Recently, Twitter Inc. revealed its IPO, which indicates that the company’s recent growth is at a decreasing rate. This raises a concern about the business model of Twitter due to its growing popularity but diminishing rate of revenue. Basically, entering the public market, Twitter has trouble gaining profitable advertising revenue, creating market outside North America and solving internal issues regarding its product.
According to SWOT analysis, Twitter Inc. has a strong brand name and good reputation among users as well as its convenient application based on handheld devices. However, Twitter’s major challenge is how to fully capitalize on those advantages. A great number of users but also many fraudulent accounts, convenient utility on handy devices but facing the difficulty of placing mobile ads-those problems are derived from the developing and growth of Twitter. Making profits tends to be more important to Twitter Inc., especially since it enters the public market, but how to make profits in terms of its current business model should be considered carefully.
Apparently, making up for the existing deficiency is necessary but not enough, personally, trying to extend in Asia such as China worth a shot even though it’s hard so far.
Sources Link: http://www.theglobeandmail.com/report-on-business/the-short-message-from-twitters-ipo-slowinggrowth/article14712467/
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