Answer to Question #198467 in Marketing for Roy

Question

 

 

1.  Explain which product/market expansion grid strategy Twitter is using in order to keep up with competitors like Apple and Facebook.
2.  Discuss whether organic growth is more sustainable or whether companies should keep pushing their growth by acquiring other companies

Answer 1

Answer:

1.

The Growth Grid Product Market is a tool for assessing the connections between new and existing goods, new and existing markets, and the risk associated with each interaction in order to formulate business expansion plans. Twitter has never been a major diversification strategy, which puts it at a competitive disadvantage when competing with other social media entities. Twitter has been experimenting with growth tactics after discovering that its user base has stayed relatively constant in recent years. Nonetheless, Twitter's deals with the NFL, NHL, and MLB in the sports streaming market, for example, may pit it against YouTube. Ads sold on video content may provide a means for a website to generate more cash.

Twitter is ready to capitalize on new developments in sectors such as music streaming. It can be seen that Twitter is in a high-risk area of the grid, indicating that its goal is to enter a new market, a "diversification" strategy. Twitter attempts to enter a new industry by acquiring and combining music streaming providers such as Spotify and Soundcloud. We can conclude that Twitter has a wide range of users because the two divisions are inextricably linked.

2.

This is a matter that must be dealt with on a case-by-case basis. They both have benefits. Organic growth is defined as a company's ability to expand organically through increasing output and revenue. In the meantime, you'll expand your company by acquiring other businesses. Organic expansion, on the other hand, seems to me to be preferable to the acquisition of other businesses.