Introduction:
Tencent Holding Limited is known as an investment holding firm,principally involved in providing value added and exceptional quality services as well as various online advertising related services. There are three foremost segments which the company has been dealing with; first is the VAS segment which is involved in providing mobile/online games, community value added applications and services across the mobile platform and internet. The online advertisement segment is particularlyengaged in performance and display based advertisement.Other segments are significantly engaged in providing services that are payment related and cloud services.
Tencent is a Chinese company and the world’s biggest multinational organization, it includes some of the largest technology and internet companies. Additionally, it is also most valuable and largest social media and gaming company all around the world. Other services offered by company include mobile games, web portals, multiplayer online games, social network, internet services, smart phones and payment systems, which all seem to be successful and world famous in their categories. It is a fastest growing and a highly leveraged company(Tencent, 2017).
Tencent as a Growing Company in Seven Years:
The company has been putting amajor emphasis to focus on the personalization of the users and provide various integrated solutions. The company have been receiving and leveraging its financial returns through mostly the virtual goods channel.
It has been found that Tencent has been successful throughout its financial performance and its business model among all of its competitors. Tencent has received a high growth rate and profitability as compared to its competitors or companies in China as well as internationally. The company has been seeking to enhance development through providing various value added innovations while launching new brands in the market in order to make it move a step ahead of its rivals.
Moreover, Tencent is a company creating knowledge that works through innovation, imagination, practice and experience. It has specified in the key and core areas of competence for the purpose of achieving a higher growth rate. The company is providing cost effective and unique services that enable the company to overtake its competitors such as sohu.com and SINA Corporation.
Tencent Holdings Limited Harvard Case Solution & Analysis
In addition to this, the company has been providing stiff competition to its competitors mainly in social networking sites and instant messages because it is the biggest and most renowned social media corporation in China. Furthermore, the competitors of Tencent, like SINA Corporation, have never attain substantial growth since the time they began, they were known for operating locally and have no international recognition (Chen, 2017).
Analysis of Financial Statements:
The financial statement analysis of the company helps in evaluating the past financial performance of the company and the prospects of the company for the future. The revenues of year 2017 have been increased to $237,760, which is more than the previous year’s revenues. The total assets have also increased to $554,672. The intangible assets increased from $36,467 to $40,266. The revenue for the VAS business has leveraged to $61,389 in 2017 and the company has also invested more in 2017, i.e. $1376 as compared to 2016, i.e. $1263...............
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