BUSI 690 - Individual Case Study: Detailed Twitter Analysis

This case study analyzes Twitter, a prominent social networking site, examining its operational processes, mission, objectives, and strategies. The analysis includes a detailed description of Twitter's business model, a SWOT analysis identifying internal and external factors, and a BCG matrix to assess its market position. The study also incorporates competitor analysis, ratio analysis, and Porter's Five Forces model to evaluate the competitive landscape. Furthermore, the case study presents financial analysis, including EBIT-EBT and NPV analysis, to assess the company's financial performance. Alternative strategies, company valuation, and a proposed business model are also discussed, providing a comprehensive overview of Twitter's operations and strategic direction. The analysis aims to understand how Twitter operates and identify strategies to enhance its revenue and widen its network.

Running head: CASE STUDY ANALYSIS
Case Study Analysis
Name of the Student:
Name of the University:
Author’s Note:

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CASE STUDY ANALYSIS
Table of Contents
Introduction................................................................................................................................2
Description.................................................................................................................................2
Mission, Objectives and Strategy...........................................................................................2
Mission Statement (Details)...................................................................................................3
Business Model of Twitter.....................................................................................................5
SWOT Analysis.....................................................................................................................6
Internal Factor Evaluation Matrix..........................................................................................9
External Factor Evaluation Matrix.......................................................................................10
BCG Matrix..........................................................................................................................10
Competitors Analysis...............................................................................................................12
Ratio Analysis......................................................................................................................12
Porter’s Five Forces Model......................................................................................................13
CPM Analysis......................................................................................................................15
Financial Analysis................................................................................................................15
EBIT-EBT Analysis.................................................................................................................24
NPV Analysis...........................................................................................................................25
Alternative Strategies...........................................................................................................25
Company Valuation.............................................................................................................26
Proposed Business Model....................................................................................................26
Reference..................................................................................................................................28

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CASE STUDY ANALYSIS
Introduction
The main purpose of the analysis is to understand the operational process of Twitter,
which is a social networking site and it provides information regarding different people and
events. The company offers its users to open a social account which can be used for
interacting with people, uploading pictures and learning new things regarding what’s
happening around the world. The analysis would be including values and strategies which are
followed by the business for enhancing the revenue of the business and also widening the
network in which the business operates. The assessment would further be including SWOT
analysis for the company identifying internal and external factors which can affect the
internal affairs of the entity. In addition to this, the assessment would be including ratio
analysis for three years so that a basic trend in the performance of the business can be
identified.
Description
Mission, Objectives and Strategy
The mission of the business is to harness the positive power of Twitter to make the
world a better place and thereby also allow civic engagement between peoples and also
develop a social environment where people from different cultures can interact. The company
further aims to ensure that it is able to provide the facilities of information sharing and
distribution platform so that everyone can be connected in the world.
The objective of the business is to reach out to more individuals so that different
cultural can interact with each other and develop a platform where global as well domestic
thoughts can be met. The management of the company wants to become the largest business
providing such a service on a global font (Twitter, Inc. - Financial information - Annual
reports . 2020). The strategy which is followed by the business of Twitter involves

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CASE STUDY ANALYSIS
appropriate application of promotion and advertisement strategies in order to attract more and
more people to join the networking site. The business also has the aim to enhance the overall
income produced by the entity so that the business earns more profits from operations.
Mission Statement (Details)
Customers
The customers for the business which can be identified are people who are between
the age group of 18 years to 24 years mostly. However, there are also higher age groups who
also have an account in twitter. The business follows different types of targeting strategies so
that the business can enhance the number of active users of the accounts. As per the
information which is available, around 34% of people belong to age group of 18-25 years,
while 21 % belong to the age group of 25-35 years. This shows that around more than 50% of
the active users are younger people. This shows that the business is trying to build a brand
name for itself among the youths.
Product/ Services
The Twitter application provides an account which can be used for the purpose of
socializing, posting information and also connecting with people from other cultures. In
addition to this, it provides data, create advertising campaigns on Twitter and also create own
information in the portal. In addition to this, some corporate affiliates which is associated
with the business of Twitter are Vine Archive, Snappy Tv, Niche and several others. In
addition to this, Twitter is also a source of global information of what’s happening in
different regions of the world and therefore, it provides information.
Markets

