Case Study Description of Privacy Issues and Monetizing Twitter
It was early 2010, and the Twitter Trio, the founders of Twitter, were faced with a changing market situation and a pressure to make money. Twitter was a free service that had been operating without a viable business plan since 2006. In early 2010, Twitter was still not making enough money and it was time Twitter showed real return on investment. The trio had to decide on a business model that was competitive. There was a data mining project that could bring all the funds Twitter needed to stay in business, make profit and compete with others. However, the founders were concerned that this project might be perceived to intrude on users' privacy, even in a company that was founded on the basis of sharing information publicly.
Swot Analysis of "Privacy Issues and Monetizing Twitter" written by Deborah Compeau, Nicole R.D. Haggerty, Shady Fraiha includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Twitter Trio facing as an external strategic factors. Some of the topics covered in Privacy Issues and Monetizing Twitter case study are - Strategic Management Strategies, International business, IT, Security & privacy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Privacy Issues and Monetizing Twitter casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing household debt because of falling income levels,
wage bills are increasing, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Privacy Issues and Monetizing Twitter
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Privacy Issues and Monetizing Twitter case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Twitter Trio, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Twitter Trio operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Privacy Issues and Monetizing Twitter can be done for the following purposes –
1. Strategic planning using facts provided in Privacy Issues and Monetizing Twitter case study
2. Improving business portfolio management of Twitter Trio
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Twitter Trio
Strengths Privacy Issues and Monetizing Twitter | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Twitter Trio in Privacy Issues and Monetizing Twitter Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Privacy Issues and Monetizing Twitter Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Privacy Issues and Monetizing Twitter firm has clearly differentiated products in the market place. This has enabled Twitter Trio to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Twitter Trio to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Twitter Trio has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Organizational Resilience of Twitter Trio
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Twitter Trio does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Twitter Trio are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to recruit top talent
– Twitter Trio is one of the leading recruiters in the industry. Managers in the Privacy Issues and Monetizing Twitter are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Twitter Trio has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Twitter Trio has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Innovation & Entrepreneurship field
– Twitter Trio is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Twitter Trio in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Twitter Trio digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Twitter Trio has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Learning organization
- Twitter Trio is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Twitter Trio is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Privacy Issues and Monetizing Twitter Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Twitter Trio has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Privacy Issues and Monetizing Twitter HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Twitter Trio in the sector have low bargaining power. Privacy Issues and Monetizing Twitter has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Twitter Trio to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Privacy Issues and Monetizing Twitter | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Privacy Issues and Monetizing Twitter are -
No frontier risks strategy
– After analyzing the HBR case study Privacy Issues and Monetizing Twitter, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
Twitter Trio has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to strategic competitive environment developments
– As Privacy Issues and Monetizing Twitter HBR case study mentions - Twitter Trio takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Products dominated business model
– Even though Twitter Trio has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Privacy Issues and Monetizing Twitter should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Twitter Trio has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Twitter Trio is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Privacy Issues and Monetizing Twitter can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Twitter Trio products
– To increase the profitability and margins on the products, Twitter Trio needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Privacy Issues and Monetizing Twitter, it seems that the employees of Twitter Trio don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Aligning sales with marketing
– It come across in the case study Privacy Issues and Monetizing Twitter that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Privacy Issues and Monetizing Twitter can leverage the sales team experience to cultivate customer relationships as Twitter Trio is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Twitter Trio has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Twitter Trio even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Privacy Issues and Monetizing Twitter, in the dynamic environment Twitter Trio has struggled to respond to the nimble upstart competition. Twitter Trio has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Privacy Issues and Monetizing Twitter | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Privacy Issues and Monetizing Twitter are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Twitter Trio is facing challenges because of the dominance of functional experts in the organization. Privacy Issues and Monetizing Twitter case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Twitter Trio can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Privacy Issues and Monetizing Twitter, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Twitter Trio has opened avenues for new revenue streams for the organization in the industry. This can help Twitter Trio to build a more holistic ecosystem as suggested in the Privacy Issues and Monetizing Twitter case study. Twitter Trio can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Twitter Trio can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Twitter Trio can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Twitter Trio to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Twitter Trio can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Twitter Trio to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Twitter Trio to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Twitter Trio can use these opportunities to build new business models that can help the communities that Twitter Trio operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Buying journey improvements
– Twitter Trio can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Privacy Issues and Monetizing Twitter suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Loyalty marketing
– Twitter Trio has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Twitter Trio in the consumer business. Now Twitter Trio can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Twitter Trio in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Threats Privacy Issues and Monetizing Twitter External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Privacy Issues and Monetizing Twitter are -
Consumer confidence and its impact on Twitter Trio demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Shortening product life cycle
– it is one of the major threat that Twitter Trio is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Twitter Trio business can come under increasing regulations regarding data privacy, data security, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Twitter Trio needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Twitter Trio
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Twitter Trio.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Twitter Trio in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High dependence on third party suppliers
– Twitter Trio high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Twitter Trio can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Twitter Trio can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Twitter Trio in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Twitter Trio can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Privacy Issues and Monetizing Twitter .
Weighted SWOT Analysis of Privacy Issues and Monetizing Twitter Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Privacy Issues and Monetizing Twitter needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Privacy Issues and Monetizing Twitter is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Privacy Issues and Monetizing Twitter is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Privacy Issues and Monetizing Twitter is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Twitter Trio needs to make to build a sustainable competitive advantage.