Twitter searches for a business model 2

Twitter searches for a business model

CASE STUDY QUESTIONS

1. Based on your reading in this chapter, how would you characterize Twitter’s business model?

Basically, Twitter doesn’t make money. However, if company sign up to blast messages to user, they could earn money. Their web mining skill is also effective because the object of web mining is real voice and timely. This is a new kind of SNS for users. That’s the one of the reason why Twitter is expanded.

2. If Twitter is to have a revenue model, which of the revenue models described in this chapter would work?

Their E-commerce model is new style of SNS because social network services don’t make money before. The database of tweets contains the comments, observations, and opinions of the audience and the search engine that mines those tweets for patterns. These are real-time and spontaneous observations.

3. What is the most important asset that Twitter has, and how could it monetize this asset?

There are so many “organic tweets” which differ from traditional search engine text ad.  This tweet stream is user’s real voice and reliable. Many companies want to sign up this to blast messages to subscribers in response to related queries.

This stream also let users know what is hot or trend. The company claims this is a true reflection of what a lot of people are talking about.

In addition, users can follow to receive special offers. For example, If you buy one ticket, you get another one free.

4. What impact will a high customer churn rate have on Twitter’s potential advertising revenue?

Twitter has a 60 percent churn rate. Obviously, many users lose interest in some boring tweets of friends. However, there are many celebrities such as Justin Bieber. His tweet is already so popular. If he said “This item is cool”, many people purchase the same one as Justin Bieber.