HI6008-Advantages Disadvantages Networks Business | Social networking
2.1 Introduction HI6008-Advantages Disadvantages Networks Business
HI6008-Advantages Disadvantages Networks Business has become extremely popular among people of all ages. The popularity of internet and improvement of technology have expedited the growth of the popularity of social networking. Social networking is synonymous with the term virtual community which means group of people who meet and talk to each other over internet without being in person. The growth of social networking is phenomenal regardless of any geographic location (Bridge and O’Neill, 2012). Social networking is based on a platform that is called social media which has led to emergence of many social networking sites among which face book and twitter have gained popularity across the world. The application of social networking has reached out beyond internet friendship and the new horizon has been explored by big and small corporate to place their business at the fore for brand image development.
Thus business world has liking for the social networking by virtue of their business and social media is in use by them for reaping out benefits (Jenkins, 2009). Also domains like study and online learning also acknowledge the importance of social networking which encourages exchange of ideas in course of study or consolidation of business related views. But this popular concept often invites lot of criticism as some advantages and disadvantages prevail around social media. This literature review is focused on assimilating arguments laid by several authors and their views in support as well as against social networking. Thus this literature review is very close to a comparative analysis of several views laid by several authors and the review by means of comparative analysis seems a basis of actual discussion of advantages and disadvantages of using social networking in business. Finally a gap assessment of this literature review based on several arguments and similarities in views has given a complete shape to this literature review.
2.2 Social network from business perspective
Social networking is useful in business for sharing products related information about any upcoming products and services. But in all types of business social networking does not accrue same results. Arguments prevail that social media does not open up many opportunities to all organisations as there is some, time investment and nature of business of an organisation may not require the service of social media as a primary variant of business promotion
. Bruhn, Schoenmueller and Schäfer, (2012), argued that firms nowadays show eagerness to show their affection towards social media considering the excitement about it among people. It is supported by De Carolis, Litzky and Eddleston, (2009) saying that small firms often struggle to establish their business and concentration on social media becomes secondary for them. This is opposed by (Guffey and Loewy, 2010), and said that social media marketing is almost is a common name within every business arenas and once small firms get into business properly then it becomes imperative for using social networking. De Carolis, Litzky and Eddleston, (2009) said social networking sometimes denote a very narrow sense and the vast suitability in business spheres become more clear when the term social media is used for offering more realistic form to this in business. This is supported by Harris and Rae, (2009), stating that with business growth and complexity are apparent due to factor like globalisation, volume of use of social networking differs but the usefulness and dependence of business on it are unavoidable.
Hence the use of social media is important for every business but in small and large scale, it is used as per business requirement. This is viewed as not equally fitted into the business realm of all small and big firms. It is stated by Harris and Rae, (2009) that several advantages and disadvantages of social networking improve or hold back perceptions related to it and business firms who depends on their employees to use the social networking as means for propelling business are not outside the perceptible attitude of the customers regarding it. As has been upheld by Kasavana, Nusair and Teodosic, (2010), organisations need more focus on development of social media marketing strategy for business growth. Products development and service improvement are important for improving perception about products and services. Product quality and good features are factors which attract customers towards brand and purchase decisions are taken.
2.3 Business advantages and disadvantages from discriminating flow of information
Needs of information drives a business towards discovery of information and social networking is most viable input from modern technology and internet in this regard. Picazo-Vela, Gutiérrez-Martínez and Luna-Reyes, (2012), thinks that firms struggle to understand the behavioural pattern of their customers and they can try to cope with frequent changes in the choices and expectations of customers. Therefore firms feel to delve into the mindset of customers to identify their needs and views regarding current products and this is supported by Rothaermel, (2015).
