China Mobile and Tencent QQ.

the road of co-operation between China Mobile and Tencent QQ Abstract: The financial crisis triggered by the subprime mortgage crisis in the United States has dealt a heavy blow to the global economy, and the communication and IT industries are inevitably affected. Under this condition, China Mobile and Tencent, two leading enterprises in the fields of communication and Internet respectively, achieved good results in 28. The two companies have some similarities, close cooperation and competition in some fields. In the long run, the road of competition and cooperation between these two enterprises is worth looking forward to. Keywords: China Mobile, Tencent QQ, competition and cooperation between enterprises The global financial crisis triggered by the subprime mortgage crisis in the United States has dealt a heavy blow to the world economy. In the United States, a large number of banks closed down, and the unemployment rate was as high as 11.2%. Many developed economies have also been seriously affected by this crisis. The EU's economic growth is negative, Japan's economy is in serious recession, and some countries such as Iceland and Pakistan are even facing national bankruptcy. Under the impact of this crisis, China's economy has rapidly turned from inflation to deflation, and pillar industries of the national economy such as steel and real estate have suffered losses. In such a severe economic situation, China Mobile still achieved the group's operating income of RMB 412.343 billion in 28, an increase of 15.5% over the previous year. Net profit reached RMB 112.793 billion, an increase of 29.6% over the previous year [1]. China Mobile has occupied an absolute dominant position in the communication operation market in China, with the strongest capital and cash flow, and the largest customer scale. Since its establishment in 1999, Tencent has developed rapidly through continuous technological innovation and business innovation. The total revenue in 28 was RMB 7,154.5 million (US$ 1,46.8 million), an increase of 87.2% over the same period last year. Among them, the most obvious increase is that the income from Internet value-added services is RMB 4,915. million (US$ 719.1 million), an increase of 95.5% over the same period of last year [2]. With its steady operation and innovative spirit, Tencent is currently ranked first in market value, revenue and profit in the Internet field in China. Driven by the company's internationalization strategy, Tencent has become the largest commercial group across media, entertainment, business and communication in China. Compared with China Mobile's 457 million users in 28, Tencent has 935 million users. According to the report "Quarterly Monitoring of China Instant Messaging Market in the Second Quarter of 28" released by Analysys International, the number of active accounts in the instant messaging market in China reached 426 million, up 13% year-on-year. Ranked first with a market share of 8.2%, and the market share increased again compared with the first quarter. At the same time, the number of registered users of Mobile Fetion has reached 146.91 million, replacing Microsoft MSN, ranking second, while MSN ranked third with a share of 4.1% [3]. Tencent recently announced that the number of QQ registered accounts reached 934.9 million, and the number of registered active accounts reached 41.8 million. With the continuous integration of IP and IT industries driven by various value-added applications of mobile Internet and e-commerce applications, the operational boundaries between communication operators and Internet operators are increasingly blurred. From the business orientation, China Mobile and Tencent are both striving to implement diversification and internationalization strategies. When analyzing their business operations and management comprehensively, it is not difficult to find that they have some distinctive features: 1. Pay attention to customer feelings and tailor-made business for customers. 1. China Mobile: After GSM, Brands such as Global Connect, Shenzhouxing, M-Zone and Monternet have been launched for different customer groups. China Mobile has attracted a large number of customers with different levels of demand through different brands and different levels of consumption packages, and through measures such as exchanging points for phone bills and MOU values for phone bills. 2. Tencent: It has always been Tencent's goal to fully meet all the application needs of Internet users. Tencent's "Sousou", Tencent's "Pat", Tencent's "Ask", Tencent's "Torrent", Super Cyclone and other applications have become fashionable applications among netizens. As far as access traffic is concerned, Tencent has occupied the first place among the major domestic portals. Red, yellow, green, purple, blue, black and other drilling services have been launched one after another, providing special drilling services for users participating in various games and applications and collecting service fees. You need to open purple diamonds to participate in QQ Hyun Dance, QQ Sonic, QQ Speeder, QQ Hall and other games. The use of QQzone spatial background, spatial navigation, spatial animation and other applications requires the opening of yellow diamond service. To use the space background music application of QQzone, you need to open the green diamond service. To participate in various large and medium-sized online games that QQ belongs to, you need to open the blue diamond service. To use QQ Show to dress up your online image, you need to open a red diamond service. Some featured online games, such as "Dungeons and Warriors", need to open QQ black diamond service. To adopt a QQ pet, you need to open pink diamond service. These drilling users can choose to pay the application service fee of drilling users on a monthly basis, or they can choose to pay in advance on a quarterly or annual basis, and they can enjoy different benefits in advance. Second, focus on young customers 1. China Mobile: Most of the young customers are white-collar workers or students. This