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Over the years, twitter has managed to enhance its popularity successful. Their continuous rise in popularity is attributable to a series of factors.  Majority of the persons on twitter prefer it to other forms of social media because of the number of characters per status update. Status updates on Twitter are limited to one forty characters. As a result, users are required to communicate in a form that is precise and short. Twitter is a social media platform that is extremely popular amongst celebrities and companies. There are a significant number of commercial entities that relay their information via Twitter. A significant portion of persons in the contemporary universe are extremely keen on matters pertaining to the pop culture (Chen, Heil and Smith 14). Due to this, they follow celebrities and various entertainment networks so as to be amongst the first persons receive information pertaining to their idols. The use of Twitter by News and Entertainment Networks has been instrumental at enhancing the general popularity of Twitter. It is primarily because it serves as an indirect channel of marketing.

Which Twitter users contribute contents and which ones do not? Why?

All the active Twitter users contribute contents. This is because all the users are  the opportunity to present their views via status updates on Twitter. Consequently, such status updates might lead to the sparking of conversations that might attract tens, hundreds, thousands, or even millions of other users of Twitter (Chen, Heil and Smith 30). More specifically, the following are examples of some of the users who contribute contents on Twitter; Celebrities, Media Houses, Businesses, Academic Institutions, and Governments.

Who gets followed on Twitter and who does not? Why?

Twitter is  as one of the modes through which individuals can appraise their overall popularity.  As a result, Twitter has increasingly become one of the tools that are  during political campaigns. Political candidates employ twitter for purposes of relaying their philosophies. Television networks also employ Twitter for receiving feedback from their audience (Jones ). This is a fit that has facilitated television to become more interactive than ever before. Businesses also use Twitter as a tool for marketing. They place advertisements as well as they provide customer service through this social media platform.  Celebrities are  as the most popular users of Twitter. They employ Twitter for relaying information pertaining to their events, as well as personal lives.

What should Twitter do to increase revenues?

The management should combine all the platforms which use Twitter and other services into one. They should also explore ways that will facilitate the use of smarter advertisements. Additionally, they should also implement new features, such as send money to charity, they don’t have to leave the web-site and partner with ApplePay to use this feature. Twitter can also partner with IBM to start research and use this data (Chen, Heil and Smith 4). They should also promote the use of the Twitter Icon on websites. The management team should also invest in technology that controls spam, so that it would have less irrelevant information as well as formulate techniques of making interfaces that are relatively simple, or friendlier to the users.

What is Twitter’s competitive advantage? Is it sustainable?

Twitter boasts of several attributes that facilitate it to develop a competitive advantage. The provision of one hundred and forty words per update facilitates the users to formulate messages that are precise. Twitter is also an effective tool for real-time communication hence it is employed by most of the television networks and other media houses (Chen, Heil and Smith 12). Twitter also boasts of relatively mature users. As a result, it is deemed as an effective tool for marketing. Twitter also facilitates the users to be conscious of the topics that are trending within their region. By so doing, the users can easily catch up and take part in such interactions.

Use the data in the case to reach a valuation for Twitter.

The total valuation of Twitter should be approximately $20 billion dollars. This valuation is  on the basis of the value of other technology companies such as Facebook and LinkedIn (Jones 1). Twitter is  as the youngest amongst the three, and it also boast of a relatively high potential for growth. In fact, it is estimated that Twitter is likely to generate profits of approximately $1 billion by the year 2015.

Works Cited

Chen, David, et al. “Twitter.” Havard Business (2014): 1-35. Print

Jones , Chuck. Wow, Twitter Worth $30 Billion? I Don’t Think So. 11 Sept 2013. Web. 4 Nov. 2014.

<http://www.forbes.com/sites/chuckjones/2013/11/07/wow-twitter-worth-30-billion-i-dont-think-so/>.