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 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”

4. Here is a video to help you understand the basics of Tumblr.
Video Introduction
Here is a video to help you understand the basics of Tumblr.

5. Presentation Will Cover…
Company Background
External Analysis
Macro-Environmental Dimensions
Porter’s Five Forces
Co-opetition
Internal Analysis
Target Market
Core Competencies
SWOT Analysis
Differentiation Strategy
Value Capturing
Financing

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 & Legal
No major issues, available in censored markets, China & North Korea
Economic
Received financing from venture backers, Spark Capital & Union Square ventures.
$75 million investment in near future
Social
Increased user demographics: age, income, education, gender
Technological
Sleek, easy to use interface, backwards compatible
Mobile phone platforms

8. 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

9. Co-opetition
Allows Facebook and Twitter to be directly linked to Tumblr account
Co-opetition as marketing to generate users.

10. Target Market E-Business Market Segmentation Matrix
C2C or more accurately, P2P
Interactions not of commercial nature
Widely versed U.S. demographics (next slide)

11. U.S. Demographics

12. Core Competencies Large user base Solid IT Infrastructure Staff
Impossible to imitate over night
Users are locked in
Higher customer benefit then new startups, network externalities
Solid 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.”

13. SWOT Analysis Strengths Weaknesses
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

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-opetition
Wordpress and Blogger.com
More customizable but more difficult to use
Technological Innovation
Must continue to adapt
Posterous
to posting

16. Founded in 2008, San Francisco
Very easy to publish text, videos, music, pictures through
Lacks user base
Air BNB blog

17. 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 blog
Convenience
Accessible from anywhere, computer, tablet, mobile
Automatic integration with Facebook, Twitter
Reputation
Has grown by a massive 1540 percent since 2009

18. Capturing Value Tumblr has created value, how does it capture that?
In experimentation process
Wants the capturing process to also create additional value:
No Ads
Premium blog themes
Premium blog positioning
Tumblr CEO David Karp

19. 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

20. Conclusion Very successful since 2009
Strong core competencies, large user base
Opportunities they should undertake
Differentiation strategy
Working towards value capturing

21. Tumblr Examples All that’s interesting Play With Fire Photography Blog
Play With Fire Photography Blog