Mobile Phone and Mobile Internet Industry Essay

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How will Tencent achieve the close-loop of O2O depend on the WeChat

1 Introduction
Tencent has been one of the biggest Internet corporations for a long time. With the development of Internet in China, Tencent, with Baidu and Alibaba, which is known as BAT, shares the largest market occupancy on the Internet and Mobile Internet industry. Tencent is well known for its WeChat, which provides multimedia communication with text messaging, voice messaging and photo sharing and also provides social networking platform.
However, it is really common that highly successful companies will suffer from survival crisis not existed before and so is Tencent. Tencent has not found its profit model even they had made a great success. This article will use SWOT to analyses the external and internal environment faced by Tencent and evaluate Tencent’s approach to the change. Finally, the essay will evaluate the response.
2 The situation
2.1 An overview of the situation

With the development of mobile Internet industry and e-commerce, Internet corporates are paying more attention on this aspect. Tencent, as the leader of the area, certainly will face some challenges bring by other companies. However, even has a strong user base on the Internet, Tencent has not find the right profit model to achieve the close-loop of O2O.
2.2 Description of the company
Tencent is one of the best Internet companies in China, which provides mass media, advertising and Internet value-added services. The company operates online trading platform, Yixun.com and popular products like instant messaging and gaming service QQ and WeChat.
In January of 2013, WeChat had 300 million users and in July 2013, and Tencent also announced that Wechat had 70 million users outside China, which means that WeChat has influence not only in Mainland China but also in other areas such as Taiwan, India and South-East Asia. Now WeChat is the first mobile phone text and voice messaging communication application in the world by users and downloads in the world

As of November of 2010, the company is the third largest Internet companies in the world behind Google and Amazon with a market capitalization of 38 million dollars.
3 Analysis of the situation
This section will analyse the external and internal situation facing Tencent by using SWOT.
Strength
The rapid expansion of WeChat depends on the large number of users. Users can easily find their friends by synchronizing the contacts on their mobile phones. In addition, WeChat bases on the function of LBS, which means manager of the stores can establish dialogs with customers around their stores. What is more, the function of “Moments” make it possible to conduct word-to-mouth marketing effectively and accurately.
Weaknesses
The instant push feature will confuse customers sometimes when the companies push their information frequently without considering the feeling of customers. Also, customers just get the information from the shop nearby, but there is no difference with advertisings on the Internet and group purchase websites. In addition, the cost for a company to supply services for thousands of people at the same time will increase.
Opportunities
WeChat Marketing is really potential. Compared with the biggest competitor, Sina Weibo, WeChat will make the customer relation management (CRM) more effectively.
With the development of mobile Internet institute, smartphone is more popular among customers than the PC, and with the strong strength at social network, WeChat will bring more convenient to the corporate. If customers can
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