Case study of Tencent’s E-commerce Strategy Executive Summary Tencent’s E-commerce strategy didn’t work well. The company’s core business is QQ which is an online instant messenger. All of tencent’s other business will be rolled out base upon the QQ. They want people who use QQ can also shop online easily. So they made the strategy according to that point. They developed E-commerce websites which made no difference with Taobao and Tmall but didn’t make them to success. Why does this happen? What’s Tencent’s strategy? Introduction As Tencent announced to take 15% stake of JD.com[1], which is the largest online retailer of China, in March 2014, it also implicated the failure of Tencent’s previous e-commerce strategy. In the …show more content…
At that time, most of the Internet companies focused on one area and entrenched their positions continuously until they gained the dominance in their battlefield. Tencent grew up in this competitive environment and started from QQ which is still the core business of it today. The target users of Tencent QQ are young netizens, a crowd which are willing to try new experiences and want to express themselves. The QQ provides a platform for these young men and they quickly accepted this new thing even in rural area of China. Now Tencent QQ is the most popular instant messenger platform in China that owns more than 2 billion registered users and the number of users simultaneously online has sometimes exceeded over 200 million in 2014[2]. This basic service is for free. However, huge numbers of people on QQ delivers great amount of traffic, which also brings business opportunities to Tencent. As expected, Tencent made great effort on taking advantage of those tons of traffic from two aspects. On one side, in order to strengthen users’ loyalty and stickiness, Tencent expanded into other online service such as Qzone(online community), QQ Friends and Tencent Weibo(social network) as well as Wechat, a social mobile application with voice and text messages mainly.On the other side, to gain profit Tencent also tried many ways by providing value-added services like QQ membership(users pay monthly
| Value Proposition:3.27-845m users, more than 70 languages(76)3.28-B2C: social network platform for connecting people with people, everywhere permitted (68)3.29-B2B: marketers, free channels; advertisers with budget, solutions to audience; developers with resource, offer platform(69)3.30-Privacy concerns: new products, marketers & developers on personal information(55), new privacy features announced(56)3.31-User friendly: search feature improvement for relevant & time saving, “See More Results” menu(70)
Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can be attributed to Taobao’s edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay received one million page hits per
One major flaw built within the business model of Alibaba is its ability on controlling the merchants and their quality of goods. Since both Taobao and Tmall relied on third party sellers to provide goods and services, it lacks the ability to enforce strong quality control and eliminate counterfeit goods. In fact, consumers were well aware of it and this issue had already been damaging Alibaba’s reputation in online retailing markets. However, its major competitor, JD.com would be having much stronger abilities and incentives to eliminate these
This shows an unexpected approach in comparison to different US retailers that utilize E-Commerce passages in China to start their development of the organization (Bailey,
I really like that Google, Yahoo, and Baidu pushes for people to be open, Baidu allowing users to enter discusses with other people that is searching about the same topic this creates an open mind for people to express themselves. Google pushed the limits after being blocked out and never gave up on creating a successful search engine in China and still is today. ISPs will help us in the long run and Google, Yahoo, and Baidu were just the start of something big.
There is a large market for the selling of APP that the public want or are interested in, such as “Mark Zuckerberg in 2004, aged 19 and studying at Harvard University, Zuckerberg created "Facemash” to let users vote on which the two students were the more attractive. He then developed TheFacebook.com, aimed only at US colleges; new colleges were only added once a certain level of demand was reached. That became Facebook, which opened to the wider world, went public in 2012 and is worth about $14bn)” (Arthur, C, (n.d).
However, most consumers of China do not trust e-commercial retailers since e-commerce market still has a rather shorter history in China. Most researchers found out that prices of most Dotcoms
Renren Inc. has been one of the biggest social media platforms in China owning three main
The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s
Founded just before the turn of the millennium in Hangzhou, China, Alibaba Group has to date become the largest online retail website worldwide in the planet, its total transactions surpassing the sum of both Amazon and eBay’s (Erickson, 2013). The report explains its business and operation model and market strategy, before moving to explore the reasons for Alibaba Group’s success such as its established market share in the large market of Mainland China and its efforts to promote the perception of the reliability and security of e-commerce. Comprising of its future plans in logistics improvement, expansion into developing nations, integration with social networks, venture into mobile
In previous sections, it has been discussed that Tencent Games has a bad reputation because they lost sight of customers’ importance and many competitors came after them. However, there is a bigger reason behind these facts which caused all afterwards problems—Tencent Games’ big market share.
According to the recent report of China's Internet market, Baidu, the largest search engine in China, took up 72.3 percent share in the search market. Tencent, one of China's largest Internet integrated services provider, which was renowned for its instant messaging product QQ, occupied 76.56 percent market share in the instant messaging field. Another e-business tycoon Alibaba also held more than 50
The re-expansion of eBay into China seems to be a viable probability and a part of the companies plan for the near future. In 2002, eBay established a presence in china with the acquisition of leading auction site Eachnet to form eBay Eachnet. Up until 2005 eBay Eachnet was the leader of the ecommerce market due to their C2C platform. However, with the emergence of Alibaba owned subsidiary Taobao.com (Taobao), eBay Eachnet soon lost its stronghold on the market. This factor combined with a rigid Chinese ecommerce market drove eBay to withdraw business dealings in the country in 2006.
This SNS was first released in January 2011, offered services include free voice and video calls, multimedia messaging (allows video, image, text, and voice messages), group chat, and etc. (Tencent, 2016). As its Chinese name Weixin indicates, this service focuses on communicating through micro (Wei) messages (Xin). However, Weixin is not only a text and voice messaging communication service, it also introduces several social and media functions. Firstly, Weixin raises a personal photo stream service called ‘Moments’ for users to share their ‘best moments’ to people in their contact list (Tencent, 2016). Moments is a relatively private space only opens to users’ friends, and families. In the Chinese version, this space is directly called ‘the friend zone’. With the evolution of Weixin services, users can share multimedia contents from photos, to short videos, texts, website links and etc. in their Moments and comment or click ‘like’ under their friends’ Moments as well now. This virtual space allows users to know the daily life of people their cared without meeting in reality, and help them to maintain relationships by interacting in Moments. Secondly, Weixin allows any business, organization, and individual users to register official accounts with a few simple steps (Grata, 2014). Through an
Through the Asia-Pacific Economic Cooperation (APEC) CEO Conference of 2015, Alibaba director Jack Ma was cited as saying, ‘E-commerce is like a dessert in the US, yet the main course in China’ (Ma, J. (2016).