Strategy for enhancing competitiveness of innovative enterprises in the «Internet+» era

Abstract

Enterprise competitiveness, as conceptualized through Porter’s Five Forces and the resource-based view, is fundamentally rooted in an organization’s ability to leverage unique assets while mitigating external threats. Tencent’s dominance in the digital ecosystem – exemplified by WeChat’s 1.319 billion monthly active users and its gaming revenue of RMB 123.9 billion in 2022 – demonstrates the power of network effects and proprietary technologies. However, the decline in QQ users (from 647.1 million in 2022 to 522.1 million in 2024) highlights the vulnerability of relying on homogeneous products in saturated markets. This duality underscores the necessity for enterprises to balance core competencies with agility in adapting to shifting consumer preferences and regulatory landscapes. Digital transformation, particularly in fintech and cloud services, has emerged as a cornerstone of Tencent’s competitive strategy. The company’s financial technology and enterprise services segment grew to 30.74% of total revenue by 2021, driven by innovations such as WeChat Pay and Tencent Cloud. Yet, the overreliance on gaming revenue (31.12% in 2021) exposes systemic risks, especially under tightening regulations like China’s 2021 restrictions on minors’ gaming time. To mitigate such risks, enterprises must diversify revenue streams by expanding into high-growth sectors. Tencent’s data assets, quantified through the Analytic Hierarchy Process (AHP) and fuzzy evaluation as contributing 7.22% to total assets (valued at RMB 114.13 billion), represent untapped potential for B2B monetization in healthcare and smart logistics. Standardizing data governance frameworks, such as adopting ISO 8000 standards for accuracy and security, could further enhance the commercial viability of these assets. The Balanced Scorecard framework reveals critical vulnerabilities across Tencent’s operational dimensions. Financially, the 11.3% year-on-year decline in operating cash flow (2021) and rising short-term debt (RMB 28 billion in 2022) signal liquidity strains. Customer-facing risks include intensifying competition from ByteDance’s Douyin, which has eroded Tencent’s advertising revenue through its dominance. Internally, cybersecurity threats—such as server instability affecting 597 million QQ users—and intellectual property disputes threaten operational continuity. Talent retention further complicates growth, with 27,000 new hires in 2021 straining management capacity, while R&D investment (9.24% of revenue) lags behind peers like NetEase (16%). Addressing these challenges requires institutionalizing a Strategic Risk Management Committee to oversee cross-departmental mitigation efforts and real-time analytics via tools like RTX for proactive monitoring.