Presentation on

Ma Huateng
CEO of Tencent holdings Ltd.

BY,
Ankush (01JST17IP001)
Chethan Raj P N (01JST17IP007)
G. Vishok (01JST17IP012)
Manoj S v (01JST17IP00)
Shivakumar P (01JST17IP047)
Introduction to entrepreneurship
 Entrepreneurship is the process of designing, launching and
running a new business, which is often initially a small business.
The people who create these businesses are
called Entrepreneurs.
 An Entrepreneur is an entity which has the ability to find and act
upon opportunities to translate inventions or technologies into
products and services: “The entrepreneur is able to recognize
the commercial potential of the invention and organize the
capital, talent, and other resources that turn an invention into a
commercially viable innovation." In this sense, the term
"Entrepreneurship" also captures innovative activities on the
part of established firms, in addition to similar activities on the
part of new businesses.
How do entrepreneurship works
Entrepreneurship is one of the resources economists categorize
as integral to production, the other three being land/natural
resources, labour and capital. An entrepreneur combines the first
three of these to manufacture goods or provide services.
The three that many of them cite as the most challenging are as
follows:
Overcoming bureaucracy
Hiring talent
Obtaining financing
 Types of entrepreneurs
Ethnic
Institutional
Cultural
Feminist
Nascent
Project-based
Social
 Case study about Tencent
Introduction to Ma Huateng
Ma Huateng is a Chinese business magnate, investor, politician, and
philanthropist. He is the founder, chairman and chief executive officer
of Tencent, Asia's most valuable company, one of the largest Internet
and technology companies, and the biggest investment, gaming and
entertainment conglomerates in the world.
The company controls China's biggest mobile instant messaging
service and its subsidiaries provide media, entertainment, payment
systems, smartphones, internet-related services, value-added services
and online advertising services, both in China and globally.
As of August 2019, he is China's richest man, and the 20th wealthiest in the world,
with a net worth of US$37.7 billion. On 21 November 2017, he surpassed both
Larry Page and Sergey Brin to become the ninth richest man in the world, and the
first Chinese to enter Forbes' top 10 richest men list.
Early life and education
He was enrolled in Shenzhen University in 1989 and then graduated in 1993 with a
Bachelor of Science in computer science.
Founding of Tencent and its developments
Tencent Holdings Limited is a Chinese multinational conglomerate holding
company founded in 1998, whose subsidiaries specialise in various Internet-
related services and products, entertainment, artificial intelligence and technology
both in China and globally. Its twin-skyscrapers headquarters Tencent Seafront
Towers (also known as Tencent Binhai Mansion) are based in Nanshan District,
Shenzhen.
Tencent is the world's largest gaming company, one of the world's most valuable
technology companies, one of the world's largest social media companies, and
one of the world's largest venture capital firms and investment corporations. Its
many services include social network, music, web portals, e-commerce, mobile
games, internet services, payment systems, smartphones, and multiplayer online
games, which are all among the world's biggest and most successful in their
respective categories.
Offerings in China include the instant messenger Tencent QQ and
one of the largest web portals, QQ.com. It also owns the majority of
China's music services (Tencent Music Entertainment), with more
than 700 million active users and 120 million paying subscribers.The
company surpassed the market value of US$500 billion in 2018,
becoming the first Asian technology company to cross the valuation
mark.
It has since then emerged as one of Asia's most valuable companies,
and among the world's top technology companies by market value.
Tencent has been credited as one of the world's most innovative
companies by numerous media and firms. As of 2018, Tencent has
the 5th highest global brand value.
1998–2010: Founding and growth
Tencent was founded by Ma Huateng, Zhang Zhidong, Xu Chenye, Chen
Yidan and Zeng Liqing in November 1998 as Tencent Inc. Incorporated in
the Cayman Islands. South African media company Naspers purchased a
46.5% share of Tencent in 2001. (As of 2018, it owns 31.2%.) Tencent
Holding Ltd was listed on the Hong Kong Stock Exchange on 16 June 2004

Tencent now makes its own games. On 21 January 2011, Tencent launched
Weixin a social media app. Now branded as WeChat, the app is one of the
world's most powerful social media apps, due to its wide range of functions
and platforms, as well as having over 1 billion monthly active users.
2011–2014: Early investments
On 18 February 2011, Tencent acquired a majority equity interest (92.78%)
in Riot Games, developer of League of Legends, for about US$230 million.
Tencent had already held 22.34% of the equity interest out of a previous
investment in 2008. On 16 December 2015, Riot Games sold its remaining
equity to Tencent Holdings.

