Tencent and We chat case analysis and evolution

Tencent and We chat case analysis and evolution

1. Abstract

2. Business Model Canvas – We Chat Source: https://www.bizshakalaka.com/home/business-model-canvas/bmc-01-framework-2/use-cases-of-business-model-canvas/super-apps-we-chat-explained-using-business-model-canvas/#google_vignette

3. Political Factors: Stable political and legal environment with minimal risks of conflict. Economic Factors: Monitoring forex movements and consumer disposable income levels is crucial. Social Factors: Understanding consumer behaviour and demographic shifts can help tailor services. Technological Factors: The adoption of 5G and advancements in AI and machine learning present significant opportunities.  PESTEL ANALYSIS

4. Environmental Factors: Consumer activism and environmental regulations can impact branding and costs.  Legal Factors: Varying health and safety norms and property rights issues across markets. PESTEL ANALYSIS

5. Threat of New Entrants: Moderate, due to WeChat's established user base and ecosystem. Bargaining Power of Suppliers: Low, as Tencent has significant leverage. Bargaining Power of Customers: High, given the availability of alternative platforms. Threat of Substitute Products: High, with numerous messaging and social media apps. Industry Rivalry: Intense, with major global and local competitors. Porter Five Forces Analysis

6. 1. International Expansion: Hire international talent and adapt strategies to local markets. 2. Enhance Profitability: Focus on innovative business models and monetization strategies. 3. Leverage AI: Invest in AI to improve service offerings and user experience. 4. Mobile Strategy: Develop a robust mobile-first approach to stay competitive. Strategic Recommendations

7. User base of Major Messaging Apps in China 2013 30M 60M 50M 700M 300M

8. User base of Major Messaging Apps in China 2024 2000M 1300M 1260M 700M 260M 178M

9. The Growth Rate of China Mobile Market

10. Time Spent on Apps on Smartphone

11. Usage of Social Apps

12. Three Big Profits of WeChat 5.0

13. Growth of Users

14. Percentage of Global Smartphone users who have used App in Q2 2013