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For College Students

SWOT Analysis of Twitter: Demonstration

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In the previous segment, you learned about the SWOT framework. After Tamara’s discussion on IKEA, let’s now analyze one more product/organization through SWOT analysis.

 

 

 

Well, many of us are guilty of constantly spending time on Twitter, opening and closing the app every now and then, aren’t we? Let’s now stop thinking as users and put on our product manager hat to do a SWOT analysis for Twitter.

Twitter is a US-based social networking service, founded in 2006, where users post and communicate through messages called tweets. Twitter has more than 25 offices and millions of users across the world.

 

Now, let’s discuss some of Twitter’s strengths:

 

  1. Big market share: Twitter is one of the most widely used blogging platforms and has the second-highest market share after Facebook (as recorded in 2021). (Source)

  2. Popularity: Twitter is one of the most popular social media platforms. Any new entrant will find it hard to compete with it.

  3. Strong influence: Twitter’s features and user base makes it the first choice of many brands and celebrities to reach out and influence others. Information is quickly conveyed or tweeted. Many businesses rely on Twitter for business-to-business marketing

  4. Innovative features: Twitter has a lot of fun and useful features that allow users to respond to others and convey their thoughts.

 

Let’s continue the same example of Twitter to discuss its weaknesses:

 

  1. Fake accounts: Twitter reports millions of fake or spam accounts on its platform. These fake accounts may be used to spread propaganda and fake information. Thus reducing Twitter users' confidence in using Twitter, which may lead them to seeking out other social media and blogging platforms.

  2. Breach issues: There have been several instances of Twitter being accused of leaking private user information, which may lead to lawsuits and legal challenges.

  3. Dependency on ads: Twitter generates most of its revenues and profits from its advertisements. This puts Twitter's business model in a perilous position if it begins to lose its advertisement market share to other incumbent or upcoming social media companies. (e.g. Facebook and TikTok)

  4. Overdependence on the US: Twitter has emerged globally, but it has a high dependency on the US, where it has the maximum users and generates the maximum revenue. (Source)

  5. Influencers (users) quitting the platform: A product’s or business’s success relies hugely on its influencers and brand ambassadors. If a strong influencer leaves Twitter, it will directly impact its revenue.

 

Let’s also discuss some opportunities for Twitter:

 

  1. Targeting new areas: Through diversification, Twitter can expand to different lucrative markets, such as music and video streaming services and, in turn, gain revenues and other benefits from additional revenue streams. 

  2. Innovation: Twitter can take inspiration and ideas from Instagram and Facebook to enhance its features and functions in order to increase user satisfaction.

  3. Mobile ad revenue: Twitter can increase its revenue by focusing more on mobile-based advertisements.

 

Though Twitter is a popular and developed platform, it also has some threats. Let’s discuss some of them:

 

  1. Internal politics: Conflicts are always bad for a business. In 2020, investor Elliott Corp was pushing for the removal of the CEO, Jack Dorsey. (Source)

 

With this, we have come to the end of this session. The next segment will summarize all your learnings.