Harvard Case - Bilibili: Breaking Promises and Retaining Reputation
"Bilibili: Breaking Promises and Retaining Reputation" Harvard business case study is written by Shanyu Lei, Xiufeng Guo, Wanyi Zhang, Jia Wang, Yutong Liu, Chengwen Shi, Meng Li. It deals with the challenges in the field of Strategy. The case study is 7 page(s) long and it was first published on : Jun 18, 2020
At Fern Fort University, we recommend that Bilibili prioritize a multi-pronged strategy to rebuild trust, regain user confidence, and secure its future growth. This strategy involves a combination of transparency, accountability, and proactive engagement with its user base, coupled with a renewed focus on innovation and content quality.
2. Background
Bilibili, a leading Chinese video-sharing platform, faced a crisis in 2021 when users accused the company of breaking promises regarding content moderation and user experience. This led to a significant decline in user engagement and raised concerns about the platform's future. The case study focuses on the company's response to this crisis, highlighting the challenges of balancing user expectations with business goals.
The main protagonists in this case are:
- Bilibili's management team: Responsible for navigating the crisis and implementing a strategy for recovery.
- Bilibili's users: The core stakeholders whose trust and engagement are crucial for the platform's success.
- Chinese regulators: Influencing the platform's operations through policies and regulations.
3. Analysis of the Case Study
This case study highlights several key issues:
- Loss of trust: Bilibili's failure to deliver on its promises regarding content moderation and user experience eroded user trust, leading to a decline in engagement and potential revenue.
- Reputation damage: The negative publicity surrounding the broken promises impacted Bilibili's brand image and reputation, potentially hindering future growth.
- Competitive landscape: The Chinese online video market is highly competitive, with platforms like Tencent Video and iQiyi vying for market share. Bilibili's crisis created an opportunity for competitors to gain ground.
- Strategic implications: The crisis forced Bilibili to re-evaluate its strategic direction, considering its long-term growth and sustainability.
Applying frameworks for analysis:
- SWOT analysis: This framework helps identify Bilibili's strengths, weaknesses, opportunities, and threats.
- Strengths: Strong user base, established brand, innovative platform features.
- Weaknesses: Lack of transparency, inconsistent content moderation, reliance on user-generated content.
- Opportunities: Expanding into new markets, developing original content, leveraging AI for content moderation.
- Threats: Increased competition, regulatory scrutiny, potential for further user backlash.
- Porter's Five Forces: This framework helps analyze the competitive landscape:
- Threat of new entrants: High, due to the ease of entry into the online video market.
- Bargaining power of buyers: Moderate, as users have multiple platform options.
- Bargaining power of suppliers: Low, as content creators are numerous and readily available.
- Threat of substitutes: High, with various forms of entertainment available.
- Competitive rivalry: High, with established players like Tencent Video and iQiyi.
Key takeaways:
- Transparency and accountability: Maintaining transparency and accountability are crucial for building and maintaining user trust.
- Content moderation: Striking a balance between user freedom and responsible content moderation is essential for platform sustainability.
- Innovation and differentiation: Continuous innovation and differentiation are key to staying ahead in a competitive market.
- Strategic planning: A clear and comprehensive strategic plan is essential for navigating challenges and achieving long-term success.
4. Recommendations
Bilibili should implement the following recommendations:
1. Rebuild Trust and Transparency:
- Publicly acknowledge the mistakes: Issue a sincere apology to users, acknowledging the broken promises and outlining steps to address the issues.
- Increase transparency: Publish clear guidelines for content moderation, user reporting, and community management.
- Implement independent oversight: Establish an independent body to review content moderation decisions and ensure fairness and transparency.
- Engage with users: Actively solicit feedback from users and address their concerns through dedicated channels.
2. Enhance Content Quality and Moderation:
- Invest in original content: Develop high-quality, engaging original content to attract and retain users.
