Business and Finance

Strategic Decisions Of Twitter Inc

Introduction

This study provides information by using the Ashridge Sense of Mission Model and analyzes the case evidence to interpret whether the strategy of Twitter shows signs of a weak or strong sense of mission. The next part of this study will be employing relevant strategic decision-making theory, where the strategic decisions of Twitter to interpret if Twitter has pursued a deliberate or emergent strategy, and the answer will discuss to what extent the researcher can be able to believe Twitter has built and maintained the long-term competitive benefit for its own organization. The study has identified that Twitter is a public company where the organization needs a better strategy and fewer obstacles to execute that strategy. In particular, the company has done excellent work with a brilliant product and constructed it into the actual business. According to the daily update, it is identified that Twitter seemed to give up its service and attention to developers based on monetization and service options, which also demonstrates the difficulties they would have with such a strategy.

Question 1

Use of Ashridge Sense of Mission Model to Analyze the Case Evidence of Twitter’s Strategy

While employing the Ashridge Sense of Mission Model, the evidence is to interpret the organizational strategy that demonstrates the signs of a strong and weak sense of the mission. Ashridge model is a mission stated by the Strategic Management Research Center. The model is being employed in explaining the mission statements specifically by corporates using four of the mission dimensions, which include strategy, values, purpose and behavioral standards (Simon, Parker, Ken and Mark, 2010). The organization should have a strong mission where four of the components should be incorporated into the system. The elements can be used in performing the analysis of whether the mission of Twitter and the business model provided demonstrate strong or weak strategic direction. According to the mission statement of Twitter, it is clear that the organization has a strong mission (Twitter, 2015).

The vision of Twitter is for the premiere micro-sharing platform. The company has a singular thing that distinguishes Twitter from RSS, Blogs, email, IM, etc and is known as synergy. The synergy among the individual streams makes Twitter special. This happens due to the large and different user base, due to which retweeting and other meme-spreading mechanisms, including spontaneous conversations and serendipitous interactions. Twitter has both vision and mission, which means that it is the largest audience that connects everyone to the world by means of the distribution platform and information-sharing products and is one of the top profit internet organizations in the world. The company’s existing profit has a huge economy for desirable usernames, which means if a hacker can get them, they can list down and sell them before the site responds and before they stand to make a healthy profit and their own existing identity.

Purpose

According to the Ashridge Model guidance, the study seeks to answer particular questions concerning the aim of setting up the organization. The study seeks to analyze how models benefit Twitter management and its employees, including the reason why the company exists. The overview of the organization seeks to answer the question of the company’s existence. The analysis of the report demonstrates that the main mission and need for the existence of Twitter, where the organization’s existence is anchored to the need to provide people the power and share information in a reliable and quick way irrespective of location and distance. The Twitter services are intended around the world within the large market. The users of Twitter consist of individuals who need to share detailed information concerning several topics of knowledge and interest. Advertisers are the users of the platform given by the company since the information given on the platform can be employed to reach many individuals around the world at the same time (Twitter, 2013).

Strategy

The Twitter strategy provides the ideal components for the organization that should be put in place and accomplish the mission (Twitter, 2013). With regard to emerging the component at its best, there are certain principles that should be kept in place by the organization. Twitter strategies must include how to enhance the accessibility in the market for the products of Twitter, which provides the path of how things will be done concerning the pricing, placing, producing, promoting and the target market group (Simon et al., 2010). Twitter earns 86% or even more of its profit from advertising. In 2017, the company posted a revenue for advertising of around $2.1 billion. This revenue was 6% reduction of what social media site brought in the year 2016 during the same time. Twitter has many competitors, such as 58.comInc, 21Vianet Group Inc., Alphabet Inc., AutoWeb Inc., Baidu Inc. and much more. With the intention to enhance effectiveness in the delivery of excels and services during competition, Twitter management has invested in development, technology and research. The effectiveness has been accomplished by constructing the foundational pathway of the information that increases the transfer of the detail from one end to another. The organization has installed a real-time data architecture that enables the information to be shared (Twitter, 2014).

Values

The values of the organization are to think that every voice has the power of free expression to impact the world. The values and beliefs of Twitter are to reflect and augment the talents of employees and the power of Twitter through civic engagement, charitable contributions, employee volunteerism, in-kind donations and harnessing Twitter for good service. According to the study of Twitter (2015), the users of Twitter can be hostile to the over usage of automation. This includes creating the content from RSS feeds and regurgitation of press release headlines. Twitter is about real-time breaking news and has many people following the site. There is evidence that Twitter’s communications and platform model limits the messages to 140 characters, which is useful for a variety of innovation applications. The corporate tone of the Twitter channel and messages is said to be information spoken in human-edited English and paraphrased and written for the channel. On the other hand, it is examined that the department in the company should pursue the chances to signpost the relevant content elsewhere and re-tweet messages from government departments and stakeholders (Twitter, 2015).

