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Social Networking

In: Business and Management

Submitted By tadair57
Words 824
Pages 4
Management Information Systems
Course Project Four Case Study
Social Networking
1. Facebook, MySpace, and LinkedIn are using disruptive technology to run their business. Disruptive technology is a new way of doing things that initially does not meet the needs of existing customers. Disruptive technology tends to open new markets, and enter into the low end of the markets to displace high end competition. Sustaining technologies tend to build on established markets that provide cars that gain better gas mileage or faster cars, as well as cheaper products. MySpace allows users to interact in a way unparallel before its emergence. Facebook has surpassed MySpace as far as active users. Facebook has many features, but it is its chat feature, one that populates a friends list that has surpassed the features of America Onlines’ Instant Message. LinkedIn is geared for the professional or business orientated as opposed to Facebook and MySpace that are geared to finding and keeping in touch with friends and family. LinkedIn members invite people to be connections instead of friends. LinkedIn is a contact management system as well as a social network, and has a question-answer section similar to Yahoo Answers. LinkedIn is a site to network for future positions. Develop your profile to show case your skills in hope of a network “connection.”
2. Some business challenges facing social networking sites are remaining innovated and security issues. Business Driven Technology text relates that the first mover advantage is critical to businesses that want to compete in the Internet economy. Gaining a first mover advantage is typically temporary and without remaining innovative the company can soon fail. Another business challenge facing social network sites are that of protecting the consumers against unsolicited communications, invasion of privacy and cyberfraud. MySpace and Facebook are sites where one can connect with friends and family so that the typical user is unaware of the dangers of posting too much information especially with the very young users. Whereas LinkedIn is a professional site that if the user reveals too much information could result in an identity theft.
3. The common characteristics of social networking sites are shared hobbies, communications and commerce. A member of these social networking sites may upload, download favorite songs, videos or communicate directly in an open forum, sharing ideas or parts of their daily activities. A user may click on a friend’s link and grab a coupon or buy online items of seemingly need. Business Driven Technology text stated that social networking sites are rapidly becoming webs within the Web. Social networking sites give users a great deal of control over what users post online.
4. Security issues that social networking sites create range from urging users to create strong passwords that are changed regularly to better protection of user’s information. Richard Moulds at Thales e-Security says that password security is only half the effort. “The other half is determining how websites protect those passwords.” Social networking sites have to have a security infrastructure in place to prevent hackers from accessing user’s sensitive information.
5. Some of the current social networking trends are corporate use of social networking and social networking going mobile. Corporations are developing their own social networking sites as well as their own pages on these sites. Organizations can communicate with its employees with non sensitive information such as an organization’s upcoming events. Also, browsers of these social networking sites will see company’s profile that may instill subliminal message about the company. Many companies are now advertizing to “like” them on a social networking site. This keeps organizations names in circulation or foremost on consumers’ minds. Social networking sites are going mobile through the use of wireless technology. Jumping on the wireless apps mega trend, Facebook uses mobile alerts to deliver mobile services for traditional cell phones and more intelligent smartphones. Today one could do just about everything on social networks as they would do on a PC because of wireless technology.
6. Revune that can be generated beyond selling banner and text ads are: social networks could collaborate with other companies. If its members use a company that has a partnership with a social network and the use was through that social network than a percentage of cost could be had. Or the partnered company could give a discount to those who use its services through the social networking site. Another way to generate revenue beyond ads is to charge a price for certain game levels. Facebook’s Farmville took off like wild fire a few years ago and still has a tremendous following, its where players develop farms by collecting points. The site could charge a fee for buying in at a certain level.

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[ 1 ]. Business Driven Technology page 225
[ 2 ]. Business Driven Technology page 227
[ 3 ]. Business Driven Technology page 191
[ 4 ]. http://www.eweek.com/c/a/Security/LinkedIn-Faces-5-Million-Lawsuit-After-Password-Breach-850895/ eWEEK article
[ 5 ]. Business Driven Technology page 226

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