Introduction of Reflective Commentary on Practice Assignment
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This study can illustrate a sketch of the Tumblr organisation, a renowned organisation in America. This analysis will also help determine a strategic audit of the Tumblr organisation and present that Tumblr has gained profit in the. In addition, the finance and performance will help get a clear idea about the Tumblr organisation through their past finance report or performance. Moreover, swot analysis will help understand the internal factors of the Tumblr; besides, Porter's five forces will help recognise the external aspects of the Tumblr. Finally, the recommendation will provide the best way for the success of the Tumblr organisation.
Tumblr is an American company (Tumblr.com. 2022). It was built in 2007. The company is also recognised as Tumbler. However, it is formally recognised as TheFacebook, Inc, and it changed its name to Tumblr in October 2021. The company headquarter is located in New York City. Moreover, the company has subsidiaries. It a valuable company in the world. It is known as one of the American big information technology companies. Tumblr has a social networking service and Microblogging industry. Its parent companies are Verizon Media, Yahoo! Inc, Oath, Automattic.
Tumblr has lost its profit in 2018-2019 (Statista.com, 2022). Apart from that, Tumblr visitors decreased that time because the company broke the law. Moreover, its profit decreased because usage time of this online platform was decreased by a minute. Moreover, monthly volume traffic to Tumblr’s web page by US citizens dropped by 49% and android app users dropped by 35%.
Finance and performance
Tumblr’s business is already in a great state, and it is still growing day by day. Apart from that, Tumblr currently has 411 employees. Moreover, Tumblr has 472 million user registered accounts. It also has an operating income of US$46.753 billion (Partalidou, et al., 2020). Besides that, it has 376 million visitors globally. Tumblr upgraded the company’s performance day by day, and as a result, it was gained by yahoo. Moreover, Tumblr purchased 79 lobbyists by spending $15.7 million on lobbying in 2020. Apart from that, Tumblr has 16 operated data centres. It also committed to buying 100% renewable power and decreasing 75% emissions of greenhouse gas. Its data centre technology involves Fabric Aggregator, which is a network system that is distributed in big regions.
Appropriate strategies and the success of a business go hand in hand. Strategies and strategic actions decide whether a company will be successful or not by analyzing the critical factors like strengths, weaknesses, competitors, threats, and so on. Strategies help an organization create a vision (Bonny et al., 2019). The organization and its employees follow the vision and the mission. Strategies guide the organization to achieve success. The gap between the weakness and strengths is removed by the strategic plans. A set of strategic plans is very crucial for an organization to overcome any hindrances that come in the way of the success of that organization.
SWOT analysis of Tumblr
SWOT analysis helps an organization to get a clear idea of its internal and external factors. By analyzing those factors, the organization can determine its strategies to take for the betterment of the organization (LEE et al., 2021). Internal factors like strengths and weaknesses help to identify what changes should the organization make for better productivity and profit. External factors help the organization make strategic plans for the growth of the organization. These important factors ofTumblr are discussed thoroughly below.
Strengths: The main strength of Tumblr is its customer base. Tumblr has achieved to create a loyal customer base by providing the best services to its customers (Tumblr.com. 2022 It helps to connect people globally over social media. Another strength of Tumblr is its capacity of upgrading itself. It continues to offer exciting and unique features to its customers. It introduces features like payment, online learning opportunities, and business opportunities to its users. Being user-friendly is another strength of Tumblr. It also improves its gaming too. The users get an impactful experience using Tumblr and also it provides an advanced social interaction negating the physical distance.
Weaknesses: The users need to have improved gadgets to use Tumblr. So, it can be said that it is not accessible to everyone. This limitation can be considered as one of the weaknesses of Tumblr. It needs a high-speed internet connection too. Many of the users are not privileged enough to use high-speed internet (Tumblr.com. 2022). In this case, Tumblr loses a group of customers. Some of the users find the setups difficult and for that reason, some customers opt for a better and easy-to-use platform to stay connected with their loved ones.
Opportunities: In this era of working remotely, Tumblr has flourished itself. It introduces all the possible aspects that a user needs to stay connected with family, friends, or colleagues. It made social media accessible to everyone with every need. Tumblr has the opportunity to grow into a bigger market by clarifying its strategies (Zallio and Clarkson, 2022). It opens a way for every type of business. Many big or small business owners pick Tumblr as a way of promoting their business. It makes Tumblr profitable and popular too. Tumblr also encourages online shopping and payment too enabling its customers to get an overall experience under one roof.
