Impact of social media on businesses Case Study Solution
Social media has had [or has the potential to have] a significant impact on the ability of communities of interest to have a greater impact on society (either positively or negatively).
Background
Prior to globalisation businesses operated using for profits models. The change in era brought increased technological advancements. Innovative technologies kept on improving leading to shift in companies’ procedure of mass production to customization of goods and now services too.
While technological advancement was being made in production process, new problems arose. The problems were of advertisement, recruitment, communication and marketing. The companies were trying to gain foothold in highly comprehensive competitive markets. To achieve this, they had to come up with cost management solutions without compromising the quality.
This is the part where social media comes in. Social media revolves around usage of interactive applications for increasing communication between and among various users. The sharing of content can be done through videos, images and text through manipulating data by allowing user to not only share the content but also to create it. Comparatively traditional media was used only for sharing the content.(Overy, 2012)
High manipulation of data is ably backed by rapid development of technology used for creation of content. This means that developments made in digital media such as laptops, webcams, smartphones, tablets, etc. is of utmost importance for the growth of social media.
Getting into the act of competitive markets several platforms of social media erupted like Facebook, Twitter, YouTube, Blogger, etc. Where the competition pertained to gaining more profits, the introduction of social media completely changed the strategies of the companies. Social media put pressure on the companies to display more clarity in its operations and financial reporting. This led to the development of more consumer-friendly environment in all the industries.
Advantages
Social media works in a way which increases accountability while enhancing quality. However, its greatest advantage can be creation of awareness. The advantage to the companies can be that social media helps in covering up the cost of these companies. With cost management of many companies being dependent upon usage of social media, the competition have risen again but this time around with more flexibility and clarity.
The advantages to companies making use of social media can be summed up by its usage. Through social media platforms such as Facebook, YouTube, etc. the companies have a display place for their advertisement at low costs. Recruitment and search for labour has become an easier process due to increase in connectivity and clarity between people and organisations.(Overy, 2012)
One of the other advantage that is proving to be highly beneficial is enhancement of communication with usage of social media applications. From creating a flawless production cycle to providing professional services communication is playing an important role in development of organisations.(Kelly)
Social media applications can be used to create awareness of products, services and job vacancies to name a few modes which can be used to cover up the costs by organisation. For internal purposes increase in communication allows the organisations to respond appropriately to new developments, crisis situations and generation of more customers. On external side,the communication is also enhanced with consumers allowing the company to develop brand loyalty and increase consumer satisfaction by providing appropriate goods and services.
IMPACT OF SOCIAL MEDIA ON BUSINESSES Harvard Case Solution & Analysis
Disadvantages
Like all developing things, even social media have its disadvantages. While benefits derived are numerous the drawbacks are highly extreme in nature. This means that losses incurred from misuse of social media will have far-reaching impacts on not only the organisations but also on its associated parties including the customers and parent companies...................
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