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CASE STUDY ANALYSIS
Twitter operates on a global front and it has operations in several countries in terms of
accounts which is maintained. Different culture of people maintains their accounts with
Twitter all over the globe with a exception of few countries. The website of the Twitter also
shows information which can be translated in different languages and this effectively shows
that the account is maintained on a global scale.
Technology
The business utilizes the best form of technology which is available in the market and
ensures that the users have a quality experience while using their accounts. It is also to be
noted that the management of the company aims to enhance the innovativeness of the
technology and ensure proper steps are taken for bringing about efficiency in the operations
of the business. In addition to this, the company employs world class experts to modify and
upgrade their systems so that the business stays ahead of its competitors in the market.
Concern for Survival, Growth, and Profitability
One of the objectives of the business to enhance the profits of the business and
therefore for the same purpose the business is looking to expand the user base which would
also allow the business to enhance the operations of the business in a systematic manner. The
organization aims to ensure that business is able to face competition and therefore new and
better technology is being implemented.
Philosophy
The aim of the business is to harness the positive power of Twitter to make the world
a better place and therefore promote connectivity among different class of people in different
regions. The business also aims to promote information access so that the people can be
aware of what’s happening in different region of the world. In addition to this, the

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CASE STUDY ANALYSIS
management of the company aims to protect the information of all users for security purposes
so that personal information can be shared without any consequences.
Self-concept
The business has developed a product reputation and positive market presence which
allows the entity to access large group of users. In addition to this, it is also to be noted that
the business was the first to enter the social media market and therefore it has created
popularity among the users quite initially itself which gives a competitive edge to the
business.
Concern for public image
The business is directly responsible to the public at large for the social services which
it provides. In addition to this, it is expected from the management of the company that the
data which is associated with the users would be protected at all times as they are personal to
the users. The business also needs to ensure that no activity of the business impacts the
surrounding environment in any manner.
Concern for employees
The management of the company has portrayed that the employees of the business are
assets for the business and therefore appropriate care is taken of them so that the business is
able to retain skilled workers in their operations which would help the business to further
enhance the productivity of the business.
Business Model of Twitter
The business model of Twitter is similar to other social media applications which are
used by the people across the globe. The business requires people to open accounts in Twitter
so that more turnover can be generated whether users are using the site. The business model

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CASE STUDY ANALYSIS
of Twitter requires the business to generate more revenue by enhancing the number of users
who are using the site (Twitter for Good. 2020). In addition to this, the Twitter account also
allows different services such which allow the users to post images, content and advertise as
well. In addition to this, the business model of Twitter also emphasizes that the management
of the company makes continuous improvements in terms of innovation and changes in the
user interface which is used by the business for better experience of the users in every aspect.
The business model specifically provides a guideline which needs to be followed by the
business of Twitter to achieve success in the market.
SWOT Analysis
SWOT analysis is a tool which assists the management of a company to effectively
identify the factors which are favorable for the business and also the factors which are not
favorable. The different elements which are associated with SWOT analysis are listed below:
Strengths
 The business enjoys a good brand name and image in the market which allows the
management of the company to attract more customers based on the reputation of the
business (Phadermrod, Crowder & Wills, 2019). The business has also appropriately
promoted its services by holding celebrities’ accounts which are authentic and this
further attracts more users.
 The business is known to be using the best technology which is available in the
market and therefore it can be said to be more advanced than its competitors and this
creates competitive advantage for the business.
 The use and creation of a Twitter account is the most simple process and the same is
also easy to handle which makes the account significant. This is another reason that
the number of subscribers has increased for Twitter on a general basis.

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CASE STUDY ANALYSIS
Weaknesses
 The problem with the social accounts is that people do not remain interested for a
long time and therefore, they are always looking for alternatives. This is also the case
with Twitter as people do not remain interested and close their accounts often.
 The revenue model for Twitter is ineffective as the account is ad-free with no
subscription fee which makes generation of revenue and estimation of the same in
actual term a difficult fit.
 One of the main weaknesses which the business faces is the safety of the data issues
of users. There have often been cyber-attacks and it has always been the case that
some data has been lost. This impacts the reputation of the business adversely. In
addition to this, there are several fake accounts associated with the Twitter system
which creates further complexities.
Opportunity
 Efficient customer service is one of the strong points of Twitter which makes it so
attractive. There is an effective opportunity for the business to use the tool as a
communication tool by creating separate pages for corporate purposes (Kolios &
Read, 2013). This will expand the revenue generation source for the business and
thereby also help in enhancing the profitability of the business.
 Twitter has slowed down the innovating ad project and this is an area where they can
really focus on improving the user experience. It is also the area which would help the
business to generate more profits in the long run and further build a good image in the
market (Büyüközkan & Ilıcak, 2019).
 The business also has the opportunity of creating revenue from different sources such
as by integrating itself with other similar social media applications which would

