The Study Of Tencent's Profit Model And Financial Performance

The development of the Internet is gradually overthrowing people's lifestyles at an alarming rate.The current society has gradually become dominated by the Internet.Many Internet companies have gradually lost their competitiveness because they have excessively pursued market share and branding in the early stages of development.For example,Yahoo,a popular Internet product,gradually faded out of sight,but Tencent,which is an Internet company,has developed very well with its unique profit model.Therefore,many Internet companies began to study and follow Tencent's profit model to better meet their own value and competitiveness.Tencent is currently the best-developed company among Internet companies in China.Therefore,Tencent is a representative company.It can provide reasonable suggestions for Tencent to adjust its profitability model to improve its financial performance and prompt Tencent to continue to develop profit sources.Gradually realize customer value and maximize profits.It can also help to understand the impact of profit model on financial performance,so as to guide Internet companies to better use the profit model to serve the company's actual situation.This article mainly selects Tencent as the research object,uses the inductive deduction method,the case analysis method,and the comparative analysis method to compare the horizontal and vertical analysis of Tencent's profit model,and the impact of the profit model on financial performance.Tencent's profit model is divided into three stages,namely,the start-up period,the development period and the maturity period,and the profit model is compared horizontally.The profit model of the initial stage is mainly based on the profit of the free communication platform dominated by QQ.The model creates the visibility for the company and lays the foundation for the sustainable development in the future.The growth model for the growth period is the profit model for the diversified online life platform.To accumulate a large customer base,it further lays the foundation for the later development;the mature profit model is open.In terms of the profit model of the Internet ecosystem,Tencent has started a large number of mergers and acquisitions and investments in order to further stabilize its position and enhance the company's value and profits.At the same time,it compares Tencent's profit model with Yahoo's profit model and concludes that Tencent's progress in the company's development progressed with the times and adjusted in time.Yahoo,on the other hand,did not adjust the profit model in a timely manner,resulting in financial performance.Decline.By comparing and analyzing the impact of changes in the profit model of Tencent on financial performance,it is concluded that the reform of the profit model enhances the company's ability to resist risks and enhance the company's ability to sustain development.Conversely,financial performance provides sufficient space for changes in the profit model.