CASE 1: Facebook vs. Twitter: The Coming Facebook-Twitter Collision

CASE ABSTRACT

Facebook, the popular social media site, has 150 million users. Most people who follow Facebook believe that it competes with MySpace for the youth market and with LinkedIn for the adult market. The writer of this article argues that while all three – Facebook, MySpace, and LinkedIn – aim to connect people, Facebook’s real competition is the microblogging site, Twitter. Both Twitter, with its 6 million users, and Facebook have some features in common and yet are different. They seem to be embarked on a collision course.

KEY POINTS

The impact of a changing competitive environment on business strategy (Chapter 4: External Environment)
The importance of strategic leadership (Chapter 12: Leadership and Culture)
RELATED CHAPTERS

Chapter 1: Strategic Management, Chapter 2: Company Mission, Chapter 4: External Environment, Chapter 6: Internal Analysis, and Chapter 8: Business Strategy

QUESTIONS FOR ANALYSIS

Why does the author feel that Facebook’s real competition is Twitter and not MySpace or LinkedIn?
What are the similarities and differences between Facebook and Twitter?
How is Twitter reacting to the threat of Facebook?
Why should Google be worried about Facebook and Twitter?