In the June of year 2008, the on-line professional networking service LinkedIn became a $1 billion business. However the CEO Dan Nye comprehended that LinkedIn faced several strategic predicaments. Established in the year 2002, LinkedIn by 2008 had turned into the world's top professional networking service (PNS), with more than 23 million members. The company was also growing into corporate services that would enable firms to assemble and manage their own on-line networks.
With revenue sources that included premium subscriptions, advertisements, job posting services, and business options, LinkedIn was on course to bring in earnings in 2008 of up to $100 million. A new capital round in mid-2008 given a $1 billion valuation for the company. LinkedIn was faced by three crucial dilemmas. First, at a point when the "walled garden" model of online community building was under siege, it had to decide how much it should open its platform to users. In light of competition from exceptionally popular social network services like Facebook and MySpace, LinkedIn had to settle on whether to incorporate social networking into its value proposals. Third, in an gradually more global business environment, it had to consider the option of merging with its top international challenger, XING.com.
PUBLICATION DATE: August 07, 2008 PRODUCT #: 711S13-HCB-SPA
This is just an excerpt. This case is about STRATEGY & EXECUTION
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