MKT551 Platform Strategy Group-based Assignment July 2025 Presentation | SUSS

GROUP-BASED ASSIGNMENT

This assignment is worth 25% of the final mark for MKT551 Platform Strategy. Your word count limit for this assignment is 3000 (three-thousand) words.

The cut-off date for this assignment is 13 October 2025, 2355hrs.  This is a group-based assignment. You should form a group of 4 members from your seminar group. Each group is required to upload a single report via your respective seminar group site in Canvas. Please elect a group leader. The responsibility of the group leader is to upload the report on behalf of the group.

It is important for each group member to contribute substantially to the final submitted work. All group members are equally responsible for the entire submitted assignment If you feel that the work distribution is inequitable to either yourself or your group mates, please highlight this to your instructor as soon as possible. Your instructor will then investigate and decide on any action that needs to be taken. It is not necessary for all group members to be awarded the same mark.
 
Important Note: Grading of TMA/GBA/ECA Submissions

Marks awarded to your assignment are based on the following guidelines: 

1. 80% of the marks are allocated to the content of your answers: 

• The marks awarded to what your answers cover depend on the extent to which they cover the key points that correctly and comprehensively address each question. 
• The key points should be supported by evidence drawn from course materials and, wherever relevant, from other credible sources.  

2. 20% of the marks are allocated to the presentation of your answers:   Wherever applicable, the marks awarded to how your answers are presented depend on the extent to which your answers:

• form a sound reasoning by developing those key points in a clear, logical and succinct manner; 
• provide proper and adequate in-text citations and referencing to content drawn from course materials and other credible sources; 
• strictly follow APA formatting and style guidelines1, in particular for:
   • in-text citations and end-of-report references; 
   • the identification of figures and tables; 
• use, wherever relevant, the specialised vocabulary and terminology commonly used in discussions about the topic(s) covered by each question; 
• provide a reference or bibliography at the end of the main report; 
• include the less relevant details in an Appendix; 
• use sentence constructions that are grammatically and syntactically correct; 
• are free from spelling mistakes; present the workings, numerical formulations and results in a logical manner that follows the APA formatting and style guidelines; 
• design and present graphs, diagrams and plots that follow the APA formatting and style guidelines;  
• are highly original; 
• have proper formatting, which may: 
  • include a properly formatted cover page; 
  • respect the answer length/word count set out in the assignment guidelines, if any is prescribed; 
  • present answers in paragraphs with proper spacing and page margins; 
  • include page numbers and appendices, if necessary.

Xiaohongshu’s global pivot: The surprise winner of the TikTok ban wants to keep its new users.

Xiaohongshu, the Chinese social media platform known as RedNote, has been forced to adjust its overseas strategy after unexpectedly attracting millions of so-called TikTok refugees. But working to retain — and profiting from — a wider global user base could bring it under the same sort of scrutiny as its larger rival.

After adding in-app English translations and bilingual subtitles, Xiaohongshu recently opened a Hong Kong office, and posted a role for global business development based in Hong Kong on its official LinkedIn account. The unexpected surge of global users in January due to fears of a TikTok ban could provide a windfall for Xiaohongshu. But for the platform to compete with Western social media apps, it must retain these users, build cross-border e-commerce functions, and clarify its overseas business strategy, experts and business owners told Rest of World.

“RedNote’s commercial success hinges on whether they can convert initial curiosity into lasting engagement by successfully transplanting their unique combination of content, community, and commerce that U.S. incumbents can’t replicate,” Yang said.   Launched in 2013 by entrepreneurs Miranda Qu and Charlwin Mao, Xiaohongshu began as a guide for wealthy, mostly female Chinese travellers seeking shopping recommendations. It has since evolved into a dominant social media app in China, blending elements of TikTok and Instagram.  By 2023, the company, which calls itself a “lifestyle bible,” became profitable for the first time. In late 2024, the app had 225 million monthly active users mostly in China, and ranked as the seventh most popular social media platform in the country. It also more than doubled its profit to an estimated $1 billion — partly due to an expansion of its e-commerce features. This has fueled speculation about an upcoming initial public offering.

