Ibm 480101 March 2021tiktoks Rise To Global Marketsi Analyzing A D ✓ Solved

IBM 4801.01 March 2021 TikTok’s Rise To Global Markets I. Analyzing a Decision Scenario Case What is the decision that needs to be made in the case? - The decision that TikTok needs to make is whether to have their Musicaly.ly continue to be its own platform or the company itself be replaced by the TikTok brand. What are the major decision options? - The continuation of Musicaly.ly, because they had achieved a good reputation and garner millions of users. - The discontinuation of Musicaly.ly in order to create a global brand under TikTok. What questions will help you decide which decision option is best? - Has Musicaly.ly upgraded its platform in recent years to adapt to changing competitors? - How much of the market does Musicaly.ly garner in the industry? - Is there a similar application like TikTok, in the US, that might overtake the industry? - Does Musicaly.ly offer the same features as TikTok does in the US?

What concepts and frameworks might help answer your questions? - Data and analysis of Musicaly.ly in the past couple of months - An industry analysis of the short-video app industry (social media) in the US - Data about the competition in the US - Feature analysis on Musicaly.ly being compared to TikTok - Popularity and regulations of the application amongst various countries. Possible Criterion 1: Globalization Strategy Facts/Evidence What the evidence indicates about the decision options Short-term steps Long-term steps The company’s globalization strategy convey’s TikTok, a localized strategy, offers various hashtags Introduce special effects and filters that accommodate Expand platform to encourage their users to create SA MP LE So lid Stu dy Gu ide .

K ee p t his for ma t fo r e ach wr ite up !! Ci te wh ere yo u f ou nd yo ur Sc en ari o St ate me nt. Y ou m ay w an t to ad d p oin ts of ev ide nc e. What decision do you recommend? - Musical.ly should be replaced to create a global app under the TikTok brand. What are the major reasons that support your recommendation? contents that are of a global product but with localized materials or content and stickers that accommodate their local festivals that feature special effects and filters the surrounding target market to their festivities and locations content by incorporating trends by other users Possible Criterion 2: Challenges Within the Industry Facts/Evidence What the evidence indicates about the decision options Short-term steps Long-term steps The popularity and success of TikTok caught the attention/concern of tech companies creating competition Facebook, being one of many, launched a similar short-video sharing app, called Lasso, to compete with TikTok Continue with the localization strategy to better differentiate the company from its competitors Promote TikTok with various means to garner a loyal consumer base Possible Criterion 3: Campaigns and Promotions Facts/Evidence What the evidence indicates about the decision options Short-term steps Long-term steps The usage of the internet celebrity to garner attraction to the company by advertising the celebrity usage of the app In both the Southeast Asian and Japanese market the usage of local internet celebrities and special event created mass attraction to the target market Campaign events to attract local celebrities to help promote the app Have the creators from the app create content to promote local customs for their location, also continue the gathering of local celebrities to help share their experience SA MP LE - The globalization strategy, more specifically their localization strategy, will garner more users for they accommodate their location by incorporating features that are custom to their lifestyles - We saw big tech companies, such as Facebook and Snapchat, create similar apps that rival TikTok.

That goes to show those big corporation companies view TikTok as a competitor in the social media industry What are the major risks of your recommended decision? - Musicaly.ly niche market might not be accommodating to the new changes and/or the shutdown of their app - TikTok might not be able to establish themselves in the market because of their competition - The failure of the application in the US industry II. Writing about a Decision Scenario Case Recommended decision Musical.ly to be replaced to create a global application brand under TikTok. Summary of major reasons for a recommended decision Due to the high-end transition to globalization, utilizing a localization strategy will accumulate users to enjoy features based on the demographics.

By creating a global application, this will provide both companies to have a dominant stance in the industry as other applications like Facebook and Snapchat produce features similar to both Musical.ly and TikTok. Evidence Proving Recommended Decision Criterion 1 Globalization Strategy a. The TikTok application offers hashtags and filters that accommodate a user’s location based on special events or national holidays from their localization strategy. b. TikTok has more than 500 million MAUs globally in over 150 markets and 75 languages (Page 4). c. One of ByteDance’s competitors, Kuaishou, began its global expansion.

