Rivalry Among Existing Competitors

Rivalry Among Existing Competitors 
Over the past few years, few foreign gaming brands have entered the Chinese market and therefore, competition has slightly increased. These few competitors have a large market share. Notably, the products offered in this industry are highly differentiated with each big firm offering its own unique products. Currently, Tencent Games focuses on this force through product differentiation. To address the issue of rivalry, Tencent Games should focus on new customers rather than winning the ones from rival companies.
Threat of Substitutes
There exists few substitutes to the products offered by Tencent Games. The few substitutes available are also provided by low profit earning businesses. The few substitutes such as small games are of high quality but expensive. Therefore, the threat of substitutes in this industry is low. Tencent Games has been addressing this threat through the provision of high-quality products to its customers. Buyers, therefore, opt for its quality and cheap products over the substitutes. A recommended competitive position is that the company should keep differentiating its products so that consumers see its products as special and avoid shifting to substitutes.

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