A Brief Analysis of Tik Tok's Successful Strategies as a Multi-Sided Internet Platform

Research Article
Open access

A Brief Analysis of Tik Tok's Successful Strategies as a Multi-Sided Internet Platform

Xintong Yao 1 , Yuquan Zhong 2 , Leyan Jiang 3
  • 1 University of Illinois Urbana-Champaign    
  • 2 Han Academy    
  • 3 Nanjing Foreign Language School    
  • *corresponding author
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/11/20230546
AEMPS Vol.11
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-49-2
ISBN (Online): 978-1-915371-50-8

Abstract

Since the establishment of Tik Tok in 2016, its user base has been increasing with good momentum. Compared with the Internet platforms of the same period or earlier, the number of users of Tik Tok and the growth rate of the platform volume has significant advantages. Therefore, the research on the strategies adopted by Tik Tok in various development periods is worth studying and worth learning from emerging Internet platforms. This article analyzes Tik Tok's well-developed strategies, using perspectives in economics and other fields to explain Tik Tok's success. In the writing of this article, a large number of previous works of literature were analyzed and cited, combined with some authoritative data statistics. Finally, the strategies used in the successful process of Tik Tok were found. In addition, after analysis, the conclusion is that Tik Tok uses different strategies at different stages of development. At the same time, regardless of its state and external conditions, the network effect is the core of Tik Tok's strategies. In general, the strategies used by Tik Tok can be summarized as identifying targeted user groups, accumulating user volume, and continuously transforming to provide a more attractive service scope.

Keywords:

Tik Tok, multi-sided internet platform, successful strategies

Yao,X.;Zhong,Y.;Jiang,L. (2023). A Brief Analysis of Tik Tok's Successful Strategies as a Multi-Sided Internet Platform. Advances in Economics, Management and Political Sciences,11,237-244.
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References

[1]. Rose, T. (2022) How Does TikTok Make Money (Business and Revenue Model). https://entrepreneur-360.com/how-does-tiktok-make-money-12356

[2]. Iqbal, M. (2022) TikTok Revenue and Usage Statistics. https://www.businessofapps.com/data/tik-tok-statistics/

[3]. Big 3 Media. (2020) A Brief History of TikTok and Its Rise to Popularity. https://www.big3.sg/blog/a-brief-history-of-tiktok-and-its-rise-to-popularity

[4]. Smith, G. (2021) The history of TikTok: From Musical.ly to the number 1 app in the world. https://www.dexerto.com/entertainment/the-history-of-tiktok-1569106/

[5]. Mohsin, M. (2021) 10 Tik Tok Statistics That You Need to Know in 2021. https://www.oberlo.com/blog/tiktok-statistics

[6]. Wu, J. (2021) Study of a Video-sharing Platform: The Global Rise of TikTok. https://dspace.mit.edu/bitstream/handle/1721.1/139394/Wu-Jingyiwu-MSMS-Sloan-2021-thesis.pdf?sequence=1&isAllowed=y

[7]. Grin. (n.d.) TikTok vs. Instagram Influencers: What’s the Difference? https://grin.co/blog/tiktok-vs-instagram-influencers/

[8]. Wang, E., Wu, K., & Zhu, J. (2020) Exclusive: ByteDance investors value TikTok at $50 billion in takeover bid – sources. Reuters. https://www.reuters.com/article/us-bytedance-tiktok-exclusive-idUSKCN24U1M9

[9]. Voigt, S., & Hinz, O. (2015) Network effects in two-sided markets: why a 50/50 user split is not necessarily revenue optimal. Business Research, 8(1):139–170.

[10]. Hagiu, A., & Rothman, S. (2016) Network effects aren’t enough. Harvard Business Review, 94(4):65–71.

[11]. Jullien, B. (2011) Competition in Multi-Sided Markets: Divide and Conquer. American Economic Journal: Microeconomics, 3(4):186–219.

[12]. Stummer, C., Kundisch, D., & Decker, R. (2018) Platform launch strategies. Business & Information Systems Engineering, 60(2):167-173.

[13]. Gaze, ́P., & Vaubourg, A. G. (2011) Electronic platforms and two-sided markets: a side-switching analysis. The Journal of High Technology Management Research, 22(2):158–165.

[14]. Armstrong, M. (2006) Competition in two-sided markets. The RAND Journal of Economics, 37(3): 668–691.

[15]. Hagiu, A. (2007) Merchant or Two-Sided Platform? Review of Network Economics, 6(2).

