THE TRIFECTA OF

SOCIAL NETWORKING

Tumblr.

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”

Video Introduction

Here is a video to help you understand the basics of Tumblr.

http://vimeo.com/24861236

Presentation Will Cover…

Company BackgroundExternal Analysis

Macro-Environmental Dimensions Porter’s Five Forces Co-opetition

Internal Analysis Target Market Core Competencies SWOT Analysis Differentiation Strategy

Value CapturingFinancing

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.

Macro-Environmental Dimensions

Political & Legal No major issues, available in censored markets, China &

North KoreaEconomic

Received financing from venture backers, Spark Capital & Union Square ventures.

$75 million investment in near futureSocial

Increased user demographics: age, income, education, gender

Technological Sleek, easy to use interface, backwards compatible Mobile phone platforms

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

Co-opetition

Allows Facebook and Twitter to be directly linked to Tumblr account

Co-opetition as marketing to generate users.

Target Market

E-Business Market Segmentation Matrix

C2C or more accurately, P2P

Interactions not of commercial nature

Widely versed U.S. demographics (next slide)

U.S. Demographics

Core Competencies

Large user base Impossible to imitate over night Users are locked in Higher customer benefit then new startups, network

externalitiesSolid 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.”

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

SWOT Analysis Cont.

Opportunities Expanding into other countries Recently released Russian language (8 languages)

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

•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

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

blogConvenience

Accessible from anywhere, computer, tablet, mobile Automatic integration with Facebook, Twitter

Reputation Has grown by a massive 1540 percent since 2009

Capturing Value

Tumblr has created value, how does it capture that?

In experimentation processWants the capturing process to also

create additional value: No Ads Premium blog themes Premium blog positioning

Tumblr CEO David Karp

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

Conclusion

Very successful since 2009

Strong core competencies, large user base

Opportunities they should undertake

Differentiation strategy

Working towards value capturing

Tumblr Examples

All that’s interesting http://all-thats-interesting.tumblr.com/

Play With Fire Photography Blog http://playwithfire.tumblr.com/