Some American users are banking on Xiaohongshu. Terri, a 23-year-old college student from Indiana, shares subtitled videos about American life geared toward Chinese users. After struggling for years on Facebook, where she has about 3,000 followers, she quickly gained over 73,000 followers on Xiaohongshu. “I don’t use any other social media besides RedNote now,” Terri told Rest of World, requesting to use only her first name over fears of cyberstalking. She said she has received partnership inquiries from Chinese cosmetic and clothing brands, but needs to pass Xiaohongshu’s verification process first.

To unlock monetization functions, the platform requires users to upload a photo of themselves with their full face visible, holding their passport to display the photo page. If she gets verified, Terri plans to join the Dandelion Program, Xiaohongshu’s long-standing initiative that connects influencers with brands for monetization. Over 400,000 mostly Chinese content creators have joined the Dandelion Platform, which allows entry for those with more than 1,000 followers.

Features like livestreaming and running online stores, however, still require a Chinese ID. A Xiaohongshu staff member working on international business told Rest of World that foreign influencers can’t withdraw commission fees without a Chinese bank account. But they “can receive payments by connecting to overseas marketing agencies,” the staff member said, declining to provide details and requesting anonymity because they were not authorized to speak to the media.

Xiaohongshu hosted its first U.S. business partner recruitment fair in New York in December. At the event, the company said it was targeting Southeast Asia, North America, Hong Kong, and Macau, according to a PowerPoint presentation reviewed by Rest of World. Similar events were held in Los Angeles and Las Vegas in February, and most attendees were business owners of Chinese descent, a third-party event organizer told Rest of World. The organizer requested anonymity because they were not authorized to speak to the media.   But if Xiaohongshu steps up its efforts to expand beyond the Chinese diaspora, it could attract attention from the U.S. government, much like TikTok did.

In April 2024, former President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), requiring ByteDance to divest TikTok’s U.S. operations by January 2025. Following the Supreme Court’s decision to uphold the law, President Donald Trump issued an executive order extending the divestment deadline to April 5, 2025. He has indicated he would consider further extensions.

The law gives the U.S. president the power to declare popular social media apps from China dangerous, and require either a sale or a shutdown, Anupam Chander, law professor at Georgetown University, told Rest of World.

“The president may lack the appetite to pursue a sale or a ban of Xiaohongshu, but we could still see broader targeting of foreign apps from China if they gain significant U.S. user bases,” he said.   

Question 1

Xiaohongshu’s  expansion  into the western markets, especially US,  is a bold move from a predominantly Chinese platform. Identify TWO (2) kinds of network effects it will experience in the US and appraise its potential impact on the platform.   (25 marks)

Question 2

Xiaohongshu is looking to add in elements of ecommerce and retail, blurring the lines between social media and ecommerce. With the help of a diagram, distinguish  how  Xiaohongshu  is scaling by layering new interactions on their platform. Further desktop research is required to answer this question fully.  (20 marks)

Question 3

a) It is clear from the case that Xiaohongshu is struggling to scale faster than expected in the western markets, especially with its ecommerce addition. Utilizing your groups knowledge of ‘Frickless Entry’, compose how Xiaohongshu can scale its network effects further. (12 marks)

b) Utilizing the ‘Ignition Rocket Model’ at the Attract stage, design  TWO (2) potential strategies that Xiaohongshu can undertake to attract participants and scale its user base in the western markets.  (24 marks) 

Question 4

a) Xiaohongshu is considering expanding their ecommerce/live commerce services to SEA. Analyze Xiaohongshu’s external environment in e-commerce in SEA with regards to the following: 
a. Threat of new entrants 
b. Threat of substitute products/services 
c. Bargaining power of suppliers 
d. Bargaining power of buyers  (16 marks)

b) With your analysis in 4a, determine whether or not Xiaohongshu should venture into the region. In your answer, you are expected to summarize your findings in 4a into a succinct argument.  (3 marks)