A Research Of Network Company’s Profit Model

With the rapid development of information technology,internet has played an more and more important role in people’s life,study,work and social life.After more than 20 years of rapid development,China Internet companies realize that a proper profit model is essential to their success,rather than pursuit the brand awareness and market share in their early stage development.A lot of network companies go bankrupt in the fierce competition,but some being outstanding,therefore,more and more network companies value the profit model,Compared with the traditional enterprise,the Internet enterprise has the characteristics of rapid development,unique profit model and unstable income,therefore,targeted research to profit model of Internet companies are remarkably necessary.Tencent growing up with other China Internet companies and with its lightning speed of development and market share,Tencent now become the outstanding representative of China Internet companies.Tencent has been in China’s Internet industry’s top three,with revenue and profit growth year after year.Tencent has the highest user coverage in china,it become a model for the network companies,its development process has become a microcosm of China Internet companies and its profit model sets a very successful example to other Internet companies.This article uses Tencent as a model,first illustrates Tencent’s profit model fram work,then compares with Alibaba and BaiDu,find its advantages and weakness with Tencent’s financial evaluation,finally,.The study find,although Tencent continues getting profit,there are still many problems in Tencent,such as the profitability is not high,the main business growth is insufficient,low worth of customers,product line repetition and so on.for the above problems,the article raise the suggestion as innovation,development of high-end products,improve the main business,and give other Inter net companies inspiration for the future development of Internet companies to learn from.