Senior Strategic Capstone
Industry & business unit analysis with recommendations for X's sustained profitability
Project Role - Project Lead & Report Strategist
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Project Year - 2025
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Project Type - Student Project (Group)
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Project Location - Santa Clara, CA​​​
Result
The group delivered a comprehensive report and presentation outlining X's challenges, sustainable advantages (real-time engagement, scalable infrastructure), and specific, actionable recommendations, including separating leadership from policy, implementing tiered advertising, and enhancing AI moderation to improve brand safety and regain advertiser trust.
Overview
S
Situation
X, formerly Twitter, has faced significant challenges following its acquisition and strategic shift towards prioritizing free speech, leading to advertiser concerns about brand safety, declining ad revenue, and increased competition within the dynamic social media advertising market.
The platform needs strategic redirection.
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Task
The group project's objective was to conduct an industry and business unit analysis of X, evaluate its competitive positioning and sustainability, identify key issues impacting its profitability, and propose strategic recommendations to restore advertiser confidence and ensure long-term financial stability within the social media advertising landscape.
A
Action
The team analyzed the social media advertising industry, including competitive landscape, market trends (short-form video, AI), and Porter's Five Forces.
They assessed X's positioning, strategic missteps, and competitive advantages using value chain and VRIO analysis, identifying key issues like advertiser exodus and moderation deficiencies.
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My Highlights
Designed & Authored Key Sections​
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High-Quality Analysis: Structured the report/presentation and wrote critical sections (Intro, Conclusion, Unit Positioning) while contributing significantly to the core analysis and narrative.
Extensive Report Editing & Refinement
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Professional Deliverable: Significantly enhanced sections drafted by others, ensuring stronger arguments, proper citations, and overall professional quality for the final report.
Data Visualization & Sourcing
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Clearer communication, identified and created essential visuals (including Excel charts)
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Ensured robust citations throughout the report, improving clarity and credibility of the analysis.
Skills
Business & Strategic Planning
Authored Part B section analyzing X's unit positioning, successes/failures, and strategic missteps.
Owned Skill
Data Visualization
Created visuals/charts in Excel based on sourced data to support report arguments while producing the main presentation design.
Owned Skill
Technical Writing & Documentation
Authored and re-structured report Parts A–B, overhauled flow, edited for clarity / rigor, and led reference sourcing with accurate citations throughout.
Owned Skill
Recommendation Development
Group identified core issues and collectively proposed solutions like tiered ads and AI moderation.
Collaborated Skill
Market & Competitive Intelligence
Consulted on and refined the analysis of X's competitive sustainability, market definition, landscape trends, and lifecycle.
Collaborated Skill
Details
Details
Table of Contents
- Project Overview & Goals -
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- ​My Work -
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- Methodology & Approach -
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- Key Activities & Execution -
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- Deliverables & Outcomes -
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- Tools & Technologies Used -
Project Overview & Goals
Project Overview
This project undertook a comprehensive industry and business unit analysis focused on the social media platform X (formerly Twitter), aiming to provide strategic recommendations for its sustained profitability. The context for this analysis was X's precarious position following its acquisition by Elon Musk and a subsequent strategic pivot that prioritized largely unrestricted free speech over established brand safety protocols traditionally expected by advertisers. This shift occurred within a highly competitive and rapidly evolving digital advertising market, estimated at $234 billion in 2024, where platforms like Meta, TikTok, Threads, and Bluesky vie intensely for user engagement and advertising revenue. The project defines the social media advertising industry as the market where brands purchase ad placements to reach users, heavily relying on user-generated content, community interaction, and platform appeal to advertisers. Success in this space hinges significantly on effective content moderation and brand safety measures, as these directly impact advertiser confidence and spending.
