Twitter Case

Twitter is a popular free networking and micro-blogging service that allows several of users to send and read other users’ updates. The words are limited to 140 and the message that updated is known as “tweets”. The growth is increasing rapidly and the worker also from a small amount increase to a big value. This increasing was interesting to be studied.

In this case study, the company background of twitter will be shown and the history from different view will be also stated. Besides that, the company was positioning in the market by derived from the object attribute, competition, application or use, the type of consumers involved and the characteristic of the product class. In order to investigate on how to solve this problem, Porter’s five competitive forces model was used. Porter’s five forces including three forces from horizontal competition: threat of substitute products, the threat of rivalry among existing firms, and the threat of new entrants; and two forces from vertical competition: the bargaining power of suppliers and the bargaining power of buyers.

Next the company is a social network site serves for non-profit and profit individuals, organizations and companies. The interesting point is how it makes money. Twitter’s business model type actually is an advertising revenue model. Twitter receives fees from these advertisers by posting their ads. Promoted Tweets, Promoted Trends & Promoted Accounts are the major revenue generating model for Twitter. Twitter’s business products don’t stop here. Twitter has opened its self-serving advertisement platform recently and it discovers a new market.

There are six competitors such as Facebook, LinkedIn, Google Plus, My space, Tumblr and FriendFeed that will compete with Twitter. Twitter does not has the strongest business model in the social networking industry because there are some others famous internet micro-blogging service like facebook.