SWOT Analysis of TikTok | TikTok Strengths, Weaknesses, Opportunities and Threats
1.What is TikTok?
TikTok is a social media app that allows content creators to share their videos with other users.
It is a mobile application that allows users to upload video recordings of clips using their iOS or Android device.
Tiktok is owned by ByteDance, a Chinese media company. It was launched 2017.
In May 2014, ByteDance Technology Co., Ltd was founded by Zhang Yiming as a video-sharing app under the name Douyin.
In September 2016, Douyin transformed into a new company called TikTok. TikTok is a short-video platform that allows users to create and share short videos on their smartphones.
2. How is Business Model for TikTok?
The business model of TikTok is based on the ads. This included:
a) Value proposition and customer in the market: Before launching the service, company toyed with the idea of to create a music streaming app. The toyed idea was not successful.
So, now after the launch of the service, company decided to start it as a short video sharing app. The unit of value is small but it would grow. It would be good for platform business at the early stage with low investment.
TikTok is an application that currently has more than 700 million users. Today TikTok user base has increased to 1 billion users; this shows the increase in customer base in the market.
b) Revenue model: TikTok only provides the user with one main activity which is sharing videos on social media. This key activity is its content itself, which makes up the core of the application. From 2017 to 2018, TikTok became a large-scale social media application globally with more than 30 billion video views. The core of this application is its available content – videos. The user can share these videos on their own personal account for free.
c) Mission proposition: TikTok mission is to encourage creativity and innovation. Their value proposition is to create a new, brave space for the entertainment industry. Through its platform, they can bring new content into the market. These include new content genres which are attractive to users, more creative work that will be noticed quickly by its community and increase in revenue for its content creators.
3. How Does TikTok Makes Money?
The main source of revenue for TikTok is from;
a) Advertisements: It shows up as floating ads on the user’s live video.
b) Content licensing and network advertising: It shows up on user’s profile and games.
c) Monetization of related applications: TikTok has made a partnership with other companies such as Baidu and UC Education; more individuals can access this application and create more users to it, therefore getting additional revenue.
d) Paid tokens for a premium service for a small group of users
e) Other: It also sells user’s data to advertisers and media companies
4. TikTok competitors
There are large multimedia companies which have the same goal as TikTok. These include;
a) Facebook: Facebook is a social networking site that allows users to post profiles, send messages and photos to others, and update their personal profiles and pages through a web-based interface or mobile device application.
b) YouTube: YouTube is an American video-sharing website headquartered in San Bruno, California.
YouTube is a video sharing platform that was created in 2005. It is owned by Alphabet Inc., it has more than 1 billion users worldwide.
c) Snapchat: It is an image messaging and multimedia mobile application which delivers its user photos and videos, known as “snaps” that delete themselves after they are viewed. The app allows users to add doodles and text to their snaps. It can also be used to add location-based stickers, known as geo filters, to their images.
d) Musical:ly: is a social photo and video-sharing app that allows users to view others’ content, post comments and create their own, and share content via Facebook and Instagram.
e) Instagram: Is a photo and video-sharing social networking service owned by Facebook, Inc. It was created by Kevin Systrom and Mike Krieger, and launched in October 2010 exclusively on iOS. An Android version launched a year and half later, in April 2012, followed by a feature-limited website interface in November 2012 and apps for Windows 10 Mobile and Windows 10 in April 2016. The app supports digital filters that modify the images, mainly to make them look as if they have been aged as vintage photographs.
e) Twitter: Twitter is an American online news and social networking service on which users post and interacts with messages, called “tweets”. Tweets were originally restricted to 140 characters.
f) Meta: Meta is a San Francisco-based software provider company specializing in natural language processing. It uses artificial intelligence to organize the content of websites across the Internet.
5. SWOT Analysis of TikTok
Strengths of TikTok
a) User friendly: the key strength of this application is its user-friendly application.
b) Creative content: it makes it more attractive to everyday users.
c) Fast growth: This application has received a lot of attention from its fans and has grown significantly over the years.
d) It has a very large user base: TikTok has over 500 million users.
e) It has very strong functions of businesses which can make lot revenue of it.
f) Excellent design and beautiful interface; it is more convenient to use.
g) It is easy to use for ordinary people.
h) This application provides an opportunity for content creators to get revenue from their content.
i) It has many new features which can bring more value on this application.
j) This app provides more choices on how the content creators will create videos.
k) It has photos, videos, GIFs, music clips, drawings, video filters and stickers within the same platform.
l) Fast and easy to use. This app is simple and attractive
m) It has very large amount strength in its community: TikTok has a large social media group of fans that use this app for all their activities.
n) Good marketing: it has a very good marketing plan which is used to promote it.
o) Very good products: It has a winning product, which can be used by all types of people.
p) Users will spend a lot on the app. As the application is free, they will spend more money on it
q) Fun Teamwork: This app is built by very intelligent people. TikTok has made a great team.
r) Social media management: This app provides the user with all the social media solutions around it; they can manage their Instagram, Facebook, Twitter, etc. through this app.
Weaknesses of TikTok
a) Sophisticated capabilities: Some of TikTok features are so technologically advanced that it takes a long time for a newbie to grasp them. For example, a new user may find it difficult to apply many effects to a video at the same time, such as filters, time delays, and backdrops.
b) Unsuitable content: TikTok does not filter some of the audio tracks and background audio clips since they are exceedingly unsuitable. Many social media opponents argue that the video-sharing network features vulgar comedy, promotes drug and nudity use, and promotes fantasy violence.
c) Addictive: TikTok can be addictive and time-consuming for many users. It is an app that encourages users to spend hours on it.
