HomeResearch & Knowledgeback to Homeback to Research & KnowledgeChina’s Tencent: Leading the way in monetizing platformsback to

Case Study

China’s Tencent: Leading the way in monetizing platforms

By Salvatore Cantale, Ivy Buche and Joel Barbier

17 pages

November 2017

Order this case study

Reference: IMD-7-1936

Worldwide, there is no parallel comparison to China’s Tencent Holdings. The $22 billion tech giant is a collective answer to Facebook, WhatsApp, Spotify, Kindle, Skype, Pinterest, Apple Pay and others. This case explains how Tencent built a digital platform business from scratch over a period of nearly two decades. Undoubtedly, it gained significant benefits from being an early mover in developing a massive one-billion-strong user base on its gaming and messaging platforms. However, what is exceptional about Tencent is that it has been able to successfully monetize its social audience at scale – a tough challenge for most digital platform companies. Tencent’s double digit growth boosted investor confidence that the company would continue to tap the spending power of its users while leveraging the growth potential of its still-nascent advertising and payments businesses. Could the most valuable company in Asia, continue to meet shareholder expectations in 2017 and beyond?

Learning Objective

To illustrate the organizational challenges in large,
Understand the platform business model compared to the traditional pipeline business model
Recognize how network effects create value on a platform
Examine the three types of value that digital disruptors deliver – cost value, experience value and platform value
Comprehend the challenges in monetizing platforms effectively

Keywords

Finance, Gaming, Online Gaming

Settings

Asia, China
Tencent, Information Technology, Internet, Information Technology, Social Networking
2016 - 2017

Type

Published Sources

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Video

What does it take to challenge the impossible?

Physician and Paralympian William Tan shares leadership lessons on resilience, adaptability, overcoming adversity, challenging assumptions and finding purpose

Leadership

By William Tan

in I by IMD

Article

Aikido’s lessons in conflict resolution

Learn how aikido leadership principles help you resolve workplace conflict, respond to resistance, and turn difficult conversations into collaboration.

Leadership

By Francesca-Giulia Mereu and Chip Bond

in I by IMD

Article

Meet the Magnificent 7 of scaling

Explore the Magnificent 7 of scaling: strategy, organization, and leadership practices that drive successful growth.

Entrepreneurship Growth Innovation Leadership Strategy

By Jim Pulcrano

in I by IMD

Case Study

Marvis in America: Can a European competitor disrupt the US toothpaste aisle?

Global Business Branding Marketing

By Douglas Quackenbos, Martin S. Roth and Dominique Turpin

Video

When globalization becomes a geopolitical weapon

IMD President David Bach explores how geopolitical fragmentation is weaponizing economic interdependence, reshaping global operations, and challenging business leaders.

Geopolitics

By David Bach

in I by IMD

Article

Leadership under pressure: Protect your thinking time

Protect thinking time to improve leadership under pressure. Learn how delegation, recovery, and clear boundaries support better decisions when it matters.

Leadership

By Tim Quigley and Nele Dael

in I by IMD

Article

Wasting time? Diagnose yourself

Is your calendar run by others or by you? Use this leadership diagnostic to reclaim time, sharpen priorities, and strengthen decision making.

Decision Making Leadership Work-life Balance

By Tim Quigley and Nele Dael

in I by IMD

Case Study

Ticked off: TikTok vs. the USA

Strategy Geopolitics

By David Bach

Case Study

Alpian: Swiss banking excellence. For all.

Digital Entrepreneurship Strategy Finance

By Benoit F. Leleux and Inna Francis

Podcast

The business case for living longer - What Matters Most

The business case for living longer explored by IMD: how longer lifespans reshape work, healthcare costs, and competitive advantage.

Innovation Leadership Strategy Talent Management Work-life Balance

By Tim Quigley

in I by IMD

Meet the Magnificent 7 of scaling

By Jim Pulcrano
in I by IMD

Summary

Explore the Magnificent 7 of scaling: strategy, organization, and leadership practices that drive successful growth.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Growth

Innovation

Leadership

Strategy

Browse all topics

Marvis in America: Can a European competitor disrupt the US toothpaste aisle?

