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Twitter Case

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Executive Summary: The fundamental problem that Twitter is currently facing is whether the current projection of future revenues and profits justify the current stock market valuation. The following analysis takes into consideration underlying factors in Twitter’s environment and provides recommendations for marketing-based solution.
Company: Founded by Evan Williams in early 2006, Twitter was initially started as a status update project for Odeo Inc. Podcasting. Odeo was a podcasting form which aimed to successfully create a system that would make it possible to produce podcasts with as little as a mobile phone. However, as major competitors with bigger budgets, such as Apple Inc., entered the market, the board of directors for Odeo asked the company to strategize their business in a new light. The result was an internal project, Twttr Beta, which allowed staff to update each other through the service. In October 2006, newly re-named “Twitter” was acquired by Obvious Corp., a company set up by Williams, Jack Dorsey and Christopher Stone to allow the group to focus on the project. Today, with 140 characters or less, subscribers of Twitter can update their followers with a “tweet” in real time. Twitter, a micro blogging service, is built on open service and allows its’ over 200 million active users to broadcast over 500 million tweets per day. Currently, it is one of the most popular social media tools after Facebook and Google.
Product: Twitter is essentially text based, which means that unlike other social media platforms such as Facebook or Instagram, exchanging videos and photos is not one of Twitter’s services. As such, the main product that Twitter offers to users throughout the world is “tweeting”; Twitter’s brand essence is based on allowing users to express their current situation in 140 characters or less. Unless specifically protected by users, anyone

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