Strategic Management of Twitter Inc.

STRATEGIC
MANAGEMENT OF
TWITTER INC.

EXECUTIVE SUMMARY
The purpose of this report is to analyse the strategic management of micro-blogging giant
Twitter. Twitter has established itself as a “pulse of the planet” but its growth is declining in the
present times and it needs to strategically align itself to gain competitive advantage and retain its
top position in the social media industry. The report has identified various formulation
approaches for strategies, analysed its competitive environment and strategic capability through
tools and techniques like VRIO Matrix, Porter's Five forces, TOWS Matrix analysis and SFA
model. The best strategies were evaluated and selected for Twitter based on these findings. It
was concluded that remodelling of the revenue structure of Twitter is necessary in long term
along with few essential marketing tactics and establishing itself as a leader in the news media
industry.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................5
1A: Approaches of strategy formulation .....................................................................................5
1B: Importance of strategic management in micro-blogging and social networking industry....6
2A: Critical Analysis of the competitive environment of Twitter ..............................................7
2B: VRIO Analysis of Twitter Inc. .............................................................................................9
3A: Critical analysis of Twitter’s current strategies and alternatives for future adoption.........11
3B: Using SAF strategic model for selecting appropriate strategy for Twitter.........................14
CONCLUSION..............................................................................................................................16
REFERENCES................................................................................................................................1

INTRODUCTION
This report aims to evaluate the strategy formulation of the company and analyse its
competitive environment, opportunities and threats using the VRIO framework. The report will
also highlight Twitter’s current strategies using TOWS matrix and find alternative future
strategies by applying the SAF strategic model. Strategic management is conducted for the
development of a strategic vision, establishing objectives, formulating and implementing
effective plans and policies and using continual corrective measures in-case of deviations.
Twitter is a USA based microblogging and social networking company headquartered in San
Francisco, California with Jack Dorsey as its Chief Executive Officer. It has established itself as
the pulse of the planet by its instant networking and short message posting tactics. But in recent
times, it is facing slowdown in the growth and there is a dire need for improvement in its
business strategy.