GROUP MEMBERS

Junaid InamAtif ShabirMuhaammad NaeemQasim MukhtarArsalan Khan

INTRODUCTION

• LinkedIn is a business-oriented PNS• Founded in 2002 by Reid Hoffman• Initial investment by cofounders of Paypal & Netscape• Market leader in Professional Networking System• Revenue of $2.2 billion in 2014• 7600 permanent employees worldwide• Over 356 million users• 184 million visitors per month from all over the world• Website availability in 24 languages• 67% users are from outside of USA• 70% worldwide market share in Talent Solutions

Relationships Matter

VISION

MISSION

Q #1: STRATEGIC OBJECTIVES

Strategic objectives are usually developed as a part of a two- to four-year plan that identifies key strengths and weaknesses and sets out the specific expectations that will allow the company or organization to achieve its

more broad-based mission or vision statement.

STRATEGIC OBJECTIVES OF LINKEDIN

• Expend network’s sales to existing customers.• Decrease expenses by 5-10% in 3-5 years.• Increasing our technical & web securing capabilities to secure

personal data of our users.• To create economic opportunity for every individual within

his/her interested area.• Focus aggressively on South Asian markets,• Decrease the number of physical facilities i.e. offices.• Cut operational cost @ 3% per year

Q #2: STRATEGIC PROBLEM

Go social or stay exclusively professional

MATRIX

Q #2: SWOT ANALYSIS

S W

O TSWOT

Analysis

Strengths Weakness

Opportunities Threats

STRENGTHS

SWOT ANALYSIS

S

S W

O T

• Credible professional accounts

• Brand reputation

• Diversified revenue streams

• Sufficient financial recourse to

fund the projects

STRENGTHS

STRENGTHS

SWOT ANALYSIS

S STRENGTHS

Revenue Model: LinkedIn has a solid business model with revenues flowing in from three different streams, including Premium subscriptions, Marketing solutions and Talent solutions. However, LinkedIn largely remains a recruitment portal with its hiring solutions business, which makes up more than half of the revenues for the company. And LinkedIn has been growing its revenues rapidly by taking away more recruitment dollars from competitors like Careerbuilder and Monster.

W

WEAKNESSES

SWOT ANALYSIS

S W

O T

• Prone to unverified or fake profiles

• Very low users engagement on the

platform as compared to SNS

• Web security vulnerability

• Cultural barriers and weak presence in

growing economies

• Inadequate presentation for some

industries

WEAKNESS

O

OPPORTUNITIES

SWOT ANALYSIS

S W

O T

• Global expansion especially in growing

economies

• Develop/Increase advertising space on

free accounts

• Integrate with Skype and other SNS’s to

provide better communication

• Huge potential in emerging economies

OPPORTUNITIES

T

THREATS

SWOT ANALYSIS

S W

O T

• Dynamism of the industry and varied

potential competitors

• Government regulation maintaining

privacy

• Possibility of unreliable data

THREATS

Q #2: SPACE MATRIX

Internal Strategic Position External strategic PositionCompetitive Advantage (CA) Industrial Strength (IS)(-6worst,-1 Best)

-2 Product quality

-2 Market share

-1 Brand & image

-2 Product life cycle

Average -1.75

 

(+1 Worst, +6 Best)

+5 Profit potential

+5 Growth potential

+5Access to financing

+5 Consolidation

Average +5

 

Financial strength (FA) Environmental stability(ES)(+1 worst, +6 best)

+6 ROI

+5 Leverage

+5 Liquidity

+5 Cash flow

Average 5.25

 

(-6 worst , -1 best )

-4 Inflation

-1Technology

-2 Demand Elasticity

-4 Taxation

Average -2.75

Matrix

SPACE MATRIXMatrix

SPACE MATRIX

Q #2: BCG MATRIX

Talent Solutions LinkedIn Solutions (Sales & Marketing

Premium Accounts

Advertising

Matrix

BCG MATRIXLinkedIn Revenue by product

BCG MATRIXOnline advertisement revenue by company

Q #3: PROPOSED STRATEGIES

• Outsourcing• Cost Leadership• Product development• Market Development• Market Penetration• Partnership (integration with other PNS’s and SNS’s)• Related Diversification• Differentiation Strategies• Functional-Level Strategies• Potential Acquisitions

Q #4: PROPOSED STRATEGIES

Cost Leadership• Difference between revenue and net income• Too much operational cost• 7600 permanent employees

Outsourcing• Will help cut down cost• Better data management by native people• Can avoid security breaches and hackings

PROPOSED STRATEGIES

Market Penetration• Only 29% Americans have LinkedIn account• No major representation in European corporate world

Partnership• Integration with other PNS and SNS’s • Value addition• Increase in time spent by users on LinkedIn

PROPOSED STRATEGIES

Related Diversifications• Include potential acquisitions• Increase to the corporation earnings• Engage consumers in different applications

Differentiation• Appreciated by all corporate sectors in developing world• Inability of SNS’s to make serious inroads into PNS

PROPOSED STRATEGIES

Product Development• High number of young professionals• Separate internship portals• Interesting apps and services• Low prices premium accounts

Market Development• Only huge PNS or SNS available to Chinese people• Concentration on growing markets in Asia having huge

potential

DIVERSIFICATION (ACQUISITION HISTORY)

Total Acquisition: 15Total Amount $2.5 Billion

Q #5: PRODUCT DEVELOPMENT

LinkedIn Career Beginners• An integrated professional networking platform for college

students linked with their colleges providing career counseling and engaging them on the LinkedIn platform while turning them into potential consumers for future. These students will be pouring profits in all revenue streams of LinkedIn once they are in the corporate world.

• Home to fastest growing population of young professionals.

PRODUCT DEVELOPMENT

PRODUCT DEVELOPMENT

Expected Problems:High budget for R&DNew product development cost

Potential:Youth is a large portion of total populationGraduates are more concerned about their career nowInspired by their superiorsStrong financial backing of LinkedInAbility to pay off soon

INTEGRATED NETWORKING SERVICES

Integrated Networking Services (Partnership)• Integration opportunity with Skype and other SNS’s and

PNS’s for consumer engagement• Integration with Skype can able LinkedIn users to connect via

Skype video call service with their connections on LinkedIn webpage.

• This can help overcome LinkedIn’s one of most concerned problems (less time spent by users on LinkedIn webpage)

• A sense of SNS while keeping the status of market leader in the NPS category.

INTEGRATED NETWORKING SERVICES

Integration and partnerships will be helpful for LinkedIn

INTEGRATED NETWORKING SERVICES

B2B Partnership in Advertising Listing• Advertising share in online marketing less than 1%• A lot of space on webpage can be useable for ads• (49%) of LinkedIn users have household incomes over

$100,000• LinkedIn users are more likely than the general population to

own tablets and smartphones• LinkedIn users are actual buyers of branded and expensive

products as compared to other social networks• 82% of LinkedIn members agree that companies should have a

presence in social media

ADVERTISING POTENTIAL