In the video I use the Tencent business model canvas to show who it’s key customers are and the value proposition it offers them.
Like most social networks Tencent’s customers are the young and digitally connected. They are mostly chinese, whether in China or part of the chinese diaspora. Unlike other social networks Tencent hasn’t really made the jump into other geographies. Within China it has a defensible position that provides it with a vast base of users that it can monetise.
In short it offers a platform where users can do everything that they want online. As they do so it makes money from upselling microtransaction. This is quite different to western models of social networks. Tencent gets users to pay directly in a freemium style model. Western companies like Facebook provide everything for free and then make money from advertising.
I describe how Tencent communicates with its customers and it’s key marketing and distribution channels. Finally I cover how Tencent monetises its business model.
How does Tencent deliver value to customers?
I then look at the infrastructure side of the Tencent Business Model Canvas to show how it uses key resources to deliver the key activities that are required to keep users engaged on and return to its platforms and the partnerships that it needs to do this. Finally I look at how much this all costs.