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(Group 7) Mid-Term Assignment Slides

The document provides a comprehensive analysis of ByteDance, a global tech leader founded in 2012, focusing on its AI-driven content consumption platforms like TikTok. It covers the company's internal and external environments, including its business model, financial resources, and strategic capabilities, highlighting its competitive advantages in the digital economy. The analysis also includes a VRIO assessment, emphasizing ByteDance's sustained competitive advantages through its innovative technologies and strong brand presence.
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0% found this document useful (0 votes)
122 views68 pages

(Group 7) Mid-Term Assignment Slides

The document provides a comprehensive analysis of ByteDance, a global tech leader founded in 2012, focusing on its AI-driven content consumption platforms like TikTok. It covers the company's internal and external environments, including its business model, financial resources, and strategic capabilities, highlighting its competitive advantages in the digital economy. The analysis also includes a VRIO assessment, emphasizing ByteDance's sustained competitive advantages through its innovative technologies and strong brand presence.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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STRATEGIC

MANAGEMENT
and competitive positioning in the global digital economy
GROUP 7
Nguyễn Trần Liên Nhi - 2212255033 Nguyễn Lê Thảo Phương - 2212255040 Cao Minh Anh - 2215255072
Ngô Lê Hạo Nhiên - 2212255036 Võ Kiều My - 2215255073 Hồ Xuân Nguyên - 2213255061
TABLE OF CONTENT
COMPANY BACKGROUND ( 01 )

INTERNAL ENVIRONMENT ( 02 )

EXTERNAL ENVIRONMENT ( 03 )

SWOT ANALYSIS ( 04 )

BUSINESS STRATEGY ( 05 )

FUTURE STRATEGY & INNOVATION ( 06 )

CONCLUSION ( 07 )

1
COMPANY BACKGROUND INTERNAL ENVIRONMENT EXTERNAL EN

I. COMPANY BACKGROUND
OVERVIEW Founded in 2012
Global tech leader specializing in
AI-driven content consumption

150,000 120
VALUED AT

$300 billion employees across cities


(ByteDance, 2024)

Toutiao, 2012 TikTok, 2016

First major success Global sensation


Zhang Yiming App personalized content Personalized video
ByteDance's Founder through AI recommendations by AI

2 CAO MINH ANH


COMPANY BACKGROUND INTERNAL ENVIRONMENT EXTERNAL EN

I. COMPANY BACKGROUND
MISSION STATEMENTS Core Values
“ByteStyles" - Collaboration, innovation,

Vision diversity, candor, pragmatism, and courage


(ByteDance, 2024)

Leverage AI to create personalized content


experiences for users
(ByteBridge, 2025) Major Objectives
Mission
Use consumer-focused AI to become a leading
global digital platform, expanding beyond
China, particularly in markets like the US and
"Inspire creativity, enrich life" by making India
content creation, sharing, and consumption (Davis, Vo and Yang, 2019)
easy and enjoyable
(ByteDance, 2024)

3 CAO MINH ANH


COMPANY BACKGROUND INTERNAL ENVIRONMENT EXTERNAL EN

I. COMPANY BACKGROUND
BUSINESS MODEL CANVAS (Vizologi, 2015)

KEY PARTNERSHIPS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS
Investors Content aggregation To build a global community Personalization Advertisers
Shareholders Content recommendation around the creation and AI General public
Subsidiaries (Jinri Toutiao, Content creation sharing of content Big Data Developers
TopBuzz, Flipagram, News Content distribution To empower creators to Digital
Republic, Baike.com, Software development produce inspiring content Automation
Huoshan, Xigua Video, Product management To make the world more Recommendations
Hypstar) Operations open and connected Self-service
Content Creators Marketing To empower people to Convenience
Google Sales express themselves and Word of mouth
Apple better connect with the
App stores KEY RESOURCES world CHANNELS
Data Platform TikTok App Store
Advertisers To capture and present the
Network Traffic Douyin Websites
Marketing Agencies world's creativity knowledge
Staff Brand Toutiao APIs
and moments that matter in
AI Intellectual Property Google Play
everyday life
Technology Financial resources
High-quality content

COST STRUCTURE REVENUE STREAMS


Platform development Employees Advertising Social media
IT infrastructure Legal Sponsored content News
Technology and software development Taxes Performance-based mobile marketing Mobile applications
App development Internet enabled consumer electronics
Online marketing AI
Online video streaming

4 CAO MINH ANH


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


TANGIBLE RESOURCES FINANCIAL RESOURCES

The driving force behind the financial health of ByteDance:

the great amount of investment


(CB Insights, 2020; CB Insights, 2023; Statista, 2024d)

