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Tencent Holdings Limited: Tencent’s Rise to Dominance in the Chinese Internet Industry

  • ID: 2390698
  • December 2012
  • Region: China
  • 20 Pages
  • MarketLine


Since its launch in 1998, Tencent has grown from an unprofitable, privately owned enterprise into one of China’s leading companies. The company’s continued development has transformed it from a startup to a company with annual revenues of over CNY28bn ($4.3bn) and net income in excess of CNY10bn ($1.5bn). In 2012, Tencent was placed 37th in Millward Brown’s BrandZ 100 most valuable brands.

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Although Tencent operates through four business segments, IVAs and MVAs very much remain the backbone of the business. These two divisions accounted for over 92% of the company’s total revenues in 2011, with IVAs in particular providing many of the company’s revenue streams.

The company is highly reliant on its home market of China, a geography which accounted for over 98% of all revenue in 2011, and growth READ MORE >

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- Catalyst

- Summary


- Since its launch, Tencent has become a global superbrand
-- Tencent was founded as a provider of Internet value-added services
-- In 2004, Tencent undertook a successful IPO

- Tencent’s operations
-- Internet value-added services
-- Mobile value-added services
-- Online advertising
-- Other
-- This offering has helped establish Tencent as the leading IVA company in China


- The company believes its business model to be unbalanced
-- IVAs represent the greatest concentration issue for Tencent
-- The company has also identified its reliance on China as a problem to be addressed
-- This over-reliance is a concern as active user growth in China is slowing


- Strategies have been adopted to counter the issues identified
-- Online advertising is a fast-growing area of operation for Tencent
-- M&A and partnerships as a growth strategy
-- Tencent has benefitted from government incentives
-- The company sees online gaming as a large growth area
-- Tencent is growing its international footprint


- Tencent represents a Chinese success story for the digital age


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Note: Product cover images may vary from those shown


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