Tencent Holdings Limited, frequently branded as Tencent, is a Chinese multinational conglomerate that concentrates on numerous Internet-related services and products. The company was founded in 1998 and has grown into one of the world’s largest and most valuable corporations, with a market capitalization of over $1 trillion as of early 2021 (Ho, 2021). Tencent has numerous value drivers have added to its success over the years, including social networking, gaming, fintech, and cloud computing. One of Tencent’s most substantial value drivers is social networking. The business’s social media platforms, such as WeChat and QQ, are among the most common in China, with over a billion monthly active users (Ho, 2021). These platforms permit the company to amass vast quantities of user data, which the business can leverage for advertising and other determinations (Ho, 2021). In addition to its social media platforms, Tencent possesses numerous other popular social networking products, such as Qzone and Pengyou.
Gaming is another value driver of the company. Tencent is one of the world’s largest gaming companies, with a vast portfolio of widespread games such as PUBG, Fortnite, and League of Legends (Sayibu et al., 2021). The business’s dominance in the gaming industry is a substantial value driver for Tencent, as the gaming market is projected to continue growing in the coming years. In addition to its gaming products, Tencent has substantial investments in other gaming businesses, such as Riot Games and Epic Games. Tencent’s fintech arm, Tencent Financial Technology, is also a substantial value driver for the company as it offers a range of financial products and services comprising mobile payments, wealth management, and insurance (Sayibu et al., 2021). The business’s fintech services are among the most prevalent in China, with over a billion users. Tencent Financial Technology also owns numerous financial services products, such as WeBank and Tencent Credit (Sayibu et al., 2021). Moreover, the company’s cloud computing services are becoming a progressively substantial value driver for the business. It is one of the fastest-growing cloud computing providers in China, providing various services, such as data storage, AI, and IoT. With more companies moving to the cloud, cloud computing services are anticipated to become a progressively substantial part of their business.
To guarantee that these value drivers remain intact, Tencent operates under normal conditions by capitalizing deeply on research and development, maintaining a strong emphasis on innovation, and continually pursuing to advance its services and products. The company has a large team of researchers and developers working to create new technologies and advance existing ones. In addition, Tencent is recognized for its corporations with other businesses in numerous industries, such as healthcare and education, to develop new products and services. Additionally, Tencent’s strong corporate culture highlights teamwork, communication, and collaboration. This culture aids in guaranteeing that the business’s numerous units work together efficiently to accomplish shared objectives. Tencent’s leadership team is recognized for its emphasis on long-term growth, which permits the business to weather market variations and invests in strategic prospects. This approach has helped Tencent become one of the world’s most effective and valuable businesses. However, the company made gains and faced challenges posed by the COVID-19 pandemic, which required a response, thus influencing the brand.
Impact of COVID-19 Impacts
The COVID-19 pandemic brought severe and profound effects on businesses across the globe, including Tencent, one of China’s largest technology businesses. As a conglomerate, Tencent functions in various industries, including social media, gaming, and online payment systems. The pandemic made it hard for many businesses to perform their activities, control the spread of the virus and introduce stringent measures such as restrictions on movement, which affected the performance of businesses and overall profits of the business (Sayibu et al., 2021). However, the pandemic substantially affected Tencent’s business as it increased demand for its services (Sayibu et al., 2021). As people worldwide have been forced to spend more time at home due to lockdowns and social distancing measures, they relied more heavily on technology to stay connected with friends and family and access news and information. This led to a surge in the usage of Tencent’s social media platforms, such as WeChat, which became a vital tool for communication during the pandemic. In addition, Tencent’s online gaming business saw a substantial demand increase as people sought out habits to stay entertained while stuck at home.
However, the pandemic also presented substantial challenges for Tencent’s business, including major disruptions to its supply chains, as factories and logistics networks worldwide shut down, with others slowing down their activities. This led to interruptions in the production and delivery of Tencent’s hardware products, such as gaming consoles and mobile phones. Additionally, the pandemic led to a downturn in the global economy, which had a ripple effect on Tencent’s business. This is because businesses worldwide were forced to close their doors, and millions of people lost, thus reducing disposable income to purchase leisure activities amenities such as gaming and other entertainment.
