1 INTRODUCTION

Since San Walton opened his first store in 1962, Wal-Mart has grown into a global retailer with more than 4,000 store in the United States and more than 6,000 internationally. According to Wal-Mart CEO, Mike Duke, Wal-Mart’s strategic focus areas are

•Making sure the company has the best retail talent at every level of the organization by recruiting, developing and retaining the best associates;
•Delivering on the productivity loop that enables Walmart to operate for less so the company can drive prices even lower for its customers
•Being even more disciplined about operating expenses and capital spending;
•Investing to serve more customers globally and accelerating the vision of anytime, anywhere access by bringing together best-in-class online, mobile and social capabilities and our more than 10,700 stores; and
•Benefiting our communities and having a world class compliance organization.
Walmart has been the giant of brick and mortar retailers having topped the Fortune 500 list on more than one occasion. Several business news agencies have notde that Wal-Mart is stumbling into E-Commerce market as it attempts to adapt its click and mortar business strategies to its E-Commerce business. According to CNN Money Wal-Mart plans to become an online juggernaut, but its online business numbers have been disappointing. Walmart’s E-Commerce has come up with a plan to do e-commerce right. The
• Walmart began recruiting top Silicon Valley talent and acquiring start-ups last year. For instance, Walmart acquired Kosmix, a company that specializes in making web design more seamless, for $300 million. That team has been working for over a year to fix Walmart's systems and improve its website.
• Walmart is investing in the "social gifting" market. A year ago, Walmart launched "Shopycat," which makes gift recommendations based on friends' Facebook profiles. The site is now called "Walmart Gifts" and allows customers to log in and get personalized recommendations based on Facebook and Twitter profiles.
• The retailer got a better search engine. A dozen top engineers took 10 months to build it, and while the company won't discuss sales figures, they said the new system is more user-friendly. "If you search for cotton socks now, you'll actually find them," Manjoo writes.
• Walmart is trying to lead the charge in same-day shipping. Its at an advantage considering that 96 percent of Americans live within 20 miles of a Walmart.
• Walmart is investing like crazy in its mobile app. "Walmart imagines that as you go through an average day, you'll remember things you need--milk, bread, a new tennis racquet, a toy truck for your nephew's birthday--and tell the voice-enabled Walmart app. The app will list each item's location inside your local Walmart and include product info; eventually, it will also learn your preferences and offer recommendations. And once you're actually in the store, you'll be able to summon an associate to help you," Manjoo says.

Read more: http://www.businessinsider.com/walmart-has-a-formula-for-beating-amazon-2012-12#ixzz2g3A29WCoSo Wal-Mart The bregarded This summary provides the salient points of Wal-Mart’s movement into E-Tailing which has not been a smooth transition as the world experiences a global recession. Wal-Mart has been traditionally in the role of the discount Brick and Mortar business, but as the world moves more towards E-Commerce Wal-Mart has been attempting to move into this area which has been Amazon’s niche within the retail market.

2 INTRODUCTION

Twitter is Social Networking application where the user may, in 140 characters or less, provide periodic updates on what they are doing to their followers. These 140 characters are commonly known as “Tweets”. Twitter has many applications, which will allow the user to Tweet from anywhere. A Tweet can be made from the user’s cell phone through an instant messaging client, a really simple syndication feed or by using third-party web tools. A user may also send a picture from their cell phone called a “Twitpic” and it will appear in their twitter updates as well. Twitter was the creation of the programmers who worked at the podcasting company Odeo Inc. Prior to creating Twitter one of its creators, Evan Williams, had jumped from one entrepreneurial project to another after dropping out of college when other projects proved more interesting prior to creating twitter. As a result of cutbacks at Odeo Inc., Williams and his team created another company and purchased the Twttr project.

What is in a name?
The name, Twitter, was inspired by Flickr, a photo-sharing service. The dictionary definition of twitter is "a short burst of inconsequential information" which summed up the essence of what Twitter is all about. As Twitter grew as a program, third party software developers built programs that interfaced with Twitter data. In 2007 Twitter became its own company and took on a life of its own. Initially Twitter was more or less promoted through word of mouth of its original users. Eventually Twitter grew and with the media mentioning it repeatedly, it continues to grow. Twitter user numbers continue to grow fueled by celebrity endorsement, municipal leader and reporters maintaining constant feeds and its widespread use during the American election. Twitter is now a staple if daily news reporting. Twitter has become so prevalent, it was an essential communication vehicle in the “Arab Spring”, where protestors used it to provide updates to the world and other protestors.

3 ISSUE STATEMENT

Documents revealed by hackers indicate that Twitter does not have a definitive business model, therefore the primary issue with Twitter is how to turn a brilliant technological idea into a business opportunity that will generate value for investors.

