Twitter - Case Study Example

Twitter Case Executive Summary Twitter has gained immense popularity in the social-networking industry helping its user base to send small text messages in around 140 characters to several acquaintances. Thus as a micro-blogging site it attracts its user base to tweet their views on political and social events to others. Further its business model also attracts business corporations to enhance their public recognition in the mass market. However of late during 2009, the company which was carrying a user base of around 29 million even at the middle of the financial year suddenly slumped to around 24 million during its close.

Such a significant fall in numbers of users for Twitter and even that within a span of months eyes a dismal affair signifying that its continuing marketing or business model is failing to sustain the growth of the concern. In the light of the above event the paper endeavors to unearth the causes for such downturn and also tends to recommend potential solutions thereof. Case Analysis/Argument/Recommendations  Market attractiveness (macro-trends) /industry attractiveness/trends  The market for Twitter gains due attractiveness owing to the fact that it helps in generating a platform to users to comment on political and other international issues.

Thus, Twitter gains due acceptance in regards to launching protests or raising awareness. Further the presence of internet savvy user base enhances the consumer trend for the micro-blogging site attracting venture capitalists to render potential investments. From its launch in 2006 to the end of 2009 the company is found to gain a total valuation of around $1 billion. Twitter also gains due attractiveness for its help in the growth of business-to-business, business-to-consumer and consumer-to-consumer communication on a much faster pace.

Target Market and Sustainable Competitive Advantage The target market for Twitter incorporates such persons who are internet savvy and also are well acquainted with the use of social networking sites. Further the target market also incorporates the business houses that need to reach out to their target market in a much shorter time span. Twitter helps such target market constituents to Twit messages to the Follower groups in a short span of about 140 characters. Twitter on account of unique selling propositions like helping in gaining free referrals and media coverage and incorporation of an open source model attracted its use in the technological and user sphere.

Value /Differentiation /Benefits of Twitter Firstly it helps its user base consisting of businesses and consumers to interact with their followers through tweeting short messages thereby reaching along the internet sphere in a much lesser time. Thus people can send short information typed texts to many thereby reducing the need for SMS services on mobile. Secondly the service rendered is totally free. Thirdly it works based on an open source platform thereby inviting modifications. Fourthly, unlike Facebook users in Twitter can see the public tweets of others and can become followers without the need of receiving consent.

Evaluation of Survival of Twitter with their Current Business –Model Twitter in its current business model focuses on operating based on making huge forecasts of net earnings pertaining to $1.1 billion from total gross revenue of around $1.54 billion during the 2013 period. This huge revenue and earnings forecast was made by the company in regards to the 2009 period where through a potential business deal with Microsoft and Google the firm earned revenue higher than the $4 million target. However, for the target set for 2010 at $62 million it was considered quite less by experts.

In competition on the run and threat of being acquired by other firms like Facebook the company is held to gain a potential to earn revenue by around $100 million by 2010. High forecasts signify higher demand by investors on amount invested. Tools/Matrices: SWOT analysis Strength Twitter is recognized as a micro-blogging site helping in faster text messaging service. Differentiating from Facebook in regards to gaining free access to see public tweets of others. Further the program built on open source platform helps transmission of messages in a quicker time span.

Twitter is also customized for cell phones based on number of characters to be used for messaging in regards to different countries. Weakness The major problem is related to security for anyone can log in Twitter and see the public tweets of others without the need for any consent. Further unlike Facebook, in Twitter it is not possible to upload and send photos and videos. It works only on text. Opportunity It helps in rendering real time opportunity for people to cast their opinion on social and political issues.

Business Corporations are also found to largely use the service for enhancing their level of market exposure while managers in gaining help to organize the employees in a concern. Twitter also gains business acceptance in regards to collaboration with Microsoft and Google. Threat Twitter as a corporation gains the threat of being acquired off by larger social networking firms like Facebook or by Google if it fails to sustain its significant revenue position. The company in lacking a potential business model to function upon faces a large amount of economic and business threat to continue its current state of operations (Moss 149).

Contingency Plans Twitter to sustain its position in the social networking market needs to work on enhancing its business plan by inviting business firms to largely advertise their image to the mass market. Another way of gaining revenue is to create a platform to help people conduct purchase and sales functions through Twitter. The commercial platform would also help the people make reservations and procure coupons in terms of enjoying movies or visiting restaurants to dine. These two strategies focused on attracting the views of the business houses and the general public is taken to help the company gain on enhanced revenues.

Thus it needs to change its image from only a twitting platform to a business platform wherein it can gain additional revenues for sustaining its different social networking operations. Twitter acting on a decentralized platform through incorporating independent actions of software developers needs to act based on a multi-dimensional framework to gain on revenues and business productivity (Notter and Grant 188). Works Cited Moss, Stuart. The Entertainment Industry: An Introduction. United Kingdom: CABI, 18-Jan-2010. Print. Notter, Jamie and Grant, Maddie.

Humanize: How People-Centric Organizations Succeed in a Social World. United States of America: Que Publishing, 16-Sep-2011. Print.