Threats: The main threat that Tumblr faces is competition. Ever-rising competitors challenge Tumblr. Advanced technology also can be considered as one of the threats. Using these technologies, the competitors are gaining and applying knowledge to their products (Buck and McDonnell, 2022). The customers get attracted by those new and user-friendly technologies hampering the business of Tumblr. Being a social network, Tumblr faces issues regarding the privacy of the user’s data.
Porter’s five forces
The competitive environment of an organization is determined by analyzing Porter’s five forces. Michael Porter introduces these forces to understand the competitor’s actions and developments (Kaplan and Haenlein, 2020). These five forces can help an organization to detect any adverse condition that may arise in the future. The organization also can take prior measures to defeat those hurdles.
Bargaining power of suppliers: Being a giant in the industry Tumblr does not have to face that many problems regarding the bargaining power of suppliers. It holds a large scale of customers. That is why the suppliers do not get a chance to extract more money from the suppliers. But some of the well-known suppliers ask for more money from Tumblr.
Bargaining power of customers: The base of social media is its customers. Tumblr also has a large scale of customers. That is the reason why they have impactful bargaining power. They have a lot of options on different platforms of social media. So, Tumblr must pay attention to the engagement and satisfaction of its customer (Kaplan and Haenlein, 2020). Business owners have different abilities to bargain depending on their business size. Keeping everything in mind, Tumblr should provide its customers with a huge number of options so that they do not feel any need for the other social media platform.
New entrants: New platforms are rising for the same target customers. That creates problems for Tumblr. Many options are available for customers in recent days. So, Tumblr must provide unique and advanced features to maintain customer satisfaction and requirement. Tumblr’s first concern should increase the app-switching cost. It will help to hold its customers on. As entry into the social platform is not restricted, everyone can have access to open new websites.
The threat of substitution: A large number of social networks are available in the market nowadays. As per requirements, the user can use any of those social media platforms. It may hamper the popularity of Tumblr and also can hamper its profit. Each and every day new applications are invented (Kaplan and Haenlein, 2020). The existing customers of Tumblr can easily access those applications for the experience. In order to maintain the trust of the customers, Tumblr must focus on introducing new features.
Competitive rivalry: Advancement in technology helps the strong competitors to grow more. The social platform is not only for the users, small and big business owners also use social platforms to promote their businesses. Tumblr and other social platforms collect a huge amount of revenue from advertisements (Kaplan and Haenlein, 2020). So, the rising of the competitors not only affects the user flow but also negatively affects the revenue of Tumblr. The major competitor of the company is YouTube and if the overall statistics can be analysed, it can be observed that the major loss of the company has totally been because of competitors like YouTube and other video streaming applications. They should improve their website and also target a customer group such as young-age. It should also create an objective to follow. By analyzing its competitor’s steps, they should plan strategically to ensure their position in the business market.
Most popular social media networks
(Source: Kaplan and Haenlein, 2020 )
Explanation and justification of the strategic goals of Tumblr
The most popular social media platform needs to focus on some components of the topic which will help to increase the productivity of the Tumblr organization following this discussion. The strategic plan has determined a limited vision of the subject which can help to improve their difficulties;
Improve customer satisfaction: The customer is the backbone of any business because it can help reach success. The essential factor is customer satisfaction, and this discussion has discovered that 94% of the concepts' size is assessed in the upper and middle classes. As just an outcome of the findings of this meta-analysis, this can be determined that the connection between the quality of sports operations and customer happiness is above average (Zarandi, 2021).
Increase net promoter score: The net promoter score is a platform for companies to figure out how happy and satisfied their customers are now with their service. It has determined how nicely the Tumblr is doing in the looks of the customers.Net promoter score is essential for the Tumblr community, and this Tumblr needs to do a Study design and supply is necessary, but then so is how it and the company use the information.Net promoter score refers the ideal statistic of customer satisfaction. It shows that people genuinely believe in the brand and helps it to evaluate Tumblr to their competitors.
Decrease the number of faults: being a Technology based app developing company, Tumblr faces various kinds of bugs and glitches in its applications and overall processes. Bugs usually downgrade the overall satisfaction levels of the consumers. For this reason, the company should focus on hiring new candidates who can resolve the latest issues via various kinds of software updates and continuously monitor the most complained issues regarding these bugs.
