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Tumblr .

Tumblr. The Trifecta of Social Networking. Basic Information. Micro-blogging 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

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Tumblr .

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  1. Tumblr. The Trifecta of Social Networking

  2. Basic Information • Micro-blogging • 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”

  3. Video Introduction Here is a video to help you understand the basics of Tumblr. http://vimeo.com/24861236

  4. 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

  5. Background Founded in 2007 by David Karp Took off in 2009-2010 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.

  6. 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

  7. 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

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

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

  10. U.S. Demographics

  11. Core Competencies • Large user base • 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.”

  12. SWOT Analysis • Strengths • 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

  13. SWOT Analysis Cont. • Opportunities • Expanding into other countries • Recently released Russian language (8 languages)

  14. 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 • Email to posting

  15. Founded in 2008, San Francisco • Very easy to publish text, videos, music, pictures through email • Lacks user base • Air BNB blog • http://blog.airbnb.com

  16. 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

  17. 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

  18. 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

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

  20. Tumblr Examples • All that’s interesting • http://all-thats-interesting.tumblr.com/ • Play With Fire Photography Blog • http://playwithfire.tumblr.com/

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