🟢 Five points about Twitter's business model to help you navigate Elon's Musk acquisition
❶ Twitter is not a tech platform
Although branded as a tech platform, Twitter doesn't have extremely differentiated technological assets. Just like Facebook, Airbnb, or the dreadful WeWork, the technology layer is smart enough but not rocket science (Youtube is comparably a far more interesting and underestimated tech stack in the way they enable video streaming on.. anything). Calling Twitter a tech platform is a frequent misnomer for social platforms that deal in digital network effects. And it's all about social. The more people are active on Twitter; the more people will want to come, be part of the conversation and be active on Twitter. Technology doesn't have to be fancy. The exponential engine is the community feedback loop and how it can 'click on' and propagate.
💪 And in the end, the network effect wins...
When we mistakenly think that products and features are center-stage for winning the market over, it’s worth remembering what happened to Slack and why network effects are such game-breakers in business. Slack is a SaaS team collaboration software that was launched in 2013 and managed to recruit a…