The Application of Information Systems to E-Commerce - Critical Thinking Essay

Twitter characteristics is that it is as a business model similar to the other social networks, where one creates their profiles and gives users the capacity to send tweets of length 140 characters. Twitters business model has had the challenge to generate earnings although lately it has extended to sharing revenue with the users that make videos content whereby those tweets creators acquire 70% and twitter gets the rest of the revenue. Twitter also in regards to value proposition goes a long way to be of benefit in Data partnership whereby upon generation of insights its monetized. Apart from that its beneficial to advertiser as tweets from twitter get a viral worldwide reach.

The best revenue model that would work best for Twitter is the advertising and subscription revenue model. From the advertising revenue model its website earns revenues by attraction of many in generation of dollars to advertise. The model has its website display content freely to attract a number of viewers and in turn has customers purchase space for ads thus has the ability to pay costs incurred on production and distribution. On the other hand, the other revenue model of subscription is a website that charges on subscription to the online subscribers.

Twitter most important asset is its media platform that is more powerful in news distribution in real time. For instance big media conglomerates take to twitter to break new emerging stories. To have twitter monetize on this asset then that can be achieved through advertising. It could be through issuance of promoted tweets whereby organizations pay to advertise their products on user pages with related search engines. Alternatively, by having promoted trends and then the earlybird accounts that has users have a choice to either follow to having special offers or not.

The revenue is bound to be impacted by the customer churn rate and on the contrary having companies gain profits on subscriptions. Based on statistics on the churn rate twitter seems to be incurring more loses to an extent of having a revenue thats unknown. However its management created new money streams that are quite innovative boosting its funding.

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