Policies and Behavioral Standards

The initial channel of Twitter will actively follow relevant organizations and professionals. Twitter initiates the contact by following its own personal users and individuals as well as interpreting the big brother/interfering-like behavior. It is quite good for Twitter to follow individuals back and have an imbalance between the follower and following figures that can result in a poor reputation and grade the third party like Twittergrader.com and the suspension of the account by the administrators of Twitter in extreme cases (Simon et al., 2010). According to the study of Twitter (2013), the marketing strategies of Twitter have helped the business to become more successful and the steps they need to take to the market like the pros. The development of Twitter and its creation has been impressive because the organization was able to see its potential followed by the rapid development that attracted innumerable public figures and refinement of its business model (Twitter, 2013).

Question 2

Analysis of Twitter’s Existing Strategic Decisions Using Decision-Making Theory

The strategic decisions that the organization could make going forward and evaluates the strategic options with the intention to see how they could impact the user base of the organization and average revenue per user, focusing on its earnings and revenues. Twitter expanded its content distribution and enhanced its presence with a strong bio. This means the strategy is developed to develop the life of tweets and choose the individual the people want to follow. The options for the strategic decision of Twitter are a news-focused approach, continuing the current model, a content-focused approach and a data-focused approach. The organization is well-positioned incredibly so that it can enhance its position as information and news provider by introducing live streaming news services. This adds and introduces features to make it easier for the users to use the app as the primary news source (Simon et al., 2010). In accordance with Simon et al. (2010), the company rolled out a new marketing strategy that includes videos demonstrating what stands for the company and distinguishes it from other social media platforms. This stems from the research, which revealed that 90% of the individuals identified the brand but did not even bother to use the site, due to which they misunderstood what Twitter is. The company has to change the perception of being a social network that enables users to connect with friends and family for all the news updates.

According to the study of Twitter (2015), the company is positioning itself as a unique platform that ranges from big events to local updates along with live commentary that can be assessed easily. The organization believes that it can struggle with the intention to rise in a better way where the marketing strategy highlights its uniqueness that can attract users to its platform. The strategic development of Twitter does not directly compete with giants of social media but can definitely help the organization in a significant way. Twitter (2015) determined that the company is heavily investing in acquiring the rights to live stream popular sports and generate social experiences around the events. There is a strong user development for the Twitters valuation which evaluates the U.S. average active users that will enhance from around 66 million to nearly 78 million by the end of the forecast period. There are several ways Twitter is engaging users and attracting them on its own platform. The strategic development of the company positions the news platform that generates a unique niche and should be able to attract users to its network (Simon et al., 2010). According to the study of Twitter (2015), marketing in Twitter is to improve the function and discipline because there is continuous feedback that permits to enhance the marketing, execution and strategy.

The information provides an impact on the conversation in social media and enables the users to recognize the negative trend identified earlier. Influencer monitoring, for instance, Twitter followers, is the monitoring important aspect. Twitter (2015) suggests that social media is supported by the media but is not measured as an alternative. An integrated approach to social media is required to make sure that there is a smooth communication procedure. The multifaceted approach is desirable, such as Twitter, which generates information richness and is different as well as can be shared with its clients. It is examined that leaders focus on influencing their thoughts with the aim of enhancing the coverage of the media. The leadership strategy is an important component and should be paired with generating content that reverberates with the audience and surrounds the brand and product with the intention of becoming a valued part of the community. The organization uncovers the micro-influencers to gain the understanding of the audience through their tweets, where the organization has the chance to construct a loyal community and help elevate its own content. Therefore, the biggest differentiation of Twitter when it comes to its advertisements is that it provides knowledge for its user’s interests (Simon et al., 2010).

According to the study of Twitter (2014), the organization’s efforts get doubled when it acquires new users and even redefines what the organization is all about actually. The understanding can be gleaned from how identities are being employed and how they interact with the things that matter. The company is about the graph, not the app, which might make different decisions. Also, Twitter follows the strategy of Facebook with the intention to build a family of apps such as one for messaging and another news for specific events, as well as increase the ways that one could interact with the content in the organization, whether it would be through private communities or comments etc. Also, on the other hand, social network differentiation is not a feature; instead, it organizes the principle (Twitter, 2015). Hence, Twitter is to share the interests including the quixotic features that the company holds with the implementation details. There is a user development issue showing significant signs of manifesting into the advertising development issue. The current strategy for expanding the organization is to serve the audience with undifferentiated advertisements. These advertisements are sustainable and considerable, barely a waste of potential as the interest graph owner (Twitter, 2013).

Conclusion

In conclusion, Twitter has different strategies accessible, but the leadership team does not have the credibility with developers internally or with Wall Street to execute or consider them. Twitter has a value proposition that demonstrates the difference in the decisions they make, from choices of products to content to media choices. Also, it can be said that the intended strategy of Twitter would require speed and a level of execution that is much of the exact position of what Twitter has illustrated throughout its own existence. The open strategy has the x-factor outside of Twitter’s control with the cooperation of the developers. The organization has its own current leadership with no credibility and might take effort to the achievement.

References

Twitter. (2015). Annual report. United States Securities and Exchange Commission. Twitter. Inc.

Twitter. (2013). Annual report. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS. Twitter. Inc.

Twitter. (2014). Annual report. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS. Twitter. Inc.

Simon, Parker, Ken and Mark. (2010). Case Study. Twitter Inc.

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