- Improve content moderation algorithms: Leverage AI and machine learning to enhance content moderation accuracy and efficiency.
- Strengthen community management: Employ dedicated moderators to enforce community guidelines and address user concerns promptly.
- Partner with content creators: Foster a collaborative environment with content creators to ensure high-quality content production.
3. Refine Business Model and Strategy:
- Diversify revenue streams: Explore new revenue streams beyond advertising, such as subscriptions, merchandise, and live events.
- Expand into new markets: Explore international expansion opportunities to tap into new user bases and markets.
- Focus on niche communities: Cater to specific user communities with tailored content and features.
- Invest in technology: Leverage technology and analytics to improve user experience, personalize content recommendations, and enhance platform efficiency.
4. Strengthen Corporate Governance:
- Improve internal communication: Ensure clear and consistent communication between management, employees, and users.
- Promote ethical decision-making: Implement a strong code of ethics and ethical guidelines for all employees.
- Enhance corporate social responsibility: Engage in initiatives that promote social good and align with the company's values.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Bilibili's core competency lies in its user-generated content platform and its ability to connect with young audiences. The recommendations focus on strengthening these core competencies and aligning with the company's mission to create a vibrant and engaging online community.
- External customers and internal clients: The recommendations prioritize user satisfaction and engagement, recognizing their importance as external customers. They also consider the needs of internal clients, such as content creators and employees, by fostering a collaborative and supportive environment.
- Competitors: The recommendations aim to differentiate Bilibili from competitors by focusing on content quality, user experience, and innovation.
- Attractiveness: The recommendations are expected to improve user engagement, increase revenue, and enhance Bilibili's long-term growth prospects.
6. Conclusion
Bilibili's crisis presented a significant challenge, but it also offered an opportunity for the company to learn, adapt, and emerge stronger. By implementing the recommended strategies, Bilibili can rebuild trust, regain user confidence, and secure its future growth in the competitive online video market.
7. Discussion
Other alternatives not selected include:
- Ignoring the crisis: This would likely lead to further user backlash and reputational damage.
- Focusing solely on content moderation: This could alienate users and stifle creativity.
- Merging with a competitor: This could lead to a loss of identity and control.
Risks and key assumptions:
- Success of the recommendations: The success of the recommendations depends on the company's commitment to implementing them effectively and consistently.
- User response: The user response to the changes may be unpredictable and could impact the effectiveness of the strategy.
- Competition: The competitive landscape is constantly evolving, and new competitors may emerge.
8. Next Steps
Bilibili should implement the recommendations in a phased approach, starting with immediate actions to rebuild trust and transparency. This should be followed by a longer-term strategy focused on content quality, business model innovation, and corporate governance. Key milestones include:
- Within 3 months: Publicly acknowledge mistakes, issue a sincere apology, and publish clear content moderation guidelines.
- Within 6 months: Implement independent oversight for content moderation and engage with users through dedicated channels.
- Within 12 months: Invest in original content development, improve content moderation algorithms, and explore new revenue streams.
- Within 24 months: Expand into new markets, strengthen corporate governance, and promote ethical decision-making.
By taking these steps, Bilibili can navigate the current crisis, rebuild trust, and position itself for sustainable growth in the future.
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Case Description
Since 2009, Bilibili Inc.'s Bilibili.com (the B-site) had been an online video site providing services to fans of anime, comics, and games culture. After several years of effort, it had become a popular Chinese site for danmaku content and commenting technology. The B-site had a good reputation because of its excellent user experience: users did not need to watch endless pre-roll ads before enjoying video content because, in 2014, the B-site had promised that it would never use pre-roll ads as part of its profit model. However, in spring 2016, an important content provider, TV Tokyo Corporation, renewed its copyright contract and added terms requiring the B-site to add pre-video ads on anime series from TV Tokyo, which contradicted the B-site's promise to its users. How should the B-site address this public relations crisis and retain the trust of its users?
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