4 DATA ANALYSIS

Documents revealed by hackers indicate that Twitter has had a constant influx of investors injecting millions of dollars in the burgeoning technology since 2009, however little else is known about Twitter’s financial information. Twitter has not shared its revenue model, although it recently filed the required IPO papers with America’s Securities and Exchange Commission (SEC). Twitter filed this paperwork confidentially due to the America’s Jumpstart to Our Business Start-ups Act (JOBS Act) which states that firms with less than $1 billion in annual revenue may choose to file their IPO in secret. (http://www.foxbusiness.com/investing/2013/09/12/twitter-confidentially-files-for-ipo/ n.d.) Thanks to the JOBS Act Twitter was able to maintain confidentiality and not publicly share its financial information.

Twitter SWOT Analysis
Strengths

• Brand name recognizable by the bluebird
• Primary market entrant
• Permits speedy and accurate updates for users (news agencies)
• Used by businesses and celebrities for advertising or publicity purposes
• Reputable brand image which is marketable for celebrities, government leaders and news agencies
Weakness

• Loosing users at unprecedented rate (40 percent)
• Unable to innovate to offer newer features
• Business model has not been clearly defined
Opportunity

• Encourage celebrities and organizations to create credible promoted accounts
• Business Advertising – It has the potential to permit businesses to communicate with their customers in real time
• Encourage Municipalities, Emergency Services and Public Safety to connect with their communities with Twitter
Threats

• New competitors (including social networks) entering the marketplace
• Fake accounts being set up
• Hackers
Current Competition
Competitors

• Facebook
• Instagram
• Tumblr
5 KEY DECISION CRITERIA

Key Criteria Advertisements Third Party Applications
Revenue must be sustainable and not impact on users’ ability to share what is important to them Positive revenue source which users may turn off Positive revenue source that is user dependent
Increase sales, market share, or return on investment Positive revenue source which any user may use Positive revenue source that is third party dependent
Maintain customer satisfaction, corporate image Positive revenue source which does not impact user satisfaction May impact user satisfaction if there is an issue with application
Be consistent with the corporate mission or strategy Maintains current corporate mission/strategy Does not match current corporate mission/strategy
Within present (or future) resources and capabilities Current revenue source Not a current revenue source
Within acceptable risk parameters Yes Means straddling another position
Ease or speed of implementation Already implemented Unknown
Retain flexibility Yes Ties revenue to a resource which is beyond the company’s control

6 BUSINESS MODEL EVALUATION

TWITTER BUSINESS MODEL
Customer segments Users which include:

• Celebrities: Self Promotion
• Politicians: Self Promotion, Connecting with constituents
• Municipal Leaders: Passage of timely information
• Military: Senior Leaders connecting with communities
• Police: Local departments connecting with communities accurately and quickly
• Media: Connecting with customers accurately and quickly
• Ordinary people: Connecting with friends and families, connecting with organizations which are important to them

Businesses: who purchase advertising

Developers: who create third party applications

Value proposition Allows users to stay connected and “follow” issues, leaders and trends

Allows Municipal, Politicians, Police and Military leaders to stay connected with communities

Allows businesses and celebrities to promote themselves and target specific audiences
Third party applications

Allows Media to provide users with information quickly and accurately
Channels Twitter has mobile applications for iPhone, iPad, Android, Windows Phone, BlackBerry, and Nokia. There is also a version of the website for mobile devices, SMS and MMS service (http://en.wikipedia.org/wiki/Twitter n.d.)
Revenue streams Promoted Tweets, Promoted Trends, Promoted Accounts, and Political Advertisements
Key resources Twitter Platform
Key activities Platform Development
Partner networks Mobile Operators
Media Companies
Mobile and Desktop Vendors
Search Vendors
Cost structure Servers
Employees
Revenue Promoted Tweets, Promoted Trends, Promoted Accounts, and Political Ads

7 POTENTIAL REVENUE SOURCES

ADVERTISEMENTS

Twitter is already selling Promoted Tweets, Promoted Trends, Promoted Accounts, and Political Advertisements. Twitter defines Promoted Tweets, Promoted Trends, Promoted Accounts, and Political Advertisements as:

Promoted Tweets are ordinary Tweets purchased by advertisers who want to reach a wider group of users or to spark engagement from their existing followers. Promoted Trends began as an extension of our Promoted Tweets platform, and are now a full-fledged product in their own right. With Promoted Trends, users see time-, context-, and event-sensitive trends promoted by our advertising partners. These paid Promoted Trends appear at the top of the Trending Topics list on Twitter and are clearly marked as "Promoted." Promoted Accounts are part of Who to Follow, which suggests accounts that people don’t currently follow and may find interesting. Promoted Accounts help introduce an even wider variety of accounts people may enjoy. Political Ads are advertising campaigns purchased by political advertisers in order to reach a wider audience or engage current followers on Twitter. These ads may include Promoted Tweets, Promoted Accounts, or Promoted Trends.