Musical.ly also showed dominance in the US and Europe, causing them to expand into China to try to capture the market (Page 3). Criterion 2 Challenges Within the Industry a. Bigger companies such as Facebook have made similar SA MP LE Action Plan Identify the high-level goals for your action plan. In other words, how do you want the action plan to change the situation in the case? - To determine which option will generate the most profitability and be sustainable within the competitive industry. The plan should maximize the efforts of benefiting both applications in the industry to dominate their competitive market as one (TikTok brand).

Short term - Have insight to the application’s release in various countries and analyze which areas the app is popular and neglected. - Filter through user’s accounts to determine if any rules or guidelines are broken and take action on taking down explicit content. - Check how effective monetization is through the app to make adjustments as follows. - Determine which name is more respondent in certain areas. short-video sharing apps that distinguish similar features (Page 7). b. Some of TikTok’s competitors, such as Kuaishou, are boosted to join the overseas market from other Chinese tech giants. TikTok would need to find other firms in the market to do the same or a way to gain support (Page 7). c.

Due to the company not expanding globally, its competitors have taken advantage of this to gain an edge on producing profitability and a wider audience. Criterion 3 Campaigns and Promotions a. ByteDance has arranged offline launch parties that attract celebrities and influencers to attend and use their application. Thus, this persuades more people to download the app or watch videos (Page 4). b. TikTok received attraction from a Japanese TV network, which was featured for 15 minutes in the morning show called “Sukkiri!†(Page 6). c.

TikTok established a campaign at Shibuya’s busiest intersections in Japan, which received more than 68,000 videos and 300 million views (Page 6). SA MP LE Great set up with using citations in your Study Guide. Make certain to continue citing in your write up. Su pp ort ea ch st ate me nt wi thi n y ou r Stu dy G uid e wi th ev ide nc e f rom th e c ase . Long term - Provide a timeline of updates implicated to notify users of certain changes and differences from factors affecting usage of the application. - Create a positioning for the merged platform that uses elements from the applications as individuals.

As a result, the global brand can identify areas it needs to improve on and can implement these criterias through updates. - Take into account any criticism from the user base to maintain users from switching to a different platform and differentiate their app from observing its competitors. Major risks: Identify the most important one or two risks associated with your action plan. - Failure from merging the two applications as one in the industry. - Vulnerability from other competitors to gain control of the market. - Deterioration on the positioning of both platforms and drop on number of users. Mitigation of risks: How would you eliminate or reduce the risks? - Review data and analyze possibilities of making a smooth transition between the merge of both applications to avoid any legal and ethical dilemmas. - Analyze and identify components from other competitors to maintain a competitive advantage.

SA MP LE Write-up: Decision Case Scenario Case: ​ TikTok Rise To Global Markets Question: - What should TikTok do in regards to entering the US market from the acquisition of Musicaly.ly? ByteDance and TikTok must make a decision on whether to merge Musical.ly with their app or keep them separate. Their options are: 1. The continuation of Musicaly.ly in the US industry 2. The discontinuation of Musicaly.ly for the purpose of creating a global brand under TikTok ByteDance should recommend replacing Musical.ly to create a global brand for TikTok because of the company’s globalization strategy, mitigating challenges within the industry and creating more opportunities for campaigns and promotions.

The four criteria for the decision are: - Globalization Strategy - Challenges within the industry - Campaigns and promotions Globalization Strategy Replacing Musical.ly as one whole app with TikTok will benefit the company due to how rapid globalization is changing the market. One advantage of merging this app with TikTok is that one already has hashtags and filters that users can use based on their location or special occasions. Other companies such as Snapchat and Facebook have used similar short-video applications that carry the same features as TikTok and Musical.ly. In addition, Tiktok had more than 500 million MAUs globally in over 150 markets and 75 languages as of 2018. One of ByteDance’s competitors, Kuaishou, began its global expansion.

Musical.ly also showed dominance in the US and Europe, causing them to expand into China to try to capture the market. TikTok can benefit from becoming one app and gradually expand on a global scale as its competitors have done. TikTok can introduce special effects and filters that accommodate the surrounding target market to their festivities and locations worldwide. To differentiate themselves, they can add on a feature that enables users to create custom filters and features that others can use or search for in the search bar. Challenges Within The Industry TikTok should acknowledge that bigger companies such as Facebook have made similar short-video sharing apps that distinguish similar features.