2020 2023 2024


$140 billion $225 billion $300 billion

One of the most highly valued start-ups

5 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


TANGIBLE RESOURCES FINANCIAL RESOURCES

60% FROM ADVERTISING


GLOBAL DEMAND 250 billion yuan FROM ADVERTISING
BUSINESS SEGMENT
DRAW ATTENTION TO
LIVE BROADCASTING

Year Estimated Revenue (USD) Year-over-Year Growth (%)

2020 $34 billion 100%

2021 $58 billion 70%

2023 $70 billion 20%

2023 $85-90 billion 21-28%

(Wang, 2025)

6 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


TANGIBLE RESOURCES TECHNOLOGY

high-quality AI technologies

streamlining operations
CONTENT DRAW ATTENTION TO
MODERATION LIVE BROADCASTING

AI and machine learning

natural language processing

7 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


TANGIBLE RESOURCES WORKFORCE

150,000 ALL EMPLOYEES


AROUND THE WORLD

(Qing, 2025)

120 ALL CITIES


IN TOTAL

a layoff of thousands of staffs in ByteDance

8 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


TANGIBLE RESOURCES PLATFORMS

TIKTOK HUOSHAN VIDEO


the most popular app
CAPCUT XIGUA VIDEO

6,054.61
MILLIONS OF GLOBAL DOWNLOADS
TICKTOCK

TOUTIAO
FACEU

ULIKE

Statista (2025e)

9 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


INTANGIBLE RESOURCES PERSONAL DATA CONFIDENTIALITY

People’s Republic of China

cybersecurity
data privacy policies

(Busch, 2023)

Manage a tremendous amount of graph data


in global-scale applications

10 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


INTANGIBLE RESOURCES NETWORK EFFECTS
Allyn (2023)

massive reach
OVERALL VALUES OF THE
inimitable valuable services WHOLE NETWORK

PARTICIPANTS OF APP USERS


THIS PLATFORM RETENTION RATE

11 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


INTANGIBLE RESOURCES CONTENT ENGAGEMENTS

(Ellendt, 2024)

$250 billion EXPECTED ACCELERATION OF


CREATOR ECONOMY IN 2025
INVESTMENT AND DIGITAL MARKETING BUDGET
FROM BRANDS ON CREATORS AND INFLUENCERS

high-quality content engagements

12 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


INTANGIBLE RESOURCES STRATEGIC PARTNERSHIP NETWORKS

(ByteBridge, 2025)
13 NGÔ LÊ HẠO NHIÊN
CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


INTANGIBLE RESOURCES TRAFFIC

strong monetization opportunities

DAILY ACTIVE
surging precision in ad targeting
USER ENGAGEMENT

more content creators and users

(Bleier, Fossen and Shapira, 2024)

14 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


INTANGIBLE RESOURCES TRAFFIC

1,000.0
Tencent 1,256 955.3
900.7

Number of active users in million


Alibaba 1,176 834.3
800.0
ByteDance 1,108 755.0

Baidu 1,090 655.9

600.0
Ant Group 933
465.7
Pinduoduo 717
400.0
Kuaishou 588
Meituan 566
200.0
JD.com 555
Tencent Music Entertainment 515
0.0
0 200 400 600 800 1,000 1,200 1,400 2020 2021 2022* 2023* 2024* 2025*

Figure 1. Number of TikTok users worldwide Figure 2. Number of app users of Chinese
from 2020 to 2025 leading internet companies in December 2024
(Statista, 2024h) Statista (2025c)

15 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


INTANGIBLE RESOURCES BRAND REPUTATION

Most valuable startup in the world

Extremely successful high-tech services


(Chen and Ma, 2022)

320 billion MILLION MONTHLY


ACTIVE USERS

16 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


INTANGIBLE RESOURCES INTELLECTUAL PROPERTY PORTFOLIO

In the U.S. 900 ACTIVE


PATENTS
600 PENDING
PATENTS

Global 9,000 TOTAL


PATENTS
7,553 ACTIVE
PATENTS

(Stassen, 2024)

a mysterious ByteDance affiliate


LEMON INC.
17 NGÔ LÊ HẠO NHIÊN
CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES AI-DRIVEN TECHNOLOGY

an AI-driven technology leader by continuously innovating in artificial intelligence,


content generation, and big data analytics

artificial intelligence model

generate ultra-realistic human videos


from just an image

(The Feed, 2025a)

18 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES AI-DRIVEN TECHNOLOGY

CONCERN
deepfake-related concerns
rising digital disinformation

SOLUTION
more strict data control

(The Feed, 2025a)

19 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES AI-DRIVEN TECHNOLOGY

natural language processing (NLP)


USER ENGAGEMENT
& RETENTION ON TIKTOK
improved computer visions
(ByteBridge, 2025)

20 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES AI-DRIVEN TECHNOLOGY

FASTER
when dealing with scalable computing
unified data platform & distributed data layers

