The Social Media Industry: Porter’s Five Forces and PEST Framework
Analysing the Industry and Organization : TikTok Social Media Industry
Write about TiKTOK in terms of
1: -the firm, its evolution, the industry it operates in and what you will be covering in the assignment
- what has been happening in the social media industry over the past couple of years
-What trends are emerging?
-Where is the industry heading towards with regards to margins, competitive rivalry and why
(Max 350-400 words)
2: Using Porter’s five forces and PEST framework analyse the main forces that have an impact on profitability in the chosen industry. Pay particular attention how these forces have evolved as a result of COVID-19. (Max 500 words)
3: What are the unique resources and capabilities (if any) that give your chosen firm the market power to compete effectively in this fiercely competitive market? Evaluate the effectiveness of these resources and capabilities in home and global markets (Max 400 words)
4: Identify and discuss the business models which are emerging in the industry as a result of COVID-19 and/or the unfolding of rare events in Europe. Having discussed the industry context, assess the strengths and weakness of your chosen firm’s business model. You may want to consider both near and long-term possibilities. (Max 400 words)
5: If you were invited to a lunch with the board members of the firm with a specific mandate to provide a set of strategic recommendations for short, medium and long term that will enable the firm to build resilience and a sustainable competitive position in global markets, what would your strategic recommendations consist of? Pay specific attention to rare events (e.g., Covid-19/security situation in Europe) and/or mega trends in the industry (automation, AI etc.). You can apply frameworks from the blue ocean strategy to discuss the moves your chosen firm may make. (Max 500 – 550 words)
You will be assessed on (a) the depth of insight (b) justification of your argument, and (c) quality of course content application. Simply answering the questions is generally worth up to 60%; additional observations referencing material gleaned from your primary and secondary research and applying class lectures and readings are worth an additional 40% of the weightage assigned for this assignment.
The Social Media Industry
Author
Affiliation
Course
Instructor
Due Date
The Social Media Industry
TikTok
China's ByteDance Ltd. owns TikTok, a video-focused social networking site known in China as Douyin that focuses on sharing short videos. Pranks, stunts, tricks, jokes, dancing, and entertainment videos of all kinds may be found here, ranging from 15 seconds to 10 minutes. First launched in China in September 2016 as "TikTok," Douyin has now been renamed "TikTok" and is available worldwide. After integrating with another Chinese social media site, Musical.ly, TikTok was made available worldwide on August 2 2018, for iOS and Android devices outside China. TikTok and Douyin do not exchange material, even though their user interfaces are identical. Servers for the software may be found all around the world. While there are some similarities between the two products, they do not share the same features.
In December 2016, Douyin was known as A.me until being renamed Douyin by ByteDance in September 2016. Douyin's international expansion was planned by ByteDance. According to Zhang Yiming, the company's creator, just one-fifth of the world's Internet users reside in China. To compete for the remaining four-fifths, we'll need to go worldwide. Going worldwide is, therefore, necessary. With 100 million users and then a billion views every day, Douyin was established in only 200 days.
In September 2017, the app was renamed TikTok and released on the worldwide market. The TikTok app was the most popular free app in Thailand and other countries on January 23, 2018. Mobile research company Sensor Tower estimates that TikTok has been downloaded 2 billion times globally, with more than 130 million downloads in the United States and 2 billion downloads worldwide (those numbers exclude Android users in China) (Feldkamp, 2021). It wasn't until last year that American celebs like Jimmy Fallon and Tony Hawk started using the app. The likes of Jessica Alba and Will Smith have already joined TikTok and a slew of other high-profile stars.
The NFL and TikTok announced a multi-year agreement on September 3, 2019. It was only two days before the NFL's 100th season opener at Soldier Field when the contract was announced, and TikTok celebrated by hosting events for fans to celebrate. An official NFL TikTok account will be launched as part of the agreement, which will allow for additional marketing options, such as sponsored videos and hashtag challenges (Kaye et al., 2021). TikTok's monthly active users globally, excluding Douyin, will be close to 800 million in July 2020, less than four years after its launch.
Users from different backgrounds may build strong relationships via social media, resulting in an ever-growing community. Massive volumes of data are generated due to this structure, providing consumers with an unparalleled service value proposition. In some instances, consumers cannot access reliable information at the moment of their greatest need because of an overabundance of information. People rely on social media sites for a wide range of reasons, from news and information about important events to entertainment, keeping in touch with loved ones and friends, posting reviews and recommendations of goods and services, meeting emotional needs, organizing the workplace, and keeping up with the latest in fashion, to name just a few examples.
TikTok is gaining ground on Instagram in the popularity stakes. As the popularity of short-form video material grows, TikTok will be a great tool in 2022. Many valuable features have been developed for companies in the last two years by TikTok, including advertisements and company profiles. Hence, it's no longer merely a platform for young artists to show their dancing skills. Brands will be able to utilize it to target millennials and Generation Z on a large scale.
Porter’s Five Forces and PEST Framework
Porter’s Five Forces
We can't imagine our lives without social media, and it's become an essential part of our routine. Suppose you want to keep up with your friends' creative culinary creations on Instagram, keep up with breaking news on Twitter, or expand your professional network on LinkedIn. In that case, you can't avoid social media anymore.
One of Porter's Five Forces' most apparent applications for the social media sector is this. There are very few distinctions when it comes to the most popular social media platforms. On Facebook, Twitter, LinkedIn, and other social media platforms, you may post images, send direct messages, change your status, and more. The original goal of a particular social media platform is the only thing that differentiates between proper and inappropriate behaviour, and even that is beginning to shift (Singla & Durga, 2015). As long as a new social media outlet has a few distinctive features, it doesn't need to adhere to every other social media outlet's characteristics to be successful. Because of the ongoing danger of new competitors, the most successful companies must continue to invest in R&D to stay inventive.
Social media's "Conformation Era" complicates a Porter Five Forces study, as shown in this post. New services may be launched, but it's practically hard to stop the rival from launching their version of the same service. The only way to stop this danger is if your business is the first to show off a new feature.
Firms can't afford to be complacent because of the fierce competition in social media's output market. Many options are available to the buyer, who in most instances is an advertisement in this market. Concerning pricing negotiation, it's often a matter of how popular the social media channel is. However, to prevent losing business to a rival, the company must remain continually adaptable. This gives the consumer a lot of leverage in negotiations.
Even though many millennials believe they have been using social media for their whole lives, it is still a young and rapidly changing beast. Social media's ever-shifting dynamics are part of what captivates us about it (Yang et al., 2008). A digital strategy is needed by all firms, regardless of their sector, to remain competitive in the future. Even if you're developing a new department, a new job, or even a new Master's degree, social media is here to stay. Firms need to be aware of the digital transformation to remain ahead of the competition.
PEST Framework
There has been a lot of political usage of social media. They are employed by political parties in their campaigns and other operations. In many cases, viral videos, advertising, and other digital initiatives have effectively changed people's minds. Aside from the conventional media, people may also publicly share their thoughts, pleasures, and disappointments.
Many individuals work in the social media sector to meet their financial necessities. In the same way, many individuals operate various businesses from them. Thanks to social media, people have been able to take control of their lives and the global economy. The cost of social media subscriptions is considerable since they are frequently free for personal usage. This facilitates the rapid growth of networking platforms. Businesses, on the other hand, have to pay to advertise.
The next step in the PESTEL study of the social media sector is to look at social aspects. Every day, the worldwide use of social media grows. Around 3.43 billion people wil...