MIDTERM GROUP WORK: X's Business Canvas

As a social media company owned by Elon Musk, X stands out for its innovative approach to communication and its capacity to connect users across diverse cultures and regions, and we will

NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL

NEU BUSINESS SCHOOL VIEN QUAN TRI KINH DOANH

MIDTERM GROUP WORK X’s business canvas analysis

Members : Nguyễn Hồng Nguyên Khanh — Leader

Nguyễn Hoàng Dương

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Introduction

In today's digital age, technology has significantly enhanced the quality of human life, making it faster and more convenient Over the past decade, the rapid development of the Internet worldwide has revolutionized the way we connect, becoming a powerful tool for communication and information gathering Social networks have

become integral to this transformation, with platforms like Facebook, YouTube, Twitter (now rebranded as X),

and TikTok emerging as essential communication tools, especially among the youth

While platforms such as Facebook and TikTok enjoy widespread popularity globally, X is steadily gaining traction in numerous markets Known for its unique capabilities, X offers a dynamic platform for real-time information exchange and global conversations Its microblogging format encourages concise and impactful communication, making it an invaluable tool for users seeking to stay informed and connected with the latest global trends

X has established a substantial presence globally, with various brands and individuals leveraging its potential to engage with audiences, gather insights, and participate in the broader global discourse By utilizing

X, users can access a wealth of information and perspectives from around the world, thereby enhancing opportunities for international integration and collaboration

Recognizing the strategic importance of X in today's interconnected world, our team has chosen to focus on its strategy and resource management through exploring its businesses As a social media company owned by Elon Musk, X stands out for its innovative approach to communication and its capacity to connect users across

diverse cultures and regions, and we will analyze its business model canvas to understand the key factors

driving its global success

- Demographics: Personal users form the bulk of X's user base This group encompasses private

individuals who use X to connect with friends, share personal updates, and engage in conversations

about topics of interest The demographic profile of personal users is broad, but the 25-48 age group is particularly prominent, comprising 38.5% of users Notably, about 70.40% of X users are male, while

29.6% are female

News, Discovery & Influence

The influence index is positive (>100) across all

demographic segments (products & services)

Total Male Female 16-24 25-34 35-44 45-54 55+ | Top25% Mid 50% ri Top 10%

- Behavior: These users actively engage with content by liking, retweeting, and commenting Their

primary motivations for using X include social interaction, entertainment, and staying informed about

current events Compared to the general online population, X users are:

They are more likely to discover new things (82% vs 71% for the online pop.)

They are more open-minded (81% vs 74%)

They also like to be the first to try new things (59% vs 41%)

hd S question how important a

s if they can't find it on Twitter

- Business Accounts: Brands, businesses, and organizations use X to build an online presence, market

their products, and engage with customers Tools like Professional Profiles and X Shopping enhance their marketing efforts

- Creator Accounts: Public figures, artists, content creators, and social media influencers use X to connect

with their audience and promote their personal brands Features such as Quick Promote help boost their visibility

b) Businesses and Advertisers

X's second key customer segment is its businesses and advertisers This group is responsible for X's primary source of revenue, as they pay the platform to showcase their products and services to its large user base

Advertisers and brands utilize various X ad formats, such as Promoted Tweets, Promoted Accounts, and Promoted Trends, to build brand awareness, nurture customer consideration, and drive sales and conversions

The process involves creating an account on the X Ads platform, adding a payment method, designing ad content, and then launching and optimizing the campaigns

In addition to advertising, some businesses also subscribe to X's data licensing services, which provide access to the platform's real-time data and analytics This data can help these companies better understand user behavior and trends on the platform

While the business and advertising segment is a crucial revenue stream for X, it would not exist without the platform's vibrant and engaged user community The users’ content, interactions, and attention are the foundation upon which X's advertising and data services are built

In summary, X's customer segments - users, businesses and advertisers, and developers - each play a vital role in the platform's overall ecosystem By catering to the needs and interests of these diverse groups, X can maintain its position as a leading social media and advertising platform

2 Value proposition

Value proposition, often known as the combination of products and services it provides to its customers Osterwalder stated that these offerings need to be unique and easily differentiated from competition So, in simpler terms, a value proposition is a persuasive statement that explains why a business, its products, or services are important It's like an elevator pitch that needs to be strong and convincing to win over investors and customers If it falls flat, it can be tough to get the funding and sales you need For X, it has some unique selling propositions (USPs) in place to provide value to every member of its customer segment, generate

revenue, and retain its users, advertisers, and developers, including

a) Quantitative Value Proposition:

For Users:

- Access to a massive global user base of over 300 million monthly active users, enabling users to connect

and engage with people from all over the world of all backgrounds and nationalities for free

- Real-time delivery of news, updates, and trending topics through the use of hashtags, allowing users to quickly discover and participate in conversations on subjects that interest them Also, Twitter users can personalize their profiles, declare their interests, and decide the kind of tweets they want to see on their timelines

- Free platform for sharing their own thoughts, experiences, and daily updates with a wide online

community and convenience

Immediate feedback and valuable insights into customer sentiment, brand perception, and market trends through monitoring and analyzing user engagement

