1.

Introduction

Tencent, a Chinese tech giant founded in 1998 in Shenzhen, is an internet based technology
and cultural enterprise. It mainly expertizes in fields like online content, services and application
ranging from top level videogames and entertainment media to payment apps and social media
platforms. It had the simplicity whether through acquisitions and mergers or its own subsidiaries
to become first one of the only internet focused company in China. Considering domestic level,
it is undoubtedly the largest company in China in terms of capital and industry multifariousness.
The gigantic tech has its own skyscrapers known by Tencent Binhai Mansion with one of the
most finely emblematic architectural construction located in Shanghai. Moreover, it also consists
of shops with fully functioning artificial intelligence, Internet of Things and robot technology. The
net worth of Tencent is $866.18 billion according to January 22, 2021.

https://cryptos.com/a-brief-history-of-tencent-holdings-and-its-rise-to-the-blockchain-era/

https://www.macrotrends.net/stocks/charts/TCEHY/tencent-holding/net-worth

In this report, I have found company’s issues related to data breach, antitrust laws, revenue,
global presence and its research.

I have found some solutions like time limitation in online games, up to date software,
collaboration with global leaders, avoid indulging in crime activities and more research on its
products.
https://images.app.goo.gl/HdaumYUegDMypCQ

2. Business Intelligence –

It refers to the technologies, application and practices for retrieving, analyzing and
transforming data of business information into helpful insights. Its purpose is for making better
decision making process.

https://technologyadvice.com/business-intelligence/

Tencent hosts 55% of mobile internet usage on its various platforms in China. It proceed with a
mission “become the most respected internet enterprise.” and slogan “AI in all.” AI lab was
opened by Tencent in 2016, Shenzhen to “Make AI Everywhere.” Before, there were 50
research scientist and approx. 200 engineers who have now increased to 70 and 300 in
number. YouTu lab by Tencent which is built with dozens of top technologies regarding image,
face and audio study is the leader in machine learning.

When it comes to artificial intelligence, Tencent always finds opportunity for grabbing technology
that can be efficient for its business. It had made highest number of deals related US AI
investment among gigantic Chinese tech giants in 2017.Also, in collaboration with Beijing
Automotive Group (BAIC), for autonomous diving vehicles, the company has invested in artificial
intelligence. Moreover, when it comes to facial recognition technology, WeChat digital ID cards
are used to verify people’s identity rather than the normal ones in China.

https://www.oreilly.com/library/view/artificial-intelligence-in/9781119548218/c10.xhtml

Issues in Business Intelligence –

1. Data Breach –

A data breach is an occurrence that uncovers private or ensured data. A data breach
may include the loss or burglary of your Social Security number, financial balance or
credit card numbers, individual wellbeing data, passwords or email.
https://www.lifelock.com/learn-data-breaches-data-breaches-need-to-
know.html#:~:text=A%20data%20breach%20is%20an,can%20be%20intentional%20or
%20accidental.

Issue –

More than 300 million private messages from Chinese clients on mainstream messaging
applications were sitting uncovered on the web. The database of 364 million records left
clients' personal identities accessible to any individual who found the IP address.
According to Gevers, each record, drawn from applications like We Chat and QQ,
likewise contained specifically recognizing Chinese resident ID numbers, photographs,
addresses, GPS area information, and data on the kind of gadget being utilized. More
regrettable, the primary data base additionally sent the information back to 17 other
remote servers. Also, there is no security and it looks like they have no idea of what they
are doing.
https://www.theverge.com/2019/3/4/18250474/chinese-messages-millions-wechat-qq-
yy-data-breach-police
 https://www.afr.com/world/asia/wechats-privacy-issues-mean-you-should-delete-
chinas-no1-messaging-app-20180221-h0wgct

We can see from the figure that messaging apps from Tencent, QQ and WeChat were
ranked last according to the effectiveness of the encryption systems utilized by the 11
worldwide players.

Also, this absence of security and the potential for Chinese applications to contain
spyware or malicious ware was behind a choice by the Indian Defense Ministry to
prohibit serving staff from having WeChat and other comparable services on their cell
phones as the utilization of these apps can be harmful to data security having
significance to the force.
 https://www.afr.com/world/asia/wechats-privacy-issues-mean-you-should-delete-chinas-
no1-messaging-app-20180221-h0wgct
Also, Citizen Lab in Toronto identifies security and issues in QQ browser in both
windows and android version like transfer of person identifiable data, MAC address,
nearby Wi-Fi access points, URLs of visited websites, windows hostname, windows hard
drive serial number with easy decrypted encryption or no encryption. Without proper
encryption, it could transfer personal identifiable data to surveillance by a number of
mediators like wireless network operator, government agency with contact to any of
those mediators, mobile carrier. Even the software update process couldn’t completely
encrypt the data.
https://citizenlab.ca/2016/03/researchers-identify-major-security-and-privacy-issues-in-
popular-china-browser-application-qq/

