External and Internal Environments

Strategic Management and Strategic Cmpetitiveness

KaToya Jones

Dr. Wanda Tillman

Business Administration Capstone

January 14, 2018

Introduction

Strategic competitiveness is gained when an organization successfully establishes as well as implements a value-creating approach. In this perspective, strategy refers to a cohesive and coordinated combination of commitments and also to mention actions developed to exploit primary competencies in order to gain a competitive advantage (Hitt, Ireland, & Artz, 1999). This occurs when a firm implements a strategy unique from that of competitors giving them leverage. As a result, the firm is able to ensure above average returns and satisfy investor’s expectations from other investments with a common likelihood of risk. This paper will focus on Twitter, Inc to examine how globalization and advancement in technology have impacted the company. Further, applying the industrial organization model and resource-based model I will explore how the company could earn more profits, analyze how both the vision and the statement of the company impact its overall triumph and lastly investigate how Twitter’s stakeholders impact on the its overall success.

How globalization and technology changed Twitter Inc.

The modern world is transforming into a time of technological invention. Existence of new innovations on top of the available technological resources is such a remarkable achievement. As it improves, it as well spreads to other parts of the world. In this case the global spread of innovations it avails vast connections which consequently creates new markets across the world. Focusing on social media, it is one of those tools that can easily be exploited by those who are connected. Basically, as access is gained on a larger scale, it avails multiple market opportunities to those outsourcing ideas. In today’s world, the use of social media has revolutionized out society. Basing this on real life events various social media platforms have contributed to activism. This, however, has been criticized by many but the point is that social media is revolutionizing the world. Therefore, there’s no doubt that the present as well as the future transformation will still use social media. This is because social media platforms capture considerable large audience within a short period of time. In this case, the widespread of social media platforms such as Twitter; the company growth cannot be stopped.

Globalization and technology have contributed to the consistent growth of the company. For instance, according to Complete the micro-blogging sites recorded 23 million unique users with an increased growth (Java et al, 2007, August). This does not include the large number of people that do not visit Twitter.com but instead use third party service to update. Focusing on the trend the company hopes to have a consistent growth in the future. In addition, the company has also gained approval from multinational corporations. According to a report by Mashable’s, twitter as a social media platform is used by many corporations. Generally, the company has continued to receive growth internationally as people are learning the value of using Twitter.

How industrial organization model and the resource-based model are used to increase the company returns

Before deciding which model would best be appropriate for Twitter in order for them to earn high returns than expected, it important to understand each model? Starting with the industrial organizational model, it’s defined as a field of economic concerned with the strategic behaviors if firms, market competition, rules and regulations to name a few. The model is much related to economic theory that focuses on price to industries. Therefore, the whole idea is linked to understanding methods by which a firm operates; improve government policy in relation to these industries. Resource-based model, on the other hand, is defined as a competitive advantage. As a result, the model tends to focus on organizational internal resources, the firm's strengths, weakness, in comparison to the environmental structures of competitive benefits on opportunities and threats. Therefore, after examining the two models, I prefer the resource-based model because it could allow twitter the greater chances to expand their returns and in that regard gain, high returns because of its main concentration on the corporation’s strengths as well as weaknesses.

How both the vision and mission statement of the company influences its overall performance?

Both statements are critical elements of a corporation organizational strategy. In most cases, most established companies create organizational mission as well as vision statements, which serve as a foundational guide to the establishment of company goals and objectives. Before assessing how these elements have influenced Twitter Inc, a company mission serves as a guide to an organization’s decision making (Ingenhoff, & Fuhrer, 2010). In this case stakeholders (shareholders, leaders, and employees) are the target of the mission. Vision, on the other hand, directs and gives the corporation a clear perspective of its values. To give everyone the power to create and share ideas and information, instantly, without barriers is the company’s mission. I think Twitter’s statement is a pretty good on the core purpose. A vision statement should give people a clear picture of what the company wants to be. Twitter’s vision is for it to become a premiere micro-sharing platform. These two statements have and will continue to be the reason for consistent growth for the company because stakeholders are part of the inspiration that the company seeks in the future. As a result of Twitter’s employees remain loyal, while fostering an atmosphere of success, as Twitter makes it known as their stakeholders succeed, so does it.

How stakeholders impact the overall success of Twitter Inc

The success of any company is gifted by stakeholders. In this case, success tends to come from a combination of two factors. To begin with the ability of a company to deliver real value to the stakeholders while the other one is the ability of stakeholders recognizes the value and appreciates it (Hitt et al., 1999). In addition, another important factor in achieving the success of an organization is the meeting of the stakeholder’s expectations. Twitter is owned by a few investors that supply a firm’s capital. They expect Twitter to preserve growth the health they have invested in the company. Satisfied stakeholders reinvest back into the company, while others even invite other new investors, while those who feel the company is not meeting their expectations sell their stock. The company engaged stakeholders in various ways because it believes that the path of business sustainability is a process. Literally, experiences is what makes up a journey, thus the company is promoting sustainability through;

• Branding- the fundamental strategy of corporate sustainability is how a company communicates with its stakeholders. As an emerging role of social media, the company is engaging stakeholders to share their broader corporate responsibility agenda.

• Prospecting- by using the Twitter search function, it’s possible to find prospective buyers and vice-versa with who you can do deals, just to mention.

• Networking in today’s world, networking has evolved as an important aspect of life. Using Twitter as a tool it is possible to foster relationships.

References

Hitt, M., Ireland, R., & Artz, K. (1999). Strategic management and strategic competitiveness. Strategic management: competitiveness and globalization.

Pfeffer, J., & Veiga, J. F. (1999). Putting people first for organizational success. The Academy of Management Executive, 13(2), 37-48.

Ingenhoff, D., & Fuhrer, T. (2010). Positioning and differentiation by using brand personality attributes: Do mission and vision statements contribute to building a unique corporate identity?. Corporate Communications: An International Journal, 15(1), 83-101.

Java, A., Song, X., Finin, T., & Tseng, B. (2007, August). Why we twitter: understanding microblogging usage and communities. In Proceedings of the 9th WebKDD and 1st SNA-KDD 2007 workshop on Web mining and social network analysis (pp. 56-65). ACM.