The Study Of The Profit Model Of Tencent

In the early growth of the Internet industry of China, some companies paid most oftheir attention in the pursuit of market share and brand influence, finally, many well-knownInternet companies losed their competency in the battle field due to ignorance of the profitmodel. Nowadays, the entire Internet industry began to pay attention to the profit model;they realized that tailoring the profit model for their own company is the key of sustainabledevelopment. Therefore, more and more attention is paid to the research on the Internetcompany’s profit model by the whole society. However, due to the specialty of the Internetindustry which is far more different from the traditional industries, the study of Internetcompanies requires innovative ideas and practical experience. Tencent is developing withexplosive growth in the last ten years with its lightning speed of development and marketshare,Tencent finally became the outstanding representative of Chinese Internet companies.Then thousands of Internet companies take Tencent’s profit model as their leading example.This paper firstly describes the background, significance and research ideas, methods.And then review and absorb the existing theoretical results profit model based on theconcept of Internet business profit model finally proposed the new definition, summarizingthe characteristics of profitable Internet business model with Tencent as an example. Thepaper analyzes4main business model of Tencent and then gives comments on qualifiedproduct of Tencent. In addition,this paper combined with Tencent2005-2012financial dataanalysis, which summarizes the revelation of its profit model and the existing problems toprovide a theoretical basis and practical experience to the development of the Internetcompanies as well as the improvement of their profit model.