Twitter Swot Analysis

chirrup, a website provides online social vane and microblog function, is gradually moldping through into every part of life. It was listed as the most important invention in cc9. The same with Facebook who also provide online social network service, to a greater extent and to a greater extent flock are feeling rely on cheep, and could non get rid of it. On twitter, we send a real-time mail which is also known as tweets to millions of people well-nigh the world within 140 characters.As users, we could share our latest refreshings and ideas to the followers through website interface, SMS from cell phones and energetic device apps meanwhile, we also can get the instant information ab expose what is happening among the hobbys, the country and the world. On the technology aspect, cheep has always infantryd on open source software from the back-end to the front-end. Nowadays, chitter has became the slip away ten most visited websites. Before it was known as chirp, its found ers taked it Twttr.Twttrs idea came from Dorsey, one of the cofounders, who expressed to enable users carrying standard cellular phones to update small groups of people on their current situation by pressing a few onlytons and tapping out message. At the spring of 2006, Dorsey sent the firsttweet, and then, launched Twttr through the fit of headcount trimming in the same year together with the cofounders, Williams and Stone. Twttr became Twitter in 2007. We could feel the name as the buzzing of the SMS message alters and chips from birds.In this year, Twitter began to hit the market and its users kept growing in the abutting several years contributed from its word-of-mouth promotion. During its growth, the confederacy continued to get venture capital invents. A muss of double companies were interested in Twitter as they thought Twitter has audiences in hands which would be lucrative. However, by 2011, the company still had enigmas which whitethorn bring risks in the futur e. According to the paper, the company had four issues 1. The company was still on the way to seek prots.It was clearly that the company would be veritable(a)tually pressured by the inventors as they generally pass a broad on venture invention to bear out the company. Meanwhile, their application was totally free for use, in this case, advertising was almost the only scratch to gain revenues. 2. The tune model and strategy remain opaque. As mentioned by Ray Valde, Twitter was in a dilemma that they emergency a robust revenue model, while had to diminish perceived value which has a lot of potential difference value. 3. Did not commercially effect its bragging(a) and rapidly growing user base.As a kind of social media company, who has the audience, who will give money. User was the key detailor that will determine Twitters fate. 4. The ongoing change in the top management team. The turmoil began at the start-up phase and even had not terminated by 2011. This may become m ines for the company. This case write-up will state Twitters short letter problems in detail, and use thrum analysis to make the companys situation more clarified. Then, raise solutions and suggestions for the company.2. Strategic analysis of problem SWOT analysisWeaknessesVery popular and pleasant by a largenumber of users Creatively changed the way of communicate Greater gravel to capitalInternal organizational turbulence Did not exploit the user base Unclear business strategy and no solid revenue modelOpportunitiesThreatsDominant position in social media industry Competitors started to come on A ton of public Suffer from abandonment of users A more technologically savvy plantformStrengthsVery popular and acceptable by a large number of users Why people would same(p) to use twitter? I will give some factors according to this case easy use free use bring home the bacon users to send and receive messages to a mailing list of recipients in real-time better than online ch at upstanding brand loyalty could run on different devices, especially mobile devices Thanks to these advantages, Twitter got 200 million users by March 2011.Although it was far from Facebooks users, the number was still amazing and at the direct position among social network websites. The more visitors, the more the site is worth. Just account for the amount of users, we could come close that the website of Twitter will be extremely valuable.Creatively changed the policy of messagingIt is hard to say Twitter has a king-size invention on technology aspect, and to a large extent, it brought about by recon?guring existing technology. However, we cannot deny it is a big revolution and has changed the policy of messaging. Twitter was built on existing technologies like SMS (short message service), IM (instant messaging), and RSS (really open syndication), then, combined them in a unique way. It is one-to-one association when we are using SMS and IM.Now, it is one-to-many associat ion which cladding to the public, when we are using Twitter. On Twitter, we send 140 characters instant micro-blog, use to mention or reproduce opposite users, use to post together the same topics. All these creations changed the way people communicate. Greater access to capital Twitter had attracted plenty of capital since its insane asylum. For a young company, suf?cient fund and patient inventors could allow them a more space to develop and complete their big idea.Weaknesses Internal organizational turbulenceTwitters internal contradiction emerged at the initial phase. When Odeos team launched Twttr Beta, six employees terminated contracts. Moreover, among the four cofounders (Dorsey, Glass, Williams, Stone), Dorsey and Williams had even acted as chief operating officer but both of them quitted. And the name of Glass was seldom raised in Twitters history. The establishment of Twitter extremely require collaboration, however, people in the founding team have different expec tations. Inventors may lose con?dence in them.Did not exploit the user base In spite of the fact that Twitters success rides on the user base. However, according to the paper, Twitter did not commercially exploit it. Or we can say Twitter had no extra energy to do it. The top managers voiceless on how to make their product more right and how to attract inventions. They did not notice the user base was the valuable source for them. Actually, they owned the large amount of users and easier than other companies to conduct a survey on them.Unclear business strategy and no solid revenue modelTwitter has been trying to be different from other snuggled companies and exploiting which path was likely to take from the beginning. However, the path depended on how the ?rm perceived and de?ned itself. They just claim their blueprint for making the company as large an impact as possible instead of setting speci?c business strategy.Whats more, Twitter still had not built a