group, which pays attention to novelty and fashion, has a high level of Internet application and a wide range of applications, and is a key group for the application of mobile Internet and mobile value-added services. On the basis of customer scale, GPRS traffic services such as mobile Fetion and MMS and M-Zone package service have attracted many young students and white-collar workers to join the customer base. 2. Tencent Company: According to the characteristics that young customers like online games, Tencent has independently developed such games as: Dungeon and Warriors, Crossing the Fire Line, Hyun Dance, free fantasy, Three Kingdoms, Huaxia, Flying Island, Speeding, Sonic, QQ Pets, Hero Island, etc. According to the characteristics of young people who like to publicize their individuality and express themselves, we have developed yellow diamond and green diamond services and QQ Xiuhong diamond services based on QQzone. 3. Actively and flexibly use advertising means, and attach importance to product promotion and promotion. 1. China Mobile: China Mobile Group put fashion advertisements in prime time of CCTV, and with the help of the joint operation of a large number of advertisements put by provincial mobile companies in satellite TV, newspapers and magazines, it used its own financial advantages to occupy prime time advertisements, which has achieved good benefits. Taking "M-Zone" as an example, China Mobile invited Jay Chou, a favorite fashion musician after 198s and 199s, as its brand spokesperson. Taking "my site, I am the master" as the advertising word, we accurately grasped the individual characteristics of young customer groups pursuing self and fashion. 2. Tencent: Users are the disseminators and carriers of advertisements. Use the mutual demonstration effect between users of QQ Show to develop users in pink diamond. A friend who successfully participates in the game application by using the invitations of "QQ Farm", "Friends Buying and Selling" and "Grab Parking Space" in QQzone will receive 1 virtual gold coins. This kind of stimulation made Tencent once too late to expand when users surged, and even had to suspend some game services to ease the pressure on the server. China Mobile: After reaching the scale of 457 million at the end of 28, China Mobile still maintained an increase of 7 million users almost every month in the first three quarters of 29. On the one hand, actively expand the scale of users, on the other hand, constantly tap the potential of value-added services. Actively launch new applications such as mobile newspaper, mobile Fetion, MMS, mobile WAP Internet access, 139 mailbox, mobile map, wireless music, 1258, mobile advertising, mobile TV, etc., and constantly expand the variety of value-added services, expand user usage and increase customer stickiness. 2. Tencent Company: Constantly strive to launch a new version with more friendly interface, more perfect functions, rich application and safer use, and stabilize the new and old user groups. Taking QQzone (QQ space) as an example, Tencent has also developed many small applications to increase customer perception and increase customer use time. For example, QQ farm, life tips, horoscopes, friends' impressions, friends' trading, QQ music, QQ videos, QQ gifts, grabbing parking spaces and other small convenience and entertainment applications have greatly increased the interaction and online time of netizens. V. Continue to promote business innovation, business model innovation and technological innovation 1. China Mobile: The development of mobile Internet has greatly promoted the development of mobile e-commerce and mobile payment business. In 28, China Mobile began to try out commercial services such as: mobile email (personal version), mobile phone map, mobile navigation, mobile phone securities, mobile phone payment, train service, directory manager, newsletter, caller SMS receipt, barcode voucher and so on. We began to promote pilot products such as: Olympic color ring back tone++,SMS value-added services (filtering, transfer, warehouse, called SMS receipt, SMS signature file), MMS (roaming greeting, MMS receipt), mobile payment (on-site payment), Global Companion Bank, TD series services, etc., and constantly actively promoted the cooperation policy between mobile TV and mainstream media such as CCTV and CRI, and obtained corresponding qualifications for mobile advertising business. China Mobile constantly promotes new services through lottery activities to encourage users to use new services, and at the same time, it increases customer stickiness through bonus points and redemption of phone bills and gifts. 2. Tencent Company: A sense of crisis from beginning to end, constantly learning and innovating. With the continuous innovation of e-commerce business volume, Tencent began to expand e-commerce and search engine business, and quickly launched TenPay and Tencent Paipai. Opening an e-mall, the initial marketing experience of QQ Show Mall was applied to the e-mall platform of Paipai.com, challenging websites such as Taobao and Alibaba. Opened its own Tenpay payment platform and began to share a piece of the Alipay platform. Use QQ pop-up window, QQ note and other applications to continuously promote applications to online users. In order to cultivate customers' payment habits, Tenpay has been introduced into the payment links of QQ members, QQ show and QQ drilling customers. At present, Tenpay has become a payment application system second only to Alipay in China. Tencent regards talents as the first wealth. Since the establishment of Tencent College in August 27, around the core goal of "training more and better talents for the company", the college has been committed to building a "learning organization with Tencent characteristics", making full use of the internal and external resources of the enterprise, providing various training and learning opportunities for employees, and providing strong talent support for the long-term development of the enterprise. 6. Focus on the long-term and lay out the future. 