Advertisements are marked with the word "promoted" next to a yellow-orange arrow. According to the Twitter website, users may turn off Twitter’s ability to match users’ accounts to these advertisements. The ability to turn off these advertisements may serve Twitter well as it goes public as many of its users may not wish to be bombarded by numerous advertisements.

Twitter must maintain its corporate image and ensure that the Promoted Tweets, Promoted Trends, Promoted Accounts, and Political Advertisements are not offensive in nature and do not result in negative press.

THIRD PARTY APPLICATIONS

Twitter has the potential to earn money in much the same way that Facebook currently does using third party applications which sell credits to users. Each time a user purchases a credit Twitter receives revenue either from the application or through direct sale of Twitter credits.

8 EVALUATION OF ALTERNATIVES

Advertising permits Twitter to increase revenue by leveraging the following:

1. Continue to be a reputable, recognizable, brand image which is marketable all users
2. Promote its ability to assist businesses increase their sales, market share, and return on investment
3. Maintain customer satisfaction, and corporate image
4. Continue to encourage “Tweeting” as a popular meets of sharing information

Twitter is already earning revenue from advertising. Due to the nature of the user being able to control what they see and do not see, what they choose to share or not share, revenue from advertisements will not impact the user’s newsfeed. Any user may choose to promote their tweet for a fee. An example of this was demonstrated by a disgruntled Twitter user who bought promoted tweets to complain about British Airways resulting in swift action on behalf of British Airways. (http://www.telegraph.co.uk/technology/twitter/10283117/Twitter-user-buys-promoted-tweet-to-complain-about-British-Airways.html n.d.)

Third party applications will not permit Twitter to increase revenue by leveraging the following:

1. Continue to be a reputable, recognizable, brand image which is marketable all users
2. Maintain corporate image
3. Continue to encourage “Tweeting” as a popular meets of sharing information

Third party applications are developed by programmers outside of Twitter. The idea behind the selling of credits for third party credits does not match Twitter’s current mission statement which is “to instantly connect people everywhere to what is most meaningful to them.” (http://www.inma.org/article/index.cfm/49977-twitter-s-mission-statement-should-guide-how-companies-use-it n.d.)

9 RECOMMENDATIONS

Twitter was the primary company to commence the unique service to individuals wishing to update and keep in touch with friends and family in 140 characters or less. This unique service was quickly imitated by companies such as Google, Facebook, Instagram and Tumblr. Although many of Twitters competitors have allowed users to use more than 140 characters, many users have remained faithful to Twitter. Twitter has slowly added revenue sources from various forms of advertisements and is slowly building its business model as it moves toward is initial IPO offering. It is evident that as Twitter moves forward, it will need to continue to be innovative and careful as it navigates its initial IPO offering and not make the mistakes that Facebook made when reaping the benefits of advertising dollars and its initial IPO offering. It is essential that Twitter continues to allow its users to decide which and whether they wish to see the Promoted Tweets, Promoted Trends, Promoted Accounts, and Political Advertisements. If Twitter chooses to do otherwise, it will continue to loose users at a significant rate. In addition, Twitter must move towards other sources of revenue, such as Twitter credits to be used in conjunction with third party applications.

Bibliography

http://en.wikipedia.org/wiki/Twitter. n.d. Wikipedia. Accessed September 19, 2013. ttp://en.wikipedia.org/wiki/Twitter. http://support.twitter.com/articles/142101-what-are-promoted-tweets. n.d. Twitter. Accessed September 19, 2013. http://support.twitter.com/articles/142101-what-are-promoted-tweets. http://www.foxbusiness.com/investing/2013/09/12/twitter-confidentially-files-for-ipo/. n.d. Fox Business. Accessed September 19, 2013. http://www.foxbusiness.com/investing/2013/09/12/twitter-confidentially-files-for-ipo/. http://www.inma.org/article/index.cfm/49977-twitter-s-mission-statement-should-guide-how-companies-use-it. n.d. http://www.inma.org/article/index.cfm/49977-twitter-s-mission-statement-should-guide-how-companies-use-it. Accessed September 20, 2013. http://www.inma.org/article/index.cfm/49977-twitter-s-mission-statement-should-guide-how-companies-use-it. http://www.telegraph.co.uk/technology/twitter/10283117/Twitter-user-buys-promoted-tweet-to-complain-about-British-Airways.html. n.d. http://www.telegraph.co.uk/technology/twitter/10283117/Twitter-user-buys-promoted-tweet-to-complain-about-British-Airways.html. Accessed September 19, 2013. http://www.telegraph.co.uk/technology/twitter/10283117/Twitter-user-buys-promoted-tweet-to-complain-about-British-Airways.html.