Research On The Competitive Strategy Of Tencent's Online Game

With the development and popularization of the Internet,the online game industry came into being.It has now become an important economic growth point and is an indispensable part of the Internet industry today.China's online game industry started in the late 1980s.After just 20 years of development,it has made amazing achievements.The market scale has continued to expand and the game companies have gradually expanded.By the end of 2017,there were more than 2,000 online game companies in China,of which 185 were listed companies and 158 were listed on the New Third Board.The market competition became fiercer.As China's online game industry's demographic dividend gradually disappears and the market growth slows down,China's online game industry has entered a period of mature development and its market capacity has become saturated.At this stage,how to find breakthroughs to expand their market share;how to use their own advantages and outside opportunities to defeat competitors,to achieve survival and development in the competition;how to cultivate corporate core capabilities and to obtain long-term competitive advantages,become currerntly important issues which Chinese Online game companies need to solve.Based on the above problems,this article takes "the competitive strategy of Tencent's online game" as a research topic and selects Tencent's online game as the research object.It uses the PEST model to analyze the macro environment of China's online game industry,and clarifies the external competitive environment of Tencent's online games.By using Porter's five-force model,it analyzes the online game industry environment and clarify the competitive structure of the industry in which Tencent games are located;And it systematically combs Tencent's situation from the four perspectives of the development history,operation model,product layout and market position of Tencent games.The in-depth analysis of Tencent's internal resource capabilities is based on resource-based theories,which clarifies the internal environment of Tencent's online game.On this basis,the three prominent competitive strategies adopted by Tencent in operating online game businesses are summarized:differentiation strategy,market penetration strategy,and internationalized business strategy.Tencent relied on these three major competitive strategies to gradually transform itself from a follower of the game market to a leader.It has won unsurpassed competitive advantages in online game business and gained considerable economic benefits.Finally,this article also combs and summarizes the issues that Tencent needs to pay attention to in the implementation of the three major competition strategies to help it maintain its position as an industry leader for a long time.The successful experience of Tencent's online game has great reference value and reference significance for the development of other online game companies.