Running head: TENCENT AND AMERICAN INTERNET COMPANIES
Tencent
Qufan Gong
Prof. Gilbert
Saginaw Valley State University
SOC280*03
2/14
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TENCENT AND AMERICAN INTERNET COMPANIES
Tencent is a Chinese company which was founded in 1998. The company is known as the
leading provider in China for internet services. The company utilizes operating strategies which
are user oriented which has facilitated its continued steady growth. The company has the mission
of making people’s lives better through the use of internet services. In the present day, Tencent
has provided social platforms where people interact freely (Tse, 2015). Some of the services
which are provided by Tencent include communication, entertainment, financial services and
information among others. Tencent has an understanding of what is expected in the digital world
which has necessitated the need of having half the number of its employees engaging in research
and development. Tencent has the vision of becoming the Internet enterprise that is respected.
The company participates in CSR activities with the aim of promoting internet communities. The
paper focuses on the impacts of Tencent Company in the internet business as compared to the
American based internet companies such as Amazon and Facebook.
Tencent is considered as a rival company to the American companies which has resulted
into the Americans being against its operations. Based on the fact that Tencent is a private
company, its success is a cause for alarm to the American based internet companies. However,
Tencent is only aimed at providing internet services so that all its operations are aligned with its
mission and vision statements (Janssen, 2015). On the other hand, Tencent has continued to
participate in those activities that every other organization would engage in despite its region of
operation. For instance, the company participates in CSR thus building on its publicity and
reputation. The company is also aimed at providing quality services to consumers. However, the
public In America and the media have continued branding Tencent a rival company to Facebook
and Amazon. The company is seen to be aiming at overtaking these American companies which
has led to many customers in America becoming worried.
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TENCENT AND AMERICAN INTERNET COMPANIES
In the past, Tencent was only known for its operations in China. In the present day,
Tencent has expanded its activities so that it has also ventured into other states such as America.
Tencent has now turned into a global company whose services are of high quality. The company
has continued utilizing some strategies that has made its activities successful. For instance,
Tencent has the understanding that the digital world is highly dynamic due to changes in tastes
and preferences by consumers (In Segers, 2016). As a result, the company has engaged in
research and development activities which are aimed at enabling the employees to develop the
most recent and applicable services for customers. The company has also continued to participate
in CSR a activity which is one of the activities that have enabled the company to have a wide
customer base. Additionally, CSR has enabled the company to create relationships with
stakeholders who have facilitated its growth and development.
Tencent has opened an office in America from where all its activities are controlled. The
company has established its operations based on an application referred to as WeChat. According
to the director of Tencent, the American office will be used as the customer care center. The
company aims at going global in the next two years. The company also has other offices in
America whose functions vary. The company’s future is promising given the fact that it has
already established a customer base. The company has applied marketing strategies that are
aimed at showing how its products are better than those of its rivals (Li, 2005). The company has
also an understanding of indirect marketing where it participates in different activities that make
it gain attention from the media thus the public. Tencent uses certain slogans in performing its
marketing activity in Ameriac. For instance, one of the slogans commonly used by Tencent is
‘To be the most respected internet company.’ The slogan is used to demonstrate the
determination that the company has in ensuring that it becomes the best all over the world.
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TENCENT AND AMERICAN INTERNET COMPANIES
The company also has different lines of products which it offers to the Americans. For
instance, the company has applications which facilitate sharing of information and access to
important information such as news. Additionally, the company has social applications which
enable people to connect and there are also financial services applications. The different types of
applications are aimed at meeting the different needs of customers. Through the different types
of products, the company has enabled different types of consumers feel that they have what they
need thus enabling it to create a wide customer base (Tse, 2015). The company has also created
a positive public perception through participating in CSR activities in the state. Many customers
have learnt about the company through its active participation in social responsibility. On the
other hand, the company has been at the frontline of developing quality products. Given the fact
that the company has continued to grow each year, customers have built trust in its operations so
that they feel affiliated to its products and services. The company has created a positive image to
the public which has facilitated its success in America.
Tencent does not operate in India. There are other internet companies which are based in
India which means that there is stiff competition in the land. However, Tencent could as well get
established in India and remain a viable and competitive internet company. The company has to
first learn about the features that all the other internet companies have and develop better ones
this will be one way through which it will be possible to draw the attention of customers.
Additionally, the company will have to perform its marketing activities vigorously so as to reach
out to a large number of customers (Janssen, 2015). On the other hand, the company has to
remain ethical so that it will introduce only those products that are culturally acceptable in India.
On the other hand, the company has to undertake its moral obligation of participating in
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TENCENT AND AMERICAN INTERNET COMPANIES
corporate social responsibility where it will give back to the society. The CSR activities will
enable Tencent grow its customer base without strain.
In india, there are other internet companies which are said to be the leading ones in
internet distribution. However, Tencent has all the characteristics that would make it successful
in this foreign land. For instance, the company has the ability to balance between the interests of
different stakeholders through continued improvements in its performance. On the other hand,
the company has the best research and development workforce which will lead to development
of new and better products that will meet the needs of customers. The company also has
competitive strategies which it utilizes in making its business operations successful. For instance,
development of quality products and that can easily be accessed makes the company powerful in
terms of competition against the rival (In Segers, 2016). As a result, the most important ways
through which Tencent wil penetrate the Indian market will by being accepted by the different
cultural groups through working ethically and morally. The company will also have to abide by
the legal requirements of India which will create an operating environment that will support its
different activities. The company will have to acquire licenses and other legal documents that
will allow its operations in India.
In conclusion, Tencent is a company that will be successful in the future in providing
internet services. The company has an understanding of customer needs in different parts of the
world. This understanding has resulted into development of products that are of high quality and
meeting the needs of customers from different parts of the world. On the other hand, the
company has strategies in place that will make it successful in the long run. For instance, the
company has marketing strategies that are aimed at attracting more customers from all over the
world. The company also has a mission and vision statements that give overall direction to where
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it is headed. Having established one of its offices in America, the company aims at going global
thus operating in many other countries in the world (Li, 2005). The fact that the company has a
wide variety of products, it may have more customers as compared to the other internet
companies. for instance, when using the company’s products, it is possible to access and share
information, socialize, get entertained and access financial services. Therefore, Tencent has
strategies that will make it strong even in the other parts of the world making it the leading
internet provider.
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TENCENT AND AMERICAN INTERNET COMPANIES
References
Tse, E. (2015). China's disruptors: How Alibaba, Xiaomi, Tencent, and other companies are
changing the rules of business.
Janssen, M. F. W. H. A. (2015). Open and big data management and innovation: 14th IFIP WG
6.11 Conference on e-Business, e-Services, and e-Society, I3E 2015, Delft, the
Netherlands, October 13-15, 2015, proceeding. Cham: Springer.
In Segers, R. T. (2016). Multinational Management: A Casebook on Asia's Global Market
Leaders.
Li, J. Y. (2005). Investing in China: The Emerging Venture Capital Industry. London: Blue Ibex
Ltd.
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