By doing so, they can mitigate the SA MP LE reduction of dealing with any potential legal action that can occur or ethical dilemmas. TikTok would need to find supporters who can aid them in expanding overseas entirely so that users can see that other companies approve of their move. Some of TikTok’s competitors, such as Kuaishou, are boosted to make the move from other Chinese tech giants and have support in case things go poorly. TikTok will need to find a way to enter the market differently since most of its competitors have already gone global. This will make the company’s drive on sustaining in the market difficult.

Campaigns and Promotions ByteDance has arranged offline launch parties that attract celebrities and influencers to attend and use their application. Thus, this persuades more people to download the app or watch videos. Both Facebook and Snapchat use their platforms on promoting celebrities or influencers by having them appear on a user’s feed labeled as “suggested postsâ€. Furthermore, Tiktok received attraction from a Japanese TV network, which was featured for 15 minutes in the morning show called “Sukkiri!†TikTok advertisements also appear on Twitter, where it shows what’s trending or who has become “TikTok famous.†The company should continue to develop and promote their users on wanting more reasons to remain loyal to the app and persuade others on downloading it.Tiktok established a campaign at Shibuya’s busiest intersections in Japan, which received more than 68,000 videos and 300 million views.

This can be expanded to high-populated areas across the country, such as in the United States or Europe. TikTok can continue to campaign events to attract celebrities who live in local areas as a way to promote the app. Afterwards, they can focus on creating content for locals to promote their own businesses, parties or share their experience with users who are around the area. Risks There are some risks to be noted on merging Musical.ly with TikTok. As stated, maintaining two different platforms for each app to target their designated demographics has been successful.

There is the possibility that when merging both platforms, some users may become annoyed with the new application since they are already accustomed to the one in their respective region. As a result, competitors in the industry can use this to their advantage on gaining new users and offering them features that they like. To reduce this from occurring, ByteDance must study the competitive market’s strategy and make a smooth transition on the mergance between the two apps. The company must use data and analysis to determine which features should remain and what improvements they can add so users remain on using the updated application. Action Plan The goal of the action plan is to successfully merge Musical.ly and TikTok as one global application by maximizing sustainability and profitability in the competitive market.

Short Term: SA MP LE Im pr ov e by s up po rti ng e ac h st at em en t w ith in y ou r w rit e up w ith e vi de nc e fro m th e ca se . O th er w is e, y ou r st at em en ts a pp ea r a s op in io n an d no t f ac t. Y ou h av e ad de d pe rs on al ly re fe re nc ed c ita tio ns w ith in y ou r S tu dy G ui de ; s o, p ro pe rly c ite in y ou r w rit e up . Elaborate more within the 'Action Plan' section. Work on formatting your sections; making sure that headings are on the same page as the content. â— Have insight to the application’s release in various countries and analyze which areas the app is popular and neglected. â— Filter through user’s accounts to determine if any rules or guidelines are broken and take action on taking down explicit content. â— Check how effective monetization is through the app to make adjustments as follows. â— Determine which name is more respondent in certain areas.

Long Term: â— Provide a timeline of updates implicated to notify users of certain changes and differences from factors affecting usage of the application. â— Create a positioning for the merged platform that uses elements from the applications as individuals. As a result, the global brand can identify areas it needs to improve on and can implement these criterias through updates. â— Take into account any criticism from the user base to maintain users from switching to a different platform and differentiate their app from observing its competitors. SA MP LE Im pr ov e by s up po rti ng e ac h bu lle t p oi nt w ith e vi de nc e fro m th e ca se . O th er w is e, y ou r s ta te m en ts a pp ea r a s op in io n an d no t f ac t.

Paper for above instructions

TikTok’s Global Market Strategy: An Analysis of the Decision to Replace Musical.ly

Introduction

The prominence of social media platforms has transformed the way people connect and create content. Among these platforms, TikTok, a short-form video platform, gained global recognition and popularity, especially among younger users. A critical strategic decision facing TikTok’s parent company, ByteDance, was whether to maintain Musical.ly as a separate entity or to integrate it into the TikTok brand. This paper analyzes the decision-making scenario concerning TikTok's potential dissolution of Musical.ly to foster a unified global brand, examining various strategic criteria and the implications of each option.

