Importance of Strategic Management for Micro Blogging Industry

Strategic Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Justification as what makes Twitter strategy formulation approach deliberate and emergent
along with limitations..................................................................................................................3
Importance of development of strategic management for micro blogging industry...................5
Critically analyse the competitive environment facing Twitter in the social networking
industry........................................................................................................................................5
Pestle analysis..............................................................................................................................5
Competitive environment analysis (porter five forces analysis )................................................7
VRIO analysis..............................................................................................................................8
Porter's generic...........................................................................................................................10
SAF model.................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management refers a process of setting objectives, identifying competitive
environment and evaluating own business strategies in order to meet goals (Pozdnyakova and
et.al., 2017). This present study is based on Twitter which is an American micro blogging and
social networking service which allows people to interact with messages by posting tweets. It is
important for people to have registration for posting, retweeting and like post of others. This
present study is going to show important of strategy formulation and effective way of
formulating which can make them able to make their strategies deliberate and emergent as well.
It shows ways of Twitter as how it formulated its strategies which has made able to grow its
business, allowing employees working together in an effective manner, having abilities in
employees of discussing all actions in the interest of matching company goals which are some
features of deliberate approach. It will show importance of analysing competitive environment
by addressing common problems by which it can operate in that market and become the market
leader. VRIO analysis model also plays an important role as it also allows company to identify
its resources which have effectiveness and ability to imitate by others. TOWS analysis, BCG
matrix are some other effective strategy by which company analyse its internal environmental
factors.
MAIN BODY
Justification as what makes Twitter strategy formulation approach deliberate and emergent along
with limitations
In the context of deliberate and emergent strategies it can be said that both strategies
together helps companies in identifying the main purpose or intention of action in an
organization. On the basis of daily operations, companies fall under these both strategies as clear
difference between both strategies is not identified yet. But overall it can be said that these both
terms and strategies have focus on content of strategies such as policies, initiatives, choices and
decision-making. In addition, in regard to deliberate strategy it can be said that it marks a
concrete attention to detailed concerning business operations and identify the exact intention of
the business (Aswani and et.al., 2018.). It also attempts to reduce outside influences on business
operations. Emergent theory or approach makes company and employees flexible by which they
can adapt changing situations and changing ways of working accordingly without getting
affected
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In the context of Twitter strategy formulation it can be said that its ways of formulation
of strategy makes it both deliberate and emergent. Because it focuses on conveying its brand
message to all employees, reflecting its core values and using effective communication mode. IT
has made tremendous changes between 2006-2018. In these years it has shown ways of strategy
formulation which shows that these are both deliberate and emergent or also employees have
willingness to wok together and support twitter in accomplishing their goals. Here are some
example and ways of strategy formulation of Twitter such as:
Unique approach: From 2006 to 2011 it made growth as from 20,000 tweets per day it has
increased to 40,000 in only one year. One of the main feature of this company is its unique
approach of allowing people to interact by tweeting short messages having only 140 characters.
Till the year of 2010 it has made around 65 millions tweets. Other features was allowing links
from twitter to videos on YouTube. But still it losses money and it is the main concern as why it
is at this stage after increasing tweets (Xun and Guo, 2017).
Launching public sharing: It is other main feature of strategic management by which all its
partners launched public share offering and by doing, so they made significant gain in wealth. As
a chief executive officer, Dick Costolo joined the company and allow it to grow business.
Pay for performance: It is other effective strategy of Twitter which allowed it to increase
revenue. By providing video links on this platform with third party commercial websites allowed
it to gain around 65% of total revenue from USA and remaining 35% from other countries.
Its revenue model is based on advertising as around 85% of its revenue comes from
advertising sales which makes it deliberate and emergent. Rather, this data licensing is other
main source of revenue which makes strategic management successful.
Limitations
 In the context of deliberate approach to strategic formulation it is identified that it is
being fixated on a specific outcome which can increase company' rigidity or inflexible.
 It also lowers their ability to respond changes in operating environment.
 Emergent approach in strategic formulation is seemed impractical and it is the reason that
after increasing tweets per year Twitter losses money.
 It can also be said that strategic management based on this emergent approach can make
directionless to company as companies find difficulties in justifying their actions to
stakeholders.
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