Managing Innovation: Disruptive Innovation Theory and its Application in TikTok

This report explores the concept of disruptive innovation theory and its application in the context of TikTok. It discusses the benefits and limitations of this theory and how TikTok uses it to attract users and enhance its market position. The report also covers the historical development of TikTok and its future development plans.

Managing Innovation
Assessment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Disruptive Innovation Theory.....................................................................................................3
Application of the Disruptive Innovation Theory in the historical development context...........7
Application of the Disruptive Innovation Theory in the future development context................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Management of innovation is defined as the procedure under which various activities are
being handled in such a way that some innovation can be induced within an organisation.
Basically this is defined as accumulation of innovation process in which overall performance of
the organisation is being improvised and steps are undertaken in order to receive competitive
edge within market. The major advantage of innovation is to attain higher market size and
market share and due to this quality products and services as well. Current report is based on
TikTok which is a Chinese video sharing social networking platform which is used by various
users in order to make different types of short videos. The organisation is using different types of
theories in order to develop market image of their organisation. This report is covering disruptive
innovation theory in which prominent understanding of benefits and disadvantages in relation to
TikTok is being established. Besides this the report is covering application of disruptive
innovation in historical and future innovation development for TikTok.
MAIN BODY
Disruptive Innovation Theory
Disruptive innovation theory
This is defined as an effective approach in which new product is being launched in the
marketplace along with attaining appropriate position for the same in the market. The major
significance of this approach is associated with attaining prominent position within marketplace
along with grabbing appropriate market size as well. By taking use of disruptive innovation
theory competitive advantage can be received by organisation in respect of their competitors. In
addition to this the process is revolving around finding out ways in which market pressure can be
minimised (Vassileva, 2016).
As in current environment of business various businesses are operated in order to face
fierce competition in which larger market share can be received. TikTok is based on repetitive
users so innovation strategy may lead them to attract users to higher extent. In this intense
competition TikTok is required to inhale various innovative features and this manner they can
attract higher user and add attractive to their websites. This is assisting for the company in order
to offer different features and to reach out to ultimate objectives.

In this context TikTok is using different types of strategies in order to inhale new features
in their business and websites so that to manage uniqueness and distinctiveness to their offerings
within marketplace. This is the activity which is helpful in understanding all the possibilities
which are helpful for business to grab all their objectives in prominent manner. Majorly this
strategy is associated with value innovation and differentiation in offerings due to which
profitability of the business can be amplified in such a way that competition can be undertaken
within marketplace. This is imperative for the business that they examine market in a very
specific and detailed manner so that to recognise opportunities existed within market and to
inhale higher market image and competition as well (Dearing, 2017).
As according to this theory four major concepts are existed and these are utilised by
individual in order to apply relevant theory in fruitful manner. Under this related process and
steps are enlisted below:
 In current business environment innovation is termed as the trendiest and basic aspect of
the business which is helpful in inhaling business opportunities in prominent manner.
Thus with the help of effective innovation market profitability can be enhanced and due
to the reason market demand can be addressed in sufficient manner along with
understanding preference of customers.
 Under this businesses are tend to emphasis over social groups so that to analyse target
market in effective manner and this is highly useful for the business to significantly
manage the same in prominent aspect.
 Under this, organisation are required to emphasis over enhancing user base and in this
manner audience can be handled in a better way so that to deal with competitors.
 Under this new entries are effectively using disruptive innovation theory so that to move
upwards in order to find prominent solution for major problems and to involve social
groups and earn profits as well.
 In recent time this is being analysed that presence of new entry is highly disruptive for
the business in order to make incumbents changes within offerings. Changing attitude is
the another aspect which is leading the business to inhale new developmental and
innovative ideas as well.
In this regard disruptive theory of innovation is not applied for providing betterment within
product or services rather than this is helpful in redefining mechanical factors which are existed

