Since Steve Jobs create Apple the technology world has been changed. Smart phone came up to our life even change our traditional life. Voice call became not enough for people. Maybe they lived in other countries there were too far from their family. They wanted to talk even met their family, but the voice call for another country was too expensive also they couldn’t meet. So, the social apps got up to the smart phone. I believe everyone have at least one social app on their smart phone. Therefore, social apps also change our life style. In China social apps even control our payment and free time.
Most foreigners come to China the first social apps must be Wechat. It’s easy to use, and you will need it not only for connect people. You will need it most of time when you stay in China. Wechat faces to all citizens especial for higher than 16 years old in China.
We pay in supermarket we use the Wechat Pay. We pay a meal use Wechat Pay sometime we can get some discount on Wechat. Even in some villages farmers sell their fruit on the street, they still use Wechat Pay. If some stores tell me they don’t have Wechat Pay, we will be so surprised. When we have free time, we would like to watch moments on Wechat. I don’t know why, that is an automagical action. At the end of last year, Wechat user reached 1 billion active users worldwide.
Last year Tiao Yi Tiao is the most popular game on Wechat in “Mini programs” per box advertising made Tencent 20 million. There was not everyone is eligible to insert ads in the game! Wechat is not only the most popular social app in China, but also the way of our life.
QQ is the second place in Chinese social media. Maybe you don’t know QQ, but you must know Wechat. These two apps were made by same person Pony Ma.
(Chinese name: Ma Huateng). He is the most competitive competitor for Jack Ma. If Wechat’s main target market is people over 16 years old, the QQ must be under 16 years old people in China.
QQ provides Qzone which includes simple games like QQ Farm, Grab Parking, Friends sale, which is for kids and teenagers. Tencent is the biggest company on games in China, so they attract more kids and teenagers to use their social apps. Tencent accounts for half of China’s Internet market. Tencent’s diversification strategy motivate them make more and more products.
SWOT analysis for Tencent in China:
Tencent uses the platform established by QQ to build other businesses related to it, which is conducive to resource utilization and distribution of resources.
Diversification is based on coverage of all areas of the Internet. When sharing users reach a certain scale, the more value-added services provided, the lower the average cost of the enterprise, forming a unique range of economic growth.
Many people say that the history of Tencent’s development is a history of imitation, such as: QQ imitate ICQ, QQ game hall imitate of Lianzhong, Tencent beat imitate Taobao, SOSO imitate of Baidu. Blindly imitating may lead to conflicts between different enterprises and damage the corporate image
lThe popularity of the Internet is 45%, higher than the world average in China.
Internationalization, expand overseas business. Since Tencent be listed in Hong Kong, baidu, alibaba and Weibo have all been listed overseas. At the end of 2010, Tencent won the launch of QQ international board.
lThe threat of innovation, Tencent from start-up to now is always lack of revolutionary innovation, and the essence of the Internet is innovation
Competition and monopoly
The market share of QQ is always over 85%, which means ‘enemy of the state’. Many competitors focus on them and prepare anytime to cover Tencent.