X's strategic redirection created significant disruption. While potentially appealing to users seeking less content restriction, the relaxation of moderation policies led to documented increases in problematic content, severely damaging advertiser trust. Consequently, a substantial number of major advertisers reduced or halted their spending on the platform, contributing to a significant drop in X's global ad revenue (reported as a 46% decline between 2022 and 2023). This financial instability was exacerbated by Musk's controversial public image and inconsistent policy enforcement, further alienating the advertising community. Competitors capitalized on this, reinforcing their own brand safety measures and attracting displaced ad budgets.
Primary Goals
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To analyze the competitive dynamics and key trends (like the rise of short-form video and AI-driven personalization) within the social media advertising industry.
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To evaluate X's specific strategic positioning within this industry, identifying its unique value proposition (real-time discourse) alongside its critical failures, particularly in balancing free speech with advertiser requirements.
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To assess the sustainability of X's competitive advantages using established frameworks like Value Chain and VRIO analysis.
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To clearly identify the core issues undermining X's financial performance and advertiser relationships, including moderation deficiencies and leadership impacts.
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To develop and defend actionable, evidence-based strategic recommendations designed to rebuild advertiser trust, enhance platform safety, align X more closely with advertiser expectations, and ultimately restore a path to sustained profitability. The project aimed to deliver these findings in a structured report and presentation format.
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Professor Feedback​
“This is a well-structured and well-researched report that presents a strong analysis of X’s competitive positioning, challenges, and strategic recommendations. I do not have any further comments; I will use your part B as an example for my future class. Well done!”
My Work
​Overall Report & Presentation Design/Organization
I took the lead in structuring both the final written report and the presentation slide deck, ensuring a logical flow and coherent narrative across all sections.
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Tools & Methods Used: Strategic outlining, content organization principles.
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Linkage/Enablement: Provided the framework within which team members (including myself) could integrate their respective sections, ensuring consistency
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Authored Capstone Part A (Introduction)
Wrote the introduction section for Part A of the report, establishing the industry context, defining the market, and outlining the core problem related to X's reliance on ad revenue and the importance of moderation.
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Tools & Methods Used: Research synthesis, report writing, citation management.
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Linkage/Enablement: Set the stage and defined the scope for the subsequent industry analysis performed by the team.
Authored Capstone Part A (Conclusion)
Wrote the conclusion for Part A, summarizing the key takeaways from the industry analysis, including the impact of AI, competition, and the need for adaptation.​
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Tools & Methods Used: Synthesis of team analysis, report writing.
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Linkage/Enablement: Provided a summary bridge between the industry context (Part A) and the specific analysis of X (Part B).
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Authored Capstone Part B (Unit Positioning & Success/Failure)
Analyzed X's shift post-acquisition, applying Porter's concepts on conflicting strategies, detailing the advertiser backlash, and using game theory perspectives to frame competitor reactions.
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Tools & Methods Used: Application of strategic frameworks (Porter, Game Theory), critical analysis, report writing, research integration.
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Linkage/Enablement: Provided the core analysis of X's strategic missteps, which directly informed the subsequent VRIO analysis and the final recommendations.
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Consultation & Refinement of Part B (Competitive Position Sustainability)
Worked with another group member on the analysis of X's competitive position sustainability, contributing to the VRIO analysis and the identification of sustainable advantages.
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Tools & Methods Used: Collaborative analysis.
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Linkage/Enablement: Ensured the robustness and accuracy of the VRIO analysis, a key component linking X's internal capabilities to the external environment.
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Extensive Editing and Enhancement of Overall Report
Reviewed sections drafted by other team members in both Part A and Part B. This involved editing, adding content, rewriting passages, strengthening arguments, ensuring professional language, and improving citation usage to elevate the project quality.
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Tools & Methods Used: Critical review, editing for clarity and argumentation, writing, citation verification.
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Linkage/Enablement: Directly improved the overall quality and coherence of the final report, ensuring weaker sections were brought up to the standard set by the stronger contributions. ​
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Visual Creation & Citation Support
Helped source and identify appropriate visuals for the report and presentation. Created specific visuals using Excel when only raw data was available. Ensured robust and accurate citations throughout the document, particularly in sections I authored or edited.
