A Research Of Network Company’s Profit Model

With the development and progress of science and technology, as a new technology, Internet is increasingly popular in the global, greatly influencing and changing people’s life style. Internet even has become the most important part of people’s life, study, work, or social carrier. And at the same time, network companies whose main business is Internet related arises at the historic moment. Although China’s Internet industry started relatively late, through drawing lessons from foreign mature profit models, being agents for latest applications, games and software abroad, combining with the huge domestic market developing and aboriginal creating, the Internet industry gradually successfully completed the primitive accumulation of capital.Any enterprise’s main purpose is for profit, and long-term and stable earnings is not accidental, which needs a relatively fixed and specific profit model with a range of environmental adaptability and timeliness, and it can make the enterprise be in impregnable in the competition. Among many domestic Internet companies, Tencent has outshone others and made huge success during more than one decade. The success which made Tencent become one of the finest examples of Internet industry is originated from the successful positioning of its profit model and from successful transformation,This thesis combining domestic and foreign researches tried to find out the current main profit model of Internet companies. And it has analyzed the definition and essential factors of profit model, used PEST analysis, SWOT analysis for the qualitative study and DuPont method for quantitative study targetedly through comparing various analysis methods. Lastly, it made a comprehensive analysis including corresponding countermeasures and suggestions for the success and the existing problems of Tencent, drew a conclusion and look forward to the future of Internet industry.