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Intern
Joined: 10 Nov 2010
Posts: 7
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02 Dec 2010, 01:36
Hi,

Now a days twitter is getting very much popular for every one if you are film start, sportsmen, policitian all are using it very much frequently but is it right to say publicly for some one like Amir Khan and Sashi Throor using for clarification or pasting their view on it. if you use it to be famous then one thing is clear you need to post wisely without some one condemned other wise soon you will be get out of focus.

Founder
Joined: 04 Dec 2002
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GMAT 1: 750 Q49 V42
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Kudos [?]: 25193 [0], given: 4765

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02 Dec 2010, 09:46
Moved to the proper forum

P.S. you may want to clarify your question a bit
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Manager
Joined: 17 Sep 2010
Posts: 216
Concentration: General Management, Finance
GPA: 3.59
WE: Corporate Finance (Entertainment and Sports)
Followers: 3

Kudos [?]: 16 [0], given: 33

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03 Dec 2010, 13:52

Trying to leverage short messaging into advertising, but internet advertising itself is a bottomless pit in terms of earning extraordinary profit. Just too many alternatives despite the usefulness of twitter to people.

jas1414 wrote:
Hi,

Now a days twitter is getting very much popular for every one if you are film start, sportsmen, policitian all are using it very much frequently but is it right to say publicly for some one like Amir Khan and Sashi Throor using for clarification or pasting their view on it. if you use it to be famous then one thing is clear you need to post wisely without some one condemned other wise soon you will be get out of focus.

Manager
Joined: 15 May 2010
Posts: 139
Followers: 3

Kudos [?]: 25 [0], given: 40

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03 Dec 2010, 15:34
I'd have to respectfully disagree! Internet advertising is a given for any popular website. Twitter, in terms of enabling mass social interconnectivity, fills a perfect niche for social media on the web. No other site (including all major news stations and publications, combined) allows information to be disseminated as quickly and efficiently as twitter. It's like having 190 million reporters spread accross the globe.

Twitter provides the most ridiculously simple service. For free, a user posts a 140 character message to his/her profile. Your followers see it and you can see theirs. Expected earnings in 2010 is $150MM. I can't actually think of a more brilliantly simple, cost effective, and sustainable business model! Jas1414, I started using twitter recently for work. I use a personal account purely to follow my favourite finance/mba/news feeds. For this purpose, I find it excellent. You can also follow GMAT Club! _________________ Rule #76: No excuses. Play like a champion! Manager Joined: 17 Sep 2010 Posts: 216 Concentration: General Management, Finance GPA: 3.59 WE: Corporate Finance (Entertainment and Sports) Followers: 3 Kudos [?]: 16 [1] , given: 33 Re: What is your opinion about Twitter [#permalink] ### Show Tags 03 Dec 2010, 15:52 1 This post received KUDOS There's no true structural barrier other than technological knowledge that differentiates pop. tech companies (Google, Twitter, Facebook) from one another. Twitter doesn't have a commoditized product like Oil, and unlike Oil companies, they don't have high structural barriers of entry (investing in an oil field takes serious$), whereas any tech company can pitch an idea to a Venture Capital guy in hopes of raising the $5-$10M they need.

Not saying Google is not commoditized. In fact, they have a product that is - Internet Search, which has a high barrier to entry. But Twitter? Do people need Twitter, when Facebook has the same function, along with other myriad programs?

They still don't have a true business model and can't leverage their data like Facebook, which collects so much personal information, they can just repack the data they collect to advertisers however they like. Facebook itself is becoming commoditized, largely because so many people use it nowadays for connectivity purposes.

Without high barriers of entry, the ability to make outsized profits in the long run is nil. Don't see Twitter nestling behind anything at this point.

Rux10 wrote:
I'd have to respectfully disagree! Internet advertising is a given for any popular website. Twitter, in terms of enabling mass social interconnectivity, fills a perfect niche for social media on the web. No other site (including all major news stations and publications, combined) allows information to be disseminated as quickly and efficiently as twitter. It's like having 190 million reporters spread accross the globe.