This creates a comparative assessment of present strength of business. Social networking facilitates firms to see the flow of information in form of feedbacks from customers and these are embedded into the products and services for ensuring more improvement in support of identified change requirement. Rothaermel, (2015) argues that all information put up by customers are not important in all measures and here lays the importance of discriminating feedbacks and views of customers to use to the utmost advantages of business. Sledgianowski and Kulviwat, (2009) held same perception agreeing that business can be ruined if information are not prioritised as per importance. (Greenhow 2011) has more optimistic views saying that no matter some disadvantages surface up from social networking;
several positive aspects are the basis of win-win factors for companies and customers. In support of this opinion, Trusov, Bucklin and Pauwels, (2009) stated that information achievement and discovery is only possible if there is open communication. They further stated that business may have wide lists of contacts and real distance between customers and companies get reduced by increase in virtual proximity. More closeness is more opportunity in business expansion and communication plays vital role and becomes easy to get established between customers and business. Rothaermel, (2015) said in support of market research which is more possible in shortest times with the help of social networking and valuable information comes into the organisational clutch. This is somewhat argued by Greenhow (2011), and has said that social media puts some uncertainty in its use as customers need to have knowledge to stay connected with social media and the degree of knowledge about social media among customers and technology shape the possibility of success of corporate using it. But the usefulness of social networking is not directly underestimated by these authors. There are some contrasts in views also regarding use of social networking in business pursuit. Picazo-Vela, Gutiérrez-Martínez and Luna-Reyes, (2012) have laid more direct argument and said that information discovery and its use for business by firms are good so long as the social networking is safe and not intruded upon by the unwanted persons like hackers. Use of social media needs confinement in business purview so that only authorised employees can have access to it.
Many times it can happen that organisations are not able to measure the return on investment in their social media marketing if profits start generating very slowly. This dissuades them from adopting social media marketing as business promotion tool. Also negative reviews causes adverse situation which firms need to tackle and find out whether the reviews are justified or are aimed for damaging the brand image of companies (Greenhow, 2011). In both the situations firms need to have better strategies which can improve service and product quality for changing negative comments into positive review in future and to win back the trust of customers who are the most important stakeholders of the company.
2.4 Does Social media marketing makes difference in business- a comparative analysis
Social networking gets into corporate sphere with its tag like social media which includes low cost advertisement. Products can be presented to customers with less time and less costs involves as compared to conventional mode of marketing. Rothaermel, (2015) has agreed with this citing that products can reach to large markets consisting of large numbers of customers while this has been argued by Trusov, Bucklin and Pauwels, (2009), mentioning reason that the effectiveness sometimes get hindered by negative views expressed by audiences who are customers.
Firms attempt to put potential customers in the sales generating class but development of sales opportunities get reduced by negative remarks. Rothaermel, (2015) stated that in their view, that organisations need to have control on social media use by keeping watch on use of it but this is argued by Bridge and O’Neill, (2012). that what customers speak about products online are beyond control of organisations and these false remarks are the huge drawbacks of social networking and cost business more in way of spoiling selling opportunities. Bridge and O’Neill, (2012), affirmed that social media is fast mode of communication and both pre and post selling service requirement can be met by organisations widening the satisfaction possibilities among customers.
Their views are also supported by Greenhow (2011), who is optimistic about the social networking that use of social network is a foundation of brand loyalty development and can be effective if companies can win trust of customers on continual basis. Some contrasting views were placed by Sledgianowski and Kulviwat, (2009) as they said that communication and marketing are two different aspects and they also emphasised that social media makes communication fast but marketing through social media is time consuming and organisations need to have a team of employees who manages social media, Therefore social media marketing is possibly low cost approach but at the same time, investment in time and manpower for managing it override low cost of advertisement. Among positive aspects of social networking’s use in business, organisations often fear out of loss of control in social media and regarding this Greenhow, (2011) has expressed concerns that firms may face loss of reputation if their customers are duped by hackers or unauthorised persons pretending to be the company personnel.
