“Let me tweet that real quick” is a phrase which we’ve grown familiar with over the last several years. It instantly reminds us of Twitter the eminent platform that takes only a few seconds for something to explode. We always consider checking Twitter SWOT Analysis.
Funny Facts 40% of all 1.3 billion Twitter accounts established since the company’s creation were active and did not shut down until they were shut down without a single tweet.
To gain a better understanding of the advantages and disadvantages of this site, we consider a SWOT analysis.
Twitter At A Glance – Twitter SWOT Analysis
Twitter was created in 2006 as a microblogging and social networking site by four highly skilled individuals. The first tweet was sent by Chief Executive Officer Jack Dorsey, “just setting up my Twitter.”
At present, Twitter has around 330 million active followers. It also sees nearly 500 million tweets go out every day. A site with such an enormous online presence is sure to have some drawbacks too.
Company:Twitter, Inc.
Founders: Jack Dorsey | Evan Williams | Biz Stone | Noah Glass
Year of establishment: 2006
CEO: Jack Dorsey
Headquarters: San Francisco, California, United States
Employees (Dec 2019): 4,900
Ticker Symbol: TWTR
Type: Public
Annual Revenue (Dec 2019): US$3.46 Billion
Profit net income (Dec 2019,):US$1.47 Billion
Products & Services: Twitter Social Networking | Periscope | Promoted Tweets | Promoted Accounts | Promoted Trends | Micro-Blogging | MoPub | Audience Ads Platform
Twitter Competitors
Competitors: Facebook | Instagram | LinkedIn | Google | Snapchat | Whatsapp | Pinterest | MySpace | Orkut | Quora | Microsoft | YouTube | WeChat | Tumblr |Tencent | Vkontakte
Twitter SWOT Analysis
Twitter is micro-blogging and social media platform that lets users interact online via tweets. From no users to 300 million people in just 15 years. could gain a lot from Twitter SWOT analysis.
Twitter’s Stregths
1. Highly Influential
The Twitter’s hashtags are the most powerful and powerful features available on all social platforms. Hashtags are a powerful tool to mobilize communities, upend governments, and challenge injustices.
Starting with the #MeTooMovement to fake news and the unification in the face of a boy’s nuggets with the hashtag #NuggsforCarter, Twitter has proven its influence and power over and over.
2. Loyal Customer Base
With the number of 166 million active users per day (DAU) (worldwide quarter-to-quarter average) in the first quarter of 2020.
Most of the most loyal users will never ever exchange Twitter with any other social media platform no matter the weather.
3. Strong Market Share
Twitter is one of the largest micro-blogging as well as social media sites around the globe by percentage of market.
Twitter is a powerful force and it can leverage it’s status to promote its interests.
4. Popular for News and Marketing
Twitter has become an official channel for communication. Information is communicated swiftly and effortlessly through simple as a straightforward tweet.
From the communications of governments such as that of White House to famous personalities and companies. Based on Statista, 67% of companies use twitter for marketing business-to-business (worldwide).
5. Stable Financial Position
Twitter’s financial situation has stabilized after the company reached maturity.
The fiscal year of 2019, Twitter hit $3.46 billion in revenue for the first time.
6. Broad Product Portfolio
Twitter has made a number of strategically acquisitions. These companies have boosted twitter’s capabilities to better serve its client base.
Some of its most significant acquisitions are listed below:
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- Periscope live video streaming
- Magic Pony – machine learning
- Gnip – API aggregation
- MoPub – mobile advertising
- Lightwell” conversations initiatives
- TellApartadvertising
- TweetDeck – dashboard application
- TapCommerce is atargeted advertising
7. Fun and innovative features
From popular topics from trending topics to hashtags and Retweets, Twitter offers the most unique and valuable features.
These tools not only relay the latest information , but let users respond and share their thoughts.
8. Brand and Name Recognition
Twitter is a great name. It is well-known and reflects perfectly the services that it offers. Based on the name Twitter the public is aware of the purpose of Twitter and what it is.
Twitter’s Weaknesses
1. Algorithm
Twitter is trying to perfect it’s algorithms to meet the needs of its users.
People have expressed displeasure with Twitter’s search feature as well as its timeline, fake or irrelevant tweets, harassment and abuse.
If Twitter does not invest in product development quickly, it will be unable to maintain its significance.
2. Over-reliance on US Market
Although Twitter is a global platform but it heavily depends upon its US markets.
The breakdown below shows the revenue of Twitter’s annual report for 2019 from various regions of the world:
- USA: $1.9 billion (56 percent)
- Japan: $537 million (15 15 percent)
- World: $978 million (29%) of World: $978 million (29 percent)All: $3.45 billion (100%)
3. Over-dependence on Ads
When we examine the business model of Twitter it is clear that a significant portion of the company’s revenue comes from ads.
For instance, in the 2019 fiscal year, 86.5% of its revenue through advertisement services and the rest 13.5 percent is through licenses for data.
