Presentation on theme: "The Trifecta of Social Networking"— Presentation transcript:
1 The Trifecta of Social Networking Tumblr.The Trifecta of Social Networking
2 Basic Information Micro-blogging Slogan, “The easiest way to blog” Combines blogging with social networkingEasier to use then Wordpress or Blogger.comSlogan, “The easiest way to blog”Perfect compliment to Facebook and TwitterIntegrates to automatically share blog posts with friends and followersSimilar features, “Like” “Love”, “Retweet “Reblog”
4 Here is a video to help you understand the basics of Tumblr. Video IntroductionHere is a video to help you understand the basics of Tumblr.
5 Presentation Will Cover… Company BackgroundExternal AnalysisMacro-Environmental DimensionsPorter’s Five ForcesCo-opetitionInternal AnalysisTarget MarketCore CompetenciesSWOT AnalysisDifferentiation StrategyValue CapturingFinancing
6 Background Founded in 2007 by David Karp Took off in 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.
7 Macro-Environmental Dimensions Political & LegalNo major issues, available in censored markets, China & North KoreaEconomicReceived financing from venture backers, Spark Capital & Union Square ventures.$75 million investment in near futureSocialIncreased user demographics: age, income, education, genderTechnologicalSleek, easy to use interface, backwards compatibleMobile phone platforms
8 Porter’s Five Forces Rivals: Wordpress & Blogger.com lack social networkingTwitter & Facebook complimentary productsPosterousBarriers to Entry:User base cannot be replicatedUsers are locked into the platformSubstitute ProductsNot many substitutes that combine blogging and social networking at a level Tumblr hasTravellerspoint.com, more of a niche, not nearly as popular 300,000 users
9 Co-opetitionAllows Facebook and Twitter to be directly linked to Tumblr accountCo-opetition as marketing to generate users.
10 Target Market E-Business Market Segmentation Matrix C2C or more accurately, P2PInteractions not of commercial natureWidely versed U.S. demographics (next slide)
12 Core Competencies Large user base Solid IT Infrastructure Staff Impossible to imitate over nightUsers are locked inHigher customer benefit then new startups, network externalitiesSolid IT InfrastructureCrash in December 2010 for 24 hoursSince, load balancing & cloud servers to create 100% uptimeIn house designed platformStaffAssembled from all over the worldTopped the charts of best place to work in NYCLeading designer Peter Vidani , at Tumblr "You can directly see the impact you have on the company everyday.”
13 SWOT Analysis Strengths Weaknesses Large user base, difficult to replicate, hard to leaveKnowledgeable staffEasy to use platform + mobile appsWell backed by investorsWeaknessesInability to generate revenue
14 SWOT Analysis Cont. Opportunities Expanding into other countries Recently released Russian language (8 languages)
15 SWOT Analysis Cont. Threats Facebook and Twitter Utilizing co-opetitionWordpress and Blogger.comMore customizable but more difficult to useTechnological InnovationMust continue to adaptPosterousto posting
16 Founded in 2008, San Francisco Very easy to publish text, videos, music, pictures throughLacks user baseAir BNB blog
17 Differentiation Strategy Service QualityEasy to use platform, integrated mobile platformDegree of CustomizationLowerMore user friendlyAdds enough templates and options to customize your blogConvenienceAccessible from anywhere, computer, tablet, mobileAutomatic integration with Facebook, TwitterReputationHas grown by a massive 1540 percent since 2009
18 Capturing Value Tumblr has created value, how does it capture that? In experimentation processWants the capturing process to also create additional value:No AdsPremium blog themesPremium blog positioningTumblr CEO David Karp
19 Financing Despite lack of revenue, Tumblr is well supported Spark CapitalUnion Square VenturesWSJ reported $75 million expected in upcoming monthsValue the company at $800 million
20 Conclusion Very successful since 2009 Strong core competencies, large user baseOpportunities they should undertakeDifferentiation strategyWorking towards value capturing
21 Tumblr Examples All that’s interesting Play With Fire Photography Blog Play With Fire Photography Blog