Name: Md Razwanul Islam

ID: 1910664

Twitter Case

Question 1: Why is Twitter struggling? What role do industry and firm effects play here?

Answer: Twitter lacks a consistent support strategy. Therefore, it creates a pause in

implementing a plan which will give the business the advantage over similar companies. As the
text says, "Twitter competes for more users against other social media such as SnapChat,
Facebook and its WhatsApp messaging service and others (Rothärmel,2017)." Besides that, there
are few more reasons and these are:

 Not adapting the trend.

 Not having a stable management team.
 Emphasis less on goal strategies.
 Ad overkill and customized ad kills user experience.

Twitter gave more importance to generating ad revenue than to the user satisfaction as a result of
firm versus industry impact.

Question 2: What grade would you give Dick Costolo, Twitter’s CEO from 2010 to 2015?
Support your decision with specifics. Also, list some of his leadership strengths and
weaknesses. What recommendations would you have for the new Twitter CEO to be a
more effective strategic leader?

Answer: I will give the grade D to Dick Costolo. Mainly because, since the company started
with nearly 300 million active users worldwide, "Twitter's share price increased from $26 in its
initial public offering (IPO) to over $73 in a few weeks ' time (Rothärmel,2017)." The business
deteriorated gradually in half over the following year. Twitter received a junk ranking, as
reported in the book, and totaled 1.4 billion a year in revenue, while losing 1 billion a year.

Costolo 's strength has been his willingness to start a company. However, his weakness has been
the ability to adapt to challenges. My advice for the new CEO of Twitter will be to make the
company’s goals clear, and not to fear change.
Question 3: Why is a good strategy so important, especially at high-tech startups like
Twitter? Why is crafting a good strategy at Twitter so difficult? What are some of the
pitfalls that a CEO of a company such as Twitter needs to watch out for when crafting and
implementing a strategy?

Answer: A successful strategy for a high-tech startup is critical because, with high demand, it's
an extremely fast speed industry. Being behind the competition takes only one mistake, since. It
is difficult to draw up a successful plan for Twitter because of the rapid technical shift and the
shift in consent in consumer tastes. The CEO must be vigilant about pitfalls such as making
broad guidelines, making bad financial decisions, and remaining relevant.

Question 4: Apply the three-step process for developing a good strategy outlined above
(diagnose the competitive challenge, derive a guiding policy, and implement a set of
coherent actions) to Twitter’s situation today. Which recommendations would you have for
Twitter to outperform its competitors in the future?

Answer:

1. Diagnose the competitive challenge: Twitter 's greatest strategic challenge is rising its
user base to become more attractive to online marketers. Twitter is seen as a niche
application by the marketers. Companies are shifting the majority of their digital ad
dollars more to Facebook and Google than to Twitter.
2. Derive a guiding policy: Working on the user interface of twitter. Making things easier
for consumer such as signing process and usage.
 Making the process of signing up and using the services simpler
 Explaining to a broader audience the often-quirky conventions on Twitter
 Offensive material to wipe out.
3. Implement a set of coherent actions: The enforcing body needs to make policies
transparent. Decisions must be executed ethically or management may be faced with discontent
among the workers. Strengthening strategy with proper training and capital investment.

My recommendation for Twitter will be to make the platform more user-friendly, and to perform
a survey to see what attracts people.