By Douglas Quackenbos Martin S. Roth and Dominique Turpin
Case reference: IMD-2787 ©2026

Summary

Niccolò Francalanci, General Manager – EMEA & Americas of Ludovico Martelli S.p.A., the maker of Italian Marvis toothpaste, found himself at a crossroads. Francalanci, an experienced marketer, had assumed his current leadership role nearly four years earlier. In 2021 he was recognized by Forbes magazine as one of 'Italy's 100 Most Successful Marketing Directors.' In the early summer of 2026, however, he faced a new and unfamiliar challenge – How should the Marvis premium toothpaste brand go to market in the United States, one of the world's largest and most competitive consumer goods market? As is typical of international expansion initiatives, Francalanci's challenge is one of answering two fundamental and discrete questions. Should he recommend opening a US sales and marketing subsidiary and secondly, which products should he offer – standardized or customized? He must also determine if the US market will accept the current and desired 'premium' positioning. Ultimately, he is tasked with making a recommendation to the company CEO, Giovanni Galeotti.

Reference IMD-2787

Organization Marvis

Industry Consumer Goods

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Global Business

Branding

Marketing

Browse all topics

Wasting time? Diagnose yourself

By Tim Quigley and Nele Dael
in I by IMD

Summary

Is your calendar run by others or by you? Use this leadership diagnostic to reclaim time, sharpen priorities, and strengthen decision making.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Decision Making

Leadership

Work-life Balance

Browse all topics

Ticked off: TikTok vs. the USA

By David Bach
Case reference: IMD-2772 ©2026

Summary

How should firms adapt when geopolitical tensions redefine the rules of competition? This case spotlights TikTok's escalating confrontation in the run-up to and aftermath of the passage of the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) in April 2024. The legislation forced ByteDance, TikTok's Chinese parent company, to either divest its US operations or face a nationwide ban, transforming what began as a relatively technical regulatory review into an existential threat to the platform's continued presence in one of its most important markets. The case traces how concerns over data security expanded into a broader political debate about foreign influence, national security, and control over information flows. As the issue moved from the technocratic arena of the Committee on Foreign Investment in the United States (CFIUS) to the highly politicized setting of the US Congress, the problem itself becomes redefined. Strategies designed to address regulators' initial concerns were no longer sufficient, and TikTok faced a rapidly narrowing set of options. The case invites participants to examine how issues evolve over time and how changing definitions of a problem can transform the strategic options available to firms. It challenges them to look beyond traditional market solutions and adopt a more integrated perspective that considers both market and nonmarket responses. Additionally, it illustrates how framing can redefine the issue, mobilize stakeholders, and expand or constrain the set of acceptable solutions.

Reference IMD-2772

Organization TikTok

Industry Media

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Geopolitics

Browse all topics

Alpian: Swiss banking excellence. For all.

By Benoit F. Leleux and Inna Francis
Case reference: IMD-7-2552 ©2026

Summary

In August 2023, Alpian's founding CEO Schuyler Weiss announced his departure, promoting Gianmarco Bonaita to the role. Alpian had pioneered digital Swiss private banking. With three rounds of financing, a full-fledged Swiss banking license from FINMA and a strategic partnership with Fideuram–Intesa Sanpaolo Private Banking, it also demonstrated a solid B2B potential selling its digital technology. Reinventing the private banking industry for digital natives was no simple feat. Among the most pressing concerns were how to reduce the client acquisition costs, how to diversify private banking services, how broadly to expand Alpian retail services while keeping the costs down and how to develop the fledgling B2B market. Scale was clearly of the essence, and so far it had come at a very high cost. What else could they do to increase brand awareness and client acquisition to accelerate scale up without proportional cost increases? And as if that was not enough, Alpian also had to deal with the agenda of a new majority owner.

Reference IMD-7-2552

Organization Alpian

Industry Finance and Insurance, Banking

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Digital

Entrepreneurship

Strategy

Finance

Browse all topics