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LinkedIn Corp., 2008

LinkedIn Corp., 2008 . Avimanyu Datta Doctoral Candidate, College of Business, Washington State University. LinkedIn Corp.: Overview. Vision Positions itself as a full service professional “productivity tool” (not just personal networking or jobsite)

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LinkedIn Corp., 2008

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  1. LinkedIn Corp., 2008 Avimanyu Datta Doctoral Candidate, College of Business, Washington State University

  2. LinkedIn Corp.: Overview • Vision • Positions itself as a full service professional “productivity tool” (not just personal networking or jobsite) • It can be argued that Social Networking will naturally segment along the same lines as traditional media with solid defensible niche for business oriented service • Building high switching costs

  3. LinkedIn Corp.: Overview • Value Proposition • Strives to draw professional users by improving its offerings and differentiating itself from Social networking Sites(SNSes) that promote personal and recreational Social Networking. • Driving users to visit LinkedIn for multiple reasons. • Reaching other networks while preserving privacy.

  4. LinkedIn Corp.: Overview • Value Proposition • Rolled out a new home page comprising

  5. LinkedIn Corp.: Overview • Business Model: five sources of revenue

  6. LinkedIn Corp.: Overview • Platform Management • Functions as a technology platform on which users can build applications for value additions. • Allowed Google’s OpenSocial platform to create conference calendar. • Unlike Facebook, LinkedIn has stricter controls and quality standards. • LinkedIn philosophy “ We won’t allow viral spreading of unprofessional applications”.

  7. LinkedIn Corp.: Overview • International Expansion • Languages other than English planned: French, Japanese, Spanish. • Chinese: Be more specific • Japanese culture looks down upon disloyalty to current employer. • In China it is spend months to het recommendations and personal referrals, so current model many not work.

  8. LinkedIn Corp.: Overview • Competition Facebook Social Network Services Professional network Services Xing MySpace Monster Orkut Specialized: The Ladders

  9. LinkedIn Corp.: Overview • Strategic Dilemma 1 • Strategic Dilemma 2 Closed Environment Open Exclusively Professional Go Social

  10. Three Essential Aspects • Network Effects in Social Networks • Evaluation of LinkedIn’s Strategy • Evaluating the Dilemmas

  11. Network Effect of Social Networks • LinkedIn in links Users, Application Developers, recruiters, Advertisers, and Experts. • Company should explore where the network effects are strongest and what are the potential negative network effects. • Positive effect: Positive sum game between entities • Negative effect: Zero sum game between entities.

  12. Network Effect of Social Networks APPLICATION DEVELOPERS RECRUITERS USERS EXPERTS ADVERTIZERS

  13. Network Effect of Social Networks • Two conflicting Arguments

  14. Evaluation of Strategy: Positive Sides Great Propositions for Job Seekers: Don’t have to alert your employers

  15. Evaluation of Strategy: Negative Sides Will the model really work across several cultures

  16. Dilemma 1: Open Versus Closed Architecture • Advantages of Dismantling the Walled Garden

  17. Dilemma 1: Open Versus Closed Architecture • Disadvantages Opening the Platforms to users

  18. Dilemma 2: Broadened Scope versus purely professional network • Advantages of adding social networking services • Leveraging a platform that is already in place. • Increasing “stickiness’ of services and increasing the frequency of visits. Where do you visit more? LinkedIn or Facebook.

  19. Dilemma 2: Broadened Scope versus purely professional network • Disadvantages of adding social networking services • Diluting the LinkedIn brand and its differentiation from big SNSes • Failing in efforts to compete with big SNSes

  20. QUESTIONS/ COMMENTS?

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