InvestorQ : Do you think that Musk is on the right track in the way he is bringing about changes at Twitter?
Angel dcosta made post

Do you think that Musk is on the right track in the way he is bringing about changes at Twitter?

Juvina Maggie answered.
3 weeks ago

That is the million dollar question, whether Musk is on the right track at Twitter. Tough question that but one must admit that this is the way he has to start the show and there is no choice. Tough decisions have to be taken if Twitter has to be a worthwhile player in the social media space. Twitter in its original form was just not a viable business model and Jack Dorsey also know that much better than anyone else. Musk is likely to be a lot more ruthless about cutting manpower and operating costs and he has already given evidence of that. He feels the current situation needs a drastic shift in strategy.

Here is what Musk is betting on. With 4 lakh verified users out of 40 crore Twitter base, it is too small to make a difference even after charging $8 per month. For Musk, the bet is on expanding this Blue Tick list to a multiple of the current number and monetize since it is almost like an identity. Obviously, the first priority would be to expand this 4 lakh figure to something much bigger. In social media rankings, Twitter has fallen to 15th position; behind TikTok, Snapchat, Instagram and Pinterest. Now comes the catch. With 48% still relying on Twitter for news updates, that is the property that Musk wants to leverage extensively on.

One thing that Musk will have to keep in mind is the Twitter DNA if it follows the new model? To begin with, paying $8 per month is small price for being a verified user and most would agree it is worth a lot more. Despite the protests, people will accept the change smoothly. The challenge for Musk is that 10% of Twitter users account for 90% of the tweets, so the activity is too concentrated. For Twitter to be a social media phenomenon, the idea should be to broaden platform participation to make it an opinion leader. For Musk it is time to think like the Octopus and adapt to the change.