China Mobile and Tencent QQ.

The road to competition and cooperation between China Mobile and Tencent QQ Abstract: The financial crisis caused by the US subprime mortgage crisis has caused heavy damage to the global economy, and the communications and IT industries have also inevitably been affected. Under these conditions, China Mobile and Tencent, two leading companies in the communications and Internet fields respectively, achieved relatively good results in 2008. The two companies have some fundamental similarities, have relatively close cooperation, and also compete in some areas. In the long run, the competition and cooperation between these two companies is worth looking forward to. Keywords: China Mobile, Tencent QQ, corporate competition and cooperation. The global financial crisis triggered by the U.S. subprime mortgage crisis has caused heavy damage to the world economy. A large number of banks failed in the United States, and the unemployment rate was as high as 11.2. Many developed economies have also been severely affected by the crisis. The EU's economy is experiencing negative growth, Japan's economy is in severe recession, and some countries such as Iceland and Pakistan are even facing national bankruptcy. China's economy has rapidly turned from inflation to deflation under the impact of this crisis, and pillar industries of the national economy such as steel and real estate have suffered losses. Under such a severe economic situation, China Mobile still achieved group operating income of RMB 412.343 billion in 2008, 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 already occupies an absolutely dominant position in China's communications operation market, with the most abundant capital and cash flow, as well as the largest customer base. Since its establishment in 1999, Tencent has grown rapidly through continuous technological innovation and business innovation. Total revenue in 2008 was RMB 7.1545 billion (USD 1.0468 billion), an increase of 87.2% over the same period last year. Among them, the most obvious increase was the revenue from Internet value-added services, which was RMB 4.915 billion (USD 719.1 million), an increase of 95.5% over the same period last year [2]. Relying on its stable operation and innovative spirit, Tencent currently ranks first in market value, revenue and profit in China's Internet field. Driven by the company's internationalization strategy, Tencent has become China's largest Internet business group spanning media, entertainment, commerce and communications. Compared with China Mobile's 457 million users in 2008, Tencent has 935 million users. The "Quarterly Monitoring of China's Instant Messaging Market in the Second Quarter of 2008" report released by Analysys International shows that the number of active accounts in China's instant messaging market reached 426 million, a year-on-year increase of 13%. Ranking first with a market share of 80.2%, the market share increased again compared with the first quarter. At the same time, the number of registered users of Fetion Mobile has reached 146.91 million, replacing Microsoft MSN and ranking second, while MSN ranked third with a share of 4.1 [3] . The number of registered QQ accounts recently announced by Tencent reached 934.9 million, and the number of registered active accounts reached 410.8 million. With the continuous integration of the IP and IT industries driven by various value-added applications of the mobile Internet and e-commerce applications, the relationship between communication operators and the Internet The operational boundaries between operators are becoming increasingly blurred. From the perspective of business orientation, China Mobile and Tencent are currently working hard to implement diversification and internationalization strategies. Two companies that rank first in different operating fields, when comprehensively analyzing their corporate operations and management, it is not difficult to find that they*** Both have some distinctive characteristics: 1. Pay attention to customer experience and tailor-made services for customers 1. China Mobile: After Global Communication, it has launched "Global Communication", "China Travel", "M-Zone", "M-Zone", "Global Communication" and "M-Zone" for different customer groups. With brands such as "Monternet", China Mobile has attracted a large number of customers with different levels of demand through measures such as packages of different brands and different consumption levels, redemption of points for airtime charges, and MOU value for airtime charges. 2. Tencent: Comprehensively meeting all application needs of Internet users has always been Tencent’s goal. Tencent's "Sousou", Tencent's "Paipai", Tencent's "Qiaobao", Tencent's "Taotao", Super Tornado and other applications have become fashionable applications among netizens. In terms of access traffic, Tencent has occupied the first place among major domestic portal websites.