[16]. Stobierski, T. (2020) What are Network Effects? https://online.hbs.edu/blog/post/what-are-network-effects

[17]. Halaburda, H., Jullien, B., & Yehezkel, Y. (2020) Dynamic Competition with Network Externalities: How History Matters. The RAND Journal of Economics, 51(1): 3-31.

[18]. Putri, R. P. (2021) Tik Tok as an Online Learning Media During a Pandemic. In: Proceedings of the 6th International Conference on Education & Social Sciences

[19]. Chen, T., Peng, L., Jing, B., Wu, C., Yang, J., & Cong, G. (2020) The Impact of the COVID-19 Pandemic on User Experience with Online Education Platforms in China. Sustainability, 12(18).

Cite this article

Yao,X.;Zhong,Y.;Jiang,L. (2023). A Brief Analysis of Tik Tok's Successful Strategies as a Multi-Sided Internet Platform. Advances in Economics, Management and Political Sciences,11,237-244.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-49-2(Print) / 978-1-915371-50-8(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.11
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Rose, T. (2022) How Does TikTok Make Money (Business and Revenue Model). https://entrepreneur-360.com/how-does-tiktok-make-money-12356

[2]. Iqbal, M. (2022) TikTok Revenue and Usage Statistics. https://www.businessofapps.com/data/tik-tok-statistics/

[3]. Big 3 Media. (2020) A Brief History of TikTok and Its Rise to Popularity. https://www.big3.sg/blog/a-brief-history-of-tiktok-and-its-rise-to-popularity

[4]. Smith, G. (2021) The history of TikTok: From Musical.ly to the number 1 app in the world. https://www.dexerto.com/entertainment/the-history-of-tiktok-1569106/

[5]. Mohsin, M. (2021) 10 Tik Tok Statistics That You Need to Know in 2021. https://www.oberlo.com/blog/tiktok-statistics

[6]. Wu, J. (2021) Study of a Video-sharing Platform: The Global Rise of TikTok. https://dspace.mit.edu/bitstream/handle/1721.1/139394/Wu-Jingyiwu-MSMS-Sloan-2021-thesis.pdf?sequence=1&isAllowed=y

[7]. Grin. (n.d.) TikTok vs. Instagram Influencers: What’s the Difference? https://grin.co/blog/tiktok-vs-instagram-influencers/

[8]. Wang, E., Wu, K., & Zhu, J. (2020) Exclusive: ByteDance investors value TikTok at $50 billion in takeover bid – sources. Reuters. https://www.reuters.com/article/us-bytedance-tiktok-exclusive-idUSKCN24U1M9

[9]. Voigt, S., & Hinz, O. (2015) Network effects in two-sided markets: why a 50/50 user split is not necessarily revenue optimal. Business Research, 8(1):139–170.

[10]. Hagiu, A., & Rothman, S. (2016) Network effects aren’t enough. Harvard Business Review, 94(4):65–71.

[11]. Jullien, B. (2011) Competition in Multi-Sided Markets: Divide and Conquer. American Economic Journal: Microeconomics, 3(4):186–219.

[12]. Stummer, C., Kundisch, D., & Decker, R. (2018) Platform launch strategies. Business & Information Systems Engineering, 60(2):167-173.

[13]. Gaze, ́P., & Vaubourg, A. G. (2011) Electronic platforms and two-sided markets: a side-switching analysis. The Journal of High Technology Management Research, 22(2):158–165.

[14]. Armstrong, M. (2006) Competition in two-sided markets. The RAND Journal of Economics, 37(3): 668–691.

[15]. Hagiu, A. (2007) Merchant or Two-Sided Platform? Review of Network Economics, 6(2).

[16]. Stobierski, T. (2020) What are Network Effects? https://online.hbs.edu/blog/post/what-are-network-effects

[17]. Halaburda, H., Jullien, B., & Yehezkel, Y. (2020) Dynamic Competition with Network Externalities: How History Matters. The RAND Journal of Economics, 51(1): 3-31.

[18]. Putri, R. P. (2021) Tik Tok as an Online Learning Media During a Pandemic. In: Proceedings of the 6th International Conference on Education & Social Sciences

[19]. Chen, T., Peng, L., Jing, B., Wu, C., Yang, J., & Cong, G. (2020) The Impact of the COVID-19 Pandemic on User Experience with Online Education Platforms in China. Sustainability, 12(18).

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