Twitter is the most popular social media service that helps users post and communicate messages. These messages are termed tweets in the language of Twitter.
In this blog post, we will understand the financial strategies and SWOT analysis of Twitter in detail.
Let us move ahead!
About Twitter (X)
With the help of Twitter registered users can like posts and also read with the tweets. The company was founded in 2006. Twitter was founded by –
- Noah Glass
- Evan Williams
- Jack Dorsey
- Biz Stones.
Today, Twitter has more than 550 million active users. Users can share their thoughts via short messages having characters limited to 280. They post news links, photos, or videos and can also categorize their tweets with the help of hashtags.
At present, the platform is renamed as ‘X’.
Twitter (X) at a Glance
| Founders | Jack Dorsey
Noah Glass Biz Stone Evan Williams |
| Chairman | Elon Musk |
| CEO | Linda Yaccarino |
| Year of Establishment | March 21, 2006 |
| Owner |
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| Annual Revenue (as of FY22) | Rs 156.75 crore |
| Total assets (as of FY24) | $13.58B |
| Origin | San Francisco, California, U.S. |
| Total no. of employees | 1,000 employees |
SWOT Analysis of Twitter (X)
SWOT Analysis helps companies get inside into their strengths, weaknesses, hazards, and opportunities in a single shot. This helps in further improvement of the brand and revenue.
Now let us see the SWOT analysis of Twitter step by step.
Strengths of Twitter (X)
The strengths of Twitter are –
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Influencer marketing
Twitter is the best example of influencer marketing. It influences having large followers in the target market with which Twitter reaches a broad base audience and creates more awareness. Influencer marketing is the best method to appeal to a large audience base and also helps in building trust and credibility. This type of marketing also helps increase sales and leads.
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Brand awakening
Twitter brings brand awareness excellently and connects with the potential audience. It shares engaging content with its users while keeping it the market leader in social media channels. Twitter has become a great platform to share updates and current news about companies in different industries. It can also promote services and products.
To bring better brand awareness Twitter uses hashtags that help categorize content and make it much easier for users to find the particular news or update. Hashtags are also useful for joining conversations occurring on Twitter.
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Trending Content
Twitter features trending content that highlights the popular topics on the platform. It is an amazing method to stay alongside the recent affairs transpiring across the world. The topics may be a great way to stay up to date on current events and get involved in different conversations.
Users can just click on the trending topic and see all the comments that are getting posted.
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Communicating real-time
Twitter followers micro-blogging platform which is the best way to real-time communication and share news instantly. These micro-blogging tweets have very limited characters of 280 characters maximum. This forces users to stay to the point while making Twitter a very ideal platform for breaking news and sharing updates on current events.
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Large engaged users
Twitter has the biggest strength in the form of a huge base of engaged users. It has approximately 300 million active Twitter users across the globe. Among the rest, social media platforms politicians, journalists, celebrities, and players use this platform to a greater extent.
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Strong analytics
Twitter offers strong analytic tools that help users to monitor their performance on this platform. It can be widely used to enhance the marketing campaigns a particular user is running and also helps in understanding the audience at a better level. Twitter analytics helps users monitor the progress with time and see the development of their follower count along with the impressions made on a particular tweet.
The analytics used by Twitter helps users to analyze the most engaged followers. This data also helps data inside on the users who are re-tweeting the tweets clicking on the links and giving replies to them. This whole information helps in optimizing marketing campaigns and creating useful content that will sync with the audience.
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Community development
It is also the biggest strength of Twitter and helps in building a community by communicating with the followers and engaging in conversations to develop a sense of connection and belonging. Users can follow people having the same Pinterest and may also join conversations about shared interests.
Twitter is an open platform on which people can tweet their thoughts as well as opinions on the current events going on. Then you also have other thoughts on particular services and products or on any topic across the globe. It can interact with the customers on Twitter and may resolve the issues.
Weaknesses of Twitter (X)
Twitter has the following weaknesses –
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Limited character count
One of the major weaknesses of Twitter is its Limited character count which is 280 characters. This character limit gets restrictive to some of the uses which is very challenging in terms of explaining complex ideas. Twitter offers a 4000-character limit to only those users who has its premium services.
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Toxicity
Twitter might be viewed as a platform full of toxicity due to harassment abuses or ruling language. Algorithms of Twitter may also exclude toxic content which may lead to different problems including spreading false information.
