Platform Competition in China: Alibaba vs. Tencent
Case
Teaching Notes
Supplementary Resources
Abstract
The tech giants Alibaba and Tencent compete on many fronts. This case focuses on three areas where they have competed very hard: new retailing, mobile payment, and ride hailing. At the beginning of 2018, Alibaba and Tencent were gathering retail investments in bids to battle each other for shoppers’ digital wallets. Key to the battle is China’s mobile payment market, worth more than 200 trillion RMB (about 29.16 trillion US dollar), where Alibaba and Tencent are going head to head. The giants are not only directly competing in the payment platform area but also extensively fighting in other areas, such as ride hailing, where they invested in and supported Didi and Kuaidi, respectively. To enhance understanding, this case also briefly goes through the history of the two giants. The purposes, methods, and consequences of their platform competition deserve an in-depth discussion.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2026 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1. Milestones of Alibaba
1999
Alibaba Group is established by its 18 founders, led by Jack Ma, working out of Jack Ma’s apartment in Hangzhou. Its first website is English-language Alibaba.com, a global wholesale marketplace.
2001
In December, Alibaba.com surpasses one million registered users.
2003
In May, shopping website Taobao Marketplace is founded, again in Jack Ma’s apartment.
2004
In December, Alipay, currently a related company of Alibaba Group, is launched as a third-party online payment platform.
2008
In April, Taobao Mall (currently known as Tmall), a dedicated platform for third-party brands and retailers, is introduced to complement Taobao Marketplace.
2014
In September, Alibaba Group goes public on the New York Stock Exchange. In October, Ant Financial Services Group, a related company of Alibaba Group that operates Alipay, is formally established.
2015
In February, Alibaba Group and Ant Financial Services Group announce the closing of the restructuring of the relationships between the two companies.
2016
In March, Alibaba Group exceeds 3 trillion RMB ( about 436.16 billion US dollar) in FY 2016 gross merchandise volume (GMV) on its China retail marketplaces and subsequently becomes the largest retail economy in the world.
2017
In June, Alibaba Group officially launches Tmall World, an initiative to serve the 100-million-strong overseas Chinese market worldwide.
Exhibit 2. Milestones of Tencent
1998
In November, Tencent is founded.
1999
In February, Tencent launches an instant messaging service, QQ.
2003
In August, Tencent enters the online games market. In November, Tencent launches a web portal, www.QQ.com.
2004
In June, Tencent is listed on the main board of Hong Kong Stock Exchange.
2005
In May, Tencent launches a multimedia social networking service, Qzone.
2009
In December, Tencent’s annual revenue reaches 10 billion RMB (about 1.45 billion US dollar)
2010
In March, QQ’s peaking concurrent users (PCU) surpasses 100 million.
2011
In January, Tencent launches WeChat.
2013
In January, Tencent’s market capitalization reaches US$100 billion.
2014
In March, QQ’s PCU reaches 200 million.
2015
In September, Tencent’s mobile payment user accounts bound with bank cards surpass 200 million.
2016
In April, Tencent launches Enterprise WeChat on iOS, Android, Windows, and Mac platforms.
2017
Tencent completes the revamp of the newsfeed advertising system and starts to resume monetization at the end of the year.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2026 Sage Publications, Inc. All Rights Reserved
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