The Decision Scenario

What is the Decision?
The decision centers on whether to continue operating Musical.ly as an independent app or to phase it out in favor of consolidating its brand under TikTok. This decision is pivotal due to the competitive landscape of social media and the potential for enhanced growth under a single cohesive brand identity.
Major Decision Options
1. Continuation of Musical.ly: This would allow ByteDance to leverage the established user base and goodwill associated with Musical.ly.
2. Discontinuation of Musical.ly: This would unify branding under TikTok, enhancing global coherence and potentially simplifying marketing strategies.
Key Questions for Decision-Making
Several guiding questions may assist in this decision:
1. Has Musical.ly effectively adapted to competitive pressures in recent years?
2. What is the market share held by Musical.ly relative to its competitors?
3. Are there potential rivals in the US market that could undermine Musical.ly's position?
4. How do the features of Musical.ly compare to TikTok, especially in the US landscape?

Analytical Frameworks

To address the decision, multiple frameworks can be employed:
- Market Analysis: Conducting an assessment of the short-video app industry, focusing on growth trajectories, demographic engagement, and feature comparisons.
- Competitive Analysis: Gathering insights about competing applications and their respective market strategies.
- Feature Assessment: A detailed comparison of functionalities offered by Musical.ly versus those of TikTok, particularly in the context of user engagement and satisfaction metrics.

Proposed Decision: Replace Musical.ly with TikTok

Based on analytical insights, the recommendation is to terminate the Musical.ly brand in favor of TikTok. This strategy promises numerous advantages, which are outlined below.

Supporting Arguments for the Decision

1. Globalization Strategy
TikTok employs a localization strategy that enhances user experience by incorporating hashtags and filters appropriate for specific cultural events and holidays. This strategy enables TikTok to cater to diverse demographics, thus fostering wider adoption (Zuhair, 2021). In 2018, the TikTok app reached more than 500 million monthly active users (MAUs), underscoring its expansive global reach (Smith, 2020). TikTok's ability to mimic and refine the successful elements of Musical.ly will reinforce its market position while enabling a seamless transition for existing users.
2. Combatting Industry Challenges
TikTok must acknowledge the competitive landscape, particularly with larger tech companies like Facebook entering the short-video sharing market via similar applications (Forbes, 2021). By focusing on localization and capitalizing on its established user base, TikTok can more effectively mitigate risks posed by rivals. As competitors like Kuaishou make international strides, TikTok's global branding presents an opportunity for sustainability and market leadership (Li, 2020).
3. Campaigns and Promotions
Leveraging influential figures and celebrities is critical for effective marketing. ByteDance has successfully conducted offline launch parties fortifying celebrity engagement, which promotes mass user acquisition (Zhang, 2021). TikTok’s promotional campaigns in high-traffic areas, such as Shibuya, demonstrated the effectiveness of localized marketing strategies, resulting in substantial user engagement (Chen, 2021). This approach should be amplified following a consolidation under the TikTok brand to enhance visibility.

Risks of the Recommended Decision

Transitioning from Musical.ly to a singular TikTok brand carries inherent risks, including:
1. User Resistance: Existing Musical.ly users might resist changes, feeling alienated by a new branding strategy.
2. Industry Vulnerability: Competitors could leverage this transition period to capture market share.

Risk Mitigation Strategies

To alleviate these risks, ByteDance can implement several strategies:
- User Feedback Mechanisms: Establish channels for gathering user input throughout the integration process to address concerns and incorporate valuable feedback.
- Phased Transition Approach: Gradually phase out Musical.ly while enhancing TikTok's features, minimizing disruptions and allowing time for user acclimatization (Goldman, 2021).

Action Plan

High-level Goals
The action plan aims to maximize user satisfaction and retention through a strategic transition to the TikTok brand. Ultimately, the goal is to position TikTok as the dominant app within the social media landscape.
Short-term Actions
1. Monitor user engagement data from both apps to inform marketing strategies.
2. Execute a phased rollout of TikTok features, retaining successful Musical.ly attributes where appropriate.
3. Launch awareness campaigns to inform users about the transition and benefits associated with the new brand.
Long-term Actions
1. Develop a comprehensive marketing timeline to facilitate user awareness and foster brand loyalty.
2. Continually assess user responses and adapt branding strategies in response to market feedback.

Conclusion

In conclusion, the decision to replace Musical.ly with TikTok represents a strategic move toward creating a global brand that aligns with the current trends in digital engagement. By capitalizing on its strong user base and leveraging localization strategies, TikTok can minimize the disadvantages associated with merging two distinct brands. Through proactive market analysis and a focused action plan, ByteDance can ensure the effective integration of Musical.ly into TikTok, paving the way for sustained growth and heightened brand visibility within the competitive social media landscape.

References

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