Twitter's Strategic Challenges and Future Predictions

The assignment discusses Twitter's user growth problem and its impact on advertising revenue. It mentions that Twitter has adopted various strategies to address these issues, including the creation of a Trust & Safety Council to ensure user safety. However, despite these efforts, Twitter is still banned in several countries, and its future predictions for 2018 include integrating 360-degree video with live streaming and leveraging augmented reality and virtual reality tools.

Leading Strategy Part A

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
1. Using the Ashridge Sense of Mission Model analyse the case evidence to interpret whether
Twitter's strategy show signs of a weak or strong sense of mission............................................1
2. Using relevant strategic decision-making theory, analyse Twitter's existing strategic
decisions to interpret if Twitter have pursued a deliberate or emergent strategy........................3
CONCLUSIONS.............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
This assignment is based on Twitter's leading strategy and strategic development. It is
also called as strategic planning, which is primary for making and running a business. Twitter is
an American based online news and social networking service on which users post and
communicate with messages. The course provides four sources that each covers a distinct time of
Twitter's strategic development from start-up through achievement of stock market listing to
further development of the platform in the times of growing competition and online safety risks
to users.
PART A
1. Using the Ashridge Sense of Mission Model analyse the case evidence to interpret whether
Twitter's strategy show signs of a weak or strong sense of mission.
Twitter, social and news networking site was established in 2006 and it experiences
popularity and rapid growth worldwide by 2012 with more than 100 million users. Later in 2013,
Twitter made an announcement that it had filled papers with US Securities and Exchange
Commission of a planned stock market listing i.e. initial public offering (IPO). The founder of
Twitter i.e. Evan William's early background hinted at the entrepreneurial path. Further, Twitter
can be explained as an easy to utilise, micro blogging application and instant messenger. Its users
are also being allowed to transmit short content of information to lots of people. Also, it was
found that for the first six months of Twitter's presence, company was dependent on its original
users to become personal evangelists for the service. Everyone is given the power to make and
share ideas and content instantly with the help of Twitter without any barriers. It's service is
based on live connections, and live conversations. Moreover, this networking site is always
termed as a second screen for what is happening in the world (Babnik, Breznik & Trunk Širca,
2014).
Ashridge Mission model is a statement creation framework of four important mission
statement dimensions which are; purpose, strategy, values and behavioural standards. It has been
determined that when all four components of mission reinforced each other, a strong mission
exist. No company cannot be taken seriously without a well structured mission, filled by a vision.
Mission is termed important as in 1970, Peter Druker strongly advocated a mission as a
foundation for the company in describing its fundamental purposes and principles. When
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everyone working in with Twitter are aware of its mission, their behaviour is directed by it. The
reason behind this is that they perform together towards achieving common objectives, fit to a
shared set of values. Since without mission, people are insure regarding where they are headed,
and may work at different purposes. Also, the model states that when mission value is future
oriented, it gets enhanced. The four key elements of Ashridge mission model are:
 Purpose:- purpose states the existence of the company.
 Strategy :- it describes the competitive position and distinctive competence of the firm.
 Standards and behaviours :- it defines the policies and behavioural patterns that underpin
the distinctive competence and the value system.
 Employee and company values
Application of this model to Twitter's strategic development:
Purpose of Twitter
 Platform for listening :- Twitter is termed as an outstanding place to listen to the social
media conversation. This enables people to see what is on the mind of their target market
and respond quickly to their needs and interests (Ellis & Miller, 2014)
 Building traffic :- to increase traffic and find new visitors, many businesses, bloggers and
website owners use their Twitter for this.
 Business promotion :- it also provides the opportunity to take innovative approaches for
advancing many businesses. The reason behind this is that many businesses offers special
deals and promotions exclusively using Twitter.
Strategies of Twitter
 Their users :- Twitter is committed to processing their key service to better enable users
to more easily create, share and consume content that is crucial for them. Further, as part
of the strategy, they will concentrate on live streaming video, which they know is a
strong complement to live Twitter. Moreover, the finally seek to invest more resources in
making their platform safer by applying technology to enhance detect the usage of
abusive account.
