Twitter Case Analysis

Topics: Twitter, Corporation, Social media Pages: 3 (773 words) Published: March 27, 2013
To the average technologically advanced American, Twitter is one of the most visited social media sites. From a popularity contest standpoint, Twitter would be amongst the top winners; however, when evaluating Twitter from a business analytical aspect it might not be a lucrative business venture. The attractive attribute to Twitter Inc. is the fact the sites does not make any of its users pay. Twitter is designed to allow users to voice multiple thoughts, ideas, or share different information amongst the site’s visitor. Unlike Facebook, Twitters does not have multi-million dollar corporations using the site on a regular basis to market more potential users. Therefore, with a low revenue base and poor strategic development implementation plan it’s going to be hard for Twitter Inc. to grow into a lucrative corporate investment.

From a consultant standpoint, many business analyses would characterize Twitter Inc. as a “dog”. A dog is considered to be a man’s best friend, however form a business outlook it could be the indication that a business is in their final stages of existence. When a product is evaluated as being a dog most business experts would describe the company as have a low or staggered growth rate and yielding no profits. Twitter has documented that it does not have enough money many times to meet the site’s operation cost. Many experts believe that Twitter needs to expand the company in order to see some financial gain. The only problem with expanding the company is most investors need some form of a positive indicator that they are going to get their money back along with interest. From an explicit view, why should money be invested in Twitter? Nearly every expert has come to the same conclusion that a social media site is a risky investment. Primarily, this investment is risky because consumer taste change, and social media sites has a previous trend of not being in existence more than five to seven years.

Twitter consumer base is narrow,...
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