SCALABLE &
HIGH-PERFORMANCE SECURE & EFFICACIOUS HIGH AVAILABILITY
HIGH-PERFORMANCE
BIG DATA PLATFORM DATA MANAGEMENT & SPEED
INFRASTRUCTURE

enhance content recommendations and optimize ad monetization in real time


while ensuring data security and compliance for billions of users

(ByteHouse, n.d.; BytePlus, 2025)


21 NGÔ LÊ HẠO NHIÊN
CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES AI-DRIVEN TECHNOLOGY

integrated platforms

edit videos export videos


(Godinho, 2024)

seamless user experiences

22 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES AI-DRIVEN TECHNOLOGY

for advertising-marketing usage

proficiency of producing videos


with high quality and efficiency

GLOBAL CREATIVITY
a powerful family of AI-driven models & MARKETING INDUSTRIES
(Inti Media Indonesia, 2025)

23 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES AI-DRIVEN TECHNOLOGY

USER SATISFACTION

CLICK-THROUGH RATES

customized advertising aiming


at this platform REVENUE GROWTH
(Perdana and Bharathi, 2023)

24 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES INTERNATIONAL PENETRATION

strategies for flagships

(Perdana and Bharathi, 2023)

25 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES INTERNATIONAL PENETRATION

CONCERN more personalized & culturally


legal & regulatory challenges suitable content to different areas

global positioning
SOLUTION
fine-tunings for
content algorithm localization
broader efforts and greater potential

(ByteBridge, 2025)

26 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES MONETIZATION STRATEGIES

monetization options

TIKTOK CREATIVITY PROGRAM

AD PARTNERSHIPS

SPONSORED CONTENT

LIVE-STREAMING GIFTS

SELLING

(Carlos, 2024)
27 NGÔ LÊ HẠO NHIÊN
CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


CAPABILITIES SOCIAL COMMERCE

TikTok Shop (Global market) Douyin Ecommerce (Chinese market)

BUYERS’ PURCHASING EXPERIENCE


& INFLUENCER MARKETING

28 NGÔ LÊ HẠO NHIÊN


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VRIO ANALYSIS
Value Rarity Inimitability Organization Analysis Outcome

AI-powered and personalized


✓ ✓ ✓ ✓ Sustained competitive advantage
recommendation algorithms

Global user base & localized market


✓ ✓ ✓ ✓ Sustained competitive advantage
penetration

Strong brand & high-quality,


✓ ✓ ✓ ✓ Sustained competitive advantage
differentiated content ecosystem

TikTok shop & social commerce ✓ ✓ ✓ ✓ Sustained competitive advantage

Monetization strategies ✓ ✓ ✗ - Temporary competitive advantage

Massive user data processing ✓ ✗ - - Competitive parity

Platform integration ✓ ✗ - - Competitive parity

29 NGUYỄN TRẦN LIÊN NHI


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


COMPETITIVE ADVANTAGES
(1) Free model attract and retain users

(2) AI-based algorithm tailored information

(3) Differentiated content

coexistence of UGC & MCN


encourage users to create
dedication of video
engage without much obligation
production teams or firms

self-sustaining content ecosystem


30 NGÔ LÊ HẠO NHIÊN
CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


COMPETITIVE ADVANTAGES
(4) Strong adaptability
Comply with diverse censorship policies secure its presence in
Maintain high user engagement multiple regions

Enhance e-commerce capabilities


during the pandemic

In China, up to 70% digital commercial


(5) E-commerce strategy growth came from Douyin

1st day of the Double 11 event (2022),


Douyin’s GMV increased 629.9%
31 NGÔ LÊ HẠO NHIÊN
CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VALUE CHAIN ANALYSIS - PRIMARY ACTIVITIES INBOUND LOGISTICS

Amass large volumes of user data Collaborate with influencers, media


(interactions, preferences, prior usage in history
watches and engagement patterns) partners, and music labels

TikTok tracks user interactions and content 'Disney100 Hub' gives users access to 48 brands,
engagement, including device data like keystrokes, resulting in 172 million new followers for Disney
battery, and audio settings (Logan, 2023) (Tapp, 2023; Disney, 2023)

CapCut rely heavily on user-generated content, with Scale viral trends and integrate branded content
users creating and sharing video templates, effects, and seamlessly, outperforming Meta and YouTube
edits (Koç, 2023; Sentance, 2024)
Maintain strengths in highly engaging and
Seamless platform integration facilitates a highly culturally relevant content despite differences
interactive ecosystem and diverse and unpredictable tastes

Enhance algorithm-driven recommendations Enhance diversity, engagement and


on each user’s content feed synchronization

32 NGUYỄN TRẦN LIÊN NHI


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VALUE CHAIN ANALYSIS - PRIMARY ACTIVITIES OPERATIONS

Proprietary AI and machine learning technologies (NLP & computer vision)

MONOLITH RECOMMENDATION SYSTEM


Based on deep learning, for personalized content curation on TikTok and BytePlus, driving user
engagement and longer usage times (Kamath, 2022; Kang & Lou, 2022).

