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3 Method 3.1 User Growth Analysis 3.1.1 Discrete Growth Rate The user growth rate of a company is often depicted by a differential equation: ππ = π β π β (1 β π) ππ‘ πΎ (3.1) Where P represents the user amount, r refers to the initial growth rate, and K refers to the maximum carrying capacity. Equation (3.1) can be explained in a sense that exponential growth takes place at a rate of r when user amount P is much smaller than the maximum carrying capacity K, whereas the growth rate decreases by time and eventually stops when these two parameters, K and P, reach even β in other words, when the maximum carrying capacity is reached. By rearranging terms in equation (3.1), we obtain a formula on continuous growth rate of users: and K refers to the maximum carrying capacity. Alternatively, one can also look at a companyβs discrete growth rate of users. The discrete growth rate refers to the amount of user growth between two points in time can be derived from the above equation: π π =ππβ1=πβ(1βπ) πππ‘π πΎ (3.2) Where π π depicts discrete growth rate, P represents the user amount, r refers to the initial growth rate, π - 18 -PDF Image | Analysis of ByteDance with a close look on Douyin TikTok
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