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Twitter, the popular micro-blogging site, follows the same model as most social media, eaming revenue primarily by selling advertising on the site while offering the service free to users. Its ability to sell advertising is subject to its ability to attract users who will view and, advertisers hope, click on ads. At various times since the company was founded in 2006, it has faced serious dedines in its stock value. In 2015, for example, stock value declined despite revenue growth of 74% and 111% in the company's latest quarterly and annual results, respectively. Investors had reason to be skeptical of Twitter's potential. At the time, its user base of 302 milion users was much smaller than Facebook's user base of 1.4 bilion users. In addition, newcomers Instagram, founded in 2010, had experienced rapid growth, and its user base now rivaled that of Twitter. Another even more recent entrant to the market, Snapchat, founded in 2011, was gaining users much faster than Twitter. Twitter was losing ground to its competitors due to an inability to convey a dear value proposition to new users. Though hundreds of millions of users have signed up for accounts on the Twitter platform, many have not converted into active useris. To combat these chalienges, Twitter has made changes in its platform features: new features have induded instant timelines, logged-out hornepages, enhanced messaging, various timeline curation and fitering functionality induding anti-harassment tools, and Facebook-style reaction emojis. Twitter-has also made changes to its leadership. In July 2015, CEO Dick Costolo departed. Costolo had led the company through making a number of acqulisitions and its initia public offering. The change at the top did not signal an injection of "new blood," however, as founder and former CEO Jack Dorsey took the relns. Atter a continved rough patch in the mid-20105, Twitter's stock price recovered sharply in 2018 and substantially maintained that higher level for the next couple of years. ccording to the case study, which of the following are likely reasons Twitter changed its executive leadership? Check all that aph Twitter must achieve a higher conversion rate of passive to active users. Twitter faced increased competition from companies such as Facebook. Twitter needed new leadership to better establish a strong value proposition for users. Twitter is losing money over time. If Twitter never changed its strategies or organizational design, which of the following would be most likely to occur? Twitter would continue on at the same rate of success as it had previbusly. Twitter would attract more and better job applicants. Twitter would become a less successful company. Twitter would increase its competitive advantage. What rate of change exists in Twitter's business environment? Staying the same A U-shaped curve Decreasing Twitter experienced when it made the substantive modification in its leadership
