Linkedin

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