Additionally, the pandemic led to the company’s shift to remote work. Like many other businesses, Tencent had to acclimate to remote working arrangements, as employees work from home to prevent the spread of the virus (Wiranota & Wijaya, 2021). While Tencent could continue with its operations with a largely remote workforce, it presented new challenges, such as the requirement to guarantee that personnel have the indispensable technology and infrastructure to work efficiently from home (Sayibu et al., 2021). Additionally, remote work also presents challenges associated with communication and collaboration, which are important for the achievement of any business (Wiranota & Wijaya, 2021). Moreover, the pandemic substantially affected Tencent’s corporate social responsibility efforts. As an accountable corporate citizen, Tencent donated millions of dollars to support the fight against the virus, including funding for medical research, donations of medical equipment, and support for frontline healthcare workers. Furthermore, Tencent has worked to promote public health and safety through its platforms, such as by providing precise facts.
Managing COVID-19 Impacts
Tencent, one of China’s leading technology companies, has continued to actively undertake measures to manage the impact of COVID-19 since the outbreak began (Sayibu et al., 2021). The business has taken numerous methods to guarantee its workers’ safety and continue its operations while preserving its value drivers. The company regularly disinfected public areas daily, offered employees masks weekly, placed hand sanitizers, and ensured the temperature before entering the premises (Wiranota & Wijaya, 2021). Additionally, to understand their employees’ health situation timely and accurate, they built regular check-in surveys to generate a pass that allowed employees to enter the company’s office (Wiranota & Wijaya, 2021). However, the privacy of individuals was carefully considered following applicable local health laws. The company also launched a compulsory course for all staff on Covid-19 policies and guidelines and an internal learning platform and materials.
Additionally, to guarantee the continuity of its operations during the pandemic, Tencent took numerous measures to protect its workers and maintain its business activities. The company applied a remote work policy for its workers and offered them the required tools and infrastructure to work from home. This aided in guaranteeing the safety of its personnel while guaranteeing that its operations were not affected. Tencent also launched several creativities to aid small businesses during the pandemic. The business offered free online resources and tools to aid small businesses in setting up online stores, creating marketing campaigns, and managing their finances. Tencent also waived fees for merchants using its payment services and offered low-cost loans to small businesses affected by the pandemic.
Moreover, Tencent has taken numerous measures to preserve its value drivers during the pandemic. One of the crucial value drivers for Tencent is its gaming business, which has seen a surge in demand during the pandemic as more people stay at home (Sayibu et al., 2021). To exploit this trend, Tencent launched numerous new games and expanded its prevailing portfolio to cater to customers’ changing requirements. Tencent also leveraged its social media platforms, such as WeChat and QQ, to offer users online entertainment and socializing selections during the pandemic. The business launched numerous new structures on these platforms, such as online concerts, virtual reality experiences, and live streaming events, to retain users engaged and interested (Sayibu et al., 2021). In addition to its gaming and social media businesses, Tencent’s online advertising business has also been a key value driver for the company. To preserve this business during the pandemic, Tencent launched numerous new advertising products and services to aid businesses in reaching their target audience online (Wiranota & Wijaya, 2021). The company also offered free advertising credits to small businesses to aid them in promoting their products and services during the pandemic.
Managing COVID-19 Crisis
The company’s extensive reach and resources have permitted it to launch several initiatives to mitigate the pandemic’s effect on communities and businesses. Tencent’s response to the pandemic has been multi-layered. The corporation has donated millions of dollars to relief efforts, including funding the purchase of medical supplies and equipment and offering financial support to vulnerable communities (Wiranota & Wijaya, 2021). Tencent has also sprung several digital initiatives directed at helping businesses and persons navigate the crisis. These comprise a health code system that permits persons to track their health status and travel history, a platform connecting medical workers with patients, and a virtual reality classroom platform to support remote learning (Ho, 2021). Additionally, to manage the crisis, Tencent has been proactive and responsive. The company quickly identified the scale of the challenge posed by the pandemic and took early phases to support relief efforts. Tencent also established flexibility and adaptability in its response, launching new initiatives and partnerships as the condition changed (Wiranota & Wijaya, 2021). Conversely, there have been some criticisms of Tencent’s crisis management. Some have raised apprehensions about the business’s domination in the Chinese tech industry, arguing that Tencent’s resources and sway have permitted it to control the response to the pandemic (Ho, 2021). Questions about the business’s data privacy practices have also been raised, predominantly relative to its health code system.
