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Topics: Strategic management, SWOT analysis, Social network service Pages: 15 (486 words) Published: May 11, 2015
Strategic Management

Strategic Management | March 4, 2015 | Andreina Mesalles
Laura Lahoz
Adrià Sospedra

LinkedIn: Introduction and Mission
 Social network to build a professional identity online, stay in touch with colleagues, discover professional opportunities,
business deals...





24 languages
More than 6,800 employees
Offices in 30 cities around the world
347 million members

 Mission: connecting professionals from all over the world in order to enhance their productivity and success.

LinkedIn: Environment Analysis
PESTEL Analysis

LinkedIn: Industry Analysis
Porter’s Five Forces
Threat of New Entrants
Moderate
SNS, SPN, PNS
No switch cost
Bargaining Power
of Suppliers
Low
Vast range of
suppliers

Competitors
•Moderate
•Not as global
Threat of Substitutes
•Moderate
•SNS

Bargaining Power of
Buyers
Low despite no
switching costs
No immediate
persecutor or buyer
concentration

LinkedIn: Industry Analysis
Competitors
Number of users
LinkedIn (Blue): 347.000.000
Viadeo (Orange): 59.000.000
Xing (Green): 14.000.000

Revenue Sources
Xing: Basically, a professional
contact book
Viadeo: more complete range
of services

LinkedIn: Industry Analysis
Trends
Mobile Technology
 Accessibility
 Options
Social Network Features
 Appealing
 Resemblance to Facebook

Internationalization
 Languages
 More countries

LinkedIn: Firm Analysis
Position in the Market and Value Proposition
Freemium model with
the following revenue
sources:

Ideal:
strong competitive position
in a rapidly growing market

LinkedIn: Firm Analysis
Strategy, Resources and Capabilities

LinkedIn: Firm Analysis
Canvas Business Model

LinkedIn: Firm Analysis
Strategy, Resources and Capabilities
Cash flow to
invest in new
projects
Low levels of long
term debt
75% of their
assets as current
assets: room for
expansion

Strategy: Deep global penetration
through new markets and continuous
innovation

LinkedIn: Firm Analysis
Competitive Advantage





Profitable business model
Strong website performance drives traffic
Critical mass: 332 million users
Internal Policies
Transformation + Integrity + Creativity + Collaboration + Humor + Results = efficient implementation of ingenious ideas.

 Sales Force
 Word-of-mouth advertising

LinkedIn: Firm Analysis
SWOT
Strengths
Financial resources to fund projects
Strong brand: potential for connections
Effective filtering tools in search
Strong tools to build profiles
Very active users (professionals looking
for career growth)
Useful and powerful promotions tools
Market leader and first mover
International presence
Diversified revenues streams

Weaknesses
It is difficult to communicate directly
Prone to fake profiles
Privacy issues: security breach in 2012
(6.5 million passwords stolen)
Not customized to all industries like
doctors of actors
Cultural barriers
American centered
 

LinkedIn: Firm Analysis
SWOT
Opportunities
B2B advertising is increasing
Increased use of internet through
mobile
Expanding in emerging economies
Integrate other social media (like Skype)
to improve communication tools
Integrate with telephone operators
Integrate with Alumni network portals
and databases

Threats
From new competitors (low entry
barriers)
Government regulation in terms of
privacy
Potential competition from Facebook
Fake accounts
Hackers
Culture shock: Linkedin is open and
Asians require formal introductions

LinkedIn: Recommendations
Strategic Recommendations

LinkedIn: Recommendations
Strategic Recommendations

 Expand user base:
 Increase diversity of the board: Chinese, Indian, Arabic Markets
 Increase users in sectors with low penetration

 Expand the offer:





Credentials and training
Extending content
Big Data
Acquisitions

 Prevent legal issues: Personal...
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