The Social Network

In my Comm 101 class, we have been told multiple times (and probably will be told many more) to take concepts we learned from class and try to analyse current events through those lens. So far, I have found this to be quite difficult until today when I found an article in CBC talking about an emerging social network called Ello that is aspiring to become a Facebook and Twitter alternative. In a nutshell, Ello’s claim to fame is that they’ll be ad-free compared to competitors and that personal information won’t be sold to third parties in the name of advertising. Having learned of Porter’s generic strategies in class, I can now appreciate what Ello’s trying to do. By using a differentiation strategy, Ello is hoping that its unique attributes (ad-free and privacy) will separate itself from the competition in a way that consumers will like. Personally, the only problem I see coming in Ello’s way is the cost. Currently, Ello is offering a free service that encourages users to donate. However, as Ello’s user base expands, I do not see them getting by without having to install a freemium model or making consumers pay money upfront to access the service. Ello has a great concept; the question is how they will apply it in the future to ensure its success.

Leave a Reply

Your email address will not be published. Required fields are marked *