Answer to Question #199764 in Management for Mohammad Shehroz a

Question

1.Eplain 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

1.Diversification strategy

The Ansoff Matrix, also known as the Product Market Expansion Grid, is a tool for developing business expansion strategies by studying the relationships between new and current goods, new and existing markets, and the risk associated with each such interaction.

Twitter has never employed diversification as a key strategy, putting it at a disadvantage when competing with other social media powerhouses. Twitter is experimenting with strategies to rekindle growth after finding that its user base has been relatively stable over the last few years.However, Twitter's live streaming relationships with the NFL, NHL, and MLB, for example, could put it in direct competition with YouTube in the sports streaming industry. Ads sold on video content might be a lifesaver for a site that is struggling to find new ways to make money.

Twitter is preparing to take advantage of new advancements in sectors such as music streaming. We can plainly see that Twitter is positioned itself in the high-risk area of the grid, indicating that their objective is to enter a new market, a practice known as "diversification." Twitter is focusing on breaking into a new market by purchasing and combining with companies like Soundcloud and Spotify, which are music streaming platforms. However, because the two business groups are unrelated in any manner, we can conclude that Twitter is pursuing a high level of diversity.

2.Organic growth is sustainable.

This is a situational issue. Both are beneficial. Organic growth refers to a company's ability to grow by growing output and boosting sales within the organization. Meanwhile, acquiring other businesses will help you expand your company. However, I believe that organic expansion is preferable to acquiring other businesses.