HI6008-Advantages Disadvantages Networks Business | Social networking
2.5 Gaps in literature review
This literature review has necessarily incorporated several arguments and similarities in views of several authors. The requirement of becoming a comparative analysis is fulfilled based on the presentation of the arguments and similar views regarding the advantages and disadvantages of social networking use in business. The most notable portion in this literature review would have been discussion of possible solutions of problems that arise from disadvantages.
But it missed out on that and only very shallow ideas have evolved from the disagreements and similar views held by the authors. This has been identified as the gap in this literature review. According to Kasavana, Nusair and Teodosic, (2010), organisations need to emphasise on training of employees for fulfilling their responsibilities relating to social media marketing and operation. Growth of their consciousness can boost up security measure with experts in their companies and with changes in policies (Greenhow, 2011). More interaction with customers over security aspects and required actions from them in case of matter of suspicion, remain vital part to improve social media as an important tool for achieving organisational growth. Assurance to customers regarding security upliftment backed by better security measures can result into making of purchase decisions and purchase inspired by social media.
Social networking has several merits and demerits which keep organisations and many customers in a situation of confusion, while adopting it as a communication platform. Advantages can be in favour of companies while disadvantages have possibilities to delay the fruitfulness of social networking. This literature review has discussed some advantageous and disadvantageous facets of social media in a form of comparative assessment with gap identified in the discussion.
Views of several authors are the base of comparison among advantages and disadvantages and gap has surfaced (Jenkins, 2009). Firms need to have security awareness and policies regarding this to improve security level and knowledge infusion among employees responsible for managing it. Social networking can be effective in use in business if security measures and firms’ control can be improved (Jenkins, 2009). Organisations need corrective measures to improve product quality based on feedbacks of customers and then the use of social networking in business can offer most optimal outcome in terms of growth in sales and high profit achievement on continual basis (Bridge and O’Neill, 2012). This discussion has not been included elaborately in the comparative analysis in this literature review and the gap surfaced as a result.
Bridge, S. and O’Neill, K., 2012. Understanding enterprise: entrepreneurship and small business. Palgrave Macmillan.
Bruhn, M., Schoenmueller, V. and Schäfer, D.B., 2012. Are social media replacing traditional media in terms of brand equity creation? Management Research Review, 35(9), pp.770-790.
De Carolis, D.M., Litzky, B.E. and Eddleston, K.A., 2009. Why networks enhance the progress of new venture creation: The influence of social capital and cognition. Entrepreneurship theory and practice, 33(2), pp.527-545.
Guffey, M.E. and Loewy, D., 2010. Business communication: Process and product. Cengage Learning.
Harris, L. and Rae, A., 2009. Social networks: the future of marketing for small business. Journal of business strategy, 30(5), pp.24-31.
Jenkins, H., 2009. A ‘business opportunity’model of corporate social responsibility for small?and medium?sized enterprises. Business ethics: A European review, 18(1), pp.21-36.
Kasavana, M.L., Nusair, K. and Teodosic, K., 2010. Online social networking: redefining the human web. Journal of Hospitality and Tourism Technology, 1(1), pp.68-82.
Picazo-Vela, S., Gutiérrez-Martínez, I. and Luna-Reyes, L.F., 2012. Understanding risks, benefits, and strategic alternatives of social media applications in the public sector. Government information quarterly, 29(4), pp.504-511.
Rothaermel, F.T., 2015. Strategic management. New York, NY: McGraw-Hill.
Sledgianowski, D. and Kulviwat, S., 2009. Using social network sites: The effects of playfulness, critical mass and trust in a hedonic context. Journal of Computer Information Systems, 49(4), pp.74-83.
Trusov, M., Bucklin, R.E. and Pauwels, K., 2009. Effects of word-of-mouth versus traditional marketing: findings from an internet social networking site. Journal of marketing, 73(5), pp.90-102.
Greenhow, C., 2011. Online social networks and learning. On the Horizon, 19(1), pp.4-12.