Diamond-level services such as red, yellow, green, purple, blue, and black have been launched one after another to provide diamond-level special services and collect service fees for users participating in various games and applications. Purple Diamond is required to participate in games such as QQ Dance, QQ Sonic, QQ Speed, and QQ Hall. To use QQzone space background, space navigation, space animation and other applications, you need to activate the Yellow Diamond service. To use the QQzone space background music application, you need to activate the Green Diamond service. To participate in various large and medium-sized online games owned by QQ, you need to activate the Blue Diamond service. To use QQ Show to dress up your online image, you need to activate the Red Diamond service. Some special online games, such as "Dungeon and Fighter", require the QQ Black Diamond service. To adopt a QQ pet, you need to activate the Pink Diamond service. These diamond-level users can choose to pay the diamond-level user application service fee on a monthly basis, or they can choose to pay in advance quarterly or annually, and they can enjoy different discounts for prepayment. 2. Focus on young customer groups 1. China Mobile: Most of the young customer groups are corporate white-collar workers or students. This group pays attention to novelty and fashion, has a high level of Internet application and a wide range of applications. It is a key group for the application of mobile Internet and mobile value-added services. On the basis of its large customer base, GPRS traffic services such as Mobile Fetion and MMS and M-Zone package services have attracted many young students and white-collar workers to join the customer base. 2. Tencent: In view of the characteristics of young customer groups who like online games, Tencent has independently developed games such as: Dungeon and Fighter, Crossfire, Dance, Free Fantasy, Three Kingdoms, China, Flying Island, Speed, Speed ??of Sonic, QQ Pets, and Hero Island. Waiting game. According to the characteristics of young people who like to show off their individuality and express themselves, we have developed yellow diamond and green diamond services based on QQzone and QQ show red diamond service. 3. Actively and flexibly use advertising methods and pay attention to product publicity and promotion 1. China Mobile: China Mobile Group places fashion advertisements during prime time on CCTV, and relies on the joint operation of a large number of advertisements placed by provincial mobile companies on satellite TV, newspapers and magazines. Its own financial advantage has occupied prime time advertising and has achieved good results. Taking "M-Zone" as an example, China Mobile invited Jay Chou, a fashionable musician loved by the post-80s and 90s generation, as a brand spokesperson. The advertising slogan "My territory, my decision" accurately captures the individual characteristics of young customers who pursue self-pursuit and fashion. 2. Tencent: Users are the communicators and carriers of advertising. Utilize the mutual demonstration effect among QQ show users to develop pink diamond users. Use "QQ Farm", "Friend Buying and Selling", "Grab Parking Space" and other functions in QQzone to invite a friend who successfully participates in the game application, and you will receive 1,000 virtual gold coins. Such stimulation meant that when users surged, Tencent was unable to expand its capacity and even had to suspend some game services to relieve server pressure. 4. Deeply tap the potential of economies of scale and continue to deepen economies of scope 1. China Mobile: After reaching a scale of 457 million at the end of 2008, China Mobile still maintained an increase of almost 7 million users per month in the first three quarters of 2009. On the one hand, we actively expand the user base, and on the other hand, we continue to 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, 12580, mobile advertising, mobile TV, etc., continuously expand the variety of value-added services, expand user usage, and increase customer stickiness. 2. Tencent: Continuously strive to launch new versions with more user-friendly interfaces, better functions, richer applications, and safer uses to stabilize new and old user groups. Taking QQzone (i.e. QQ Space) as an example, Tencent has also developed many small applications that increase customer perception and increase customer usage time. For example: QQ farm, life tips, horoscopes, friend impressions, friend transactions, QQ music, QQ videos, QQ gifts, parking space grabs and other convenience and entertainment small applications have greatly increased netizens' interaction and online time. 5. 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 services.

In 2008, China Mobile began to trial commercial services such as: mobile mailbox (personal version), mobile map, mobile navigation, mobile securities, mobile payment, car service, directory manager, express, caller SMS receipt, barcode voucher and other services. Started to promote pilot products such as: Olympic ring tones, SMS value-added services (filtering, transfer, warehouse, called SMS receipt, SMS signature file), MMS (roaming greetings, MMS receipt), mobile payment (on-site payment), Global Travel , TD series business, etc., and continue to actively promote cooperation policies between mobile TV and mainstream media such as CCTV and CRI, and obtain corresponding qualifications for mobile advertising business. China Mobile continuously promotes new services through lottery activities to encourage users to use new services, and at the same time increases customer stickiness through point rewards and point redemption for phone bills and gifts. 2. Tencent: A "sense of crisis" from beginning to end, and continuous learning and innovation. As e-commerce business volume continues to hit new highs, Tencent began to expand e-commerce and search engine businesses, and quickly launched Tenpay and Tencent Paipai.com businesses. When we opened an e-mall, we applied the marketing experience of the original QQ Show Mall to the e-mall platform of Paipai.com to challenge websites such as Taobao and Alibaba. It opened its own Tenpay payment platform and began to share a piece of the pie with the Alipay platform. Use QQ pop-up windows, QQ notes and other applications to continuously recommend applications to online users. Tenpay has been introduced into the payment process for QQ members, QQ Show and QQ diamond customers to cultivate customers’ payment habits. Currently, Tenpay has become the domestic payment application system second only to Alipay in terms of market share. Tencent regards talents as its first wealth. Since the establishment of Tencent Academy in August 2007, focusing on the core goal of "cultivating more and better talents for the company", the academy has been committed to building a "learning organization with Tencent characteristics". Make full use of the company's internal and external resources to provide employees with various training and learning opportunities, providing strong talent support for the company's long-term development. 