Abstract
This case illustrated the business ecosystem of WeChat from two perspectives. From an external perspective, the WeChat ecosystem was part of Tencent’s overall ecosystem. Using this perspective, the case examined the external relationships between the WeChat ecosystem and the external environment. Looking closely, the various parties collaborating on the WeChat platform formed an ecosystem. From an internal perspective, the case examined the internal relationships within the WeChat ecosystem. The platform was not a closed, impenetrable ecosystem. Expertise, resources, and value could flow in and out, enabling sharing and exchanges. However, it was not entirely open. Certain boundaries protected the independence and distinctiveness of the WeChat ecosystem. As a result, participants better suited to the nature of the WeChat ecosystem would thrive.
Externally, WeChat was born with the mission of delivering Tencent’s new strategy to encourage openness and sharing, representing Tencent’s determination to change after its former core product, QQ, was accused of monopolistic behavior. Apart from serving the more extensive “Tencent ecosystem,” WeChat was also developing its own ecosystem. The two systems supported and empowered each other. Internally, WeChat helped various types of participants find their most appropriate roles within WeChat. Through product and function design, capacity empowerment, resource channeling, and rulemaking, WeChat ensured there was room for key enterprises, users, distributors, suppliers, and even competitors. All parties would find their proper places. In this newly established value network, WeChat would help capital, information, and traffic flow in an orderly manner. Different parties could seek monetization and exchange value to sustain their survival, co-exist with others, and contribute to a symbiotic environment.
As traffic from individual users peaked, the WeChat ecosystem witnessed a shift toward corporate clients starting in 2017. Such a 2B strategy, however, invariably encountered bottlenecks. A few top players absorbed most of the traffic. WeChat faced the challenge of keeping innovation alive and vibrant within its ecosystem while balancing the development of various parties.
Translated title of the contribution | The WeChat Ecosystem: Unleashing the Potential of the Long Tail to Stay Innovative |
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Original language | Chinese (Simplified) |
Number of pages | 16 |
Publication status | Published - 31 May 2022 |
Case number
ENT-22-916Case normative number
ENT-22-916-CCCase type
Field CaseUpdate date
20/04/2023Supplement
For more details, please visit www.chinacases.orgPublished by
China Europe International Business SchoolKeywords
- Business ecosystem
- Theory of Jobs to Be Done
- Wechat (Weixin)
- anti-monopoly
- ecosystem
- innovation
- platform
Case studies discipline
- Entrepreneurship
- Operations & Management Science
- Strategy
Case studies industry
- Information, Media & Telecommunications
- Other Services