Alibabas business model bets a revolutionary innovation: Mas belief that the small-business-to-small-business online market offered much greater opportunity than the consumer-to-consumer one, the reason being that, unlike consumers, small businesses are willing to pay a membership fee [91]. After two months, one team presented an app for text messaging and group chat WeChat which launched in January 2011. Finally, Ortega saw an opportunity of appealing to a much broader audience by selling garment at extremely competitive prices. Mas management style shifted from transactional to transformational leadership. How Tencent CEO Pony Ma became the richest man in China . Tencent Inc. is a Chinese IT and investment holding company that was founded in 1998. The power of cross-cultural collaboration, Leading digital transformation: what you must know, Discover fresh perspectives and research insights from LBS. These strategic partnerships are all options for future growth. Later, the company provided users with a range of innovative online lifestyle services. These services included online media outlets, e-commerce outlets, gaming options, social media sites, online advertising, and an online payment option [94]. By 1990, Gates was the PC industrys king [67]. In 2004, Tencent launched an online gaming platform and started selling virtual goods to support the games published on that platform (weapons, gaming power), as well as emoticons and ringtones. As for external competition, Tencent has experienced plenty. With this high score, he would have been able to attend Tsinghua University in Beijing, or Fudan University in Shanghai. In 2003, Tencent released its own portal (QQ.com) and made forays into the online games market. Ma's leadership style changed from transactional leadership to transformational leadership. And these products can be manufactured and given to people and they can sense that spirit [45]. Ma himself . Jack Ma, originally Ma Yun, (born September 10, 1964, Hangzhou, Zhejiang province, China), Chinese entrepreneur who was head of the Alibaba Group, which comprised several of China's most popular Web sites, including the business-to-business marketplace Alibaba.com and the shopping site Taobao.com. Ma Huateng is also the youngest amongst the first 15 multi-billionaires in the world. In 2003, Jack Ma created a new company, the consumer-to-consumer online marketplace Taobao (meaning Chinese in searching for treasure). Its headquarters is located in Shenzhen, China. Steve Jobs leadership style & personality. At that time, Edison moved to New York City, where he initially partnered with Frank L. Pope, an electrical expert, and produced the Edison Universal Stock Printer [62]. Regardless of age and background, users want clear, simple, natural, easy-to-use design and products. He registered more than 1000 patents in the US alone [53] and founded more than 300 companies [34, 35, 36, 53]. Tencent made over $56 billion in revenue in 2019, alone. On February 4, 2004, Mark Zuckerberg, a Harvard student, launched the facebook.com, a directory in which fellow students entered their information and photos into a template. Thats why we allow those who understand the needs of younger users to do the job, said Ma. In terms of being inspirational and a great team builder. Ma Huateng studied computer science at Shenzhen University, where he earned a bachelor of science degree (1993). In 1975 William Henry Gates IIIknown as Bill Gates, a student then at Harvard University, and his friend, Paul Allen, partnered and founded a developing software company, called Microsoft [66]. He started off by improving his communication skills and also learned English. Changing a product in ight is tough. Within 2weeks, half of the students had signed up [74]. WeChat is the worlds largest instant messaging application, with 48 percent of Internet users in the Asia-Pacific area using it in 2015. It is clear that Ma regularly uses a mix of Goleman's four important leadership style to create a positive climate within the Alibaba group. The original term transformational already implies the existence of some entity that experiences transformation, and it is not so suitable in the context of completely new startups [7, 19]. Some would say its part of the governments surveillance system that through contentious social credit scores, Tencent can ll a gap in Chinas nancial system by taking a big-brother lens to citizens purchasing behaviour. Tencent provides mass media, Internet and mobile phone value-added services including web portals (QQ.com), social networks, popular instant messenger (Tencent QQ), online games, e-commerce, and series of . From the