Unlike YouTube’s content discovery, TikTok’s algorithm prioritizes dynamic content exploration,
ensuring even lesser-known creators gain visibility (Clark and Zaitsev, 2020; Jayaprakash, 2023).

AI-POWERED VIDEO EDITING AND ENHANCEMENT TOOLS

Over traditional video-editing software like Adobe Premiere Pro.

OMNIHUMAN-1 MULTIMODAL MODEL

Convert photos and audio (Jiang, 2025), competes with similar generative AI models from OpenAI and Google
DeepMind (Das, 2025; Mann, 2024), focus more on consumer-friendly applications.

33 NGUYỄN TRẦN LIÊN NHI


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VALUE CHAIN ANALYSIS - PRIMARY ACTIVITIES OPERATIONS

Cloud-based data processing and real-time analytics

Optimization for efficient app performance and scalability, massive-scale data computations

Resource efficiency is absolutely crucial for optimizing costs

operate massive AI-driven infrastructures but rely more on proprietary cloud computing solutions
(Hall, 2024)

Invest $7BIL in cloud-based graphics processing units (GPUs) to bypass U.S. restrictions on exporting
advanced chips to China (Liu and Osawa, 2024) mirrors Huawei’s response to similar restrictions.

Content moderation controlled by artificial intelligence (AI) and human reviewers

Regional regulations and platform policies

Facebook and YouTube also implement AI moderation in its operations

China’s stringent content policies and the European Union’s Digital Services Act

Layoff of hundreds of headcounts in Malaysia in a move towards AI moderation,


which automated about 80% of content removals
34 NGUYỄN TRẦN LIÊN NHI
CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VALUE CHAIN ANALYSIS - PRIMARY ACTIVITIES OUTBOUND LOGISTICS

Real-time distribution of videos, advertisements, and interactive media


Across its platforms using high-performance cloud computing and data storage networks
(Cheung Kong Graduate School of Business, 2022; Perdana and Bharathi, 2023).
Depends on optimizing data flow and data warehousing, minimizing latency, and safeguarding
continuous access to personalized content

Advanced network of content delivery networks (CDNs) and AI-powered distribution mechanisms

BytePlus Live, AI-powered content delivery network and Swarm, combines the reliability of a traditional
CDN with the cost-effectiveness of a decentralized P2P network.
Cache and relay content closer to end users, significantly reducing buffering times and
improving video quality.

In contrast to competitors like YouTube and Netflix, ByteDance collaborates with a mix of third-party
cloud service providers and its own optimized delivery solutions.

After implementing AWS Inferentia, reduces inference costs by up to 60%, enhances throughput and
lowers latency and optimizing seamless integration with app distribution channels, such as Google Play
and the Apple App Store.
35 NGUYỄN TRẦN LIÊN NHI
CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VALUE CHAIN ANALYSIS - PRIMARY ACTIVITIES MARKETING & SALES

Combine targeted advertising, influencer partnerships and user-generated content (UGC)

Adapt to changing trends and consumer taste

Touchstone social media platforms

Connecting with users and promoting its own platforms like TikTok or Douyin (Kaye, Chen and Zeng, 2020).

Reach a wider audience, increase brand awareness and user engagement


Not only drives website traffic but also expands its potential customer base
(Partemi, 2020; Xing, 2023)

Proffer analytic tools

User behavior, taste and trends on social media can be of much assistance in create
tailor-made and localized messages in each of its campaigns
Make informed decisions, thus unceasingly improving its marketing strategies.

36 NGUYỄN TRẦN LIÊN NHI


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VALUE CHAIN ANALYSIS - PRIMARY ACTIVITIES MARKETING & SALES

Touchstone social media platforms

Participating in digital conversations, responding to comments and addressing feedback


Secure its strong community
Expediting customer loyalty and trust
(Attar, Amidi and Hajli, 2022;
Localization Revenue growth and user retention
Connolly, 2020; Sharma et al., 2020)

Well befit the cultural preferences and linguistic nuances of specific regions (Kopalle et al., 2022)

Safeguards its reputation in making users feel related to the platform and engrossed in the content.
(Ambran, Zainodin and Ali, 2024)
Invested $2.1 MILLION in an advertising campaign to stress its role in supporting small businesses and
creators in the US.
(Schwartz, 2024)
Worldwide targeting Maximizes the power of data and AI infrastructure
Track the performance of campaigns in real-time to maximize their ROI
37 (Shanmugam et al., 2023) NGUYỄN TRẦN LIÊN NHI
CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VALUE CHAIN ANALYSIS - PRIMARY ACTIVITIES SERVICE

