Qn1:Using the Ashridge Sense of Mission Model analyse the case evidence to interpret whether Twitter’s strategy show signs of weak or strong sense of mission.
Qn2: Using relevant strategic decision-making theory, analyse Twitter’s existing strategic decisions to interpret if Twitter have pursued a deliberate or emergent strategy. In your answer, discuss to what extent you believe Twitter have built and sustained a long-term competitive advantage.
Regarding the performance of Twitter in the last three years, it is genuine to acknowledge that the organization lacks concerning a sense of mission. An Ashridge business model evaluates an assessment of determining how Twitter has failed to achieve its sense of mission. Twitter’s failure is imminent for its recent financial impacts and the general profit realization. An Ashridge model is a business tool whose insight on purpose, strategy, standards & behaviour and values play an essential role in developing a mission statement. Nonetheless, the positive and negative impacts of an Ashridge model’s elements is as analysed in the following discussion sections.
a) Purpose. Twitter’s mission statement entails giving all people an opportunity to create and share ideas - as well as information – instantly by avoiding all possible barriers. The primary objective of Twitter – concerning recent developments – entails becoming the first screen of providing information on a real-time basis. When keenly evaluated, it is eminent that Twitter has been able to achieve its sense of mission regarding the purpose element - of the Ashridge model.
TWHR has been able to achieve its purpose by ensuring that its users interconnect at any given time. People are now able to send a message on all corners of the globe at the click of a mouse. It has enabled instantiating of debates that have social, political or economic benefits to the people. For instance, government oppression by the police who use excessive force on civilians and perpetrators taken to courts. Moreover, marriage conflicts which lead to death cases are also unveiled throw Twitter as people can instantly send a video immediately.
TWRHhas been able to achieve its purpose (via the first-screen strategy) by ensuring that people interconnect at any given time. It is practically evident concerning a Monthly Active Users (MAU) – from 2015 to 2017 – maintained a consistent rate of 320 million Twitter users for a run of 3 consecutive years. Moreover, the annual user engagement graph - illustrated in the annual reports – indicates that Quarter 2 records a low user rate of Twitter which rises to a maximum of Quarter 4 in achieving consistency.
However, it is important to note that Twitter’s internal strategy on expenditure faces a risk of failure. This scenario is imminent concerning a comparison made in the overall cost spent on projects of different nature. They, primarily, include expenses on research and development as well as sales and marketing. As a result of evaluating the reports, Twitter aims at encountering the challenge of reducing the total number of users. Positive performance should be a strategic objective for Twitter for it to strengthen its competitive market advantage. For instance, Twitter needs to achieve a user target of more than 2 billion users which has already been attained by Facebook. It will elevate its market share from poor levels from 5% to 25% of the global population.
b) Strategy. Annual reports ranging from 2015 to 2017 indicate that Twitter plan entails capitalizing on its user-strength to boost its advertising business strategy. To optimize on the power of user-number, Twitter has developed mechanisms of structuring their advertisements. For instance, online activity of a Twitter user would determine which ads are suitable to that individual.
Nevertheless, Twitter is undertaking a slow implementation process aimed at improving live streaming services - regarding the three annual reports. Using the Strength Weaknesses Opportunities and Threats (SWOT) business model, Twitter provides live streaming services which are not unique or different from fellow competitors (including Facebook and Google Buzz) who launched the products earlier than Twitter.
Twitter has not achieved high-profit margin success for its prevailing financial conditions as illustrated in Table 1. Firstly, the net loss of the fiscal year 2017 has improved from 2016 to 2017. However, the advertisement revenue recorded a decrease of 6% during 2017. Additionally, Twitter’s operational cost exceeds revenue generation by a considerable margin of 95%. The firm’s net loss in 2015 has improved to $64 million as evaluated in 2016. The following table provides a summary of the financial performance details of Twitter regarding its sense of mission.
Year Total Revenue (USD, %) Net Loss (USD, %) Cost (USD, %)
2015 $2.22 billion (+58%) $521.0 million (+21%) $2.67 billion (-20.3%)
2016 $2.53 billion (+14%) $456.9 million (+5%) $2.90 billion (-14.6%)
2017 $2.44 billion (-3%) $108.1 million (-76%) $2.40 billion (+1.6%)
Table 1: Financial Summary of 3 Consecutive Financial Years (2015, 2016 and 2017)
c) Standards and Behaviour. Twitter has adopted policies on moral regulation that, subsequently, have been strategically implemented causing both direct and indirect impacts. Ethical regulation policies evidenced in initiating legal processes have controlled various vices in most societies. For instance, exploiting oppressing practicing wrong use of power in modern warzone-countries. Through the UN Agency in The Hague, ICC has prosecuted prominent leaders in African Countries such as Mbemba due and given relevant verdicts with the aid of Twitter and other social media data. Nowadays, people are turning to social media to fight for justice in the community such as women in a bid to curb domestic violence.
d) Company Value. Traditionally, Twitter is credited - in other social media platforms - for spreading information at the high rate across the internet. Most trending topics are first seen in Twitter before they spread to other social media platforms. It has challenged Twitter’s strategy on organizational culture development. The complicated nature of usability in the Twitter website platform has presented different and varying challenges attracting few followers. It is the current generation that is popularizing Twitter as the new social media platform for information awareness. Nevertheless, TWRH has been in a position to come up with android applications that have improved usability among users.