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TIKTOK’S RISE TO GLOBAL MARKETS
TikTok is an international version of Douyin launched by Beijing ByteDance Technology Co. It enables the creation, sharing, and viewing of very short videos of around 15 seconds. TikTok’s videos cover lip-syncing, dancing, comedy skits, among other physical body motions. Today, TikTok dominates the short video market, and it has gained fame rivaling big companies such as Netflix, Snapchat, YouTube, and Facebook. I think scrappy and fast-moving content has attracted my young audiences globally.
I think that Zhang Yiming has shown his ability to succeed in an openly competitive global market given the Great Firewall regulations in place in China. The CEO’s strategy of dual versions of TikTok has enabled him to thrive in international markets, increasing its fame. Zhang Yimming has designed a TikTok version suitable for China’s internet censored market while creating another version for the rest of the world. This business model has enabled TikTok to step out of the home country and face competitive markets. TikTok’s CEO goal of running a borderless company informs the rise of the company to global markets.
The globalization strategy adopted by TikTok differentiated itself from other companies in that TikTok paid attention to distinct characteristics for different markets. Localization is a key feature of TikTok, where various hashtags are created based on local events and festivals. I think that the young generation around the world offers a rich fan base to the company, with many young people enjoying festivals and parties with TikTok hashtags. The globalization strategy has enabled the company to enter southeast Asia, Japan, North America, and Africa as the best short video app. The company’s key challenges include; intense competition, video quality and content issues, government regulations, and monetization. The matter at hand for Zhang Yimming is on the decision about the fate of TikTok and Musical.ly. Actually, the maintenance of the two platforms seems to be a sensitive issue to the CEO. However, I think that maintaining the two platforms is a good idea as it will enable him to face competitors globally.