AI-driven chatbots and automated support systems

Reliant on self-service options and in-app support, with a focus on quick response times through
automated systems, rather than extensive personalized interaction with customer service agents

similarly harnesses automated AI support but also provides human-assisted help


centers, particularly for business accounts and advertising-related issues
(Facebook, 2019; Meta, 2024)
employs tiered support

Community guidelines through AI-powered moderation and a dedicated review team


(Ambran, Zainodin and Ali, 2024; Liu, 2024a; TikTok, 2024)

38 NGUYỄN TRẦN LIÊN NHI


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VALUE CHAIN ANALYSIS - SUPPORT ACTIVITIES
INFRASTRUCTURE HRM
Financial backing: Funding from venture capital firms Attract and retain top talent:
AI, software development, and digital marketing from

$579 private equity funds


competing companies

million
Engineers and data scientists from leading institutions
linked to ByteDance
(Lee, 2025; Nanping et al., 2023; TOT Tech Desk, 2024)
(Truitt, 2024)
HR department is structured into two divisions:
Strategic investments: Substantial revenue from advertising Human Resource Operations and Efficiency (HROE)

7:3
and in-app purchases (Statista, 2025a)

$39.9 $146.3
billion billion
Human Resource Business Partner (HRBP)
Employee training programs: Innovation, content moderation,
Legal teams → Comply with data protection laws: and platform security (Chen, 2022)
General Data Protection Regulation in Europe Benefits: Competitive salaries, stock options, and career
Personal Information Protection Law in China growth → motivated workforce and employee turnover
(ByteDance, 2015a; Calzada, 2022; Kelley, 2025) (Feifei, 2024; Kharpal, 2023)

39 NGUYỄN TRẦN LIÊN NHI


CKGROUND INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT SWOT ANAL

II. INTERNAL ENVIRONMENT


VALUE CHAIN ANALYSIS - SUPPORT ACTIVITIES
TECHNOLOGY DEVELOPMENT PROCUREMENT
Invest heavily in AI R&D (Hermann, 2023): Source high-performance cloud computing infrastructure:
80 billion yuan ($11 over $12 billion globally Information hosting
billion) in 2024 in 2025 (planned) Content delivery
Access to high-end GPUs
(Ngo, 2024; Wall Street China, 2024)
(Baker-White, 2024; Butler, 2024; Holmes, 2024)
= + +
providers
$5.5 billion for AI chip $6.8 billion
investments in China internationally Seek music and video licenses:
Explore AR, VR, and metaverse: (Olcott and Wu, 2025) Rich multimedia experience Infringement avoidance
Compliance with copyright laws
innovation extended reality
(Feathers and Aune, 2022)
(XR) technologies
(Feng, 2022; Osawa, 2022) collecting
Invest $614 million in a new computing center (205,013 societies
square meters) in Datong (Chen, 2025) (Sanchez, 2019)

40 NGUYỄN TRẦN LIÊN NHI


RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


PESTEL ANALYSIS POLITICAL FACTORS
The US Defense Department employees uninstalled the app
Data Privacy Regulations
ByteDance declined to sell the service prior to the
in 2020 (Vigdor, 2020).
PAFACA deadline => prohibition in US (IV and Roeloffs, 2025)
India prohibited the Helo and TikTok apps due to security
In 2023, TikTok change its data security
concerns (Bursztynsky, 2020), blocked 57
procedures to meet the UK’s national requirements. (Maheshwari,
additional Chinese apps due to growing border
McCabe and Karni, 2024).
tensions (Iyengar, 2020)
Geopolitical Tensions

Digital Advertising Emerging Market US-China Trade


Currency Fluctuations
Market Potential Tensions: Tariff issue
Earnings are subject to
The global digital Rapid digital Trump :”If TikTok continues to operate
advertising market, valued exchange rate changes.
penetration in after being shut down, the United States
at $614 billion by 2025 => Eg: The Chinese Yuan
developing nations like should get half, and if China rejects the
revenue growth lost almost 7% of its
India, Southeast Asia agreement, he certainly can impose
opportunities.(Dentsu, value in relation to the
and Latin America is tariffs on China”. According to him, the
2024). US dollar in 2022.
favorable to ByteDance tariffs can reach 100% (Murphy et al.,
(ByteDance, 2022) 2025).

