Product details

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Abstract

In May 2021, the USD400 billion tech conglomerate ByteDance's Founder and CEO Zhang Yiming (Yiming), aged 38, decided to step down from his role as CEO. Meanwhile, a section of economists observed that at the beginning of the COVID-19 pandemic about 1% of Americans had already owned 30% of the America's wealth and the bottom 50% held less than 2%. While equity-owners and investors had experienced great gains, those living on the salary income suffered as their wages barely kept up with the cost of living. On the other hand, it was observed that China while emerging out of COVID-19 recession got hit by a K-shaped rebound. At one end, big tech companies were seen thriving, while on the other, storefront businesses struggled. What made matters worse was big tech companies' unwillingness to share profits with small businesses on their sites. Effective from February 2021, the Chinese financial regulators promulgated new rules after years of tolerating big tech's unbridled expansion. Moreover, a section of analysts observed that there was a long-standing economic, social, and industrial policy issues that merited the government's action, while the government demanded the big techs to bring their business in line with regulatory requirements. Analysts wondered whether such moves establish consumer trust and provide competitive advantages to achieve sustainable business growth in China.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Asia
Country:
China

About

Abstract

In May 2021, the USD400 billion tech conglomerate ByteDance's Founder and CEO Zhang Yiming (Yiming), aged 38, decided to step down from his role as CEO. Meanwhile, a section of economists observed that at the beginning of the COVID-19 pandemic about 1% of Americans had already owned 30% of the America's wealth and the bottom 50% held less than 2%. While equity-owners and investors had experienced great gains, those living on the salary income suffered as their wages barely kept up with the cost of living. On the other hand, it was observed that China while emerging out of COVID-19 recession got hit by a K-shaped rebound. At one end, big tech companies were seen thriving, while on the other, storefront businesses struggled. What made matters worse was big tech companies' unwillingness to share profits with small businesses on their sites. Effective from February 2021, the Chinese financial regulators promulgated new rules after years of tolerating big tech's unbridled expansion. Moreover, a section of analysts observed that there was a long-standing economic, social, and industrial policy issues that merited the government's action, while the government demanded the big techs to bring their business in line with regulatory requirements. Analysts wondered whether such moves establish consumer trust and provide competitive advantages to achieve sustainable business growth in China.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2021.

Geographical setting

Region:
Asia
Country:
China

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