1. China Mobile: China Mobile has been selected into the Fortune Global 5 for 8 consecutive years, ranking 55th in the latest ranking. For the third year in a row, it entered the Financial Times ranking of the most powerful brands in the world, ranking fifth in brand value ($57.2 billion). [4] In order to maintain a dominant position in the industrial chain, as early as 26, China Mobile put forward the strategy of changing from "mobile communication expert" to "mobile information expert". Start the overall layout in the field of mobile Internet. Starting with content integration, I am determined to be an integrator, editor and distributor of various value-added application content. China Mobile acquired 19.9% shares of Phoenix Satellite TV and strengthened its industrial alliance. Independent research and development and free launch of IM Fetion software made communication between China mobile users from PC to mobile phone, PC to PC, and mobile phone to mobile phone more convenient, and quickly occupied the second user share in the domestic IM communication market. As a major shareholder, we set up Zhuowang Technology Company in partnership with Vodafone, Merrill Lynch, Hewlett-Packard and other companies, focusing on building a wireless music platform and operating Monternet business. The goal of China Mobile is to occupy the dominant position in the future mobile Internet market, strengthen its control ability over the upstream and downstream of cmnet's industrial chain, enhance the right to speak and enhance the comprehensive competitiveness of enterprises. 2. Tencent: "Top 5 Hurun Corporate Social Responsibility in 29" published by Hurun Research Institute, Tencent became the only Internet company in the world. Regarding Tencent's plan for the next 1 years, Ma Huateng said: "Brand is comprehensive and user base is expanded". Based on this strategy, Tencent launched an English version of the application and began to enter the international market while fully deploying its business in China. Tencent Q Q English version of the installation software is only 13M. Compared with msn's 132M installation package, QQ is more functional and lighter. Vii. Strong Competition and Cooperation between China Mobile and Tencent Undoubtedly, the emergence and wide application of IM such as Tencent QQ and msn have greatly impacted the voice service market of telecom operators, but at the same time, it has also promoted the overall improvement of the quality of telecom operators in video and voice services. China Mobile has cooperated with Tencent for many years, from the initial cooperation of paying the QQ number application fee, QQ membership fee and Q-level application fee by mobile phone, to 27, Mobile Fetion cooperated with QQ to open the QQ Fetion service, realizing business interoperability with each other, and reaching the customer base * * *. Mobile QQ is also constantly introducing new versions. People can choose to use mobile QQ to chat or Fetion to chat. In the development of the same IM field, whoever is superior in convenience and tariff will be more likely to win users and win the market. Some experts predict that the current IP and IT markets are taking the road of integration, and the competition in the future communication and Internet markets will be the competition of business integration ability. With the continuous promotion of triple play policy in China, the integration of TV, telephone and Internet application networks and services is accelerating. On the one hand, Mobile Fetion tries its best to catch up with Tencent QQ in the IM market, and after obtaining the 3G license, it accelerates the development and application promotion of data value-added services, promotes full-service operation, and constantly strengthens its control over the terminal field. On the other hand, Tencent QQ is also fully deploying Internet services, occupying any market that may penetrate, and strengthening the application promotion of various industries. For example, the application of Tencent Enterprise Edition is gradually being promoted among small and medium-sized enterprises, occupying the first place in the enterprise IM market. In order to welcome and advocate the development of mobile Internet, Tencent launched the mobile phone Tencent, named "3g.qq.com". At present, Tencent is strengthening its strength as an advertising media, deepening the services of Internet e-commerce, information, payment and other platforms, and striving to stabilize and strengthen its leading position in the field of Internet management. China Mobile is also actively promoting full-service operation, deepening and expanding the application of various value-added services, and at the same time giving play to its own advantages in the capital market, merging and participating in upstream and downstream enterprises in some industries to strengthen its operational advantages. VIII. Conclusion The cooperation and competition between China Mobile and Tencent will continue. Perhaps such competition and cooperation is not the best way to develop. In the author's opinion, in the current situation that the market value of Tencent's stock is not too high, it is undoubtedly a good choice for China Mobile if China Mobile and Tencent realize integration, and China Mobile can complete the rapid penetration and expansion of the Internet industry chain by means of China Mobile's shareholding in Tencent or acquisition and merger. 3G license issuance and full-service operation will change the market structure of China's communication operation. With the development of 3G and even 4G technologies and services, various value-added applications of mobile Internet are emerging one after another. In the future era of mobile Internet, it seems to be an interesting question whether Tencent, which has the largest market share in cmnet, will grow into an opponent that can compete with China Mobile or even surpass China Mobile in the triple play market by relying on its strong profitability in the process of continuous internationalization. If China Mobile acquires Tencent, it will help Teng.