within business so that to develop offerings in effective manner. In this manner competitors are
being analsyed those are having higher market presence so that to mould the overall business as
in context of relevant aspects. Relevant tips for innovation are enlisted as under:
Not all innovation is disruption: As according to experts, disruption is defined in various
ways in which appropriate dimensions are being added which are innovative and distinct. In this
aspect businesses are currently focused over understanding product or segment needs rather than
focusing over social groups. This is directly linked with developing new and innovative ideas for
the business and varied start-up's ( García-Manilla and et. al., 2019).
Disruption can be low ended or new market: This theory is undertaking two major
aspects which are significant for any new entrants and enhancing their presence in the market.
For new entry disruption is low as in order to enter into a new market lower level is being
targetted at first and then for satisfying requirements customers are served. Under this social
groups are the primal to understand and their needs are other aspect in order to give proper
insight to the business for reaching out to objectives. Other than this new market is the another
disruption which is required to be focused so that engage users in happily manner. As this can be
said that disruption innovation is highly focused over underserved users.
Disruption innovation is process instead of product and services: This theory is wholly
based on understanding those appropriate processes which are helpful in effective execution
within entering stage of the organisation so that to significantly manage market position. Under
this innovation factors are the aspects which are highly emphasised over instigating unique
identity and by this new offerings can be developed in prominent manner.
Choose battle wisely: New entrants are tend to be highly attentive in which emerging
businesses can be formed. In this manner fresh businesses are related with making fresh business
areas and in this manner suitable decisions can be taken and suitable impact can be undertaken
for understanding impact of disruption. Disruption is bringing high end opportunities in market
and in this manner benefits are received by business owners (Murphy, 2016).
Benefits of disruptive innovation theory
There are companies that have used the disruptive innovation theories to make their
business into a successful venture and found the changes in buying and selling of the products of
their concerned industry. Disruptive theory has become the new rule for the businesses to stay
ahead in the flexible market and cope up with the changes in the environment of the market.

 Expansion of the market- To expand in the market it is necessary to find an area where
opportunity is there that change in the behaviour of the consumer related to traditional
industry. In the initial stage the opportunity does not look that attractive or or help in
increasing the market margin but the various characteristics of disruptive innovation
business include lower market margin, smaller target market and the simpler products
that do not look appealing to the larger but with the scale and volume it can easily
overtake the former models.
 Improvement in own processes- For the examination of current situation of the market
share the company always takes a step back and find all the best possible solutions to all
the needs of the consumers, for the finding of solution the company also need to evaluate
company's own processes and can find how to adapt, change and can improve to provide
good product and service, disruption within the industry. It is very tough to identify the
the new improvement areas in internal areas to stay relevant and able to change in
changing industry, therefore application of disruptive innovation theory helps in
expansion very quickly.
 New opportunities- When there are new opportunities and ideas there will be new
opportunities in the near future, they may not exist in the present. For eg.- When Netflix
was launched it was competitor to blockbuster. But as soon as netflix evolved and
remained open for the new opportunities. It became the threat to the cable industry which
was not even in mind of the people years ago (Zaharee, Champney and Nanez, 2017).
Limitations of disruptive innovation theory
 Disruptive innovation needs strategy process separately. It is the process which are
focused on things what works and what does not. It must be focused on the
opportunities, problems or successes that are not anticipated
 Disruptive innovation is more focused on designing of the products that define the
behaviour of the current customers but it should focus on informing the design of
innovations.
 Disruptive innovations adopted by businesses do not earn profits in larger numbers
because they have the nature of identifying new markets. Venture capitalists are the
people who are impatient earn larger amount of profits.

Application of the Disruptive Innovation Theory in the historical development context
Company overview
TikTok is a private Chinese video sharing social media networking website which is
owned by Bytedance. This platform is used by users in order to make different types of short
videos in genre such as dance, comedy, knowledge and education. This website is available in 40
different languages and this become worldwide after merging with another Chinese social media
service Musical.ly in the year of 2018. This was launched in the year of 2016 and gained higher
popularity in the market segments of South-east Asia, United States, Turkey and Russia (Brem,
2017).
Vision:
The vision of the company is to create enormous content which is helpful for the people
to gain knowledge and have entertainment as well.
Mission:
The mission of TikTok is to inhale creativity and bringing joy to people. Besides this
major mission of TikTok is to bring innovation in gateway of their app and to enhance use
experience as well (Barbosa, 2020).
Business Canvas Model:
Key Partners:
 Supermar
kets
 Social
media
influencer
 Walmart
 e.l.f.
Cosmetic
 Ralph
Lauren
Key Activities:
 Creation
of videos
 Creation
of hashtag
challenges
 Creation
of videos
covering
tutorials
 Promotion
Value
Proposition:
 Providing
ways to
entertain
people
and giving
them
opportunit
ies by
their
acting and
entertainin
g skills.
Customer
Relationships:
 Providing
opportunit
ies to
people for
entertainm
ent and
giving
users
entertainin
g and
remarkabl
e content.
Customer
Segments:
 Kids
 Young
people
 People
those are
prone for
entertainm
ent.