 Their advertisers :- their three major initiative to better their advertiser's ability to connect
with their customers are; creating a rich canvas marketers by integrating extra features
like video into promoted goods, and raising ROI of advertisers.
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 Their developers :- they are also committed to their developers for providing a platform
for them to build, progress and generate revenue with their sites.
Standards and behavioural patterns
Twitter believe that everyone using Twitter should have the authority to create and share
their thoughts and information immediately, without disruption (Kaya, 2015). Therefore, to
protect the experience and safety of users there are certain restrictions and policies on the type of
the content and behaviour they follow:
 They forbid content that create violent threats against any recognisable target.
 If anyone tries to evade a permanent suspension by making new accounts, Twitter
suspends their new account.
 No one can use Twitter's services for any unlawful intention or in advancement of illegal
activities.
 No user can promote violence against or directly attack, or threaten other person on the
basis of race, ethnicity, gender, etc.
Employee and Company values
In very less time Twitter has gone from having no obvious revenue and an unclear
business model to a successful company. With fast growth of 1300 employees it makes sure that
they all are making a strong organisation, value based culture, and keeping workers motivated
and engaged. The company offers best culture and values to its employees and therefore, their
culture is the best and one of the top five things job seekers look for. Defend and respect the
user's voice and expand business in a way that makes them proud.
Based on strategies provided by Twitter shows strong signs sense of mission, as their
mission is to reach the largest daily users in the world by connecting everyone to their world
through their information sharing and distribution platform goods and be on top revenue
generating internet companies in the world. The reason behind this is that the most crucial
element by Twitter is caring and regular focus its social media strategy (Kinyuira, 2014).
2. Using relevant strategic decision-making theory, analyse Twitter's existing strategic decisions
to interpret if Twitter have pursued a deliberate or emergent strategy.
There are a range of key decisions that Twitter has implemented as part of its strategic
decision making process. Further, among some of these decisions contain the application of the
Innovator’s Patent Agreement in 2013, incorporation of Periscope into the company’s social
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media platform in 2016 and growth of product characteristics that directly boost the Twitter’s
significant users growth and engagement metrics as a way of placing the company for long-term
sustainability growth as well as promoting progress in relation to GAAP productivity in 2016
and raising the range of Twitter characters from 140 to 280 in2017. Its investment in non-core
segments of its business was removed by it such as Vine and Fabric in 2017 among others.
Therefore, these specified decisions have been highly significant as regard the global growth and
expansion of Twitter.
Based on Porter’s Generic Competitive Strategies, Twitter in 2015 delivered its weakest
quarterly revenue growth as a publicly traded company. The Porter’s Generic model describes
cost leadership, cost focus, differentiation and differentiation focus (Legl & Weaver, 2015).
 Cost leadership :- under this, a company sets out to become the low cost procedure in its
industry. Further, the sources of cost advantage are different and rely on the structure of
the industry. Therefore, it has been determined that if a company can achieve and sustain
the entire cost leadership, then it will be above average performer in that sector. It was
found that, in 2010 it was announced by Twitter to offer paid advertising for companies
that would be able to purchase “promoted tweets” to be displayed in selective search
results on the Twitter website. Later, in middle of 2010 the company operated as a loss
and in 2011 it further announced that Twitter will offer small businesses as self
advertising system. Moreover, afterwards feedbacks were provided by them which stated
that it was very impressive for many business firms. Twitter does not meet this element
of Porter’s model as company focused on brand advertising from large advertisers at
higher cost (Salavou, 2015).
 Differentiation :- in this strategy, the organisation seeks to be unique in its industry along
with some dimensions that are widely valued by users. It chooses one or more features
that customers perceive as vital, and uniquely positions itself to meet those needs.
Therefore, the company is rewarded for its uniqueness with a premium price. Good
research & development, the capability to deliver high quality services, and so on are
required to be successful. Twitter is formed of a set of key, scalable and distributed
services that are created from source technologies. The company continues to invest in
the existing products and services and create new products & services through R&D.
however, compared to Facebook, Twitter’s product hasn’t really evolved since years and
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it seems Twitter feels afraid to make modifications to its core products. The reason
behind this is that company feels fear of messing up what they don’t seem to understand.