41 ECONOMIC FACTORS VÕ KIỀU MY


RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


PESTEL ANALYSIS
TECHNOLOGICAL FACTORS
SOCIAL FACTORS
Industry Trend: Microsoft, Amazon,
Gen Z Dominance: strong appeal to users Alphabet, Meta with high data center and
aged 16-24 (Press Room 2025) AI investments in 2025 in AI and machine
User Behavior Challenges: must learning (Reuters, 2025).
continuously innovate to maintain engagement Future Technologies: AR and VR expand
Content Moderation Issues: use automatic at a CAGR of 43.8% from 2022 to 2028
systems and human moderators. (Mendoza-Ramírez et al., 2023).
Ongoing Challenges: balance between AI-Driven Engagement: Sophisticated
freedom of expression and content recommendation algorithms enhance user
regulation, the openness of moderation interaction and personalization (Zhou,
procedures (Keenan, 2025). 2024)

42 VÕ KIỀU MY
RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


PESTEL ANALYSIS
ENVIRONMENTAL FACTORS

ByteDance's Sustainability Goal: to become operationally carbon neutral by 2030.


Renewable Energy: to source all electricity from renewable energy, reduce operational emissions by
at least 90% (Butler, 2023).
Data Center Initiatives: switch its data centers to renewable energy lower digital infrastructure's
carbon footprint (ByteDance, 2023).

Data privacy laws: the Children's Online Privacy Protection Act, the General Data Protection
Regulation (Reuters, 2023).
Ongoing Legal Disputes: operational stability is still impacted by ongoing legal disputes and
regulatory scrutiny(Hawkins and Davidson, 2023).

LEGAL FACTORS
43 VÕ KIỀU MY
RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


INDUSTRY CHARACTERISTICS
RAPID INNOVATION
With constant breakthroughs in AI, cloud computing, semiconductors, and
software development (Rashid and Kausik, 2024).

$320 BILLION (up from 230)


(The Feed, 2025b)
INTENSE TALENT RIVALRY
Competing for skilled experts in AI, software engineering, data science, network
security, and cloud computing.

61% of businesses are facing shortages in technical skills and software


engineering, with 62% of employers citing major hiring difficulties (Akhta, 2025).

44 VÕ KIỀU MY
RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


INDUSTRY CHARACTERISTICS INDIRECT
NETWORKS
DIRECT
NETWORKS

User queries generate


POWERFUL NETWORK EFFECTS additional data that
Users lead to other users
improves algorithms &
future results for all users

(in value)

(Colello, 2017)
MARKET DOMINANCE

control a large market share

Creating high barriers to entry for new players (Lemley and Wansley, 2024).
REGULATORY SCRUTINY
Governments closely track digital companies due to issues with content moderation, AI ethics,
antitrust and data privacy (Khan, 2024).

20
45 VÕ KIỀU MY
RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


PORTER’S 5 FORCES ANALYSIS BARGAINING POWER OF SUPPLIERS

Dependent on a small group of


technical service providers.
2nd of 20% 1st of 32%
(Haranas, 2023)

LIMITED SUPPLIER OPTIONS

& OTHERS $26.2 BILLION

Specialist influencers and content producers.


(Weiss, 2025) Suppliers might face direct competition.
Top influencers: > $10,000/ cooperation. (Microsoft News Center, 2016)
(Hitchcock, 2025)

INFLUENCER RELIANCE VERTICAL INTEGRATION RISKS


46 VÕ KIỀU MY
RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


PORTER’S 5 FORCES ANALYSIS BARGAINING POWER OF CUSTOMERS

A VARIETY OF CHOICES
PERSONALIZATION
FOR CUSTOMERS
Users prefer content platforms that tailor
Google LLC their material to their individual
preferences.
algorithms and data analytics
Snap Inc.
“ TikTok inspired them to

Meta Platforms, > 67% shop even when they


users weren't looking to do so.”
Inc.
(Dunn, 2023; GMI Research Development of content (TikTok For Business, 2022)
Team, 2024)
USER FEEDBACK IMPACT
47 VÕ KIỀU MY
RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


PORTER’S 5 FORCES ANALYSIS COMPETITIVE RIVALRY

INTENSE COMPETITION IN THE


MARKET FOR CONTENT
SHARING AND CONSUMPTION BYTEDANCE'S ACTIONS
Invest almost $11 billion in
research and development as of
3.07 billion monthly
2024
active users
Uses aggressive marketing
techniques to increase the
2.85 billion monthly number of users TikTok's
active users 2022 global ad income of almost
$23.58 billion
(Kumar, 2025; GMI Research Team, 2024) (Statista, 2023a)

48 VÕ KIỀU MY
RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


PORTER’S 5 FORCES ANALYSIS THREAT OF SUBSTITUTES

STREAMING MARKET COMPETITION


The global streaming market CAGR
$106.83 billion as of 2023 21.5% from 2024 to
2030
(Grand View Research, 2023) (Chalaby, 2024)

Offering comparable short-video formats and


user-generated content.
(Koç, 2023)
SOCIAL MEDIA ALTERNATIVES
49 VÕ KIỀU MY
RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


PORTER’S 5 FORCES ANALYSIS THREAT OF NEW ENTRANTS

LOW ENTRY BARRIERS (Vahey, Nolfe and Roberto, 2023)