4. Lack of Diversification
Twitter has invested all of its resources, aspirations and plans for the future into social media networks. Twitter only relies exclusively on the social platform it has and does not change its strategy..
If a brand new technology comes out to replace social media sites the company could fade to obscurity within a brief time.
5. Burdening Operational Costs
To keep competitors at bay, Twitter spends more. To meet the increasing amount of customers, Twitter invests more in the growth of its data center.
All of these investments and spending can result in an increase in the operational cost that could impact the profitability of your business in the long term.
6. Fake accounts
Twitter says that approximately 5percent of its active users on a daily basis (DAU) have fake accounts or are spam. If these malicious or spam accounts grow the reputation of Twitter could be seriously damaged.
7. Data Safety Concerns
The security issues of Twitter that led to breaches of user data resulted in leaks and breaches of personal information of users.
Additionally, the company inadvertently transfers the information of users in order to sell ads and then addressed the issue in September 2019.
Here’s this statement on Twitter on leaks of personal data:
“We recently discovered that when you provided an email address or phone number for safety or security purposes (for example, two-factor authentication), this data may have inadvertently been used for advertising purposes.”
“When an advertiser uploaded their marketing lists and we identified users who are on Twitter on their marketing list by using the email address or number the Twitter account holder supplied to ensure security and safety. We made a mistake, and we’re sorry. .”
Twitter’s Opportunities
1. Online Store
Businesses already market their products via twitter. It’s a great benefit to provide online shops or marketplaces that could offer direct sales to customers such as Instagram.
2. Feature Enhancement
Instead of being a universal platform, Twitter can offer personalized services to attract diverse generations and companies.
For example, offering tools and features such as TikTok to enable Ticke Gen-Z.
3. Offer Remote Working Solutions
These turbulent times have forced companies to implement remote working options such as Zoom and Microsoft Teams.
Twitter has the infrastructure, expertise and resources to offer remote working solutions that meet the demands of customers who prefer to work from home.
4. Join the Music or Video Streaming Services
With huge financial resources available, Twitter can enter into lucrative markets by acquiring small-sized companies operating in the market.
One example is that streaming video and music companies can provide the opportunity to expand.
5. Increase User Satisfaction
Twitter can ensure that its users are happy by taking action on the areas listed below:
- Reduce abuse/ harassment
- Stop fake news/misinformation
- Make sure that the integrity of conversations about elections
6. Focus on Mobile-Based Ads
More people are logging onto Twitter through phones.
In order to increase the amount of advertising revenue, Twitter should focus on mobile-friendly ads, particularly due to the growth of its base of users in developing markets.
Twitter’s Threats
1. Stiff Competition
From traditional competitors such as Facebook, Snapchat to the latest social media platforms such as TikTok TikTok, powerful competitors could steal users away from Twitter.
This is a major threat, as the rise on the amount of people using it over the coming five years is expected to be extremely low.
2. Suppression of Freedom of Speech
Military and authoritarian governments and dictators are against any tool that is utilized by the people to take over their authority and prohibit the use of Twitter.
Democracies may as well prohibit Twitter to limit freedom of expression. For instance, Twitter is officially blocked in China as well. The New York Times reports that Chinese police officials are interrogating and detaining users of Twitter.
3. Investors’ Pressure
Presently, Elliott Management Corp, the largest investor in Twitter and largest shareholder, is advocating on behalf of the demotion of the company’s founder and CEO Jack Dorsey.
Conflict and friction between managers and investors is always bad for business.
4. Unequal Power to Influence
According to Pewresearch according to Pewresearch, according to Pewresearch, the top 10 percent members are the ones responsible for 80percent of all tweets. Twitter has been designed to provide influence by its followership.
For instance, Kylie Jenner (with 34 million followers) and Cristiano Ronaldo (with 84 million followers) are tweeting multiple times every day, impacting many millions of followers. This has led to an inequitable distribution of power and influence.
5. Influencer Quitting the Platform
At any time an influencer could quit Twitter and switch to other platforms of competitors. This could lead to the migration of followers in a mass manner and could affect Twitter’s revenue and user base dramatically.
6. New Digital Taxes
It is believed that the EU is targeting top tech companies with an modern digital tax. In the event that Twitter is included on the list, some of its revenues will go towards taxes.
7. Regulatory Laws
Regulators can adopt more strict regulations and rules to enhance data security and safeguard intellectual property rights and eliminate fake news, inappropriate information, and insensitive.
This could lead to massive migration away from Twitter.
8. Twitter has lost its cool.
Twitter is intended to be an uni-dimensional platform, and does not offer individualization.
For instance, the majority of Gen Z prefers TikTok because it allows them to personalize their favorite videos. Meanwhile, millennials are using Facebook, Pinterest, SnapChat and Instagram for the ease of using diverse media. This makes it difficult for them to leave Twitter behind with the older generation.
The future of Twitter is uneasy and uncertain.
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