Five Forces: Twitter’s Advertising Business Division

Twitter’s main businesses :advertising + data provider

This analysis focuses on advertising

 

Force#5 : New Entrants
Barrier level : high
Force#3 : Suppliers Force#1 : Competition Force#2 : Buyers
Direct known suppliers : opinion leaders, companies worried about their own usersIndirect unknown suppliers : people in a place at a specific time

Direct unknown suppliers : re-tweeters

Status : Twitter is the preferred mean of sharing information for people who own a smartphone. WiFi and data connectivity are of essence.

Direct known competitors: Google, Facebook, Linkedin, MySayDirect unknown competitors: Press / News agencies

Indirect known competition : other micro blogging

Status: very strong competition

Direct known buyers: Brands, Marketers who run frequent campaigns

Indirect known buyers : brands and agencies that get re-tweeted

Status: Being #1 gives twitter bargaining power, but there are alternatives (competition)

Force#4 : Substitutes Force#6 : Complements
Known substitutes : RSS feeds, billboards

Unknown substitutes : Group SMS messaging

Status : Fading substitutes

Little known about

Note: green = healthy, orange = possible threat, red = vulnerable

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