Background of the company
Name of company- Linkedin
Year of Formation- 2003
CEO: Jeff Weiner
Products of the company- Slideshare
Annual revenue- 300.8 million US dollars
Countries in which it operate- Worldwide.
Net operating cost- 0.85 million US dollars
Ad Expenditure- 1.03 billion US dollars
Net Sales volume- 705.84 million dollars
Main competitors- Xing, Indeed, ZipRecruiter, CareerBuilder, Jobs2Careers, Glassdoor, Viadeo, Simply Hired, Naukri and Snag
Background of the company’s product
LinkedIn is an American business and employment-oriented service that operates via websites and mobile apps. Founded on December 28, 2002, and launched on May 5, 2003, it is mainly used for professional networking, including employers posting jobs and job seekers posting their CVs. As of 2015, most of the company's revenue came from selling access to information about its members to recruiters and sales professionals. Since December 2016 it has been a wholly owned subsidiary of Microsoft. As of June 2019, LinkedIn had 630 million registered members in 150 countries. LinkedIn allows members (both workers and employers) to create profiles and "connections" to each other in an online social network which may represent real-world professional relationships. Members can invite anyone (whether an existing member or not) to become a connection. LinkedIn participated in the EU's International Safe Harbor Privacy Principles.
BCG Matrix of the products
Background of the task force environment and their interplay
SWOT Analysis
Strengths
LinkedIn has a strong business model with revenues flowing in from three different streams like Marketing Solutions, Talent solutions and premium subscriptions. It largely remains as a recruitment portal with its hiring solutions business that makes up more than half of the revenues for the company. The company has been growing its revenues rapidly by taking away more recruitment dollars from the competitors like Monster and Careerbuilder.
Weaknesses
The company is prone to unverified or fake profiles. There is a very low users engagement on the platform as compared to the SNS. Also, there is web security vulnerability in the company and there are certain cultural barriers and weak presence in the growing markets. There is also lack of presentation for some of the industries. In 2013, LinkedIn was accused of violating data privacy by hacking into third party email accounts. This indicated a breach of privacy for the users and had a bad impact on the users. This affects brand image of LinkedIn.
Opportunities
Smartphones are minimising the need for PC day by day. LinkedIn has also identified the fact that it is more convenient to use a mobile application and mail on smartphones than on PCs. LinkedIn has not only introduced a feature of applying for jobs but has also introduced Sponsored Inmail for marketing emails and promotions. Also, Social recruiting is a growing trend in the industry which implies hiring candidates through social media channels. Recruiters in the future are more likely to recruit talent through the social media. LinkedIn’s significant presence creates a great potential for it to grow with this trend. LinkedIn has launched LinkedIn in Chinese specifically to target the Chinese market which has great potential for growth. LinkedIn can become a source of the network which allows jobs abroad and hence has the potential for growth in China.
Threats
LinkedIn faces intense competition from social media platforms like Facebook, online recruitment company like monstor.com and talent management and talent solutions provider companies around the world. Intense competition forces LinkedIn to constantly innovate and hampers growth opportunities. The Companies offering online services have come under public scrutiny recently. There is a greater need for regulations on the internet as identified by various governments and cyber security departments. Such measures could affect the industry.
Pestle analysis
Political
About LinkedIn government expresses its concern in the form that the data of the specific companies and the candidates should be secured properly. These issues relating to the privacy of the information increase the cost of operations for LinkedIn. Moreover social networking is also restricted by the government to generate illegal acts like money laundering and national secured information through hacking. So the rules set by the government should be followed to have success. Taxation issues are also important. Since there are several other competitive social media platforms that are functional, it is important that LinkedIn maintains a stable position and does not get targeted by the government for any wrongdoings.
Economic
LinkedIn needs to analyze the economic factors. The most important from these factors is Gross Domestic Product (GDP) growth. The motive for counting GDP growth in the study is that this is normally and intimately linked with employment rates and purchaser expenditure.
Social
LinkedIn is a social networking website. So it is very important to analyze the behaviors of people to accept this as their professional network. There is privacy and correctly stated information issue. People should feel comfortable and secure while uploading their professional information on the website. This will increase the active users and ultimately will earn more profit. As a social website, it becomes a moral obligation of the website to consider all the social factors that might influence the functionality of the website. It is important to remember that a social platform, LinkedIn has the authority to voice people’s diverse opinions and also be a platform to take the message of people one step ahead. The profits of the website also solely depend on what is the ratio of the traffic audience and how many people will engage with the content that is published on the website on regular basis. Active engagement of the users with published content on the website is crucial to increase the sales and profits margins for the website.
Technological
Social networking sites like LinkedIn should focus on the advance technologies to entertain the customers in more effective methods to provide them the extra platforms for their benefits. Moreover the basic security issue regarding the information hacking, latest technology should be used by LinkedIn to make customers more comfortable.
Legal
Laws and regulations set by several regulated bodies to operate the social networking sites are also very important. LinkedIn should focus on all the legislations that are required to operate smoothly and attract more customers both the candidates and the corporations. Legal right should be there for the safe information handling. This will benefit more because the customers (workers, employers) will accept conveniently.
Environment
Laws and regulations set by several regulated bodies to operate the social networking sites are also very important. LinkedIn should focus on all the legislations that are required to operate smoothly and attract more customers both the candidates and the corporations. Legal right should be there for the safe information handling. This will benefit more because the customers (workers, employers) will accept conveniently.
Problems facing by the company
There's a lot going wrong at LinkedIn, but here are a few major factors that led to the current predicament.
1. Competition
2. User engagement
3. Poorly trained recruiters
4. Spam accounts
5. Innovation
Select one of this problem
User Engagement
It goes without saying that LinkedIn is nothing if users suddenly determine they are to update their profile less often or log in less frequently. Those are the two main things LinkedIn is thriving on: The fact that users log in and that they keep profiles up to date. This is not at all to take for granted.
Give a brief overview of the problem with facts
If choosing one single challenge I'd say LinkedIn being so dependant on engaged and active members is the biggest one. Since so many are using LinkedIn to contact others due to three business areas working with the same principle in mind, people risk feeling spammed. This is a huge risk for LinkedIn seeing less people keeping profiles up to date resulting in less targeting accuracy = even more spam = even less profile updating.... Etc. You get the point.5th- Suggest possible 3-4 solutions
To improve the quality control issue, Lululemon should do the following:
1. Reducing the page loading time
You’ve probably had an experience with slow-loading pages yourself. You find a website that looks interesting, then you click on the link only to be kept waiting for it to load. You likely exit the website because it’s frustrating to wait and wait. A study conducted by Soasta found that pages loading just one second slower can experience a 56% increase in their bounce rate. That spells trouble for website user engagement.
2. Improving internal linking structure
In addition to boosting your SEO ranking, a good internal linking structure will enable users to navigate your site easily. Then you’ll be able to generate more page views with each visitor and decrease bounce rate. Both are essential for website user engagement.
3. Display related content
Website user engagement tip is somewhat similar to internal linking. Simply display relevant posts at the end of each page. This helps visitors easily find related posts if they require more information about the topic they were initially reading.
No comments:
Post a Comment