand and relativemarket dominance,
Diverse $ortolio of $roducts andservices,
obust% )rowin) Hnancials withhi)h uantities of reserve ca$ital,
Bell4mana)ed% eNective% lar)eworkforce,
#la)shi$ $latforms on mobile ;for develo$ers,
e)ionally constrained withlow international e$ansion
e$erience,
oor out4of4(sia brandin)%sti)ma attached to early*co$y culture*
6eavily levera)ed revenueson value added services,
'attle on two fronts retain(sia share while )rowin)
9S(,owerful
demo)ra$hic/economictrends in favor of
(sian/Mid=ast middleclass )rowth,
6i)h internet ;smart$hone $roliferation,
(sian advertisin) ;ecommerce )rowth,
Chinese le)al ; $oliticalinternet and euity
re)ulations,
Security threats onChinese internet,
!hreat of forei)n entreantsor startu$s into ownmarket se)ment,
S 01 /
Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovation
E!"i#it $( 4 Tencent Crunch)ase 'tartup InvestmentsSource Crunch'ase% !encent
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!encent " #orefront of China Internet Innovation
Borks Cited
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Michael GasiorekDecember 201
!encent " #orefront of China Internet Innovation(sia.s Most Innovative, +@ct 201-, !oday @nline, etrieved from
htt$//www,todayonline,com/world/asia/asias4most4innovative
'osson)4Martines% =, +@ctober 201 . Industry 'urveys - Computers5 Consumer
'ervices ( The Internet. Standard ; oor.s Industry Surveys, etrieved from
Standard ; oor.s Fet(dvanta)e,
Chen% E, +Fov 201-, Tencent 6umps after boosting online game sales. etrieved
from Mail ; Guardian% web,
Cisco, +May 201-, Cisco 7isual 8etwor!ing Index5 Forecast and ethodology, 1201-
1209. Bhite a$er, etrieved from
htt$//www,cisco,com/en/9S/solutions/collateral/ns1/nsJ2J/nsJ?/ns?0J/ns32?/w
hiteW$a$ erWc11431K0,$df
&arklins4Marchay% (, +201-, Entering the global middle class5 iddle class growth in
emerging mar!ets. =, etrieved from
htt$//www,ey,com/GE/en/Issues/Drivin)4)rowth/Middle4class4)rowth4in4 emer)in)4
markets444=nterin)4the4)lobal4middle4class
Goo)le Com$any, +201-, Goo)le,com, etrieved from
htt$//www,)oo)le,com/about/com$any/
Goo)le #inance Stock market uotes% news% currency conversions ; more, Goo)le,
etrieved Fovember 0 from htt$//www,)oo)le,com/Hnance
MarketEine, +@ct 201-, &lobal - 'oftware ( 'ervices, Xindustry $roHleY, etrieved
from MarketEine (dvanta)e database,
MarketEine, +Dec 2012-, Tencent :oldings "imited, Xcom$any $roHleY, etrieved
from MarketEine (dvanta)e database,
MarketEine, +Dec 2012-, Tencent :oldings "imited, Tencent;s rise to dominance in
the Chinese Internet Industry , Xcase studyY, etrieved from MarketEine
(dvanta)e database,
en% Shuli, +Fov 201-, &ame #ublishing &ives Tencent The *ar Chest To )e
4ggressive In 7ideo, E- Commerce, =mer)in) Markets Daily, 'arron.s,
&essler% S, +@ct 201-, Industry 'urveys, Computers5 Consumer 'ervices ( The
Internet , Xindustry $roHleY, Standard ; oor.s Ca$ital I>, etrieved from S;
database,
Stanford 'usiness, +Dec 2012-, /avid *allerstein5 Tencent;s )usiness odel #ushes
Customer Engagement. etrieved from htt$//www,youtube,com/watchZ
v[aMhKDnKmCFI
http://www.todayonline.com/world/asia/asias-most-innovativehttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-481360.pdfhttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-481360.pdfhttp://www.ey.com/GL/en/Issues/Driving-growth/Middle-class-growth-in-emerging-markets---Entering-the-global-middle-classhttp://www.ey.com/GL/en/Issues/Driving-growth/Middle-class-growth-in-emerging-markets---Entering-the-global-middle-classhttp://www.google.com/about/company/http://www.google.com/financehttp://www.youtube.com/watch?v=aMh6Dn6mCNIhttp://www.youtube.com/watch?v=aMh6Dn6mCNIhttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-481360.pdfhttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-481360.pdfhttp://www.ey.com/GL/en/Issues/Driving-growth/Middle-class-growth-in-emerging-markets---Entering-the-global-middle-classhttp://www.ey.com/GL/en/Issues/Driving-growth/Middle-class-growth-in-emerging-markets---Entering-the-global-middle-classhttp://www.google.com/about/company/http://www.google.com/financehttp://www.youtube.com/watch?v=aMh6Dn6mCNIhttp://www.youtube.com/watch?v=aMh6Dn6mCNIhttp://www.todayonline.com/world/asia/asias-most-innovative
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Michael GasiorekDecember 201
!encent " #orefront of China Internet InnovationStanford 'usiness, +@ct 201-, artin "au, #resident of Tencent5
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