Research on the Evolution of Internet Enterprise Business Model in its Life Cycle——A Case Study of Tencent

Internet enterprise business model has strong plasticity,entrepreneurs should innovate the business model according to the change of internal and external environment.Business model is an architectural structure that organization position and integrate its value,strategy and operation system into a organic integrity,and through offering a series of products or services to realize its goal.By reviewing the papers,we can find that related research of business model is in the ascendant in recent 10 years. In the thesis,We adopted case study method,based on 3-4-8 business model theory,chose a iconic internet company Tencent Holding Co.Ltd(short for Tencent) as the object.From the enterprise life cycle perspective,We explored the innovation of Tencent's business model.induction conditions,characteristic,and the evolution path in different period.Concluded innovation type of business model,and summarized the inspirations that internet enterprises should follow when innovating their business model. Our research was carried out by three steps: Firstly,we reviewed the existing theories at home and abroad,summarize the definition of business model,and presented my definition.Then,used3-4-8business model architectural structures for reference,followed the modular deconstruction thinking,investigated and executed data analysis on 23 modular indexes.On the basis of index values and logical relations,we developed the cobweb model and logical diagram of Tencent's business model,which explained the transformation and logical relations of business model modular index visually.Besides,We analyzed the induction conditions and characteristic. Secondly,based on the change of modular indexes,we identified the innovation type of business model in initiation,growth and mature period are successively reconfiguration,variation and perfection type,which exactly confirm the3-4-8theory.Different level of business model innovation results in different type of enterprise that competes not only on the value proposition of its products or service,but aligns its profit formula,resources,and processes to enhance that value proposition,capture new market segments,and alienate competitors. Thirdly We summarized successful experience and existing problems of business model innovation of Tencent,and concluded inspirations from environment、industry and enterprise level that other internet enterprises should follow when innovating their business model.As a whole,we got four inspirations for business innovation.(i) There coexists opportunity and risk in rapidly developing Internet industry,Innovating business model is a effective way to enhance enterprises' value and competitiveness,it depends on the entrepreneurs'innovation capability.(ii) Innovation of business model is a gradual process,enterprises should make effects to let it more forward-looking,competitive and feasible in every period of life cycle.Enterprise should conduct innovation based on the changes in the external environment especially industry evolution tendency,its resources and life cycle,to make the existing business and newly-build business be more cohesive,to construct the new business model for the development of their own,and push the business model evolves into higher level.(iii) all for the user value,enterprises should enlarge users scale effectrapidly,try their best to be closer to users and stick to them,so that they can have the initiative in hands.Establish innovative products combination of services,the account system,the way of operation to create repeat consumption and composite consumption mechanism,to improve the service of convenience,safety and interesting.(iv) enterprise also should build entering barriers and form a unique business model,so that defense competitors and enjoy excess profit.Build a extraordinary business model can make sustainable competitive advantage,the uniqueness including value proposition,products and services,business process,and means of payment,etc.