From my assessment, Tencent has largely managed the COVID-19 crisis. The company’s comprehensive resources and reach have permitted it to launch various initiatives to mitigate the control of the pandemic (Ho, 2021). Tencent’s receptiveness and adaptability have also been commendable, as the business has shown a willingness to launch new initiatives and partnerships to address emerging challenges (Wiranota & Wijaya, 2021). However, there are legitimate apprehensions about the potential monopolization of the Chinese tech industry by Tencent, and the company’s data privacy practices should be closely monitored and evaluated. It can be concluded that the company has played a substantial role in China’s response to the COVID-19 crisis (Wiranota & Wijaya, 2021). The company’s widespread resources and reach have permitted it to launch a wide range of initiatives to mitigate the pandemic’s effect on communities and businesses. While there are legitimate apprehensions about the potential monopolization of the Chinese tech industry and the business’s data privacy practices, Tencent’s general response to the crisis has been proactive, responsive, and largely successful.
Brand Image
During the pandemic, the company’s actions have been subject to varied opinions, with some arguing that its activities have heightened its image. In contrast, others believe that its reputation has been stained. Some believe that Tencent has substantially assisted China’s fight against the virus (Sayibu et al., 2021). The company has given billions of yuan to support medical services and frontline workers, offered technical support to the government, and utilized its digital competencies to offer innovative solutions to aid persons in coping with the pandemic. For instance, the company’s WeChat app has been applied to track the spread of the virus and offer users real-time information (Sayibu et al., 2021).
Additionally, Tencent has collaborated with the Chinese administration to launch a health code system which permits persons to substantiate their health status and travel freely within the nation. These determinations have been extensively praised and have cemented Tencent’s image as an accountable and dependable corporate citizen in China. Moreover, Tencent has also offered financial assistance to small and medium-sized enterprises (SMEs) affected by the pandemic (Sayibu et al., 2021). For instance, in April 2019, Tencent announced about 100 billion yuan ($14.2 billion) investment plan to assist SMEs in China. The funds were distributed to support SMEs in industries harshly compressed by the pandemic, such as transportation, catering, and tourism. Tencent’s support for SMEs was widely cherished, as these businesses are the backbone of China’s economy and have relentlessly been affected by the pandemic.
However, some individuals hold a different opinion as they believe that the company’s handling of censorship and misinformation on its platforms during the pandemic was ill-informed, thus receiving critics (Ho, 2021). Tencent’s WeChat app, which has over a billion users in China, was indicted of censoring content connected to the virus and suppressing information about the outbreak. This led to apprehensions about the corporation’s pledge to free speech and transparency. Additionally, the company was and continues to be accused of being too dependent on artificial intelligence (AI) to regulate content on its platforms leading to censorship of legitimate content (Ho, 2021). Tencent’s censorship practices have been disputed, with some calling for more transparency and answerability in the business’ content moderation practices. Additionally, the company was criticized due to the benefits it accrued in its gaming business, as it saw a surge in demand during the pandemic (Ho, 2021). Individuals believe that the company’s games which are highly addictive, have led to increasing screen time which may have a negative significance for mental health.
Moreover, there are apprehensions that Tencent’s games may inspire excessive spending by users, predominantly children (Sayibu et al., 2021). The company’s gaming business has been subject to regulatory scrutiny for years, and the corporation has been asked to take the necessary measures to address these apprehensions. Thus depending on which one is looking at the company, it may have improved or tarnished its global image.
The company continues to make major strides in advancing the technology and services it offers its clients. The company’s future projections encompass a continued concentration on innovation and investing in emerging technologies. The company has set its sights on becoming a world leader in artificial cloud computing, intelligence, and smart devices. Additionally, the company accentuated its pledge to develop cutting-edge gaming technologies and expand its game portfolio (Ho, 2021). Tencent is also engrossed in expanding its presence in markets outside China, chiefly in Southeast Asia, Europe, and America. The company has also been dynamically seeking partnerships and acquisitions to improve its competencies and reach in various industries. Tencent’s vision for the future also embraces a strong commitment to social responsibility and sustainable development (Ho, 2021). The company has been tangled in numerous initiatives to support education, poverty alleviation, and environmental protection. By concentrating on innovation, global expansion, and social responsibility, Tencent proposes to maintain its position as a leading technology company for many years.
References
Ho, N. (2021). Capitalizing on the future growth of the eSport industry-Tencent Ltd Company case.
Sayibu, M., Jianxun, C., Akintunde, T. Y., Hafeez, R. O., Koroma, J., Amosun, T. S., & Shahani, R. (2021). Nexus between students’ attitude towards self-learning, Tencent APP usability, mobile learning, and innovative performance. Social Sciences & Humanities Open, 4(1), 100217.
Wiranota, H., & Wijaya, T. T. (2021). The international students’ perception towards online learning using the Tencent meeting during covid-19 outbreak. In Journal of Physics: Conference Series (Vol. 1823, No. 1, p. 012011). IOP Publishing.
write