revenue distribution of Tencent in recent years, we see an incredible increase in FinTech and business services from 2018. Nine is also a number in the range of similar studies conducted in the past. In the case of the selected framework, the results are the ones that tell if this choice was right. Under Ma's leadership, Tencent has moved into web portals, social networks, multi-player online games and e-commerce, making the company today an Internet powerhouse and China's number one brand. Explore the Think at London Business School Hub. Ma Huateng is a business magnate, an entrepreneur, an engineer, a philanthropist, and an investor. Bill Gates clearly fits in the description of an innovator, a pioneer, and a supporter of organized learning and growth [45, 67, 71, 72, 73]. As the founder of the entertainment giant Tencent, Ma Huateng (or Pony Ma, as he's better known) ranks as one of the richest people on the planet. In May 2005, Facebook received additional money from a venture capital firm (US$12.7 million) [74]. In Hong Kong, he has a rebuilt palatial mansion of 1,820 m2 (19,600 sq ft). Based on this history, there is no doubt that Taiichi Ohno was a visionary, an innovator, and a pioneer [18]. 2023 Forbes Media LLC. But where there are losers, there are winners: Ma expects people to bounce back from losses, pick themselves up and start over. Therefore, Googles initial success was not based on disruptive innovation, but rather on revolutionary innovationthe development of relevancy ranking in the search engine sector [49, 50]. However, 2years later, he closed his first company because of strong competitors such as Chinesepage [91]. North America, Western Europe and Eastern Asia, (2) the chosen corporations should be at the highest possible position in the rank of global top 100 companies as per market value [29], and (2) those firms should have become industry leaders in (a) a relatively short period of timeless than 20years, and (b) after leveraging some competitive advantage based on discontinuous innovation. He is the co-founder and chief executive officer of Tencent Holdings, a Chinese technology conglomerate and holding company that is best known for its instant messaging app WeChat and also for mobile gaming. As stated in Tencent's 2020 official interim report, it makes revenue from its four major lines of business as enumerated below; Value added services - RMB 65 billion, a 35% year-on-year . At an internal leadership conference, its creator, Xiaolong Zhang, put the products success down to simplicity and agility. Still, Tencent has surged ahead and left national rivals like Baidu behind. Analysts estimate that more than two thirds of the almost 1.4 billion population use Tencent. In those days, Toyota was much less productive than its Detroit-based competitors, the Big ThreeGeneral Motors, Ford, and Chrysler [83]. Inditex produces a significant amount of its production in-house and makes sure that its own factories reserve 85% of their capacity for in-season adjustments [77]. Since then, GE has been in the lists of top ranked companies in the USA [61]. In 1859, Edison quit school and began working as a train boy on the railroad between Detroit and Port Huron. He red o an email and the next day a new software release was online. They called the new search engine Googlea name derived from a misspelling of the word googol [48]. Therefore, the list of multinationals and leaders included in the study is as follows: Toyota Motor Corporation; Taiichi Ohno. [8] Online games such as Legend of Yulong and Legend of Xuanyuan boosted revenue by more than half, up to US$5.1 billion, with a US$1.5 billion profit margin. "[33] Ma Huateng seldom appears in the media and is known for his secretive lifestyle. All Rights Reserved. As organisations grow larger they often become insular and bureaucratic. Tencents third source of revenue is an ecosystem built around its one billion users. iPhones would belong to the category of revolutionary innovations [40, 41, 42, 43]. An article in The Economist describes how Ortega works: He has never had his own office, desk or desktop computer, preferring to direct his firm while standing with colleagues in a design room of Zara Woman, the flagship line. Ma believes this will bring him success and it will inspire people around him to work hard for achieving the goal. Established Western platforms such as Facebook are embedded in peoples crystal-screen portable friends. Ma Huateng Leadership Style Ma's management style shifted from transactional to transformational leadership. Each month product managers run 10 end-user surveys, read 100 users blogs and collect user-experience feedback from 1,000 