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Tools & Methods Used: Excel for data visualization, image sourcing, reference management/citation practices.
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Linkage/Enablement: Made the report's arguments clearer and more credible through effective data visualization and proper academic referencing.
Methodology & Approach
The project employed a structured analytical approach based on established strategic management frameworks, drawing information from academic sources (like Harvard Business Review articles referenced) and contemporary market data/reporting. The core methodology involved several distinct phases:
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​Industry Definition & Scoping
The team first defined the relevant market as social media advertising, distinct from broader digital marketing, focusing on platforms competing for user attention and ad spend through community interaction and user-generated content. The analysis specifically centered on X's role and challenges within this defined space.​
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External Analysis (Industry Level)
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Competitive Landscape: Identified key competitors (Meta, TikTok, Threads, Bluesky, etc.) and the saturated nature of the market.
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Market Trends: Analyzed the impact of dominant trends, particularly the shift to short-form video content pioneered by platforms like Vine and TikTok, and the increasing role of Artificial Intelligence (AI) in content curation, personalization, and advertising effectiveness. The analysis considered how these trends affected user engagement, ad impressions, and the industry life cycle, suggesting AI could disrupt the mature phase.
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Porter's Five Forces: Applied Porter's framework to assess the competitive intensity. This involved evaluating:
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Supplier Power (moderate, content creators vs. cloud providers)
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​Buyer Power (moderate-to-high, advertisers have choices but rely on social media's reach)
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Competitive Rivalry (high, saturation and platform bidding wars)
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Threat of Substitutes (low-to-moderate, social media offers unique engagement)
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Threat of New Entrants (low, high barriers like infrastructure costs and network effects).
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Regulatory Environment: Acknowledged the growing impact of data regulations like the EU's Digital Service Act.
​Internal Analysis (Business Unit Level - X)
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Strategic Positioning & Shift: Analyzed X's historical positioning (real-time news/discussion focus) and the strategic shift under Musk towards free speech, highlighting the inherent conflict identified by Porter regarding delivering conflicting values. Game theory concepts were referenced to understand competitor reactions to X's moves.
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Value Chain Analysis: Identified key activities contributing to X's value proposition, categorized into primary and support activities (represented numerically in the report appendix/tables). These activities covered areas like real-time engagement facilitation, technology infrastructure, advertising systems, content partnerships, and moderation policies.
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VRIO Analysis: Applied the VRIO (Valuable, Rare, Inimitable, Organized) framework to assess the sustainability of X's identified competitive advantages. This analysis determined that "Unmatched engagement in high-impact conversations" and "Scalability and infrastructure for high-volume engagement" were X's most sustainable advantages, while others like AI personalization and the advertising framework were less defensible.
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Problem Identification & Synthesis
Synthesized findings from the external and internal analyses to pinpoint the critical issues facing X: the advertiser exodus driven by brand safety concerns, deficiencies in content moderation compared to competitors, the negative impact of leadership decisions, and the resulting financial instability.
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​Recommendation Development & Justification
Based on the identified problems and strategic analyses, the team formulated specific, actionable recommendations focused on addressing the core issues. These included structural changes (leadership separation), functional improvements (tiered advertising system), and technological investments (enhanced AI moderation). Each recommendation was defended by linking it back to the analysis (e.g., addressing buyer power, citing advertiser sentiment data, referencing leadership principles).​
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Deliverable Creation
The findings and recommendations were compiled into a formal written report ("Capstone Final Project.pdf") and a presentation slide deck ("Capstone Presentation.pdf") for delivery.
Key Activities & Execution
The team collectively executed the following key activities:
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Industry Research
Gathered data and information on the social media advertising market size, growth trends, key players, user statistics (e.g., 5 billion users globally, 240 million in the US, mobile usage dominance), and advertising spending figures ($234B in 2024). We also researched the impact of short-form video and AI and regulatory frameworks like the DSA.​
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Competitive Assessment
Identified and analyzed major competitors (Meta, TikTok, Threads, Bluesky, Reddit, Instagram etc.) and their positioning relative to X.
