Downfall of Twitter

What is Twitter ?

Twitter is a online social networking site which enables the user to send and receive characters up to 140 characters. Twitter was created by Jack Dorsey, Evan Williams, Biz Stone and Noah Glass.

Who uses Twitter ?

Twitter has currently 302 million active users with an approximate of 500 million tweets made per day.Twitter has a majority of users from Asia Pacific region, followed by North America and Western Europe.Of the people who use twitter 37% of the people fall in the age category of 18 to 29 years, 25% of the people fall in the age category of 30 to 49 years.

What made Twitter a success ?

Twitter was one of the top 10 searched sites on Internet in 2013 and Twitter is a popular platform among celebrities, public figures, and other influencer’s in the media and entertainment industry, these made people to directly make conversations with the highly influence people.Twitter was used as a real time interacting platform to interact with customers by Companies , Media and Government. Even Indian government uses Twitter extensively to gather information from the people.

Current Business Model

In papers filed with US regulators ahead of the listing, it was revealed for the first time that Twitter made a loss of $69 million in the first six months of 2013, on revenues of $254 million.Twitter reported its revenue rose 20% to $602 million in the second quarter, its smallest gain and eighth-straight period of declining growth. Almost all of Twitter’s revenue — about 85% of it — comes from advertising on its site.

Issues faced by Twitter ?

  • Negative profits that are getting worse.
  • Small user base compared to competitors.
  • Slowing user growth.
  • Greatly overvalued stock price

Twitter on Downfall ?

This shows us one thing that a company as popular as Twitter which has a lot of influential people using its medium and with such a good user base may end up with no good revenue plans. The real focus of any growing startups should be on to focus on long time revenue model and not only on gaining customers because without the money to run its really useless to gain customers.

Results of it ?

Twitter’s quiet summer may soon be coming to an end. That’s no surprise, since Twitter has been the subject of numerous takeover and acquisition rumors over the last few months, each one sending the stock up as investors hold out hope that Twitter will find a buyer.But Alphabet (Google’s parent Company) pulling itself of from the bid to buy the business has made twitter stocks go still crashing. Finding a buyer won’t be easy, given the Twitter’s estimated cost of $18 billion dollars.

Personal Opinion from the Author?

For the people planning on starting the startup, the only thing I would love to say that the company should never loose focus on how company will start generating profits as soon as possible. In India itself we have seen a decent share of starting following the path of downhill. The comfort the startup has when it starts would not remain for a long time.

Possible Solutions Twitter can come up with ?

I would love to get some solutions or approaches from you fellow readers on how Twitter would save itself from not going down.

Would post my solutions or approaches the coming week.

Happy Reading,

Durgaprasad ,

Business Enthusiast| Data Lover |Inspiria Core Member