IT Business Model: Case Study of TikTok
DOI:
https://doi.org/10.5281/zenodo.14550103Keywords:
information technology (IT), IT business model, TikTok, Osterwalder frameworkAbstract
TikTok is a mobile app allowing users to create, share and watch short videos. It first appeared because of the creative idea of music short videos. Now it is many people's favourite app especially the young and is extended to other kinds of short videos and live streaming. The Success of TikTok depends on the innovation of information technology (IT), and creating a good IT business model is an important way to realize the software development of TikTok. IT business model is the key to the successful business of TikTok. This study aims to analyse TikTok’s IT business model with its concepts, theories and ITs based on the Osterwalder framework from nine aspects: key partners, key activities, key resources, value proposition, customer relationship, channels, customer segment, cost structure and revenue streams. IT business model can support the organization's business strategies and goals which helps TikTok to improve its commercial value and enhance its competitive ability in highly competitive markets.
Downloads
References
[1]Apptunix (2022). How is TikTok Business Model Beneficial For Your Business? Available at: https://www.apptunix.com/blog/tiktok-business-model (Accessed: 7 April 2024).
[2]Bailey, I. (2020). TikTok, it's here. Ragtrader, 18-21. https://search.informit.org/doi/abs/10.3316/informit.258774723460334
[3]Brusoni, S., Henkel, J., Jacobides, M. G., Karim, S., MacCormack, A., Puranam, P. & Schilling, M. (2023). The power of modularity today: 20 years of Design Rules. Industrial and corporate change, 32(1), 1-10. https://doi.org/10.1093/icc/dtac054
[4]Ceci, L. (2024). Number of TikTok downloads from 1st quarter 2018 to 4th quarter 2023. Available at: https://www.statista.com/statistics/1377008/tiktok-worldwide-downloads-quarterly (Accessed: 27 March 2024).
[5]Dominguez, N. (2018). SME internationalization strategies: innovation to conquer new markets. Newark: John Wiley & Sons. https://books.google.co.uk/books?hl=en&lr=&id=5p9RDwAAQBAJ&oi=fnd&pg=PT4&dq=018).+SME+internationalization+strategies:+innovation+to+conquer+new+markets.+Newark:+John+Wiley+%26+Son&ots=WMScN0BNzr&sig=f8fxA0yL1CEVkWo7P07WybTXxGY&redir_esc=y#v=onepage&q&f=false
[6]Feldkamp, J. (2021). ‘The Rise of TikTok: The Evolution of a Social Media Platform During COVID-19’, in Hovestadt, C., Recker, J., Richter, J. and Werder, K. (eds.) Digital Responses to Covid-19: Digital innovation, transformation, and entrepreneurship during pandemic outbreaks. Cham: Springer, pp.73-85. https://books.google.co.uk/books?id=KdAiEAAAQBAJ&dq=he+Rise+of+TikTok:+The+Evolution+of+a+Social+Media+Platform+During+COVID-19’,+in+Hovestadt,+C.,+Recker,+J.,+Richter,+J.+and+Werder,+K.+(eds.)+Digital+Responses+to+Covid-19:+Digital+innovation,+&lr=&source=gbs_navlinks_s
[7]Haenlein, M., Anadol, E., Farnsworth, T., Hugo, H., Hunichen, J. & Welte, D. (2020). Navigating the New Era of Influencer Marketing: How to be Successful on Instagram, TikTok, & Co. California Management Review, 63(1), 5-25. https://doi.org/10.1177/0008125620958166
[8]Hu, Y. (2020). Research on the commercial value of Tiktok in China. Academic Journal of Business & Management, 2(7), 57-64. 10.25236/AJBM.2020.020706
[9]Jaipong, P. (2023). Business model and strategy: A case study analysis of TikTok. Advance Knowledge for Executives, 2(1), 1-18. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4335962
[10]Kibet, L. (2021). How Does TikTok Make Money? Available at: https://www.gobankingrates.com/money/business/how-does-tiktok-make-money (Accessed: 27 March 2024).
[11]Lan, C. (2022). ‘The Impact of BYTEDance's Development and Strategy on the Information Industry’, Proceedings of the 2022 International Conference on Business and Policy Studies, Springer, Singapore. 27 September 2022. pp. 110-114. https://doi.org/10.1007/978-981-19-5727-7_11
[12]Liang, T. (2021). ‘The Method of the Money Making Mechanism of TikTok’, Proceedings of the2021 3rd International Conference on Economic Management and Cultural Industry, Guangzhou, China. 22-24 October 2021. AEIC. pp. 3102-3105. 10.2991/assehr.k.211209.508
[13]Ma, Y. & Hu, Y. (2021). Business Model Innovation and Experimentation in Transforming Economies: ByteDance and TikTok. Management and organization review, 17(2), 382-388. https://www.cambridge.org/core/journals/management-and-organization-review/article/business-model-innovation-and-experimentation-in-transforming-economies-bytedance-and-tiktok/057C8387EC953C14ED10AA8996F53947
[14]Mhalla, M., Yun, J. & Nasiri, A. (2020). Video-sharing apps business models: TikTok case study. International Journal of Innovation and Technology Management, 17(7), p.2050050. https://doi.org/10.1142/S0219877020500509
[15]Osterwalder, A. & Euchner, J. (2019). Business Model Innovation: An Interview with Alex Osterwalder. Research technology management, 62(4), 12-18. https://doi.org/10.1080/08956308.2019.1613114
[16]Peng, Y. (2021). ‘TikTok’s Business Model Innovation and Development-Porter’s Five Forces Model, Business Model Canvas and SWOT Analysis as Tools’, Proceedings of the 1st International Symposium on Innovative Management and Economics, Russia.2-3 June 2021. pp. 482-489. 10.2991/aebmr.k.210803.066
[17]Richardson, J. (2008). The business model: an integrative framework for strategy execution. Strategic Change, 17 (5/6), 133-144. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=932998
[18]Wu, J. (2021). Study of a Video-sharing Platform: The Global Rise of TikTok. PhD, Massachusetts Institute of Technology. https://hdl.handle.net/1721.1/139394
[19]Xu, S., Li, Y., Sun, B., Xiao, X. & Li, S. (2020). ‘Research on Business Model Innovation of Short Video Enterprises from the Perspective of Community Economy - Taking Douyin as an Example’, Proceedings of the 2019 3rd International Conference on Education, Economics and Management Research, Quality Hotel Marlow, Singapore. 29-30 November 2019. SMU. pp. 324-330. 10.2991/assehr.k.191221.077
Yao, M. (2021). ‘Examination of underlying factors in success of TikTok’, Proceedings of the 2021 International Conference On Enterprise Management And Economic Development, Nanjing, China. 14-16 May 2021. Atlantis Press. pp. 296-301. 10.2991/aebmr.k.210601.051

Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Jia Jia

This work is licensed under a Creative Commons Attribution 4.0 International License.