The content creation industry has comparatively low entry hurdles

$27.99 BILLION User-generated content


in 2024 CAGR Over 1 billion monthly active
14.1%
$31.93 BILLION users
in 2025 Draw in new players looking to
New players can emerge quickly take advantage of new social
media trends
MARKET GROWTH USER-GENERATED CONTENT
(Backlinko, 2024)
(The Business Research Company, 2025)

50 VÕ KIỀU MY
RONMENT EXTERNAL ENVIRONMENT SWOT ANALYSIS BUSINESS STRATEG

III. EXTERNAL ENVIRONMENT


VUCA ANALYSIS
VOLATILITY UNCERTAINTY
Market trends Changing market dynamics $20 BILLION
Quick changes in
Technology developments into AI
customer preferences Regulatory environments Regulatory environments infrastructure
(IV and Roeloffs, (Reuters, 2025)
The industry is very unstable
2025) Changing nature of AI technology
US TikTok ban Regulatory obstacles Export restrictions
Quickly adjust Unclear investments

Challenging regulatory Foreign relations are unpredictable


Managing intricate
frameworks Financial concerns
technological
Pay $92 million in 2023 Affects not only ByteDance but also
advancements and
to resolve a class-action American digital companies like Apple and
incorporating them
lawsuit in the US Google that have connections to the
(ByteBridge, 2025) into current platforms company (Barrabi, 2025)
COMPLEXITY AMBIGUITY

51 VÕ KIỀU MY
MENT SWOT ANALYSIS BUSINESS STRATEGY FUTURE STRATEGY & INNOVATION

IV. SWOT ANALYSIS


Strengths Weaknesses
Monetization strategies diversification. National security risks
(Perdana and Bharathi, 2023) (Maheshwari and Holpuch, 2025)
Virtual reality (VR) and the metaverse market US temporary Tiktok ban
entry. Highly dependent on TikTok (Xing, 2023)
Enterprise software solutions Expansion into High operational costs (Shi and Sornette, 2019)
emerging markets like Latin America, Africa, and Public perception as a data security risk
Southeast Asia. (Scatton, 2023)

Opportunities Threats

Currently a market leader (Xing, 2023) High profile competitors. (Ryu, 2025)
Higher chances for new creators to go viral Geopolitical tensions. (Li, 2024)
(Xing, 2023) Government restrictions. (Liu, 2022)
Extremely diverse product portfolio (Liu, 2022) Cyber-security threats. (Williams, 2021)
Most valuable privately held companies Shifting of consumer preferences.
(Wang and Shah, 2024) (Lu, Wu and Ji, 2023)

52 HỒ XUÂN NGUYÊN
ANALYSIS BUSINESS STRATEGY FUTURE STRATEGY & INNOVATION CONCLUSIO

V.PORTER’S
BUSINESS STRATEGY
GENERIC STRATEGIES
(Zhihang et al., 2024)

AI-generated content
(AIGC)

AI-driven
recommendation
algorithm virtual AI-driven
(Ngo, 2022)
DIFFERENTIATION influencers music
production

“filter bubbles” (Van, 2025)

disrupt filter
bubbles by
‘glocalization’
more
than 200 million
monthly active users globally
promoting (Huang, 2023)
diverse content

53 NGUYỄN LÊ THẢO PHƯƠNG


ANALYSIS BUSINESS STRATEGY FUTURE STRATEGY & INNOVATION CONCLUSIO

V.PORTER’S
BUSINESS STRATEGY
GENERIC STRATEGIES
ACQUISITION OF

Cloud
infrastructure

planning to invest
COST $772 million
over $12 billion
globally in 2025 LEADERSHIP
(Akolkar, 2022)

expand into the


(Davies, 2025)
Metaverse at lower cost

Data centres

optimize operational (Uffindell, 2023)


expenses (England, 2020)
54 NGUYỄN LÊ THẢO PHƯƠNG
ANALYSIS BUSINESS STRATEGY FUTURE STRATEGY & INNOVATION CONCLUSIO

V.PORTER’S
BUSINESS STRATEGY
GENERIC STRATEGIES
ACQUISITION OF

Cloud PICO 4 VR HEADSET


infrastructure
€430 for the 128GB model and €500 for the
planning to invest
COST
256GB model (that’s €20 and €50 less than
over $12 billion
Quest 2’s equivalents)
globally in 2025 LEADERSHIP
more compact than Quest 2 with the addition
(Davies, 2025)
of ‘pancake optics’ which should reduce the
bulk of the headset thanks to a folded optical
path
Data centres

a slightlyoperational
optimize higher resolution per-eye compared
(Uffindell, 2023)
to Quest 2’s
expenses (England, 2020)
55 (Lang, 2022)
ANALYSIS BUSINESS STRATEGY FUTURE STRATEGY & INNOVATION CONCLUSIO

