THE TRIFECTA OF SOCIAL NETWORKING Tumblr.. Basic Information Micro-blogging Combines blogging with...
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Transcript of THE TRIFECTA OF SOCIAL NETWORKING Tumblr.. Basic Information Micro-blogging Combines blogging with...
Basic Information
Micro-blogging
Combines blogging with social networking
Easier to use then Wordpress or Blogger.com
Slogan, “The easiest way to blog”
Perfect compliment to Facebook and Twitter
Integrates to automatically share blog posts with friends
and followers
Similar features, “Like” “Love”, “Retweet “Reblog”
Video Introduction
Here is a video to help you understand the basics of Tumblr.
http://vimeo.com/24861236
Presentation Will Cover…
Company BackgroundExternal Analysis
Macro-Environmental Dimensions Porter’s Five Forces Co-opetition
Internal Analysis Target Market Core Competencies SWOT Analysis Differentiation Strategy
Value CapturingFinancing
Background
Founded in 2007 by David Karp
Took off in 2009-2010 when page
views soared to 1.2 billion per month,
up 1540% from the previous year.
Tumblr currently employees 50
employees and is based in New York.
Macro-Environmental Dimensions
Political & Legal No major issues, available in censored markets, China &
North KoreaEconomic
Received financing from venture backers, Spark Capital & Union Square ventures.
$75 million investment in near futureSocial
Increased user demographics: age, income, education, gender
Technological Sleek, easy to use interface, backwards compatible Mobile phone platforms
Porter’s Five Forces
Rivals:•Wordpress & Blogger.com lack social networking•Twitter & Facebook complimentary products•Posterous
Barriers to Entry:•User base cannot be replicated•Users are locked into the platform
Substitute Products•Not many substitutes that combine blogging and social networking at a level Tumblr has•Travellerspoint.com, more of a niche, not nearly as popular 300,000 users
Co-opetition
Allows Facebook and Twitter to be directly linked to Tumblr account
Co-opetition as marketing to generate users.
Target Market
E-Business Market Segmentation Matrix
C2C or more accurately, P2P
Interactions not of commercial nature
Widely versed U.S. demographics (next slide)
Core Competencies
Large user base Impossible to imitate over night Users are locked in Higher customer benefit then new startups, network
externalitiesSolid IT Infrastructure
Crash in December 2010 for 24 hours Since, load balancing & cloud servers to create 100% uptime In house designed platform
Staff Assembled from all over the world Topped the charts of best place to work in NYC Leading designer Peter Vidani , at Tumblr "You can directly
see the impact you have on the company everyday.”
SWOT Analysis
Strengths Large user base, difficult to replicate, hard to leave Knowledgeable staff Easy to use platform + mobile apps Well backed by investors
Weaknesses Inability to generate revenue
SWOT Analysis Cont.
Opportunities Expanding into other countries Recently released Russian language (8 languages)
SWOT Analysis Cont.
Threats Facebook and Twitter
Utilizing co-opetition Wordpress and Blogger.com
More customizable but more difficult to use Technological Innovation
Must continue to adapt Posterous
Email to posting
•Founded in 2008, San Francisco
•Very easy to publish text, videos, music, pictures through email
•Lacks user base
•Air BNB blog• http://blog.airbnb.com
Differentiation Strategy
Service Quality Easy to use platform, integrated mobile platform
Degree of Customization Lower More user friendly Adds enough templates and options to customize your
blogConvenience
Accessible from anywhere, computer, tablet, mobile Automatic integration with Facebook, Twitter
Reputation Has grown by a massive 1540 percent since 2009
Capturing Value
Tumblr has created value, how does it capture that?
In experimentation processWants the capturing process to also
create additional value: No Ads Premium blog themes Premium blog positioning
Tumblr CEO David Karp
Financing
Despite lack of revenue, Tumblr is well supported Spark Capital Union Square Ventures
WSJ reported $75 million expected in upcoming months
Value the company at $800 million
Conclusion
Very successful since 2009
Strong core competencies, large user base
Opportunities they should undertake
Differentiation strategy
Working towards value capturing