kristofer martin facebook twitter case 1

Facebook vs. Twitter

Submitted toDr. Michael D. Santonino III – Associate Professor

In Partial Fulfillment of the Requirements ofMG 495 – Business Strategy & Policy

Spring Semester 2012

Bethune-Cookman UniversitySchool of Business

ByMr. Kristofer Martin

Sunday, February 5, 2012

Facebook Vs Twitter

1. Why does the author feel that Facebook’s real competition is Twitter and not MySpace or LinkedIn?

The author feels that this comparison is feasible and necessary because of their present

market share and the future market share potential that these companies possess. All

three companies participate in constant SWOT analysis procedures and benchmarking. It is

understood that Facebook and Twitter are both benchmarking against one another because

of market share potential. MySpace and LinkedIn user interfaces are designed to specific

purpose usages. Myspace has revamped their whole interface to be more music oriented

which tends to draw more musicians to their website, and LinkedIn is designed for more

professional people. This means that both LinkedIn and MySpace market share will remain

constant.

Whenever one company purchases another, it is not only purchasing the name but also the

amount of users that company currently has (clientele). For instance, the author indicated

that an offer of $500 million was placed for the purchase of Twitter. This is because

Twitter has a great market share and an outstanding market share potential. (Robinson

and Richard, 2011, p.1-3).

Twitter and Facebook understands that the more people they can get on their network the

more money they will make, and this money translates into potential growth of their

company.

References

Pearce, John A., Robinson, Richard B. Jr. (2011). Formulation, implementation, and control of competitive strategy. 11th edition. 1221 Avenue of the Americas, New York, NY, 10020: McGraw-Hill Companies Inc.

Facebook Vs Twitter

2. What are the similarities and differences between Facebook and Twitter?

Key differences between Facebook and Twitter:

Facebook is more user-friendly and the search engine is developed to locate other users

quick and easily. It also allows users to upload and stream videos with other users.

Facebook also has real-time data, however, it cannot be seen by outside network users.

Twitter on the other hand, allows users to continuously stream information in real time. It

is said to be, a micro-blogging platform. (John A. Pearce, Richard B. Robinson, 2011p 8-10 )

Both Facebook and Twitter are social networking sites designed to allow users to

connect with other users over the Internet.

Both have similar status updating technology and media sharing capabilities.

References Poirier, Alexander (February, 2011 ). Similarities Between Facebook & Twitter. Retrieved from http://techtips.salon.com/similarities-between-facebook-twitter-4167.html

Pearce, John A., Robinson, Richard B. Jr. (2011). Formulation, implementation, and control of competitive strategy. 11th edition. 1221 Avenue of the Americas, New York, NY, 10020: McGraw-Hill Companies Inc.

Facebook Vs Twitter

3. How is Twitter reacting to the threat of Facebook?

Facebook is the dominator on the market and with reference to my response in the earlier

questions, they have tried to purchase Twitter after looking at the potential market growth.

Twitter refused offer.

Top management made this decision after stating that “applications of Twitter wasn’t fully

completed”, Evan Williams CEO Twitter. His vision is to incorporate new technological

phases to further enhance the networking capabilities of information streaming on Twitter.

(Robinson and Richard, 2011, p 5-7). Some of his plans include Android technology and an

upgrade to the user interface.

References

GiGaOM (2011). What I learned at Twitter's first Chirp Conference. Retrieved on January 21,2011, from http://gigaom.com/2010/04/15/what-i-learned-at-twitters-first-chirp- conference/

Facebook Vs Twitter

4. Why should Google be worried about Facebook and Twitter?

Google’s concern about Facebook and twitter is continuously growing. This is due to their

interactive media and popularity. Google understands that more and more users are

turning to these web interfaces to conduct most of their business and personal activities.

Google is seeing a decrease in web traffic while Facebook and twitter network numbers are

rising.

In addition, Google wants to be able to reach out to people on social networks; however,

this plan is hindered because Facebook and Twitter has not formed any strategic alliances

with Google.

Overall Facebook isn’t large enough to tackle the giant ‘Google’ and this is evident from the

nature of both companies. Facebook is a single website while Google is a web wide

technology that is everywhere.

Reference

Iskold, Alex (October, 2007). Should Google be afraid of Facebook Retrieved From http://www.readwriteweb.com/archives/should_google_be_afraid_of_facebook.php