The big players of Chinese internet market are three big firms, TENCENT HOLDINGS ADR (OTCMKTS:TCEHY), Baidu Inc (ADR)(NASDAQ:BIDU) and Alibaba Group Holding Ltd (NYSE:BABA). They are the three giants with powerful presence and big pockets and are feared and loved by entrepreneurs. The companies have the power to choose losers and winners among various startups.
Tencent along with Baidu and Alibaba are so dominant in Chinese internet market that they are popularly called as “BAT.” Also, market participants term them as “Google of China” following the presence they commence over market share search. Tencent is known for its position in the segment of social media while Alibaba is leading firm in e-commerce industry.
The three firms are making substantial investments to scale in the growing Smartphones market. That turns these companies into pioneers among Chinese startups. Some small firms even view them as giants that hurt startups, while others find them saviors giving lucrative exit options.
The expert speaks
Jack Ma who is the Executive Chairman of Alibaba stated that in recent years he read that Tencent, Alibaba and Baidu snatched the big prospects in China. Some participants stated that with these big entities like BAT, it is almost impossible for them to survive in the industry. Relieving those concerns,
Mr. Ma said that irrespective of number of companies, they will continue to gain and starters will have equal opportunities to establish in the market. They always take measures to encourage entrepreneurs to innovate and make their presence in the growing industry.
Jesse Lu of startup firm Raven Tech stated that venture capitalists were not initially prepared to invest in his firm due to competition offered by the three big companies, particularly Baidu. The entrepreneur has since then acquired funds of $15 million from investors. Most of the firms are seen living under pressure as ‘BAT’ were not into acquiring small companies as they are today.