Analysis of ByteDance with a close look on Douyin TikTok

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Analysis of ByteDance with a close look on Douyin TikTok ( analysis-bytedance-with-close-look-douyin-tiktok )

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1 Introduction 1.1 Context 1.1.1 Internet Internet, the contraction of interconnected network, is a network of networks of all sorts of types and scopes connected by various technologies. It carries a wide range of resources and services. Originated in the twentieth century, Internet kept gaining popularity globally. As shown in Figure 1, the global number of Internet users has been growing since 2005. By the end of 2018, 3.9 billion people had access to Internet, 52 inhabitants out of a hundred were using Internet services. If we break down countries around the world into three categories based on the level of development they are currently at, we can see that the positive trend of user growth does not only occur in one category. Countries of all three categories have experienced upward growth curve – the increasing demand and usage of internet is universal and phenomenal. The rapid adoption of Internet, the fast development and convergence of digital technologies further stimulated the innovation and widened its reach. Mobile phone became more prevalent. Instead of accessing Internet through fixed-line devices like computers, people could browse web anywhere, with some pocket-sized, multi-purpose devices that function fully as computers – we call them smartphones. The ubiquity of mobile internet and smartphones opened up a large new market. Internet now serves as a medium of a broad spectrum of areas including content services, communications, and commerce (Kim, Chan, & Gupta, 2007; McKnight & Bailey, 1995). In November 2018, 48% of the global web traffic come from mobile internet, with Asia in the leading position (StatCounter., n.d.). We can see from Figure 2 that, by January 2019, Internet already has almost four and a half billion active users, out of which nearly 90% are also active mobile internet users, 74% of which are active on mobile -6-

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