2015–2019: Continued investments

In January 2018, Tencent and The Lego Group, the world's largest toy
company, are teaming up to jointly develop online games and potentially a
social network aimed at children
Wanda Commercial will be renamed as Wanda Commercial Management
Group, with its new investors on the board, it represents one of the world's
largest single strategic investments between internet companies and brick-
and-mortar commercial giants. Tencent bought a 5% to 10% minority stake
in Skydance Media.
 Funding and Shareholdings
Name of the company: Tencent Holdings Limited
Location of company headquarters: Tencent Binhai Mansion, Shenzhen, China
Type of business undertaken: Public
Type of Sector: Internet & Technology
Industry: Computer Software: Programming, Data Processing
Area served: Worldwide
Company started on: 11 November 1998
Total number of shares: 10,339,120
Market Cap (USD) 361.62 B
Products:
Search engine, Social networking, instant messaging, mass media, web portals, e-commerce
We browser, antivirus software, artificial intelligence, music, payment system, film production
videogames online services
Total number of Employees: 54,309
 Products and services
Social media
Entertainment
Video games
Television and Cinema
Comics
Music
Education
E-commerce
Utilities
Others
Social media
Launched in February 1999, Tencent QQ is Tencent's first and most notable
product, QQ is one of the most popular instant messaging platforms in its home
market. As of 31 December 2010, there were 647.6 million

Entertainment
Video games Tencent Games is the video game publishing division of Tencent
Interactive Entertainment, itself a division of Tencent. Tencent Games was founded
in 2003 to focus on online games.
In 2011, Tencent started hosting massively multiplayer online games such as Call of
Duty Online, consisting of previous Call of Duty titles with added content, as well as
the game League of Legends, which now it fully owns. Tencent also partly own
battle royale games such as Fortnite and PlayerUnknown's Battlegrounds, and fully
own Ring of Elysium.
Tencent is the largest video game company in the world. Tencent wholly or
partially owns game companies Grinding Gear Games (80%), Miniclip
(undisclosed majority stake), Riot Games (100%) Glu Mobile (14.46%), Bluehole
(11.5%), Epic Games (40%), Activision Blizzard (5%), Ubisoft (5%), Paradox
Interactive (5%), and Supercell (84.3%).
Tencent announced that its subsidiary, TiMi Studios, would develop Activision's
Call of Duty: Mobile. The game was released worldwide on October 1st, 2019.
As of October 4th, 2019, the game has surpassed 35 million downloads and over
$2 million in revenue.
 Business Model Canvas
Business Model Canvas is a strategic management and lean startup template for developing new
or documenting existing business models. It is a visual chart with elements describing a firm's or
product's value proposition, infrastructure, customers, and finances. It assists firms in aligning
their activities by illustrating potential trade-offs.
Application Business Model Canvas
The Business Model Canvas can be printed out on a large surface so groups of people can
jointly start sketching and discussing business model elements with post-it note notes or board
markers. It is a hands-on tool that fosters understanding, discussion, creativity, and analysis. It is
distributed under a Creative Commons license from Strategized AG and can be used without
any restrictions for modelling businesses. Business model canvas of tencent company
Business Model:
Value proposition, Value architecture.
Value creation:
Value extraction, Value capture, Value origination.
Value proposition
Value proposition is an aspect of a business model that entrepreneurs use to put
value to a product or service and offer it to a potential recipient. Value cannot be
limited to goods and services while value proposition not focus only on source of
revenues, but they are pillars of a business model. Tencent has managed to
maintain its value proposition by offering services that are unique and satisfied
their intended users.

Value architecture
is one of the business model pillars that define how an organization effectively
manages its resources and adapts to the changes introduced by the external
environment (Currie 12). Tencent Holdings redefined its value architecture and
came up with a new business model that makes it stand out amongst the
competitors in the social networking industry. Tencent has a larger network range
that is dense and tightly-bounded that available at every corner of the world.
Value creation in an organization is divided into two sectors, value received by
customers and value received by the organization. Effective management of value
exchange between the firm and the consumers assists in successful growth and
development. A business model assists in value creation in an organization.
Value extraction
Wireless Internet services have become one of the most booming businesses
today. Tencent has managed to cover a wide range of wireless services that have
gained a lot of demand from many users globally.
Value origination
Tencent upholds the origination strategy by originating value. Most of the
company’s products are more demanded by customers and they value paying for
them. Tencent keeps on introducing new services to the social networking
industry and irrespective of price, customers always buy them
 How does Tencent earns money
The Chinese company Tencent is especially known for its messaging platform
WeChat, but the company does not disclose how much money it makes from it
directly. Unlike WhatsApp or Telegram, WeChat is much more than a messenger
app — it is deeply integrated into everyday life in China and allows you to do things
like pay bills and schedule a doctor's appointment.
The majority of Tencent's revenue comes from in-app purchases of virtual goods
An increasingly important section for Tencent are
payment services
which mostly refers to fees for online
transactions through WeChat Pay
Other than that, Tencent makes money with digital
ads on its media platforms and messengers
 Final verdict

Tencent are attempting to reposition their business beyond gaming

and towards enterprise and the cloud, particularly through their
WeChat platform. They are also building out their social media and
payment platforms in order to match their global investment
footprint.
Today their shares have reached a six month high, and as the Stock
exchange of Honk Kong showed, the longer term outlook for
Tencent seems far more positive, with perception of it moving ahead
today and in three years’ time trending upward. This correlates with
the fact