Key Resources:
 Social
media
influencer
 bloggers
 Vloggers
Channels:
 Social
media
Cost Structure:
 App development
 logistics
Revenue Streams:
 TikTok earns from user as when they
browse content given over TikTok.
Historical development of TikTok:
TikTok is a social media platform which is known for their short videos posting. TikTok
is associated with different types of creative contents which are helpful for the company to
engage their users and provide them never ending accessible feed. In initial stage of TikTok the
company earned money from advertising which is helpful for upbringing of their business model.
Challenges over TikTok are accompanied by demanding music tracks which can be filtered and
merge various effects as well. Content over TikTok is powered by AI algorithm which is helpful
in optimising content creation, curation. In short this can be said that TikTok is combination of
Instagram, Facebook and YouTube (Lund, 2017).
Disruptive innovation theory is bieng applied by the organisation in such a manner that
they can analyse individual requirement in such a way that the same can be handled by them in
order to satisfy their users. Besides this TikTok is developing their application and improving ist
gateway so that users can get their desired content and receive higher entertainment from that as
well. TikTok is changing dynamics of their business model so that to attain higher accessibility
without applying additional costs.
Thus this can be said that disruptive theory of innovation is applied and developed in such
a way that worldwide presence can be made by the organisation. At present TikTok is existed in
154 countries and in current time this is the most renowned social media platform which is
highly famous within kids and youngsters. TikTok is known to be highly innovative and
remarkable content provider which is known for their creativity and entertainment as well.

Application of the Disruptive Innovation Theory in the future development context
The disruptive innovation is defined as the theory which depicts several stages and helps
the organisation to reach out to an appropriate conclusion which can add value in order to have
effective presence in the market. In this manner unique selling aspect within an industry is
examined so that to enhance power within industry in appropriate manner. In the context of
future development innovation inhaled by TikTok is made for the major purpose to deal with
higher user base along with engaging them as well in proper manner(Ortmann and Sydow,
2018).
In current time users are highly focused over having appealing content which is
remarkable and entertaining as well. In this aspect individuals are trying to reduce barriers due to
which reaching out to customer is tough. TikTok is recognising cultural aspect in such a way that
which could help them in gaining attention of their users in appropriate manner. Besides this
TikTok is emphasising over understanding cultural dimensions in such a way that their published
content do not hurt sentiments of an individual.
In this manner various initiatives are undertaken by TikTok so that to boost interest of their
customers and to make them happy with provided content. As TikTok is trending in most of the
countries it can uses innovative programs that helps its viewers ti get more attention upon it. This
enhances viewers percentage that increases customer base for TikTok. Also Tik Tok should
focus upon popularity of people from various region and promote them over the app that makes
TikTok to attain global identity. It should make more enhancement within the help of updates to
make it more user friendly and cover previous issues faced by its loyal customers. TikTok should
promote both regional and cultural programs which makes it attain more and more popularity
within local market that makes it stay ahead of its competitors in market. Tik Tok in order to
make itself gain trust of an individual must focus upon challenges or competitors to be
conducted which makes it provide premium services that helps it in targeting rich class also. In
order to make its place better in market it should use STP model and can help in attaining
sustainability within market. Through this model various kinds of innovative idea can be
introduce as per customers need. This makes customers to be attracted towards the app and help
its maker in generating high revenue with profit. TikTok acts as job provider in a way that it ha
establish itself in various countries within which vacancies are filled by local candidates. This
makes a job generate app also (Anzai and Sengoku, 2016).

For such purpose TikTok can use innovative theory which helps its makers to develop
strategies with innovation within them. Its required in order to make app more impactful by
improvisation of its content so as it does not hurt felling and emotions of an individual or
community. Also this theory is going to enhance TikTok's working environment by making it
more friendly for employees working over the app. This app has changed virtual world by
bringing revolution within it. Innovative theory is helpful for TikTok in promoting
environmental awareness by doing programmes with NGOs and social welfare organization . As
it has attained popularity in market so by using innovative ideas as per countries conditions is
going to make TikTok bring more relevant content. Beside this the theory also makes engaging
of customers in the app. TikTok is very unique app and is related to social media that makes it
develop easy approach to its viewers. TikTok has been facing various challenges due its
programs and contents that is been shown upon the app. So, it should take complains seriously in
order to avoid legal issues. The app should use various locks and put ban over its contents that is
sensitive in nature which is going to increase survival in stings and make app attain longer term
sustainability for app. Further it makes the app attain certain factors that majorly helps in
gaining growth with development in near future. The app can also focus upon its advertising
patterns in both physical and online terms. This can be done through magazines, newspaper and
pamphlets. In terms of online advertising digital marketing can be used with social media
platforms in order to promote app to more locations in no time (Tallman and Koza, 2016).
CONCLUSION
From the above report this can be concluded that for every organisation there is significant
for the business to inhale appropriate innovation in order to boost productivity and efficiency.
This report is providing developmental opportunities and these are highly advantageous for
gaining new business insight as well. Along with this disruptive innovation is helpful for
understanding market condition and to attain competitive edge as well. This is the theory which
is helpful to inhale higher creativity and development within business functions.

REFERENCES
Books and journals
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innovation: A resource and communication-based approach. Technology Transfer and
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