people. The article concludes that leadership style impacts corporate culture and that the evolution of leadership style has an impact on corporate culture change. Tencent lost the case and had to relinquish the domain names. He is the founder, chairman, and CEO of Tencent, which is China's most valuable company. The Startup Ecosystem of Shenzhen is ranked at number 18 globally, and shows a positive momentum increasing 3 spots since 2021. In this Special Edition of the AIB Review, leading industry professionals and members of AIB's Marketing and Entrepreneurship faculty deep dive into the need-to-know industry trends and issues that lie ahead. Teams also have freedom to compete. [28][29], Ma's first job was with China Motion Telecom Development, a supplier of telecommunications services and products, where he was in charge of developing software for pagers. The interesting question is whether it needs to go global. Ma completed his remaining schooling from there and found a keen interest in computer technologies. By 2016, it employed 40,000 people, up from 1,000 in 2004. Its based on principles of collaboration, unobstructed discovery, and, most importantly, scientific progression. Inditexs supply chain operations focus on three aspects: maximizing resources used, minimizing inventory, and minimizing lead times [78]. It is a system that says there is no limit to peoples creativity. (26.8 billion). Amazons Je Bezos created a similar mandate in 2002. Younger employees understand what people want. 19. Some Jobs words, recorded in the mentioned documentary Triumph of the Nerds [45], can give a sense of his ability for creating positive and inspirational visions [18]: To me, the spark of that (birth of personal computer industry in Silicon Valley in the early seventies) was that it was something beyond the sort of you see every day. By late 2015 QQ had approximately 850 million monthly active users, and WeChata mobile instant-messaging app that was first introduced in 2011had some 650 million users. Inditexs business model, which is based on flexibility and speed, requires a vertically integrated value chain that differs greatly from that of other competitors, like Benetton and Mango. They usually miss the future. [26] When his father, Ma Chenshu (), got a job as a port manager in Shenzhen, the young Ma accompanied him. He is the founder, chairman. The article Characteristics of Visionary Leadership highlights the relevance of certain management traits in the context of greenfield projects and then associates the following attributes to those of a visionary leader [18]: (1) creators of a positive and inspirational vision, (2) supporters of organized learning and growth inside the organization, (3) innovators, and (4) pioneers. Then, his two roommates, Chris Hughes and Dustin Moskovitz, helped him add a few features and they made Facebook available to other universities [74]. The four models that were considered potentially suitable for a context of disruptive successtransformational, charismatic, entrepreneurial, and visionaryunderwent a further scrutiny in order to determine which one would better suit the context of disruptive success, as it is briefly described in the next paragraph. It is the biggest mobile gaming franchise in the world, surpassing the revenues of Microsoft and Sony. Long ago, Max Weber described charismatic authority in his book Economy and Society [8], where he identified it as one of three types of legitimate domination. This reality implies that collective or organizational outputs may not always be prioritized or maximized, since that is not the main objective for this type of leaders [9]. [32], Talking about the founding of Tencent, he told China Daily in a 2009 interview that "If I have seen further, it is by standing on the shoulders of giants", paraphrasing a quote attributed to Isaac Newton and referencing the similarities between ICQ and OICQ. Facebook: thebiographyscoop Huateng is the chairman, founder, and CEO of Asia's most valuable company and also one of the largest internets and technology companies across the globe Tencent. Tencents attention to speed has long had its rivals green. Bachelor of Arts/Science, Shenzhen University. Types of leadership styles. And how do we create it? In 2017, Fortune ranked him as among the top businessmen of the year. Pages personality traits, like his introverted tendencies, may not fit the profile of a charismatic leader [55, 56, 58, 60], but he definitively does in that of a visionary leader. China, Industria de Diseo Textil, S.A. (Inditex, owner of Zara and other clothing retailing chains); Amancio Ortega. After giving a quick review of state-of-the-art