Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some types of shared characteristics.As far as I am concerned, it is crucial for a firm to divide responsibilities effectively and set positions reasonably. For a firm, if the leader is not aware of the importance of job responsibilities, the firm will have problems in the allocation of human resources. What’s more, if the position is not standardized , the responsibility and power of the employees will not be clear.
There are many firms and brands around the world that have excellent segmentations and one of them is Tencent.Tencent Holdings Limited is a Chinese multinational investment holding conglomerate whose subsidiaries provide different Internet-related services, products, entertainment and technology all over the world. Tencent is the world’s biggest investment corporation, one of the largest Internet and technology companies, as well as the largest and most valuable gaming and social media company in the world.On May 18, 2012, Tencent has made the biggest adjustment to its organizational structure in the past seven years, from the original to the business system, which are reclassified as follows:Interactive entertainment business group (IEG) :Tencent interactive entertainment has become the world’s leading integrated interactive entertainment service brand, it covers Tencent game, Tencent literature, Tencent animation, and other interactive entertainment business platforms, commits to provide users with including online games, literature, manga, drama, film and television, such as diversification, high quality comprehensive interactive entertainment experience. Based on the strategy of “entertainment”, Tencent interactive entertainment, based on Internet and mobile Internet domain, create star IP (Intellectual Property rights, Intellectual Property) fans economy, fully embrace new era interactive entertainment, seeking new opportunities in the global interactive entertainment.Mobile Internet business group (MIG) :The business group focuses on the mobile Internet foundation platform, and provides users with safe access to the Internet and finds the Internet contents entry service.At the same time, it explores and hatches new hardware intelligent mobile Internet business.
MIG mainly focuses on four big strategic products, browser, security, business search and the app store platform type. The adjusted MIG layout is more reasonable, and the positioning is more clear. It provides a powerful driving force and guarantee for the development of Tencent mobile Internet. Network media business group (OMG) :Tencent network media serves the global Chinese users. With the three platforms of Tencent, Tencent weibo and Tencent video as the core, it forms a media matrix that can meet the needs of multi-level and multi-dimensional users, and is committed to becoming the most influential online media platform in China.Social networking business group (SNG) :Social network business group is based on the QQ and QQ space to build a great social platform, to provide users with excellent communication and social networks and other comprehensive services, value-added services, to expand innovation driven company open platform strategy and to create more value for customers and partners.WeChat business group (WXG) :As the most popular mobile social platform, WeChat, launched by Tencent in early 2011, is changing the way people communicate and live.
In the fourth quarter of 2013, WeChat had 355 million active users. With WeChat public platform, many enterprises provide users with more customized and secondary innovative service experience, and users can experience a more convenient mobile Internet lifestyle through WeChat. On May 6, 2014, Tencent announced the establishment of WeChat business group in charge of WeChat foundation platform, WeChat open platform, and WeChat payment extension, O2O and other WeChat extension business development. It means that WeChat has completed the first stage of incubation, from product upgrading to Tencent’s strategic business system, and fully assisted Tencent in playing a bigger role in mobile Internet.
Enterprise development group (CDG) :The enterprise development enterprise group is the new business incubator and professional support platform of Tencent, which is responsible for cultivating and expanding the new business and international business of Tencent. Meanwhile, it provides strategic and professional support for Tencent’s major businesses. Technical engineering group (TEG) :The technical engineering enterprise group provides Tencent with an all-round operation solution and service support, and operates the largest network, server cluster and data center in Asia. It has the leading infrastructure cloud operation platform, cloud data processing platform, and Internet massive application support service platform, providing cloud billing services and security guarantee for hundreds of millions of users. The technical engineering group inherits the concept of “professional service partner” to escort the business of Tencent.”Organizational design is driven by business strategy and operating environment,” says NaomiStanford, an organisational development expert. For Tencent, whether it’s an early functional organizational structure, or a late-period business system or a career group structure, it’s based on the context in which the environment and the business development strategy has been made, and the organizational structure of a period is likely to be a part of another set of organizational constraints. Therefore, for any organization, changes should be adjusted as an integral part of its long-term management promotion, and develop an organic “adaptive” ability to evolve according to the changes in the environment.
There is no doubt that Tencent made great success in segmentation. But in my opinion, there is a problem of its segmentation that can not be ignored. The network media business group(OMG) needs reorganization. There are some reasons that can account for it. On one hand, Tencent Weibo has almost lost its market shares in Chinese market. In China, Sina Weibo monopolizes the whole market. I didn’t find any research about the comparison about the quantity of customers between Tencent Weibo and Sina Weibo.
Whereas, most of my friends and I choose to use the Sina Weibo. On the other hand, Tencent and Tencent video are not competitive. In China, there are too many social media platforms, like SOHU, BAIDU and so on and too many good video brands, for instance, AIQIYI, YOUKU, BILIBILI, etc.According to current Chinese market, there are two methods, I think, can address the dilemma that the social media group(OMG) faces. Firstly, Tencent can invest lots of money, time and human resources on OMG, especially on Tencent Weibo. Tencent Weibo and QQ are binding.
If Tencent Weibo can make big progress in customer services and model design, the QQ users may be more willing to choose Tencent Weibo rather than Sina Weibo. Secondly, dissolve the Tencent Weibo. In China, Sina Weibo is very hard to surpass since it has built up a large and loyal customer group. If Tencent dissolve Tencent Weibo, it will have more money and resources to set a new part or improve the present highlighting parts like QQ and WeChat. We have to admit that Tencent has made big progress in China even around the world.
Meanwhile, it still has a long way to go, especially in the segmentation part.