Its overuse can make people feel stressed, anxious, and depressed.
d) Termination of account: Like in other social media platforms, in TikTok there is a “report” feature that allows the user to report the inappropriate videos and inappropriate comments in texts directly to the company administrator.
e) Lack of unique features: lack of new features which are not available on other platforms is its weakness, as most users are using these platforms services which have more unique features to offer.
f) It has no ownership/rights to its content: TikTok doesn’t own any content. This is a weakness because the owners of the content could delete videos at their will, as seen with Instagram. This means that TikTok can’t guarantee the availability of its content.
Opportunities of TikTok
a) Tech oriented: TikTok has the potential to develop its technology and technical abilities. Its algorithms can be improved. Its video format, which is used in videos, should be improved so that it doesn’t get distorted. More user friendly features can be introduced to improve the user experience.
b) Business oriented: It could be very possible for it to develop its business side also.
c) Sales of branded or sponsored content; also, TikTok could explore the opportunities of selling products by allowing users to post links or links codes through their content.
d) It can use its platform for charity purpose: it can use its platform for charity purpose.
e) Native advertising: it can promote its business by promoting their products through content of users.
f) It can be used for rapid communication in times of disaster, as telecommunication services might be affected during this time.
g) It could expand its platform globally; currently it’s used globally but with restrictions.
Threats of TikTok
a) Exposure to inappropriate content: In the case that inappropriate content is discovered on their app, social media platforms can face a serious threat to their business.
b) Lack of user security: When the user’s account is hacked or stolen, it could damage the reputation of the platform.
c) Change in market conditions: When there is a change in market conditions and consumers’ attitude and preferences, their business will take a hit as well as economic growth if they do not adapt to changes quickly enough.
d) High level of competition: TikTok competes with social media platforms on various levels, including competitors who are on the same platform.
e) Lack of originality: Lack of creativity is a problem that most people face in today’s world. And the lack of originality can be a very serious threat to its business.
f) Social Networking Sites; It could also face a threat from social networking sites like Facebook and Twitter.
g) It can be used by terrorists and hackers; it can be used by terrorist and hackers that know how to hack into its system to spread harmful messages.
h) It can be used for cybersquatting: it can also take a huge hit if its name is taken by someone else, especially when availing its online services legally.
i) Collection of User Data. The data TikTok collects from users contains sensitive information and is often taken without the user’s explicit knowledge
FAQS of TikTok
a) Is TikTok Safe?
It is a safe platform. There are security features for the users to protect themselves from spam, bullying and other online threats.
b) How can I Download TikTok?
Users can easily download TikTok from Google play store or apple appstore. It’s free.
c) How can I Delete TikTok?
TikTok is very difficult app to delete. it is not like other social media.
The way to delete account is by using the official web site of TikTok and then fills in all the required information then click on submit button and your account will be deleted.
d) Can they Download Video on TikTok?
TikTok is a social media platform so the users can only share their videos on TikTok community. They won’t be able to download video from this app.
e) Can they Download Songs on TikTok?
TikTok is a social media platform so the users can only share music there or hear it from their friends and other musician. They won’t be able to download songs from it directly.
f) How can I delete my account?
If you want to remove your account, then the option will be available under settings on your phone or Personal computer?
g) Can they make money on TikTok?
TikTok is a social media platform so the users can only earn money by creating videos there. They won’t be able to earn money directly from it.
h) How do I get a TikTok account?
You can make a TikTok account from any social media platform like Microsoft live, Facebook, Instagram, twitter etc.
i) What happens when a person deletes their TikTok account?
When a person deletes his or her account, the data associated with that account will be removed from the system and the user will not receive any notifications from TikTok.
K) Can TikTok watch them?
TikTok can’t watch them and it doesn’t collect any private information.
TikTok has also introduced a new feature which is ‘Video Request’. If you want to make a video request, you can scan the QR code on the screen.
The video you send will be kept on the server for 30 days after getting your permission to it.
Last but not least; delete your TikTok account if you don’t like it.
l) Does TikTok actually spy on them?
TikTok doesn’t spy on you. It helps its users to send messages easily.
m) Is it possible to hack into someone else’s TikTok account?
Yes, some people can hack into other’s TikTok account easily for some extent.
n) Is it possible to change their username or profile picture?
No, it is not possible to change either of them, but they can make a video about changing your profile picture or username and share it on TikTok.
o) Is it possible to change the content they posted on their account?
No, it is not possible to change any of the content they posted on their account.
P) Is it possible to delete pictures from someone else’s TikTok account?
Yes, you can delete pictures from someone else’s TikTok account and it is very easy to do so.
q) Why is TikTok a bad app?
TikTok is not a bad app at all, it helps its users to send messages easily and share videos. It’s just that some people misuse it and use it for wrong purposes.
r) Who created TikTok?
TikTok was created by ByteDance Inc.
s) Why is TikTok popular?
TikTok is popular because it is an easy app to use and share videos.
t) Is TikTok available only in the United States?
No, it is not available only in the United States; it can be used by all over the world.
u) Is it safe to download TikTok?
Yes, TikTok is a very safe app to download because of its security features.