 The focus strategy :- firms that make use of focus strategies focus on specified niche
markets and by learning the dynamics of that market and the different necessities of
customers within it. Under this strategy company develops low cost products for the
market. The reason behind this is that they serve customers in their market as they pursue
to build strong brand loyalty. In 2015 company announced that it will obtain niche , an
advertising network for users of social media.
Differentiation focus :- here the company target a niche market and its good and service have
unique characteristics and it involves strong brand loyalty (Panwar, Nybakk & Pinkse, 2016).
Satisficing Decision Theory or decision making strategy means searching through the available
alternatives until an suitability edge is met. Further, in decision making satisfying is termed as
the usage of aspiration levels while selecting from different paths of actions. In this context any
company’s decision makers choose the best alternative that fulfils a given need or select the
option that looks to address most needs rather than the optimal solution. Twitter on 2017
continued unsuccessful in increasing followers. moreover, the company also lost its NFL
(National Football League) streaming deal. As it was decided by CEO that Twitter should make
$20 million in 2011 by concentrating on live events, concerts and big football games. According
to the company, it was revenue first, product second, everything was wrong with twitter’s
strategy. Moreover, even after the Success of IPO, investors were worried about the declining
user growth lied beneath the surface. For fulfilling customer’s needs and for their account safety,
Twitter announced Twitter Trust & Safety Council in 2016 to assist that people feel safe
expressing themselves on Twitter. Though, adopting all these strategic decisions, Twitter is
banned in Iran, China and North Korea and several other countries.
In addition, the future predictions for Twitter in 2018 are; company is projected to add
360 degree video integration with live streaming and it has been expected that Twitter will make
full use of augmented reality and virtual reality tools, artificial intelligence will go mainstream
announced by Twitter and Twitter’s hashtag feature will help digital marketers in reaching out to
a wider audience (Rey & Bastons, 2018).
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CONCLUSIONS
From the entire report it has been concluded that Twitter has a user growth problem which
in turn is affecting advertising growth issue. Apart from this it also stated that, company’s
present strategy of growing to serve an audience they are not aware of undistinguishable
advertisements is hardly sustainable and significant waste. However, there are various strategies
available, but the present leadership team do not have the ability internally, with developers or
will Wall Street to deliberate to execute them. For all this Twitter can follow strategy of
Facebook and construct various apps in order to enhance way of communicating with Twitter
content.
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REFERENCES
Babnik, K., Breznik, K. & Trunk Širca, N. (2014). The mission statement: organisational culture
perspective. Industrial Management & Data Systems. 114(4). 612-627.
Ellis, J., & Miller, P. (2014). Providing Higher Education in Post-modern Times: what do
university mission statements tell us about what they believe and do?. Research in
Comparative and International Education. 9(1). 83-91.
Kaya, N. (2015). Corporate entrepreneurship, generic competitive strategies, and firm
performance in small and medium-sized enterprises. Procedia-Social and Behavioral
Sciences. 207. 662-668.
Kinyuira, D. (2014). Effects of Porter’s Generic competitive strategies on the performance of
Savings and Credit Cooperatives (Saccos) in Murang’a County, Kenya. IOSR Journal of
Business and Management. 16(6).
Legl, C., & Weaver, M. (2015). Guidelines for sustainable-value creation within the context of
German automotive industry’s strategic carbon crisis management. The Economist. 2015.
2016b.
Panwar, R., Nybakk, E. & Pinkse, J. (2016). The effect of small firms' competitive strategies on
their community and environmental engagement. Journal of Cleaner Production. 129. 578-
585.
Rey, C., & Bastons, M. (2018). Three dimensions of effective mission implementation. Long
Range Planning. 51(4). 580-585.
Salavou, H. E. (2015). Competitive strategies and their shift to the future. European Business
Review. 27(1). 80-99.
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