solid revenue model e ven through their revenue kept increasing from 2009. As it stands, the companys revenue was largely relay on advertising and the last was from data licensing. By comparison, Twitter had the similar ad model as Facebook, but facebook was trying to get rid of reliant on ad while Twitter was not able to do it at present.Opportunities Dominant position in social media industryAlthough the amount of users was lower than Facebook, Twitter still own the large amount of audiences. It was not the ?rst mover in this industry, but the ?rm acted quickly and was already far beyond other similar social media companies. Contributed by its dominant position, more and more people would like to choose Twitter based on the number of other users of this programme, and inventors would focus on the ?rm, then invent on it as they believe the one who owned the audiences would be valuable. A tongue of publicBecause of Twitter has the advantage of timeliness, it became a tool to publish news. In 2008, it pl ayed as a key tool in the U. S presidential campaign and the attacks in Mumbai, India. From then on, Twitter became an important role in politics. People became more and more believe the computer programme as they can use it to publish their tactual sensation to the public. It was adjuvant to strong its social position and brand impact. A more technologically savvy platform As Stone said, Twitter was most likely a information company. In recent years, this platform value which was derived from information-sharing has reached the peak. Twitter has owned two advantages a large user base and information-sharing platform. These imaginations could be use to improve revenue. There was no better savvy platform than Twitter to help companies promote services and products with limited budgets. This project was known as promoted tweets, launched in 2010. When followers log in Twitter, promoted tweets will reckon at the top of the timeline, then advertisers will pay when a user engages.Thr eats Competitors started to emergeAs the industry was lucrative, some companies had started to emerge and attempted to share the cake. Now, it was not just Twitter provided free services, some large and competitive companies like Friendfeed, Identi. ca, Present. ly, and Google were looking at the market. These competitors were not just copy Twitter but offering some new functions that Twitter did not have. If Twitter stop improving their applications, it may be eliminated in the competition.Suffer from abandonment of usersOnce your friends odd the social network platform, more and more connected users may leave it. Then, this website will face catastrophe. Now, Twitter was confront the troublealthough they had attracted a lot of users, the abandonment rate up to 40 per cent yet. On contrast, only 7 per cent Facebook users said they may neer use Facebook. And Twitters mobile users were far below than Facebook. One data analysis showed that in Jun-10, only 12 millions U. S Twitter active users while the number was 137 millions for Facebook.3. Solutions and recommendationsConclusion about TwitterTwitter entered the market at a right time, and grabbed the larger resource in the industry. It was a big Internet Innovation and changed the way people communicate. However, it was true that Twitter did not do as good as other similar companies like Google, yahoo, and facebook. For example, in 2009, Google earned more than $18 from unique visitor, Facebook earned about $3, but Twitter only got lower than $1. They were still facing take exceptions and on the way to exploit the best path.The challenges which were brought by competitors expanding The denying and ongoing innovation of Internet will never stop in this age, and its sustainable innovation has brought about a new round of reform of the merchandise mode. Twitter cannot just stay stuck in its old mode. In this industry, stagnate means decline. The firstchallenge was from the companies who imitated Twitter wh ile developed more functions. However, these competitors had precisely pushed forward Twitter and proved microblog had the bright prospects for development. To get hold of with them,Twitter had better to enhance its brand loyalty, and form its own core competitiveness. Users would like to choose the one who prevail the industry because they were easy to be impacted by conformity. Moreover, Twitter should be sure to avoid following others, developing the functions what others have. They should keep creating new ideas and act quicker than competitors. Even through competitors function was more advanced than Twitter, it did not mean it was an appropriate product for Twitter. Another challenge was from large companies like Facebook and Google.These companies also wanted to do everything and dominate the industry. They were similar as Twitter, owned a large amount of users, but did not do microblog. Twitter was not safe even though it did the best in microblog. These services were ot her form of social media that also may grab Twitters market. Twitter needs not only to improve its model to attract more users, but also continue digging potential value in other area to expand the ?rm. Exploit more sources of revenue Twitter cannot largely rely on venture capital invention and advertising any more.It needs to ?nd out another way to obtain fund. The ?rst option was to imitate Google and Apple, provide more services and develop more products to increase revenue. Another option was to imitate Facebook, launch IPO. Or it can do both. I hypothesize launch IPO will be better because Twitter did not have the technology support as strong as Google and Apple. And Twitters revenue model was already unclear now, if it provides more products, the model may become more confused. Whats more, IPO is a better choice for long term development.Increase the R&D activities It is not only the revenue model needs R&D, but also the new application innovation needs R&D. When going to Twi tter. com, we will basically see the same thing that the company did years ago. They did not keep working on anything that cool. Meanwhile, they did not come apart any details about the R&D plan and result. Conducting R&D could help Twitter to improve their products and services, which was necessary for a technology company. Twitter website was built on open source software. It was helpfulto develop new applications. Furthermore, in order to keep an eagle eye on the competitors and customers, R&D should not be ignored by Twitter.Promote overseas marketIt was clear that Twitter owned a large number of overseas users, but had not gure out an effect prot in other countries. Promote the tweets won a big market in the U.S, similarly, the impertinent market had a large prot that could be exploited. But it will be a big project that need marketing research and detailed plan before they decide to move in a foreign market.