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Strategy report
To: Proximity social networking team From: Sormeh Rahimi Date: October 26, 2009 Subject: Twitter strategy analysis

Here is my Twitter strategy analysis. Twitter offers a new form of social networking which has attracted many users. Although Gen Y users can join many social networking sites, Twitter can offer them more online features than either Facebook or Myspace.


 * Profile **

Twitter founded in 2006 by Jack Dorsey, is privately funded (Wikipedia). It is a real time short messaging service that works over multiple networks and devices that allows users to ask just one question, "what are you doing?" under 140 characters (Twittter). People all over the country follow sources that are relevant to them. Twitter also allows users to access information ranging from breaking news to updates from friends and family.

Twitter has no source of revenues. Techcrunch has estimated that there are about 25 million users, which will be $40 per user for Twitter (Daily Finance). Twitter is to sign a contract to take an investment of $100 million from as many as seven investors, which would value the company at $1 billion (Wall Street Journal).


 * Competitive Landscape **

The competitive force that is leading Twitter to its domination of the social networking world is by having people express their feeling within a 140 character box. The popular communication technology has been a helpful tool for companies to quickly and inexpensively respond to their customers, answer questions, and customer service (USAToday). Younger people have been leaning towards social networking sites to express their comments and suggestions.

The company faces many competitions that deliver the same content with some extra features. Majority of the younger generation have a Facebook. We believe that everyone who has a Facebook should have a Twitter. Unlike Facebook, Twitter keeps you up to date with the current events happening in the world by text or by Twit pictures. Facebook and Myspace, their competitors, have a source of revenue, but Twitter does not. Twitter's competition receiving revenue from ads and payment plans allows them to create more applications that can be user friendly.


 * Twitter's Strategy **

Twitter has created a strategy to generate revenue (Netparticles). 

· find a way to market big companies · deal with entertainment and marketing boards · grow a defense strategy against top social networking sites such as Facebook · generate revenue by getting contextual Ads and Twitter Payment

· Twitter has teamed up with Jajah, VOIP Company, to make phone calls via Twitter free of charge (theNextWeb). This deal will help bring service for the Twitter's to stay connected with friends and family. · Twitter has teamed up with many news broadcasters such as CNN and Fox News for breaking stories. · Celebrity influence has made a huge impact on the Twitter site. · <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Twitter's strategy report and the team up with Jajah will help Twitter create revenue in the near future, so they are not obligated by their investors privately funding them.

<span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt;"> Twitter must prove to younger Gen Y users that they have more to offer than Facebook and Myspace. Twitter is known for sharing breaking news and quick updates with followers. However, to compete with the big two it must:
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Gen-Y Implications **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt;">find ways to generate revenue · <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt;">create more ways to make the service fascinating for younger users.

I believe that Twitter's biggest challenge is to keep Gen Y users entertained. They expect to use the most advanced tools to chat with friends and keep themselves up to date on late breaking stories. The offer of free phone calls is a big plus for Twitter, and the creation of more applications with top companies will make Twitter a social networking giant References **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

Austin, Scott (2009 September 24) Forget $50M-Twitter is Raising Twice That Amount. Wall Street Journal. Retrieved October 1, 2009, from <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">[] <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

Cohan, Peter (2009, September 16) Is Twitter worth $1 billion? DailyFinance. Retrieved September 28, 2009, from <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">[] <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

Swartz, Jon (2009, June 6) Businesses use Twitter to communicate with Customers. USA Today. Retrieved September 25, 2009, from <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">[] <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

Tea, Richard (2009, July 16) Twitter's strategy Leaked, Could They Crowdsource their strategy 2.0? Netparticles.com. Retrieved September 27, 2009, from <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">[] <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

Twitter. Retrieved September 26, 2009, from <span style="color: purple; font-family: 'Times New Roman','serif'; font-size: 12pt;">[] <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

Wikipedia. Retrieved September 26, 2009, from <span style="color: purple; font-family: 'Times New Roman','serif'; font-size: 12pt;">[] <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

Zee (2009, September 17) Phone Calls come to Twitter, TheNextWeb. Retrieved September 27, 2009, from <span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt;">[] <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">

Blog proposal
<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> To: Proximity social networking team From: Sormeh Rahimi Subject: Blog post proposal Date: October 26, 2009

I propose that we do our Proximity blog post on the use of social media, which now allows regular users to be primary sources for “hard” news. Rationale ** <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> The reason our clients need to understand this trend is that it undercuts the need for CNN or other news broadcastings. Now you can go onto a web site that integrates input from all the social media for some event. Thus, advertisers should stop wasting time on news broadcasts and switch to the new online social media, where Gen-Y gets its news. Sources ** <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> I recommend that we search the different stories from users on Twitter to see how much social media impacts Twitter on an hourly bases. [|www.Twitter.com]
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 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">


 * Final Report Proposal **

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">To: Proximity Social Networking Team From: Sormeh Rahimi Date: November 25, 2009 Subject: Proposal for report on Twitter

Twitter has dominated in the field by letting users connect with friends and family. They are now seeking their dominance by allowing users to be the primary source for “hard” news. I propose to write a report on how Twitter is positioning itself to make their site an essential component in this market.