2. No new revenue opportunity –

Tencent lost around $140 billion in market value since it was hit in its stock. The main
problem with Tencent is the Chinese government which has approved stopping license
allowing it to develop new games. Tencent anticipates that the games should get the
green light at last, yet its challenges reflect an increasingly prohibitive environment for
tech firms in China. Game known as Honor of Kings, went under especially serious
examination for purportedly causing addiction in youngsters.
https://money.cnn.com/2018/08/22/technology/tencent-problems-china/index.html

Tencent's fall, set off essentially by a government crackdown on internet gaming, has
been particularly sensational. Tencent shut an online Texas Hold'Em poker game
because of government investigation. The specialists have frozen endorsement of new
games and kept Tencent from bringing in cash on a portion of its most well-known titles,
moves credited to concerns about web addiction and the violent and obscene substance
of certain games.
https://www.reuters.com/article/us-tencent-strategy-analysis-idUSKCN1LS0MP

Tencent lost 5 percent of its shares in Hong Kong after Beijing made some new plans on
restriction to reduce nearsightedness, internet addiction, limit the time spent by kids on
electronic devices, violence and indecent content of some games and also to confine the
number of new online games.
https://money.cnn.com/2018/08/30/technology/tencent-gaming-china/index.html

3. Low global market involvement –

There is poor investment in Research and Development (R&D) of its main products.
Tencent didn’t enhance its popularity regarding PC and mobile games to increase its
 revenue. Tencent was unable to deliver an enhanced version of its own PC and other
games in English and other languages to increase its customers from overseas market.

4. Antitrust laws –

Tencent was sued 14million dollar by Douyin, a Chinese short video app which has
around 600 million of daily active users for violation of Antitrust laws. Douyin was
blocked to access content from both Tencent’s applications WeChat and QQ. Apart from
paying compensation, Douyin also asked court to publish the statement and cease the
practice.
https://www.chinadaily.com.cn/a/202102/04/WS601a3f2aa31024ad0baa703f.html

5. Domination in global market –

Tencent couldn’t build a strong relationship with global leaders across the globe for
increasing its growth revenue in the future. It couldn’t combine its multifarious services to
diverge itself for future rivalry.
https://medium.com/@annezhou618/what-would-be-next-challenge-of-the-chinese-
internet-giant-tencent-bb3d3d69b096

Recommendation –

1. Tencent being such a massive tech giant should be careful regarding it firms
activities as it a reputed brand globally. Violation in security issues is a major
concern for both the corporation and its users. Users are the main source of
revenue for any company. These kinds of incidents hamper their brand image
and in worst scenario, it may also end up in losing its precious customers. In this
digital era, the number of cybercrime has increased a lot. It can take years to
restore public’s trust. So, the company must ensure that they are going with the
up to date software, encrypt all the essential data and have a backup of them.
So, if Tencent is doing something against cybercrime, people may feel
comfortable.
2. Tencent being a biggest game developer in the world should be aware of its
contents or any violent activity in the game. To decrease addictively in online
games, there should be a time limit in games per day so that people can’t play all
day and night.

3. Tencent has its services in multifarious products. Being such a reputed brand, it
needs to invest heavily in Research and Development so that it can compete with
its rivals, increase its overall customers in the globe and also to increase its profit
growth revenue in present or coming days.

4. In this digital era where mobile phones and internet have become a necessity for
the people worldwide, companies try to do their best for their customers
regarding services but sometimes due to some acts such as violation in antitrust
laws, big tech Tencent can lost its legacy over the world. So, it needs to work in a
scenario where it take necessary steps in every situation to avoid mistakes and
does not indulge in any sort of crime activities harming its hard earned reputation
from years.

5. To become a dominant leader in the world, firms like Tencent should expand its
overseas partnerships with global leading companies so that it can increase its
overall customers, market value, products and services to people who are
unaware of it and expand in global market domination.

Conclusion –

To conclude, I have found some issues related to breach in data, no new revenue
opportunities, low investment in its Research and Development area, violation in
antitrust laws and low participation in worldwide activities.

I have found some solutions for Tencent like time limit restriction in online games to
avoid addiction in online games, time to time update in its software and full
encryption features to avoid leak in security issues, heavy investments in its research
to increase its customer and revenue, carefulness in its day to day activities for not
indulging in any criminal activities and company’s worldwide recognition for
increasing its brand image.

Tencent is one of the gigantic tech companies and has a huge presence in the world.
The company has setup a benchmark for many growing industries whether it is
related to revenue, products or adoption of new technology. The company has
applied various strategies and technologies in various fields and is also planning to
execute them more in coming days. So, Tencent need to take steps that does not
harm its reputation or affect mankind in any sort of terms and conditions and
increase its global presence in terms of both revenue and leadership.