Question

1. Why is growing the number of users such an important metric for social media companies? How does Metcalfe’s Law relate to the profitability of social media companies?

2. Most social media companies rely on ad revenue as their main source of income. What are other ways that LinkedIn generates income? Why is it important for a company to have multiple ways of generating income?

3.Why do recruiters and job seekers like LinkedIn? Explain why an employer may dislike LinkedIn. Is there a strategic disadvantage to having your employees list detailed profiles on LinkedIn?

372 CHAPTER 9 Social Media Information Systems and CASE STUDY 9 syste & Redes Navig Some are core Narly ever by desktop desktops. Linkedinis LinkedIn basea LinkedIn For a newly launched social networking company having only 20 people sign up per day could indicate you are doomed to fail. This Is especially true if the team of colleagues involved had worked for successful ventures like SocialNet and PayPal. However, in 2002 this was the case for LinkedIn, the business-oriented social net working site headquartered in Mountain View, California. Ven ture capitalist Reid Hoffman assembled the team of designers and engineers who created the social networking site. Growing the Network Growth for the company was very slow in the beginning. Some days. only 20 people per day would sign up to become members. Metcalfe's Law states that the value of a social network is pro portional to the square of the number of connected users of the system. By this logici Linkedin couldn't get users to sign up the company wouldn't be worth anything. However, the company finally became profitable in 2006 when it boasted more than 5 million members. In 2010, Linkedin expert enced hypergrowth and saw membership climb to 90 million, with more than 1.000 employees in 10 offices around the world. The company was adding nearly two new members every second One year later in 2011, Linkedin celebrated its eighth anniversary and enjoyed a membership of more than 115 million members That same year. LinkedIn became publicly traded on the New York Stock Exchange and was valued at more than $4.5 billion At the time. Linkedin was earning more than 150 million per year in advertising revenue, which was $15 million more than social networking glant Twitter was earning from advertising those qualified individuals to see. Connecting colleagues,pro sionals, recruiters, job seekers and employers is at the core of what Linkedin is all about. Linkedin is for all people interested in taking their professional life more seriously Leveraging Microsoft In 2016, Linkedin was acquired by Microsoft for $26 billion At the time the company had more than 9,000 employees and claimed more than half a billion members in more than 200 countries worldwide. More than 20,000 companies buy Linkedin Recruiter accounts to help find potential employees. Job seekers can comb through more than 1 million job openings posted by the largest companies in the world The acquisition of Linkedin raised a lot of questions. Why did Microsoft's CEO Satya Nadella buy LinkedIn? Would the two.com panies be worth more together than apart? This was Microsoft's largest acquisition and it was coming on the heels of a disastrous acquisition of mobile phone maker Nokia for S7 billion. In separate blog posts. Satya Nadella and Linkedin CEO Jell Weiner outlined the ways the two companies plan to integrate products and leverage Microsoft's scale. Some of the ways they're planning on achieving their shared vision includes 1. Incorporating LinkedIn's identity and network in Microsoft Outlook and the Office suite 2. Supporting Linkedin notifications within the Windows action center 3. Enabling members drafting résumés in Word to update their profiles and to discover and apply to jobs on Linkedin 4. Extending the reach of Sponsored Content across Microsoft properties QUESTIC 9-10. 9-11. Professional Network Unlike other popular social networks that focus on friend- ships and recreation Linkedin focuses on professional con nections. People use the site to highlight career skills and promote professional résumés. Linkedln allows people to be Introduced via common con- nections and allows job seek ers to become connected with people posting jobs. Employers can target the exact type of person they are looking for and post jobs for Linkedin Source: Jej 120/Alamy Stock Photo

if your only going to answer one please answer #2 however id greatly appreciate and love it if you answered all three ❤️?

Answer 1

ANS 1. GROWING NUMBER OF USERS ARE IMPORTANT METRIC FOR SOCIAL MEDIA COMPANIES BECAUSE IT SHOWS THE VALUE OF COMPANY, WHETHER THE STRATEGIES ARE WORKING ACCORDINGLY OR NOT AND ULTIMATELY HOW IT IS AFFECTING THE BUSINESS.

METCALFE'S LAW IS RELATED TO PROFITABILITY BECAUSE IT STATES THAT THE VALUE OF THE SOCIAL NETWORKING BUSINESS IS EQUALS TO THE SQUARE OF THE NUMBER OF USERS CONNECTED TO THE SYSTEM. OTHERWISE IT HAS NO VALUE.

ANS 2. THE OTHER WAYS THROUGH WHICH LINKEDIN GENERATES THE INCOME IS BY INTEGRATING ALL THE WINDOWS PRODUCTS AND HAVING MORE CONTACTS WITH THE USERS BY GIVING THEM GREATER REACH. THEY RESELL SOCIAL SELLING THROUGH SALES NAVIGATOR AND DYNAMICS 365. THEY HAVE MADE LINKEDIN LEARNING AVAILABLE TO ALL WHERE SOME COURSES ARE FREE AND OTHER ARE PAID. OTHER SOURCES ARE THE SPONSORSHIPS OR ADS.

GENERATING INCOME THROUGH MULTIPLE WAYS MAKES BUSINESS RELIABLE TO STAND FOR LONGER TIME AS COMPARED TO BUSINESSES WHO RELY ON ONLY ONE SOURCE OF INCOME. A BUSINESS SHOULD ALWAYS HAVE SIDE EARNINGS TO COVER UP THE RISKS.

ANS 3. RECRUITERS LIKE LINKEDIN BECAUSE THEY CAN TARGET THE PERSON WHOM THEY ARE LOOKING FOR AND THEY CAN ALSO POST THE JOBS FOR OTHER JOB SEEKS AS WELL. JOB SEEKERS LIKE LINKEDIN BECAUSE THEY GET MORE OPPORTUNITIES THERE.

AN EMPLOYER MAY DISLIKE LINKEDIN BECAUSE HIS EMPLOYEES CAN BE ATTRACTED BY OTHER EMPLOYERS BY PROVIDING THEM MORE SALARIES AND BENEFITS. THIS IS A DISADVANTAGE OF LINKEDIN BECAUSE MORE CONNECTIONS WOULD MEAN MORE CHANCES OF EMPLOYEE TURNOVER.