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Unclear algorithms
Twitter’s algorithm is being criticized for being unclear and not showing the relevant content the users wish to see. This leads to frustration and disengagement in users.
Opportunities of Twitter (X)
Twitter holds opportunities in the below segments –
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Enhance monetization
Twitter can increase its monetization strategies by advertising campaigns as well as services with different businesses. It can also make it easier for companies to market and target at more effectively while measuring the effectiveness of advertisements more precisely.
Twitter can offer companies with different resources and tools that offer absolute information on using Twitter.
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Research and development
Research and development is an essential factor for any company that wants to stay ahead of the intense competition. Twitter has great possibilities in research and development asset.
Recently the company has got new features like video. Also, Twitter should continuously invest in research and development focusing on developing services and products that meet user needs machine learning, and other factors.
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News section
Twitter has great opportunities in the news sector. It can create a dedicated section for the latest news across the globe. It should also include different news resources that help users to enjoy news from different segments. It can also get a customizable new speed for users that are more relevant to them and help them discover the latest features of the application.
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Small business accessibility
Small businesses as well as individual creators are the most important part of Twitter. They offer valuable content to share with the users that may be quite difficult to find otherwise. Twitter can enhance the discovery of these businesses and create content by using this kind of user.
To highlight the small businesses, independent creators in the search results may be in demand.
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Sell premium features
Twitter can also sell different features like the ability to give live videos. It can generate more revenue from its most engaged users. The premium features of Twitter can also attract different new users. To execute this premium feature successfully, Twitter should price its products competitively and promote every feature effectively along with great customer support.
Threats of Twitter (X)
These are the threats Twitter should be careful of –
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Declining users
The Twitter business has a major threat that the user ways of it has been declining in recent years. Twitter has seen a huge struggle in attracting audiences. Since it needs to find different ways to attract new users to compensate for the loss, Twitter should also expand to new markets and also collaborate with different companies.
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Security issues
Security threats are a major concern to the Twitter system. If the complete system of Twitter is hacked, then a huge amount of user data can be exposed which will damage the company’s reputation and will also bring the company to legal grounds. The effects of a security bridge can be severe. The user data is exposed then it can be huge and further cyber attacks can occur. The company can also face a number of legal issues which is why it should invest heavily and security measures.
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Abrupt risks
The huge amount of abrupt risks can be a major threat to Twitter as these risks can be related to new technology or to a change in the regulatory view. In order to mitigate this risk Twitter should be well prepared for the unforeseen risks. The team should hire a team of experts who will constantly track the environment for new risks.
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Failed product
If Twitter introduces a new feature or any product that fails then it can eradicate the brand image. To get out of the failure the company should get honest reviews from its users about the failure reasons.
It should also analyze why the particular product or feature has been unable to work and further use this information to develop its products.
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Turnover of employees
It is a major threat to the business of Twitter. Its experience is great employee turnover and can also disturb the company’s operations while making it very difficult to retain customers and employees. Therefore, Twitter should generate a work environment while making sure that each employee feels valued and appreciated. It also offers competitive benefits and salaries to its employees.
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Regulation issues
Today, governments in different countries are concerned about the spread of wrong information as well as bad speech on social media channels, since the government are thinking to impose new rules and regulations on these channels. If Twitter confronts increased government rules then it will be very difficult for the brand to operate as it will limit the capacity to create revenue. Hence, Twitter should be more transparent about the regulations with its users.
Top Competitors of Twitter (X)
Here are the top 4 competitors of Twitter –
- Facebook: Facebook is a major competitor to Twitter as it has a very strong user base as well as different features just like Twitter.
- Instagram: Instagram is also a direct competitor to Twitter as it offers video and photo sharing along with reels, stories, and much more.
- LinkedIn: It is also a professional networking application that offers completely professional content networking.
- Reddit: Reddit is also a social news and discussion platform which is a direct competitor with Twitter.
Conclusion
Twitter has been the most demanded and liked social media platform for more than 15 years. Today it has become an excellent platform to get recent news and updates worldwide. The company faces a few threats like security issues, regulation issues, or reducing user growth.
But to stay competitive and profitable the company should convert these threads into opportunities or strengths. It can also make applications or platforms more user-friendly and attract new customers.