In the recent years Investors have been losing patience with Twitter as a result there has been panic sales of the company’s shares. Although Twitter has been benefiting from an increase in it’s revenues, it has also been experiencing consistent losses that has forced the CEO to change his strategies. The article, Twitter CEO Dick Costolo Struggles to Define Vision, reveals Twitter’s way of dealing with the situation by targeting a larger customer base.

Twitter is a great source of information, and has an increasing market growth and market share, however the firm fails to retain customers active customers. CEO Dick Costolo suggest a 3 circle focus strategy, where each circle represents different division of consumers who approach the firm in different ways. At present Twitter’s focus is on active consumers, whereas the proposed strategy would concentrate on the other two non active consumers. The CEO aims to cutdown losses by increasing  its customers.

I feel that this approach may be ineffective since most of the users who are inactive are because of the complex approach users need to adapt to get used to the product. The article mentions that “it was hard for new users to figure out how to use the site” hence a better approach would be to improve the user friendliness of the product since it would attract and retain potential customers. Also it would be cost effective for them since it would be cheaper to introduce a tutorial on the website than marketing and attracting a new customer base. CEO’s strategy may be useful when the market is saturated and the market growth rate is low but in the short-run Twitter would not face any such issue.

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