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> The difference between hard news and news from primary sources is questionable.
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Need **

· <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Broadcasters are using their own journalists to capture the situation.

· <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Broadcasters do not show the severity of the situation. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;"> · <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Journalists can be prohibited from the country the situation is occurring. They are not allowed to broadcast a story about it. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;"> · <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Users are on the streets living the moment and capturing everything a journalist cannot. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">The news we get from users from the situations for example in, Iran and India, primary users can capture the moments better than a journalist can. Twitter has allowed their users to put up pictures and videos of the situations occurring during the time of need. When journalists are not permitted to make a story, such as in Iran, then the people of that country become the journalist. Twitter has allowed their users to put their journalistic stories on their site so everyone around the world is aware of the situation.

Clients of Proximity who wish to target Gen-Y consumers need this report to understand the role that Twitter plays by allowing the users to be the primary source of news all around the world.

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> The proposed report, “Twitter the new Broadcasting Company,” will cover the following topics:
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Topics **

· <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Difference between broadcasting journalism and user journalism;

· <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">How CNN and other news broadcastings are using Twitter for breaking news coverage; <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;"> · <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Twitter’s superiority over other social networking sites in “hard” news; <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;"> · <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">The reliability of Twitter.

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">This report will also include outlines of how Twitter’s user count escalated throughout the situations in Iran and India as well as photos taken by users of the situations.


 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Sources **

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">The following items are key sources for the report.

Betancourt, Leah. //How Social Media is taking the News Local//. (2009, November 10). Mashable.com. Retrieved November 23, 2009 from []

Betancourt talks about how local media companies are working with social media to expand their local reach. In Chicago there is a blog site where locals can blog about minute by minute updates about what is going on in their neighborhood. “In essence, we’re providing a layer of journalism over an empowered community.”

Cashmore, Pete. //Twitter lists and Real-Time Journalism//. (2009, November 4). CNN.com. Retrieved November 20, 2009 from <span style="font-family: 'Arial','sans-serif'; font-size: 10pt;">[] <span style="color: #404040; font-family: 'Arial','sans-serif'; font-size: 10pt;">

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Cashmore shows how Twitter provided its members with tools to update their page about topics. He states that there are 25 million Tweets posted every day. Many people spend most of their time placing links and pointing their followers to relevant and topic-based information. Also, Cashmore shares how New York Times has created a Twitter list of all of their staff as well as Los Angeles Times. <span style="color: #404040; font-family: 'Arial','sans-serif'; font-size: 10pt;">

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Kanalley, Craig. How //Journalists can use Twitter Lists to Customize, Discover, and Curate//. (2009, October 29). PoynterOnline.com. Retrieved November 21, 2009 from []

Kanalley analyzes the new feature Twitter is coming up with. The new feature is called Twitter lists. The Twitter lists will enable users to follow many topics ranging from breaking news feeds, news outlets, specific journalists, and niche sources. Twitter lists will help organize the flow of information.

O’Connor, Rory. Facebook //and Twitter Are Reshaping Journalism As We Know It//. (2009, January 20). AlterNet.com. Retrieved November 23, 2009 from []

O’Connor interviews the co-founder of Twitter, Biz Stone, about what Twitter is and how it became a place where everyone Tweets about what they see. During the interview there are many examples of how Twitter helped bring up news stories such as the U.S Airways flight landing in the Hudson, the earthquake in California, or the attacks in Mumbai and protests in Iran.

Team conference presentation proposal
//paste team conference presentation here//

Sales letter and report prospectus
<span style="font-family: 'Times New Roman','serif'; font-size: 12pt;"> December 3, 2009 Ms. Lea Klingon, Director of Marketing Proctor & Gamble Cosmetics 11050 York Rd. Cockeysville, MD 21030

Dear Lea:

I enjoyed talking with you yesterday at Proximity’s Next Generation seminar regarding Proctor & Gamble’s need to promote its brand to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing how social networking users can promote products by developing “hard news.”

As you stated yesterday, Proctor & Gamble feels that it must establish brand identity with Gen Y now in order to sell its products. <span style="color: #ff0000; font-family: 'Times New Roman','serif'; font-size: 12pt;"> <span style="color: #000000; font-family: 'Times New Roman','serif'; font-size: 12pt;">I <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">believe that Proximity can work with you to devise a comprehensive campaign that uses social networking to achieve that goal.

<span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt;">We can provide you with customized survey and focus group results to help create a better image of Proctor & Gamble. Our faculty consultants can advise your sales force on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y. In addition, we have trained student marketers who can promote Proctor & Gamble on social networks such as Twitter. Our research shows that using student representatives to friend social networkers is a far more effective strategy for reaching Gen Y.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Proctor & Gamble’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely, Sormeh Rahimi Associate Media Analyst <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">