Twitter provides the most ridiculously simple service. For free, a user posts a 140 character message to his/her profile. Your followers see it and you can see theirs. Expected earnings in 2010 is \$150MM. I can't actually think of a more brilliantly simple, cost effective, and sustainable business model!

Jas1414, I started using twitter recently for work. I use a personal account purely to follow my favourite finance/mba/news feeds. For this purpose, I find it excellent. You can also follow GMAT Club!
Manager
Joined: 15 May 2010
Posts: 139
Followers: 3

Kudos [?]: 25 [1] , given: 40

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03 Dec 2010, 17:30
1
KUDOS
Sorry, I’m confused about your definition of a ‘true’ business model. If you’re saying that structural barriers to entry define whether a company has a successful or sustainable business model, you need to look at several other aspects of a companies operations to come to that conclusion. You need to factor in brand equity for one.

You also have to detail your criterion for what you consider to be a good business model. ‘’Without high barriers of entry, the ability to make outsized profits in the long run is nil’’ You’re making far too many assumptions here to definitively deduce the future of twitter as an investable entity! A company doesn’t need to make ‘outsized’ profits, year on year for it to be called successful. Depending on the size of the company, its cost structure and competition, increasing revenue by 2% year on year for the next ten years could be considered extremely successful. A business model will be successful if it effectively fills a gap in the market, makes a profit, and satisfies its stakeholders.

If anyone could breakdown twitter and facebooks stronghold on social media, you would think Google would be that company. After all, it has the technical and fiscal resources to release the best social networking site of all time. In fact, it had several forrays into this area and failed miserably! Trying to convert 700 million users from two social institutions like Twitter and Facebook is near impossible, regardless of your resourses. Being first to market and getting a user base when it comes to online social media is key. You can't view their business model and barriers to entry the same as you would a bricks and mortar company. Please correct me if I’m wrong, but is your background mainly (and almost exclusively) in finance?

A certain service will be around only for as long as there is a demand for it. Sure Twitter has no physical commodity to sell. But then again neither do Investment Banks. However this doesn’t mean that every bank in the world has a defunct business model that will amount to exactly ‘nil’ in the future - as you put it in your response. Twitter, in a way, has commoditized the ability to send and access news, information,and knowledge instantly through an extensive network…for free.

Sorry for detracting from your OP Jas1414! My opinion is that twitter is cool, but I don't use it to self promote myself or anything like that. I just get the news feeds I like.
_________________

Rule #76: No excuses. Play like a champion!

Manager
Joined: 17 Sep 2010
Posts: 216
Concentration: General Management, Finance
GPA: 3.59
WE: Corporate Finance (Entertainment and Sports)
Followers: 3

Kudos [?]: 16 [0], given: 33

### Show Tags

03 Dec 2010, 18:11
Let's agree to disagree.

Sorry if my earlier post seemed strong.

Rux10 wrote:
Sorry, I’m confused about your definition of a ‘true’ business model. If you’re saying that structural barriers to entry define whether a company has a successful or sustainable business model, you need to look at several other aspects of a companies operations to come to that conclusion. You need to factor in brand equity for one.

You also have to detail your criterion for what you consider to be a good business model. ‘’Without high barriers of entry, the ability to make outsized profits in the long run is nil’’ You’re making far too many assumptions here to definitively deduce the future of twitter as an investable entity! A company doesn’t need to make ‘outsized’ profits, year on year for it to be called successful. Depending on the size of the company, its cost structure and competition, increasing revenue by 2% year on year for the next ten years could be considered extremely successful. A business model will be successful if it effectively fills a gap in the market, makes a profit, and satisfies its stakeholders.

