BY- SHANTANU MISHRA, ASHISH SABHARWAL, GAURAV GUPTA, ABHIJEET

PANDE
Introduction

 Tencent holding LTD is a Chinese multinational investment holding

conglomerate founded in 1998.
 Specialises in various internet based services and products.
 One of the worlds largest social media company, and one of the largest
venture capital and investment corporations.
 Services include- social network, music, web portals, mobile games,
payment systems, etc.
Business goal

 Tencent’s mission is to “improve the quality of life through internet

value-added services”
 Guided by it’s “user oriented” business philosophy, TenCent achieves
its mission through delivery of integrated internet solution to it’s over 1
billion users
 The company’s two principle business operations are – social platforms
and digital content
 Tencent’s most popular products are – WeChat and WeChat pay ,
Tencent games, Tencent pictures, QQ.com, Tencent AI lab
New Innovation

 WeChat in retail- it allows customers to check out items via mobile

payment both online and offline
 It acts as a channel of mobile advertisement. Most luxury brands now
have WeChat account, which they use for marketing , customer service
and to drive traffic to their offline locations
 Monetization through AI- the AI lab will focus on speech recognition and
natural language processing
 With addition of an AI interface we see WeChat becoming an enabler of
disruptive online 2 offline commerce,
New innovation

 Tencent embraces global digitalization opportunity with its industrial

internet strategies
 Tencent launches four smart transportation products at the first china
smart transportation conference in Beijing
Risks

 Although TenCent is stepping up it’s efforts to integrate AI into it’s

business model, it has arrived to the race relatively late
 Competitors baidu, amazon, google have already been putting
significant resources into AI research, including imaging recognition,
voice recognition and self driving cars
 Tencent actually derives 53% of its revenue from online games
 The biggest problem with being reliant on gaming revenue is gaining
loyal customers. Tencent relies mostly on mobile gaming, however
gamers often switch very quickly, so it is difficult to gain consistent
customers
Risk (contd)

 Another risk is political risk. Having control of online gaming, QQ and

WeChat means that TenCent has direct access over nearly all Chinese
under the age of 40. this means that central government may place
more scrutiny on TenCent.
Revenue Model

 Like most social networks TenCent's customers are young and digitally connected
 As they do so it makes money from upselling microtransactions. This is very
different to western models of social network
 Tencent gets users to pay directly in a freemium model. Companies like Facebook
on the other hand provide everything for free and make money from advertising
 Tencent develops a lot of online games for both PCs and mobile
 Tencent also recently invested in Epic games- the creators of fortnite, and also
owns PUBG
 Tencent also generates revenue from mobile payments. With WeChat and Alipay
taking up 80-90% of mobile payment market share