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