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CASE STUDY ANALYSIS
contribute to the revenue which is generated. This is one of the ways that the
management of the company can improve the brand name further in the market.
Threats
 The profit generation model for the business is inappropriate and therefore the same
impacts the operations of the business and also affects the financial position for the
company. The annual report shows accumulated losses for 2017 which is mainly due
to this reason itself.
 One of the biggest threats is cyber-crimes and hacking which impacts the reputation
of the business and the overall user interface can also get affected in an adverse
manner (Phadermrod, Crowder & Wills, 2019). The focus of the business is
strengthen the security but the overall threat level is quite high for hacking.
 The level of competition is also quite high in the market. Facebook and Tumble are
other famous applications providing the same services, also captured the market. This
is the reason that the management of Twitter needs to take appropriate steps in this
regard.

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CASE STUDY ANALYSIS
Internal Factor Evaluation Matrix
Strengths Weight Rating Weighted Score
1 Good Brand Name and Image 0.20 4 0.80
2 Use of Best Technology 0.30 4 1.20
3 Application is Simple 0.10 3 0.30
4 0 0.00 0 0.00
5 0 0.00 0 0.00
6 0 0.00 0 0.00
7 0 0.00 0 0.00
8 0 0.00 0 0.00
9 0 0.00 0 0.00
10 0 0.00 0 0.00
Weaknesses Weight Rating Weighted Score
1 Low Retention Rate 0.20 1 0.20
2 Ineffective revenue model 0.10 2 0.20
3 Data Safety issues 0.10 2 0.20
4 0 0.00 0 0.00
5 0 0.00 0 0.00
6 0 0.00 0 0.00
7 0 0.00 0 0.00
8 0 0.00 0 0.00
9 0 0.00 0 0.00
10 0 0.00 0 0.00
Total IFE Score 1.00 2.90

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External Factor Evaluation Matrix
Opportunities Weight Rating Weighted Score
1 Customer Servive 0.20 2 0.4
2 Continuous improvement in user experience 0.20 4 0.8
3 Integration with other platforms 0.10 3 0.3
4 0 0.00 0 0
5 0 0.00 0 0
6 0 0.00 0 0
7 0 0.00 0 0
8 0 0.00 0 0
9 0 0.00 0 0
10 0 0.00 0 0
Threats Weight Rating Weighted Score
1 In appropriate Profit Model 0.20 4 0.80
2 Fake accounts and hacking 0.10 2 0.20
3 Competitiom 0.20 3 0.60
4 0 0.00 0 0.00
5 0 0.00 0 0.00
6 0 0.00 0 0.00
7 0 0.00 0 0.00
8 0 0.00 0 0.00
9 0 0.00 0 0.00
10 0 0.00 0 0.00
Total EFE Score 1.00 3.10
BCG Matrix
The BCG matrix is especially developed so that it can appropriately portray the
market position of a business in terms of parameters which are already established. The BCG
matrix is extremely useful for the purpose of framing strategies which can be used by the
business for expanding the activities of the enterprise. Considering the case of Twitter, the
Matrix is developed considering the market scenario and segments which the business usually
recognizes for the purpose of enhancing turnover and profits from the operations of the
business. The BCG matrix also shows the current positioning of the business in the market
and where the business is planning to reach in the coming future. A graphical representation

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of BCG matrix for the business of Twitter is appropriately presented below for the purpose of
more clear insights.
The BCG matrix which is presented for Twitter shows that the segments which
generates maximum portion of revenue for Twitter. Some of the segments are operations in
US market, operations in international market and advertisements which is made through the
online medium. The figure presented above shows that all the segments falls under the stars
phase. This means that the company is in a position where it can achieve high growth rate and
also achieve a relatively higher market share. This is a stage where the management of the
company needs to make more room for expanding the operations of the business so that more
profits can be generated. The business segments which is shown for both Twitter and
Facebook reveals that both the businesses are looking to generate more revenues from
advertisements and therefore the same activity is likely to increase. As per this stage, the
primary objective of Twitter should be to expand further the operations and achieve the status
of Cash cows so that it can make most of profits and further enhance the market valuation 0of
the company.