Percentage of defaults on products: People have always used internet choice configurators to create their products effectively because of the rapid development of the internet and e-commerce throughout the last ten years, and they are essential for users to use. With the rapid growth of Internet and artificial intelligence like technologies, it has been quite easier for Tumblr to integrate those systems in different social media apps like Facebook, Instagram and so on.
Advanced security assurance: Almost each and every user of the social media platforms are afraid of personal information leak or any confidential issues. In terms of making a place in the mind of the customers, Tumblr has to assure its consumers that all the social media applications controlled or owned by Tumblr are completely trustworthy and they are completely interrupted data sharing-based applications. On the other hand, currently social media applications also allow customers to transact their money through online payment with thoughts or donate in charity programs. For example, recently WhatsApp has added a personal online payment option for its users. Therefore, security has to be the most important priority for Tumblr in order to become the top leading company in this field over the next few years.
Response time to complaints: Initially, response time to protests is the essential thing for the Tumblr organization and understanding that now the organization's function is based on internal and external communication, the response time for interaction is the baseline in suggesting the ideal organizational structure (Johari, 2019). Sometimes, default rates are better than current failures until they are data defaults. However, they may also harm consumers who understand that now the default option is better, those who may be harmful to people. Whenever there is a default choice, people can sometimes not select as much of it as the other choice; that is not a choice.
The number of followers on social media: The most common attraction to doing something on the internet is using social networks. In 2020, over 3.6 billion people were on social networking sites, and that number is expected to increase almost to 4.41 billion in 2025 (Statista.com, 2022). The most popular social network Tumblr will need to focus on the number of followers, understand their challenges and receive feedback which can help reduce the obstacle of Tumblr. However, focusing on the number of followers can also be helpful in order to understanding their main issues and demands. For example, Tik-Tok brought a new trend where the users make their own videos with popular sound clips. Following this trend, the applications of Tumblr, like Facebook and Instagram, are also providing a new feature called reels. Just like this in future, grasping the market trends can help the company to win the game better.
When recommendations can help discover new things, it is essential to maintain some objectives. Besides this discussion will recommend an innovative idea which can bring positive outcomes for the Tumblr. This analysis will help provide suggestions for theTumblr organization, and it will help Tumblr for future improvement of Tumblr organization for upcoming future growth. Mark Zuckerberg, CEO of Tumblr, acknowledged in the discussion that although the company's short clip product does not currently profit as well as stories, the company is optimistic about the future.
In addition to competing with TikTok, Tumblr must work to improve its very own recommendation systems because then people interact with Reels more. For this reason, Tumblr will be better connected to keep competing with TikTok.There is now an increasing recognition that processes involving data from the studies in this direction can be suitable for benefit transfer validity or information gain fault (Johnston and Bauer 2020). Tumblr requires gaining knowledge about consumers to follow them through apps.
Furthermore, it needs to recognize who sees an advertisement, their age, gender, location, interests, and activities. Advertisers prefer promotions which directly increase their income. When the advertising improves because Tumblr enhances its marketing linking, the concentration problem is much more challenging to solve. Tumblr's challenges have been affected by its competitors' excellent performance. So, it will need to focus on their challenges and reduce their difficulty. Alongside, it will need to focus on the consumer demands or customer satisfaction which is essential for success.
The discussion mentioned above has shown several aspects of the study that help to understand the current stage of the Tumblr. The company overview has recognised the past and current phases of the Tumblr organisation; this study has presented the obstacle of the Tumblr organisation, which has helped the Tumblr organisation how can they reduce their barrier. In addition, this analysis has also shown that the Covid-19 was beneficial for the Tumblr organisation despite it having also discovered the previous finance and annual performance report on the Tumblr organisation. The SWOT analysis has displayed that the internal factors of the Tumblr, besides the external factors, have also figured out threats, challenges, and adversity of the Tumblr. Furthermore, this discussion has presented a critical reflection on the Tumblr organisation. The recommendation has suggested the best pathway of the Tumblr organisation, which has shown how to improve their adversity. Finally, this conclusion has stated the overall discussion of the topic, which has helped to understand the discussion context of reflective commentary on the practice.
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