Application of Strategic Frameworks
Collaboratively applied Porter's Five Forces model to the industry and conducted the Value Chain and VRIO analyses specifically for X. This involved identifying key value-creating activities and evaluating the sustainability of X's competitive advantages based on the VRIO criteria.​
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​Analysis of X's Strategic Shift
Examined the consequences of X's transition under Elon Musk, focusing on the tension between free speech advocacy and advertiser requirements for brand safety. We analyzed the resulting advertiser backlash and revenue decline using reported figures and market sentiment data. Game theory was used to conceptualize competitor responses.
Problem Diagnosis
Identified and articulated the core problems stemming from X's strategic choices, including the significant drop in ad revenue (46-52% reported decline), the erosion of advertiser trust (only 4-12% of marketers viewing X as trustworthy/brand-safe), and the failure to address hate speech adequately compared to industry expectations.​
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​Solution Brainstorming & Development
Collectively developed a set of strategic recommendations aimed at resolving the diagnosed problems. These included:
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Separating Musk from executive decision-making regarding policy.
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Implementing a tiered advertising system with varying moderation levels.
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Investing significantly in AI for improved content moderation ("Parallel Universe Mode" concept).
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Report & Presentation Compilation
Synthesized all research, analysis, findings, and recommendations into the final written report and presentation deck, including structuring the content, writing sections, sourcing citations, and creating supporting visuals (charts, diagrams).​
Deliverables & Outcomes:
The primary deliverables produced by the group project were:
​Primary Deliverables​
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Capstone Final Project Report (PDF): A comprehensive written report detailing the industry analysis, business unit analysis of X, VRIO assessment, identification of issues, strategic recommendations, and supporting evidence/citations. This document included sections covering the Introduction, Industry Analysis (Competitive Landscape, Market Trends, Porter's 5 Forces), Conclusion (Part A), Unit Positioning, Competitive Sustainability (Value Chain, VRIO), Identified Issues, Recommendations & Defense, and Works Cited. It also contained appendices with value chain activity lists and VRIO analysis tables.
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Capstone Presentation (PDF Slide Deck): A slide deck summarizing the key findings and recommendations from the report, designed for presentation. It covered the Introduction, Industry Analysis (Landscape, Trends, Porter's 5 Forces), the Twitter-to-X transition, Unit Positioning, Competitive Sustainability (Value Chain, VRIO, Game Theory diagram), Identified Issues, Situation Defense, Recommendations (Tiered Ads, Management Separation, AI Moderation), Defenses for each recommendation, and Conclusion. The presentation incorporated various charts and visuals to illustrate market data, competitive positioning, and advertiser sentiment.
​Documented Outcomes
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The project successfully conducted a detailed analysis of X's strategic challenges within the social media advertising industry.
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It identified X's core sustainable competitive advantages (real-time engagement, scalable infrastructure) and weaknesses (advertiser trust, AI moderation compared to peers).
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It produced specific, theoretically-grounded recommendations designed to address X's profitability issues by improving brand safety and advertiser relations.
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The report presented a data-supported case demonstrating the financial consequences of X's strategic shift and the urgent need for corrective action.
Tools & Technologies Used
Research Sources
Access to academic journals like Harvard Business Review and other reputable online sources.
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​Spreadsheet Software
Excel was used for the creation of specific visuals when only raw data was provided. Used for creating charts visualizing financial data, user statistics, and market comparisons present in both the report and presentation.
Word Processing Software
Utilized Google Docs to work on and help organize various aspects of the project.
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​Presentation Software
Used Google Slides for creating the slide deck.
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Collaboration Tools
Google Drive used for communication, file sharing, and collaborative writing/editing among the four team members.
Documents