Weathering the Storm: Twitter’s Uncertain Future

Case Study: Weathering the Storm: Twitter's Uncertain Future
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Twitter's Value Proposition
Twitter is a social media platform that changed online communication and has a special value proposition for its customers. Twitter offers a real-time, accessible, open platform for organizations and people to share updates, information, and thoughts immediately and concisely. It encourages succinctness and brevity by limiting characters to 280 per post, rendering it the best platform for swift updates and sharing of content, news, and opinions. Consumers benefit from the capacity to follow different accounts, such as friends, news outlets, thought leaders, and celebrities, establishing a diverse and individualized feed of information (Laudon & Traver, 2022). Also, Twitter acts as a world conversation hub, facilitating its consumers to participate in discussions, connect with different people online, and express their opinions.
Twitter's Business Model and Its Evolution
Twitter has undertaken significant changes in its business model over the years. At its inception, the platform emphasized user engagement and growth, focusing on features such as a 140-character post limit. The company then incorporated different advertising products like promoted tweets, videos, accounts, and trends, facilitating consumers to reach target audiences effectively. Advertising constituted the basic revenue generation for Twitter, and in 2019, that formed 87% of its income (Laudon & Traver, 2022). in addition, the company capitalized on user data, its valuable asset, through licensing it to organizations seeking to understand consumer sentiment. That year, such a data licensing segment formed about 13% of Twitter's revenue (Laudon & Traver, 2022). Another evolution of Twitter's business model involves partnering with broadcasters in streaming live events and showing important highlights on the platform.
Winners, Losers, and Controversy
In the context of Twitter's ecosystem, winners and losers vary. Consumers have much to gain from the platform's real-time updates, information-sharing abilities, and the opportunity to engage different people. Thought leaders, celebrities, and influencers use the platform to increase reach and gain popularity. Advertisers win by leveraging the platform's advertising products to ensure their products and services get a wider audience. Also, organizations using the company's data licensing services extensively understand consumer sentiment (Laudon & Traver, 2022). Losers include those who experienc...