If anyone could breakdown twitter and facebooks stronghold on social media, you would think Google would be that company. After all, it has the technical and fiscal resources to release the best social networking site of all time. In fact, it had several forrays into this area and failed miserably! Trying to convert 700 million users from two social institutions like Twitter and Facebook is near impossible, regardless of your resourses. Being first to market and getting a user base when it comes to online social media is key. You can't view their business model and barriers to entry the same as you would a bricks and mortar company. Please correct me if I’m wrong, but is your background mainly (and almost exclusively) in finance?

A certain service will be around only for as long as there is a demand for it. Sure Twitter has no physical commodity to sell. But then again neither do Investment Banks. However this doesn’t mean that every bank in the world has a defunct business model that will amount to exactly ‘nil’ in the future - as you put it in your response. Twitter, in a way, has commoditized the ability to send and access news, information,and knowledge instantly through an extensive network…for free.

Sorry for detracting from your OP Jas1414! My opinion is that twitter is cool, but I don't use it to self promote myself or anything like that. I just get the news feeds I like.
Manager
Joined: 15 May 2010
Posts: 139
Followers: 3

Kudos [?]: 25 [1] , given: 40

### Show Tags

04 Dec 2010, 03:57
1
KUDOS
USCTrojan2006 wrote:
Let's agree to disagree.

Sorry if my earlier post seemed strong.

Rux10 wrote:
Sorry, I’m confused about your definition of a ‘true’ business model. If you’re saying that structural barriers to entry define whether a company has a successful or sustainable business model, you need to look at several other aspects of a companies operations to come to that conclusion. You need to factor in brand equity for one.

You also have to detail your criterion for what you consider to be a good business model. ‘’Without high barriers of entry, the ability to make outsized profits in the long run is nil’’ You’re making far too many assumptions here to definitively deduce the future of twitter as an investable entity! A company doesn’t need to make ‘outsized’ profits, year on year for it to be called successful. Depending on the size of the company, its cost structure and competition, increasing revenue by 2% year on year for the next ten years could be considered extremely successful. A business model will be successful if it effectively fills a gap in the market, makes a profit, and satisfies its stakeholders.

If anyone could breakdown twitter and facebooks stronghold on social media, you would think Google would be that company. After all, it has the technical and fiscal resources to release the best social networking site of all time. In fact, it had several forrays into this area and failed miserably! Trying to convert 700 million users from two social institutions like Twitter and Facebook is near impossible, regardless of your resourses. Being first to market and getting a user base when it comes to online social media is key. You can't view their business model and barriers to entry the same as you would a bricks and mortar company. Please correct me if I’m wrong, but is your background mainly (and almost exclusively) in finance?

A certain service will be around only for as long as there is a demand for it. Sure Twitter has no physical commodity to sell. But then again neither do Investment Banks. However this doesn’t mean that every bank in the world has a defunct business model that will amount to exactly ‘nil’ in the future - as you put it in your response. Twitter, in a way, has commoditized the ability to send and access news, information,and knowledge instantly through an extensive network…for free.

Sorry for detracting from your OP Jas1414! My opinion is that twitter is cool, but I don't use it to self promote myself or anything like that. I just get the news feeds I like.

I guess we'll have to! Although, as soon as there's an IPO im loading up on the stuff! Thanks for the chat, this stuff it pretty interesting.
_________________

Rule #76: No excuses. Play like a champion!

Manager
Joined: 17 Sep 2010
Posts: 216
Concentration: General Management, Finance
GPA: 3.59
WE: Corporate Finance (Entertainment and Sports)
Followers: 3

Kudos [?]: 16 [0], given: 33

### Show Tags

05 Dec 2010, 18:38
I like your arguments and they do introduce new concepts to a pure finance person like myself.

I'm a serious investor, primarily in energy, real estate, and telecoms. That might explain why I think barriers to entry are key to succeed in any business.

I have nothing against Facebook, they've monetized their model quite successfully (with help from former Google Executives). However, Twitter is a different animal altogether. I agree with you that the company has transcended whatever heights it needed to rise above in order to place its name and service in front of millions of people. From that respect, it's done quite well in building brand equity. But does this brand equity lead to a commoditized product? In this case, I don't think so. Google has dominated the generalized space (along with Baidu in China). Facebook has and will continue to dominate Social Media because of their first mover advantage in all of the functions created for the website.

