Twitter Case Analysis

1666 WordsFeb 28, 20117 Pages
MEMORANDUM DATE: January 10, 10 TO: University Twitter Expert FROM: RWili RE: Recommendation for Twitter on Business Model - Revenue Generation Strategy In this memo, I will attempt to provide some background on the proposition at hand, “Whether our company (Twitter) should immediately define its business model for making money, What that revenue model should look like and whether it should be disclosed to the public?”. We have been dollying at this for a while. While we appreciate our investors who continue to stand behind our company without having provided them any concrete affirmations of how we intend to generate revenue, this model is not sustainable. Is it fair that they continue to mightily support our mission of being the number one social networking company in the world and not having been provided with a clear understanding of how they will be getting a return on their investment? We are putting our company at major risk by not defining our value proposition. The outcome of which, can be predicted to play out as that that had occurred in the bust of the “dot-com” era, where the majority of the tech companies had great ideas but nothing to substantiate a clear income strategy. I will attempt to analyze what Twitter’s model should look like going forth and provide other alternatives to my recommendation so that we can begin to position our company for true measured revenue growth. At the end of the day, I believe that it is our duty to take the recommended step to clearly define who we are and establish a clear roadmap of how to get there. Further, the benefit of establishing how we intend to make money will enabling the market to offer a true valuation of our company based on current and future expendable dollars in the social networking market. From this, we should also be enabled to leverage our company value with other

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