Research on Diversification and Refocusing for Internet Company-Case Study on Tencent

In this paper, a dynamic resource capacity model of Internet Company was put forward. We found that the Internet Company's core product is the base of diversification and refocusing with case studying on Tencent's. Refocusing can enhance the performance of core products, and diversification can fill the resource gap of enterprise by synergy effects, form new core competencies, and then create a dynamic competitive advantage. Internet companies should focus on the core products, use refocusing and diversification strategy at the same time to form a sustainable competitive advantage.