Enhanced social connectivity and a sense of community, fostering meaningful interactions and

relationships with family, friends, and like-minded individuals

Ability to stay informed and engaged with the latest news, trends, and discussions on topics that are relevant and important to the user with freedom of speech

Platform for self-expression, allowing users to share their unique perspectives, ideas, and creative

content with a broader audience

- Valuable market intelligence and customer insights, informing business decisions and product/service development

For Developers:

- Opportunities for creativity, innovation, and disruption, as the platform's open nature and developer- friendly tools enable the creation of groundbreaking new applications and services

- Collaboration with a leading social media platform, providing access to a vast user base and the chance

to contribute to the evolution of the Twitter ecosystem

- Potential for significant impact and recognition within the tech industry, as successful Twitter-integrated applications can gain widespread adoption and influence

3 Channels

S - Strengths W - weaknesses O - opportunities T - Threats

- Brand recognition - Dependence on Ads - Diversification - Stiff competition

- Influence - Saturation of the social | - Penetration of existing | - Government

- First mover’s advantage | media market markets Restrictions

- Loyal customer base - Algorithm - Marketing - Investor pressure

- Strong market share - Character limit - Retain users - Legal battles

- Financial stability

- High operational costs

removal of users

a) Company owned Channels:

- Websites: X corp’s websites are its primary channel of distribution through which its users access its

services

- Mobile Applications: Designed for Android and iOS, allowing users to access their X accounts through

mobile devices

- Blog: Shares news, information, and updates about the company’s products and services, as well as posts

on various technology and social media topics

- YouTube Channel: Features videos about X Corp’s products, services, and events Customers can also access Twitter through desktop apps, SMS, and Twitter API

b) Partner Channels:

Advertising Partner: X Corp has cooperated with a lot of Advertising Networks such as Google AdMob, AppLovin, IronSource, The company also partners with many Advertising Agencies such as WPP, Omnicom, Moreover, some publishers that X corp cooperates:

- BuzzFeed - a popular online media company, to display targeted ads to a young, tech-savvy audience

- Condé Nast - a media group owning high-end fashion and lifestyle magazines like Vogue, GQ, and Glamour, to display ads to a high-income audience

Development Partner: X Corp partners with app developers, data providers, and technology companies to integrate their platforms with other products and services Some development partners that X corp works with:

- App Developers: X Corp partners with Twitterrific, a popular third-party Twitter client app, to provide

an enhanced Twitter experience for users and TweetDeck, a powerful Twitter management app, to help businesses and users manage multiple Twitter accounts efficiently

- Data Providers: X Corp collaborates with Comscore, to track website traffic and measure the

effectiveness of advertising campaigns and Oracle Data Cloud to collect and analyze user data to deliver personalized and targeted experiences

- Technology Companies: Microsoft to integrate X’s platforms with Microsoft Teams to help businesses collaborate and communicate more efficiently and Adobe - a creative software company, to integrate their platforms with Adobe Creative Cloud to help marketers create engaging content and share it on

Twitter

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Media Partner: X Corp partners with social media influencers, journalists, and media organizations to

promote their brands and products Examples are Khairi - a popular social media influencer to promote their

brand and products to a young, tech-savvy audience or Gary Vaynerchuk - an entrepreneur and investor, to share

his knowledge and expertise on social media marketing with businesses Journalists and media organizations also help in brand promotion and news dissemination

Enterprise Partner: Some enterprise partners that X corp cooperates:

- SAP- an enterprise software company, to offer its platform and advertising solutions to large enterprises seeking to enhance their communication and marketing strategies

- Oracle - a cloud computing and software company, to provide integrated solutions for businesses utilizing Oracle's cloud infrastructure and applications

Non-Profit Partner: X Corp partners with nonprofits to provide support and resources for them to use the X Corp platform to make a positive impact For instance, X collaborated with the Red Cross to help them raise funds, provide disaster relief, and support humanitarian efforts

In addition, X Corp connects with customers through industry events, social media (Facebook, Instagram, LinkedIn), and media collaborations It also creates and shares valuable content, like blog posts, articles, and

videos, to attract potential customers and build brand awareness

4 Customer relationship

Customer relationships are a fundamental aspect of every business model They are the interactions and

connections that businesses establish and maintain with their customers

Organizations may get several benefits from having strong customer connections, including stronger customer loyalty, improved brand reputation, and a higher chance of repeat business

- Personal Assistance: Direct interaction via phone, email, and chat support

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- Dedicated personal assistance: X Corp offers dedicated personal assistance through account managers and support teams for high-value customers and enterprise clients, ensuring customized support

- Self-Service: Twitter heavily relied on self-service through its Help Center, FAQs, and in-app tutorials

X Corp will likely continue to prioritize self-service options as a cost-effective way to address common issues,

- Automated Service: X uses automated features for content moderation, spam filtering, and basic

customer service interactions through chatbots X stores and analyzes user activity history to create

personalized homepage

- Communities: Online forums and social media groups

- Co-Creation: X facilitates co-creation by allowing users to create trends, get feedback from customers to improve quality

Overall, X corp's customer relationship management prioritizes self-service and automated service categories with the use of modern chatbot technology and the support of AI Beside that, other kind of customer relationship is also applied in order to develop the relationship with customers

Advertising 90%