Study Of The Development Strategy Of Tencent

Since the1970s, the role of strategic management in the enterprise managementhas become increasingly prominent. It decided that whether the companies cancontinue to grow and maintain long-term profitability in the future. Through theplanning of the strategy and the Deming ring, managers can implement, control,adjust and modification, also it constraints on their overall allocation of resources andcareer direction therefore the company can achieve their corporate strategic goals andvision. Because of today’s faster speed of the information dissemination and theincreasingly large amount of information, the rapid change has become the norm.How to deal with this change is a major problem the enterprises are faced with.Strategic management, it gives a way to analyze the environment which is changingand gives an important tool to deal with the market, also it should be an important toolfor China’s Internet companies.What technology has brought to Internet enterprises is not simply lower and lowercost. Instead, it has also generated all-round environmental change, in which Internetenterprises should better inspect their strategies because strategy management is animportant tool and notion when confronting complicated and changing environment.Based on the inspection of their strategies, the enterprises should take advantage ofstrategy management theories which keep pace with times to comprehend theirdevelopment and explore how to gain sustainable competitiveness in the Internet era.The study selects Tencent, the Internet enterprise located in the core position of newcompetition rules as the subject to expound on the issue of corporate developmentstrategies under new rules. Tencent was founded in Shenzhen in late1998. Currentlyit has grown into one of China’s Internet companies which have a critical role andlisted in Hong Kong in2004. Its vision is to become the most respected companies.Under this vision Tencent chose three development strategy: diversification strategy,differentiation strategy and cooperation strategies to achieve "to provide users withone-stop online life service" strategic objective.Based on the classic theories of strategy management and theory of platformeconomics, the study selects the case study approach and adopts the pattern of raisingproblems, analyzing problems and solving problems to elaborate on Tencent’s development strategy and measures for future development. First, the paper clarifiesthe development strategy theories suitable for Internet platform enterprises to lay atheoretical foundation for the cases in the paper, from the actual cases and link thetheory with practice. Then, through PEST analysis, Michael Porter’s five forcesmodel, value chain model and SWOT analysis, it describes the status quo of Tencent’sdevelopment, its internal conditions and external environment. Subsequently, on thebasis of strategy analysis, the paper analyzes Tencent’s selection and implementationof development strategies and gives constructive suggestions for Tencent to adjusttheir strategies and how to better implement strategies in the future in order to giveTencent and the same type of Internet companies some inspirations.