Twitter Case Study Questions:
1. Managers must analyze the external environment in order to minimize or eliminate threats and exploit opportunities. Use Porter’s five-forces model to provide more than one example of how forces in the competitive environment may have contributed to Twitter’s lower-than-expected performance.
2. Managers must analyze the internal environment in order to identify strengths and weaknesses. What steps could Twitter take to enhance its resources or capabilities in relation to the five criteria based on the Resource-Based view of the firm?
3a. Define business-level strategy
.3b. Based on the generic strategies, for each possible business-level strategy, provide plausible recommendations that the CEO of Twitter could use to focus his efforts.
4a. Define corporate-level strategy.
4b. Managers can create value through diversification initiatives. Provide more than one example of diversification efforts that Twitter could pursue in order to create more value for shareholders.
SOLUTION.
Twitter case study
Question one
The porter’s five forces model is a tool that brings out the A game of your business. Managers should analyze the external environment and eliminate all threats or exploit the available resources. Five forces determine the competitive power in a business situation. According to twitter case study , twitter has a low supplier power, suppliers drive up prices. In the case of Twitter, the CEO Mr. Jack Dorsey is trying to win back developers’ support after they cut them off by killing third-party clients, this has brought long run costs to them.
The buyer’s power is about the users of the application. They have contributed to twitters’ lower than expected performance by having fewer users subscribe to Twitter, some of the users don’t get to access the critical tweets of the day due to the representation of tweets in a strict chronological order. Also, Twitter, by contrast, it is used in a more impersonal way, this, therefore, has cost twitter its users who have moved to other social media platforms.
Twitter also faces high competitive rivalry; this is where assessing of the capability of your competitors occurs. The Twitter application has been passed by other social networks regarding their audience size, Instagram, which was acquired by Facebook has become larger than Twitter, snap chat is growing quickly, this is a show of how twitters’ competitors are getting ahead of them. Twitter has not faced an alarming threat of substitution yet. There is high threat of new entry, Twitter became a publicly traded company in 2013, which has made them face pressure from the Wall Street for a need to have continued growth. Twitter and Google should get into a partnership this will give a promising future.
Question two
In a bid to enhance Twitter’s resources and capabilities, several steps need to be taken. Making Twitter less impersonal would attract more users since then they would manage to keep track of their loved ones in a more personal way. Incorporating of chat rooms where people can debate and challenge one another away from the mainstream feed. Having a good rapport with the third-party developers will make them accessible to all interested parties. Gaining great partnership and being conversant with their competitors’ strategies, will see Twitter become the lead in the social media platform.
Question three
- Business-level strategy is when company comes up with a plan or method to provide value to their customers and have a competitive advantage over their competitors.
- Coordinating unit activities is a strategy that Twitter could use. The company should let management ensure that every employee is on the same page and have them focus on the organizational goals and objectives.
Question four
- The corporate-level strategy is a process of decision making in a business that affects the entire organization.
- Twitter should have a diverse group of employees. Twitter can incorporate diversification is by being readily available and consider every form of feedback given to them as a key strategy to improving their application. The social media platform requires one to be aware of what the people need to keep them in touch and a qualified team to strategize.
References
Lee, T. (2015). https://www.vox.com/2015/6/11/8761731/twitter-trouble-facebook-twtr . Vox. Retrieved 21 April 2016, from http://www.vox.com/2015/6/11/8761731/twitter-trouble-facebook-twtr