V.ANSOFF
BUSINESS
MATRIX
STRATEGY
Market penetration Product development
AI-driven content creation tools (ByteBridge, 2025)
In 2024: 30% year-over-year revenue growth
CapCut (Zhihang et al., 2024), a user-friendly video
(Statista, 2024a), reaching $146 billion, with China
editing software with high-quality content, directly
contributing $112 billion (77%) and international
competing with YouTube’s Creator Studio and
markets, primarily through TikTok, generating $34
Meta’s Business Suite
billion (23%) (Sacra, 2025)
Acquisition of Moonton, a mobile gaming
TikTok Shop: Over $15 billion in e-commerce sales
company (Kharpal, 2021b) → Strategic expansion,
in 2023 (Thinh, 2023) → Secure vast app users on a
directly challenging Google’s Play Games and
global scale (Statista, 2024b)
Meta’s VR gaming
2022: TikTok was the number one social media
Jimeng AI in August 2024, a text-to-video
platform for impulse buys (Statista, 2023b)
application (Robson, 2024)

56 NGUYỄN LÊ THẢO PHƯƠNG


ANALYSIS BUSINESS STRATEGY FUTURE STRATEGY & INNOVATION CONCLUSIO

V.ANSOFF
BUSINESS
MATRIX
STRATEGY
Market development Diversification
Lark (2024): A productivity application for
improving workplace communications and
TikTok: (Statista, 2024f) efficiency (Yang, 2023)
+ 1st: The U.S.: approximately 135.79 million users Resso: A music streaming application, challenging
on the social video app as of February 2025 leading players such as Spotify (Cuthbertson, 2019)
+ 2nd: Indonesia: more than 107.7 million users and Apple Music (Kahekashan, 2022)
+ 3rd: Brazil: 91.75 million TikTok users consuming Custom-designed AI chips with Huawei → Lessen
short videos dependence on United States technology during
2025: TikTok Shop in Italy, Germany, and France, export restrictions (Iacovcich, 2024)
Japan, Brazil (Feng, 2025) Duobao AI chatbot: China's most popular AI
helper, with 78.6 million monthly active users as
of January (Stassen, 2025).

57 NGUYỄN LÊ THẢO PHƯƠNG


STRATEGY FUTURE STRATEGY & INNOVATION CONCLUSION

VI. FUTURE STRATEGY & INNOVATION


ACQUISITION OF PICO: STRATEGIC ENTRY INTO VR & METAVERSE
Pico 4 VR headset
approach to
$772 million placing the VR
technology into VS.
(Akolkar, 2022)
its ecosystem

AI-GENERATED CONTENT (AIGC) IN TIKTOK’S FUTURE LANDSCAPE


lifelike films
AI-generated music from a single
photograph
allows users to
create soundtracks avatars and Meta’s Quest 2
with the help of AI deepfake
(Stassen, 2025b) technology
58 NGUYỄN LÊ THẢO PHƯƠNG
(The Feed, 2025d; Webb, 2025)
STRATEGY FUTURE STRATEGY & INNOVATION CONCLUSION

VI. FUTURE STRATEGY & INNOVATION


APPROACH TO WEB3, NFTS, AND BLOCKCHAIN TECHNOLOGY ‘DIGITAL COLLECTIBLE’

experimented
launched NFT-
with displaying later removed branded coffee
the prices of
products on
Bitcoin and other
‘unofficial digital currencies’ Jan Douyin (Bored
Apr cryptocurrencies
2023 2024 Roasters, 2025)
on its platform (Sun, 2023)

PROSPECTIVE DIRECTIONS
CAN BYTEDANCE CREATE A "TIKTOK METAVERSE"?

WILL AI-GENERATED CONTENT CHANGE THE CONTENT CREATION INDUSTRY?

IS BYTEDANCE TRULY COMPETING WITH META IN THE METAVERSE, OR


59 ARE THEY FOCUSING SOLELY ON AI & VR? NGUYỄN LÊ THẢO PHƯƠNG
NOVATION CONCLUSION

VII. CONCLUSION
ByteDance combines advanced AI innovation with deep understanding of user
behavior
Despite its success, ByteDance faces challenges from competitors like Meta and
Google, along with regulatory scrutiny and geopolitical tensions.
With a strong AI foundation, robust product ecosystem, and financial strength,
ByteDance is positioned for growth, especially in emerging markets like VR.
However, regulatory risks and heavy reliance on TikTok pose significant challenges.
By navigating these risks and seizing opportunities in new markets, ByteDance’s
resilience and innovative growth could secure its long-term success, shaping the
future of both digital entertainment and technology.

60 NGUYỄN LÊ THẢO PHƯƠNG


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