6. Focus on the long term and plan for the future 1. China Mobile: China Mobile has been selected as one of the Fortune 500 companies in the United States for 8 consecutive years, ranking 55th in the latest ranking. For the third consecutive year, it has entered the "Financial Times" ranking of the world's strongest brands, ranking 5th in brand value (US$57.2 billion). [4] In order to maintain its dominant position in the industry chain, as early as 2006, China Mobile proposed a transformation strategy from "mobile communications expert" to "mobile information expert". Begin to make a comprehensive layout in the mobile Internet field. We will start with content integration and aim to be an integrator, editor and distributor of various value-added application contents. China Mobile acquired 19.9 shares of Phoenix TV to strengthen industrial alliances. Independently developed and launched IM Fetion software for free, it made communication from PC to mobile phone, PC to PC, and mobile phone to mobile phone more convenient for China Mobile users, and soon occupied the second user share in the domestic IM communication market. As a major shareholder, it established Aspire Technology Company in partnership with Vodafone, Merrill Lynch, HP and other companies, focusing on building a wireless music platform and operating the "Moneternet" business. China Mobile's goal is to occupy a dominant position in the future mobile Internet market, strengthen its ability to control the upstream and downstream of China's mobile Internet industry chain, enhance its voice, and enhance the company's overall competitiveness. 2. Tencent: Tencent became the only Internet company in the world to be included in the "2009 Hurun Corporate Social Responsibility Top 50" released by the Hurun Research Institute. Regarding Tencent's plan for the next 10 years, Ma Huateng said: "Comprehensive branding and expansion of user base." Based on this strategy, while Tencent is fully deploying its business in China, Tencent has launched an English version of its application and begun to enter the international market. Tencent Q Q English version installation software is only 13M. Compared with msn's 132M installation package, QQ appears to have more functions and is lighter. 7. The strong competition between China Mobile and Tencent. There is no doubt that the emergence and widespread application of IMs such as Tencent QQ and msn have greatly impacted the voice business market of telecom operators, but at the same time it has also promoted the development of telecom operators. The quality of services such as video and voice has been comprehensively improved.

China Mobile and Tencent have been cooperating for many years. From the initial cooperation on mobile phone payment for QQ number application fees, QQ membership fees, Q Diamond application fees, etc., in 2007, Mobile Fetion cooperated with QQ to open QQ Fetion business and realize business interoperability with each other. , achieve maximum enjoyment among customer groups. QQ Mobile is also constantly launching new versions. People can choose to use QQ Mobile to chat or Fetion. When developing in the same IM field, whoever has advantages in convenience and tariffs will be more likely to win users and win the market. Some experts predict that the current IP and IT markets are on the road to integration, and the future competition in the communications and Internet markets will be competition in business integration capabilities. With the continuous advancement of my country's three-network integration policy, the integration of television, telephone, and Internet application networks and services is accelerating. On the one hand, Fetion Mobile is trying its best to catch up with Tencent QQ in the IM market, and has accelerated the development and application promotion of data value-added services after obtaining the 3G license. While promoting full-service operations, it has continuously strengthened its control over the terminal field. On the other hand, Tencent QQ is also fully deploying Internet services, occupying any market that may be penetrated, and strengthening application promotion in various industries. For example, Tencent Enterprise Edition applications are 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 Tencent website, named "3g.qq.com". At present, Tencent is strengthening its strength as an advertising media, deepening its services on Internet e-commerce, information, payment and other platforms, and striving to stabilize and strengthen its leading position in the field of Internet operations. China Mobile is also actively promoting full-service operations, deepening and expanding various value-added business applications, and at the same time leveraging its own advantages in the capital market, acquiring and investing in some upstream and downstream industrial enterprises to strengthen its operational advantages. 8. Conclusion The cooperation and competition between China Mobile and Tencent will continue. Perhaps such competition is not the best way to develop. In the author's opinion, under the current situation where Tencent's stock market value is not too high, if China Mobile and Tencent are integrated, China Mobile's rapid penetration into the Internet industry chain and the completion of China Mobile's equity participation in Tencent, or acquisitions and mergers Expansion is undoubtedly a good choice for China Mobile. The issuance of 3G licenses and full-service operations will change the structure of China's communications operation market. With the development of technologies and services such as 3G and even 4G, various value-added applications of mobile Internet are also emerging in endlessly. In the future mobile Internet era, as China's No. 1 mobile Internet market share, Tencent will continue to promote internationalization and rely on its strong profitability to grow into a company that can compete with China Mobile after the three networks are integrated. Competing with competitors in the market, or even surpassing China Mobile, seems to be a very interesting question. If China Mobile acquires Tencent, it will help Tencent avoid the many risks it faces from international and domestic competition during its development. For Tencent, QQ has become a daily necessities for many Internet users, and it will also have great development in the future. space. Between China Mobile and Tencent QQ, it is worth looking forward to how to achieve corporate development and efficient operations in the future, and how to achieve more mutually beneficial corporate competition.