When marketing a good or service in a foreign market, the decision must be made about whether to standardize or adapt a product's marketing mix. Tencent Holdings Ltd., the world's largest mobile games company, and maker of WeChat, a WhatsApp messaging copycat, dominates the Chinese market.

The company is setting its sights beyond its home base by exporting games to new markets overseas. However, what works for Chinese gamers may not necessarily work in the United States. Adaptation allows marketers to vary their marketing mix to suit local consumer preferences because consumer products typically are more “culturally dependent” than business products.

Through collaboration with a California-based online game company in which Tencent acquired a stake, the company seeks to market its most popular mobile game, WeFire, to the U.S. market. The global mobile game market is estimated to surpass $30 billion in annual sales this year, which is nearly double from two years ago.

The company plans to redesign its game with characters that seem more appealing to Western audiences. As companies expand into Asia, Tencent sees it suitable to capitalize on the trend by expanding and standing up to big competitors like Finland-based Supercell.

Tencent believes that the success of its growth prospects lie in structuring how its games are played in ways that are similar to U.S. games.

Questions for Critical Thinking

1. To ensure success in the U.S. market, discuss the research methods you would recommend to Tencent to better understand U.S. gamers and their habits.

2. Discuss what some skeptics view as the challenges of taking a mobile game from one market to another. If you're not familiar with mobile games, discuss and provide examples of companies that have successfully employed adaptation strategies.