Strategic Management: A Case of Twitter.

Strategic Management: A Case of Twitter.

Twitter has failed to provide financial gains since 2013 when it went public despite a constant increase in the number of users and the volume of use. In the Fourth Quarter of the year 2017, the company, however, recorded its first profitable quarter with more than 330 million active users monthly as well as notable users such as President Donald Trump, among other celebrities, influencers, and public figures. The report provides an analysis of the company’s strategies that led the eventual success.

Twitter faced several challenges. Among them included accumulated deficits (C-138), miscalculated monthly users since the fourth quarter of 2014 (C-138), stiff competition from other social media companies from the year 2012-2018 (C-138), lawsuits and failure to provide net income balance from the years 2014-2018 (C-139). As a result, it could not make profits despite growing the business. The company resolved to restructuring as a means to counter the challenges. It decided to cut costs related to research and development, sales, and marketing expenses.

Twitter resolved to restructuring as a strategy to maximize its opportunities while solving its challenges through the cost-effective utilization of the company’s resources. For instance, the company is rethinking signing trade deals with its competitors to help leverage the company’s brand image and avoid marketing expenses. Again, through creativity and innovation, the company can cut on research and development expenses. The strategy has the potential to build a powerful brand image of Twitter and attract more global high profile users to outdo the competitors.

The company had an option to pursue a leveraged buyout (BOI) on Snap Inc. as an alternative strategy. However, the strategy could be a long-term success. At the same time, the company had a tremendous net loss (C-146), and the acquisition could not make Twitter any better if it could not make itself profitable over those years.

References.

Grant, R. M., & amp; Walsh, P. R. (2018). Industry Analysis. In Strategic Management, BUS800 (p.38). United States: John Wiley & amp; Sons, Inc.

Thompson, Arthur A.,. (2015). Crafting and Executing Strategy: Concepts and Readings Twitter Inc. in 2018; Too Little Too Late? New York: McGraw-Hil Education, (PP. 138-148)