of the leadership research and theories [1], this chapter shortlists, briefly explains, and finally analyzes the candidate frameworks and chooses the apparently most suitable one. She's been named one of Fortune's World's Greatest Leaders, Fortune's 40 Under 40, a WSJ Magazine Innovator of the Year, a Future Lion of New York by the New York Times, a Harold W. McGraw, Jr. Prize in Education winner, one of the 50 Most Powerful Women in New York by the New York Daily News, CNBC's Next List, Forbes's Most Powerful Women The Chinese government overly supported Tencent as a edgling rm, it benets from Beijings block on Facebook, Twitter and Google, and, in return for help, captures ever more data, they would claim. People dont go to Toyota to work, they go there to think [88]. Some of the main elements of his leadership style included effective communication, involvement, innovation, risk-taking, passion, and focus. What do they fundamentally do wrong? Ma Huateng (also known as Pony Ma) chairs Chinese internet giant Tencent Holdings. However, he definitively qualifies as a visionary leader. Reshma Saujani, as shown above, is a champion for girls and women. Exxon Mobil, Berkshire Hathaway, Wells Fargo, and Johnson and Johnson [29]. London, SW7 2QJ, Ma Huateng is the Chinese Billionaire Co-Founder, CEO, and Chairman of Tencent, one of Asia's largest technology companies. Unlike other studies [1, 2, 3, 30, 31, 32], the presented multi-case study focuses on a very specific business context: that of the creation of exceptionally successful firms such as Apple, Google, Facebook, or Tencent. Under Mas leadership Tencent greatly expanded its offerings to provide users with a range of what the company described as online lifestyle services. In addition to instant messaging, those services included e-commerce sites, online media outlets, gaming and other interactive entertainment, social networking sites, online advertising, and online payment processing. (with Q and QQ used to stand for the word cute). During the 2014 Chinese Lunar New Year celebrations, Tencent built on the ancient custom of giving red envelopes lled with money to boost trac on WeChats mobile payments platform. The Alibaba Group cofounder has been laying low for the last two years amid the Chinese governments crackdown on industry. He required complete openness and insisted that all Amazon teams plan and design service interfaces so they can be exposed to developers in the outside world. China, Tencent Holdings Limited; Ma Huateng. The founders like to be simple and dont like to be politicized. From the very beginning, General Electric adopted an innovation development strategy similar to Googles. After his return to China, Ma founded China Pages, a website page developer for Chinese businesses. User first The second is to look at professional ability and coordination, intelligence and so on. Its about the people you have, how youre led, and how much you get it [47]. Pony Ma's leadership style can be as unusual as his nickname. The battleground is vibrant. A strategy of continuous renewal Logical incrementalism All five leaders had a clear sense of where they wanted to lead their companies but theirs was not a grand vision, rather a sequence of goals The actual scheme was not so much based on sparks of disruptive innovation and genius, but on a systematic approach toward producing inventions [64]. Tencent's market hierarchy and teamwork innovation orientation cultures were shaped by these two leadership styles, respectively. Ma Huateng November 30 2022 Review Non-Fiction Influence Empire can Tencent negotiate China's shifting political winds? [Photo by Tang Mingming/For China Daily] NPC deputy believes digital economy could become the engine driving China's next phase of development, affecting many sectors Reflects change since 5 pm ET of prior trading day. Zara soon became not only an internationally famous chain but also the flagship of the holding company Inditex, which he founded 10years later [76]. [33], Since Tencent's prized service OICQ was offered free of charge, the company looked to venture capitalists to finance its growing operational costs. Edison took advantage of the opportunity to learn telegraphy and, in 1863, he became an apprentice telegrapher. Mandi is an experienced writer on various topics with a passion for telling stories with words. Please refer to the appropriate style manual or other sources if you have any questions. He dropped out of Reed College, in Portland, took a job at Atari Corporation as a videogame designer in early 1974, and saved enough money for a pilgrimage to India [39]. 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