QQ, one of the most successful and essential product of Tencent, has an adorable penguin to be its logo. “Penguin” Empire, 15 years of after its birth, attracted 800 million users globally. Another top-rated “Penguin” Empire product, Wechat, soon accumulated 300 million users in a little more than two years. Wechat gives Tencent more dominance and control in internet and mobile internet fields.

When Tencent was listed on Hong Kong stock market in 2004, its market value was merely USD 1 billion. At present, Tencent’s market value has surpassed USD 100 billion, second only to Google and Amazon in global internet industry.encent’s revenue grew from 1.14 billion yuan (USD 186.77 million) to 43.89 billion yuan (USD 7.19 billion), with 158% compound annual growth rate. Although Tencent entered online leisure game market in 2003, two years later than SNDA and other Chinese online games enterprises, it now accounted for approximately 50% of Chinese online game market and 5 times more than SNDA.

Tencent started from a free online instant messaging software-QQ-gradually accumulating high quantity, activity and interactive frequency users as its core resource. Its products may vary in business model and in cash flow structure, however, strategically, Tencent always revolved around QQ and remained consistent in product top-level design. These different products all shared the core resource, which is QQ’s traffic distribution, and gained revenue in various ways such as game, portal websites, music, blog, and Wechat. For its successful top-level design of QQ, Tencent could always come to the first and make breakthroughs.

Since the launch of Wechat 5.0 on August 5 in 2013, Tencent’s stock price had been soaring. On September 3 in 2013, Tencent’s market value hit HKD 779.9 billion, this was the first time a Chinese internet company to break USD 100 billion. Tencent’s market value on that very day was second only to Google and Amazon.The emerge of Wechat drew much public attention both from investors and industry insiders on Tencent. The astounding growing speed and high user stickiness was said to challenge many traditional industries or even overthrow.

Tencent has developed QQ, QQ game, QQ music and QQ news for mobile to continue its success in PC end. Besides, Tencent also developed many mobile only apps, such as app store, QQ contacts, QQ reader and mobile end games. Though Tencent has developed almost 100 products in mobile end, they contributed few revenue to Tencent. Tencent tried to grasp the entrance to mobile traffic and cultivated another application like QQ. Wechat was the most extraordinary and unexpected application.

 

2 Responses to “Tencent Success Road”

  1. I know there’s a lot of Asian tech companies. But reading this it’s no wonder why Tencent is ahead of the pack.

  2. Nate Henry says:

    It’s cool to read bout how this company has evolved since it’s initial creation. Thanks for shring

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