Strategic Management in Social Networking and Micro Blogging Industry

Strategic Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyse what makes the Twitter's approach to strategy formulation both emergent as well as
deliberate.....................................................................................................................................3
Explain the importance of development of strategic management in social networking and
micro blogging industry..............................................................................................................5
Critically analyse the competitive environment of Twitter in the social networking industry...5
Evaluation of strategic capability of Twitter using VRIO analysis............................................7
Critical analysis of current strategies of Twitter and alternative future strategies....................10
Use SAF model, select the strategy that Twitter should adopt in the future.............................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Strategic management is an important aspect within an organisation and helps managers
to make effective decisions and directing various organisational activities in an effective way.
The primary purpose of strategic management is to assist it in achieving its goals and objectives.
The process of strategic management involves formulation as well as implementation of major
goals that are set by the management of a company (Ahammad, Glaister and Gomes, 2020).
Constant changes in the business environment makes it important for an organisation to keep
revising its strategies. This report is based on the organisation Twitter, which is a social
networking and micro blogging company. The users can interact with each other through
messages which are known as “tweets”. The company was founded in the year 2006 and is
headquartered in United States. The report explains the reason that makes strategy formulation
approach of Twitter emergent and deliberate. It also explains the importance of developing
strategic management for organisations that operate in the social networking as well as micro
blogging industry. The report also includes a critical evaluation of the current strategies of
Twitter. Apart from this, a critical evaluation of the competitive environment of the company,
using relevant model is also included in the report.
MAIN BODY
Analyse what makes the Twitter's approach to strategy formulation both emergent as well as
deliberate
Twitter has a completely different approach when it comes to formulating strategy
because it has to deal with a large number of users. Therefore, it is important for the company to
formulate a strategy so that it can conduct business operations in an effective manner. While
developing a strategy, it is important that the company takes into account the different strategies
and then opt for the best one (Argyres, Mahoney and Nickerson, 2019). One of the approaches
that are unique to Twitter are the short messages that are referred to as “Tweets”. Through this,
users can post updates and interact with each other across the world. The company's approach to
strategy formulation is both emergent as well as deliberate because it helps in making sure the
business operations are conducted in an efficient manner. The process involves extensive
planning and setting goals that are measurable and achievable. There are different principles of
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both deliberate as well as emergent approaches that can help Twitter in making sure that its
overall performance and productivity is enhanced.
It can be said that extensive research as well as careful planning are the components that
contribute to the overall strategy formulation of the respective company both emergent as well as
deliberate. The company carries out extensive research of the latest trends in market as well as
competitors. This helps in making sure that effective strategy is formulated and the performance
of the company is enhanced. Twitter tries to incorporate effective innovative features to its
platform so that the overall experience of the users is enhanced (Boone and et. al., 2019). The
company also makes sure that the services offered by it are exclusive and enhanced. This is what
makes the overall process of strategy formulation of the company emergent and deliberate at the
same time. The emergent approach to strategy formulation states that it is a constant process that
involves learning as well as testing of the business.
Differences and Limitations of the Approaches
In the emergent approach, the company implements changes on the strategy and when it
being executed. One of the limitations of this approach is that it cannot be predicted and can
sometimes pose to be difficult for the company to develop a plan using this approach so as to
improve overall business operations. On the other hand, a deliberate strategy is rigid when it
comes to influencing the business operations. Thus, it can be said that while emergent approach
to strategy formulation is consistent, deliberate approach is formal and outlines the vision
towards strategy formulation. The benefits of deliberate strategy include effective allocation of
resources, organisation alignment and innovation (Carter and Stickney, 2019). On the other hand,
emergent strategy also has certain advantages like flexibility, learning as well as building
support. This can lead to an increase in the overall morale of the employees and performance.
Principles of Deliberate and Emergent Approaches
Twitter's approach to strategy formulation is both deliberate as well as emergent, which
has helped the company in retaining its existing performance as well as boosting morale of its
employees. Not only this, the company has also been able to retain a competitive advantage
against competitors like Facebook, Flickr and Snap chat. The principles of deliberate approach
are Intention vs Attention and Role vs Title. Whereas the principles of emergent approach are
considered to be hypothesis depending on which the market is created. The company has adopted
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