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Tik tok case study
- 2. The Executive Summary • TikTok emerged to one of the viral social media in the U.S. • Its Chinese origin and the relationship with the Chinese government have received scrutiny for national security reasons. The Committee on Foreign Investment has launched a national security review of TikTok’s owner ByteDance over the 2017 purchase of Musical.ly. • Due to the similar accusation, other Chinese companies, such as Huawei and Grindr, have also suffered in the U.S. • As a result of the continuing distrust, TikTok may incur similar punishments, escalated consequences and even banned. • This plan, which costs $20,000, will assist TikTok to build or maintain trust with the stakeholders.
- 3. The Company Overview • TikTok is a social media app where people create and share up to one-minute videos. • It has two separate systems: one is for China; the other is for the rest of the world. • Dubbed as Douyin, TikTok was first launched in China by Beijing-based digital startup ByteDance in 2016. One year later, ByteDance introduced TikTok to the world and bought Musical.ly, a lip-syncing app. Combined with Musical.ly’s product innovation and 200-million fan base in the West, TikTok quickly became one of the most popular social media apps in the world. • Adults and teens in the U.S. alone have downloaded TikTok over 110 million times. Latest data from Statista revealed that TikTok has become the second most popular social media by engagement among adults after Facebook and the top nine most popular social media among American Generation Z based on daily usage. • ByteDance is now worth $78 billion. Emerging Social media
- 4. The Challenge Distrust from the media and the lawmakers • U.S. media including The Washington Post and Blomberg, have reported that TikTok posed national security threats. • U.S. lawmakers, including Senate Minority Leader Chuck Schumer, Senator Tom Cotton and Senator Marco Rubio, requested the government to probe into TikTok and ByteDance. • TikTok stated • did not serve the Chinese government and its data was not subject to Chinese law as an oversea operation. • to form a committee of outside organizations and experts to help the company refine the transparency and assess its policies. Only The Wall Street Journal reported the announcement among other major news outlets.
- 5. Key Findings • The summit where the U.S. and China planned to sign the interim trade agreement was canceled due to violent protests in Chile. This summit was expected to settle down the nearly 16-month trade war. • TikTok has offices in Los Angeles and New York. California Consumer Privacy Act, effective on Jan. 1, 2020, will grant users the rights to control companies over the use of their personal information. • Facebook launched its own short video app Lasso in late 2018. CEO Mark Zuckerberg mentioned TikTok over concerns of privacy and freedom of expression during his remarks at Georgetown University in October. Conts.
- 6. Key Findings Conts. • Companies have joined TikTok for advertising. Videos with the “#InMyDenim” that promoted Guess Jeans has generated about 39 million views. • TikTok ran campaigns, such as “You are in Control” and “Safer Internet Day” to inform users on how to maintain a friendly environment on TikTok. The related articles are available on TikTok’s website. They used plain, long text and a few visual illustrations.
- 7. SWOT ANALYSIS Strength • Financial resources • AI technology and innovation • Large user population in the U.S. • High engagement among users • Strong influence pop cultures Weakness Opportunity • Teen users on rise • Mobile savvy populations • Companies and celebrities started joining TikTok Threat • The trade war between the U.S. and China • Laws and regulations • Attacks from influential lawmakers • U.S. native competitors such as Facebook • The Chinese origin and relationship with Chinese government • Lack of transparency
- 8. Strategies & Tactics and Cost Strategy 1: Create a crisis management plan. ($5,000) Tactic 1: Develop a maximum three-page crisis plan, including crisis team contact information, principles, self-reflecting questions and online response protocols. Tactic 2: Deploy the local crisis team. List their duties and contact information. Each leadership role must have alternative members. Do crisis training every two weeks under potential scenarios relating to national security allegations. Update the crisis plan after each training. Tactic 3: Design a dark website that explains TikTok’s relationship with China. When needed, activate it on the TikTok’s homepage and set as the landing page. Buy URLs that includes “TikTok” and “China.”
- 9. 1. Are planned members in the crisis team in order? 2. Is everyone in the organization informed about the news and updates? 3. Is everyone, especially spokespersons, equipped with talking points and press releases? 4. Has TikTok relayed the news to ByteDance? What are their decisions? 5. Did TikTok prepared press releases tailoring to the official website, Twitter, Facebook and Instagram? 6. Does TikTok need to halt regular social media activities across those three platforms? 7. … Self-reflecting Questions
- 10. Strategies & Tactics and Cost Strategy 1: Create a crisis management plan. ($5,000) Tactic 1: Develop a maximum three-page crisis plan, including contact information, principles, self reflecting questions and online response protocols. Tactic 2: Deploy the local crisis team. List their duties and contact information. Each leadership role must have alternative members. Do crisis training every two weeks under potential scenarios related to national security allegations. Update the crisis plan after each training. Tactic 3: Design a dark website that explains TikTok’s relationship with China. When needed, activate it on the TikTok’s homepage and set it as the landing page. Buy URLs that includes “TikTok” and “China.”
- 11. TikTok should deal with crises independently like other Americam companies in the U.S. Any closer affiliation during the crisis could only reinforce the perceptions that TikTok has an unjustified relationship with the Chinese government. Please Note
- 12. Strategies & Tactics and Cost Strategy 2: Use TikTok’s voice online to build the transparency. ($10,000) Tactic 1: Add values and the company history on the website in the “About” webpage. Use TikTok-styled videos and images. Text should be concise. Tactic 2: Create the “Company” tab on the website. List leadership bios including their headshots and TikTok accounts. Introduce the company culture. Create job posts on the website to further show U.S. workforce contributions. Tactic 3: Run short video series “#VoiceMatter” to show how TikTok obeys the U.S. First Amendment and embraces the freedom of expression. Descriptions under videos should provide links of the full reports to the website. Tactic 4: Publish annual reports on employee benefits and the workplace diversity progress. Publish annual moderation reports and transparency reports.
- 13. Strategies & Tactics and Cost Strategy 3: Strengthen media relations ($5,000) Tactic 1: Research journalists from major news publications. Create a target list. Develop relationship with them by sharing helpful resources. Tactic 2: Proactively share stories with journalists on how TikTok is increasing its transparency and assessing its policies. Tactic 3: Create front faces of TikTok by using regular spokespersons when releasing statements and accepting media interviews.
- 14. The Desired Outcomes •TikTok will be prepared to control reputational damages and maintain trust when a related crisis occurs. •In the long-term, TikTok will increase its transparency and win trust with its stakeholders. Build Trust