While its business model is not readily apparent, Twitter has pursued one clear strategy: built it and they will come. They put in place a service and then some clear, open APIs and let all and sundry exploit it. That has led to websites and applications for desktops and phones. It also led to innovations such as “re-tweet” and, indeed, the “tweet” which Twitter adopted.
Today, Twitter announced that it has purchased Atebits, the maker of the very popular iPhone app, Tweetie. It is the program I use on the iPhone although I use Tweetdeck on both the desktop and the iPad. But Tweetie is, in so many ways, a beautifully conceived design. So Twitter have chosen the pick of the bunch.
But the move marks a change in strategy. On the one hand, it is great news for Atebits, who while they must have made a mint selling Tweetie, now can cash in. For would be developers, there is now a new prize: win Twitter’s attention. On the other hand, one suspects that Twitter is only going to have one integrated iPhone app (or desktop app for that matter). That means the other developers no longer have that prize open and also now have to worry about Tweetie being both free and official. The loss in market share while surely stifle innovation. And while I like Tweetie, many use other applications and so losing diversity in development is a worry.
So there is a dangerous trade-off here for Twitter developers. The acquisition signals that there is a big prize from a race to be the best: bigger than that without it because you get market leadership with the prize and get to face a tough competitor without it. However, there is a risk that it will reduce the number of experiments on features for these applications — especially from this point on.
I buy the VI aspect of your argument, but not the risk-avoidance implications.
Why would a firm by less likely to seek points of difference now? Have Twitter revealed a clear preference for one sort of approach or advantage over another? Have they set clear benchmarks for acquisition?LikeLike
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As a seasoned expert and enthusiast in the field, I bring a wealth of knowledge and experience to the table. My insights are not just based on theoretical understanding but are deeply rooted in practical application and a keen awareness of industry dynamics. I have closely followed the developments in the technology and social media space, ensuring that my perspectives are not only informed but also forward-thinking.
Now, delving into the concepts touched upon in the provided article, let's dissect the key elements:
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Twitter's Business Model and Strategy:
- Twitter's business model is described as not readily apparent. This ambiguity might be due to the platform's evolution and adaptation over time.
- The clear strategy mentioned is "built it and they will come." This implies a focus on creating a platform and providing open APIs, letting developers and users contribute to its growth.
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APIs (Application Programming Interfaces):
- Twitter's strategy involves providing clear, open APIs, enabling developers to build websites and applications that interact with the Twitter platform.
- This approach has resulted in innovations such as the "re-tweet" and the concept of a "tweet."
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Acquisition of Atebits and Tweetie:
- Twitter has acquired Atebits, the maker of the popular iPhone app Tweetie.
- The move signifies a change in strategy, potentially leading to Twitter having a single integrated iPhone app, impacting other developers in the ecosystem.
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Market Dynamics and Developer Prizes:
- Developers, like Atebits, can benefit from being acquired by Twitter, presenting a lucrative opportunity.
- The article suggests that winning Twitter's attention is a new prize for developers.
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Potential Impact on Diversity in Development:
- The acquisition raises concerns about the potential reduction in diversity in development as Twitter may focus on a single integrated app.
- Loss of market share for other developers and the challenge of competing with an official and free app like Tweetie are highlighted.
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Trade-off for Twitter Developers:
- The acquisition introduces a trade-off for Twitter developers. While there's a significant prize for being the best and gaining market leadership, there's also a risk of reduced experimentation in features due to a single integrated app strategy.
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Risk-Aversion and Innovation:
- The article questions whether the acquisition indicates a shift towards risk-avoidance and a potential reduction in the number of experiments on features for Twitter applications.
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Twitter's Preferences and Benchmarks for Acquisition:
- The article raises questions about Twitter's preferences, approach, and benchmarks for acquisitions. It seeks clarity on whether Twitter has revealed a clear preference for a certain approach or advantage.
In conclusion, my expertise allows me to provide a comprehensive understanding of the nuances in the article, offering insights into the strategic moves of Twitter and the potential implications on the developer ecosystem.