Now Twitter's product model is just messages sent across the net. From what I've read, they haven't figured out how to monetize this model just yet. Personally, I don't think they'll ever figure it out. It might be the Friendster/MySpace to facebook. Or Yelp/Citysearch to whatever Google is cooking up in Localized businesses. The space they possess largely overlaps with Facebook in my opinion, and therefore will not be successful in the long run. The company has a large user base, but still highly dependent on venture funding. More likely, I think the company will be bought out (with earnout provisions) as opposed to an IPO, because the service the company provides can be complementary to much of social media.

Rux10 wrote:
USCTrojan2006 wrote:
Let's agree to disagree.

Sorry if my earlier post seemed strong.

Rux10 wrote:
Sorry, I’m confused about your definition of a ‘true’ business model. If you’re saying that structural barriers to entry define whether a company has a successful or sustainable business model, you need to look at several other aspects of a companies operations to come to that conclusion. You need to factor in brand equity for one.

You also have to detail your criterion for what you consider to be a good business model. ‘’Without high barriers of entry, the ability to make outsized profits in the long run is nil’’ You’re making far too many assumptions here to definitively deduce the future of twitter as an investable entity! A company doesn’t need to make ‘outsized’ profits, year on year for it to be called successful. Depending on the size of the company, its cost structure and competition, increasing revenue by 2% year on year for the next ten years could be considered extremely successful. A business model will be successful if it effectively fills a gap in the market, makes a profit, and satisfies its stakeholders.

If anyone could breakdown twitter and facebooks stronghold on social media, you would think Google would be that company. After all, it has the technical and fiscal resources to release the best social networking site of all time. In fact, it had several forrays into this area and failed miserably! Trying to convert 700 million users from two social institutions like Twitter and Facebook is near impossible, regardless of your resourses. Being first to market and getting a user base when it comes to online social media is key. You can't view their business model and barriers to entry the same as you would a bricks and mortar company. Please correct me if I’m wrong, but is your background mainly (and almost exclusively) in finance?

A certain service will be around only for as long as there is a demand for it. Sure Twitter has no physical commodity to sell. But then again neither do Investment Banks. However this doesn’t mean that every bank in the world has a defunct business model that will amount to exactly ‘nil’ in the future - as you put it in your response. Twitter, in a way, has commoditized the ability to send and access news, information,and knowledge instantly through an extensive network…for free.

Sorry for detracting from your OP Jas1414! My opinion is that twitter is cool, but I don't use it to self promote myself or anything like that. I just get the news feeds I like.

I guess we'll have to! Although, as soon as there's an IPO im loading up on the stuff! Thanks for the chat, this stuff it pretty interesting.
Intern
Joined: 03 Jan 2010
Posts: 24
Location: Sydney
Followers: 0

Kudos [?]: 0 [0], given: 5

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05 Jan 2011, 19:08
Twitter: There are a lot of people talking and no one listening, also a whole load of affiliate marketing clogging it up.
Intern
Joined: 03 Feb 2011
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03 Feb 2011, 14:07
Twitter has definitely become much more popular recently. I think that it is one of the greatest networking sites that a business can have and the best tool for people to become informed on subjects they are interested in. Aside from using it for social networking, you can find so much specific, up-to-date information from all types of businesses - magazines, newspapers, clothing stores, sports stations, clubs, celebrities, political figures. Basically everyone is utilizing the simplicty and directness of Twitter to target more than just their niche audience. Short captions and links enable people to read only what they are interested in.
Manager
Joined: 26 Sep 2010
Posts: 151
Nationality: Indian
Concentration: Entrepreneurship, General Management
Followers: 7

Kudos [?]: 59 [0], given: 18

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14 Feb 2011, 22:56
I'm also intrigued and my new year resolution is to Tweet every day for a month. I am yet to choose the month.
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