The social media includes the different web-based communication technology that could be used by an organization to share the information and interact with others. In the recent business situation, there is a wide range of social networks are used by companies to share the information. These social networks could be Snapchat, Facebook, Pinterest, LinkedIn, Instagram, WhatsApp, and Twitter. It is analyzed that approximately 46 billion people are implemented the social networking system to communicate with other people and share their ideas and beliefs through the web. It is evaluated that Facebook is a recognized social network because approximately 1.86 million of customers uses this site at the global level. As per the existing situation, it can be evaluated that high amount of individuals who uses social networking are young people especially the student of college (He, et. al., 2015).
Social networking plays a significant role in the existing business scenario. A company can persuade the bulk of customers and deal with the business operation by using the social network. They can exercise the social networking system to create awareness regarding their products and services among the bulk of consumers. Consequently, it could be beneficial to increase the profitability of minimum time and cost. A literature review of this section contains the discussion, reviews, and detail given by several authors on the research topic (Peppard, and Ward, 2016). The topic of this research is to analyze the Advantages and Disadvantages of Using Social Networks in context of Woolworth supermarket, Australia.
The main aim of this research is to analyze the advantages and disadvantages of using the social network in business in the context of Woolworth supermarket, Australia. Following objectives are used to accomplish the main aim of this research:
- To explore the meaning and concepts of social network
- To identify the advantages of using the social network in business: In the context of Woolworth supermarket, Australia.
- To evaluate the disadvantages ofusing the social network in business: In the context of Woolworth supermarket, Australia.
The scope of this project is very wide because social network topic is recently popular. The literature review is analyzed from the number of blogs, articles, and journals written as it could be beneficial for the reader to develop the depth understanding of uses of the social network in business practices. This project is also beneficial for retailers because it provides knowledge about the advantages of using the social network. It could be also significant for companies and people who use the social network as it develops an understanding regarding disadvantages of using a social network (Nadeem, et. al., 2015).
These literature review parts aid the researcher to increase the knowledge about the practices of social media in business. It also creates the knowledge regarding advantages of using social networking in business. This section also provides understanding about disadvantages of using social networking in business.
Meaning and concept of Social network in business
According to Turban et al. (2015), the social network is driving force in the existing business scenario. It is buzzword which is exercised by a large number of the company to gain the awareness regarding the business and to publicize it. Social network plays a significant role in the business success. It is the type of media which link the viewers or readers via social media platforms such as Twitter, Facebook, and YouTube. In the current situation, business is implementing a social network to communicate with the existing and potential consumers. It also aids to spread the message about the products and services in the target market. As a result, the company can approach the right set of consumers.
In support of this, Varley (2014) stated that social network aids to interact with a large amount of population in across the Australia. It also enables the company to extend their business. It is stated that there is a different business such as electronics, travel and tourism, retail and another kind of business which operates through online. In the globalization, the company faces difficulties in terms of marketing and promotions. When a business develops good social network then it aids to get a good response from the current and potential customers. In contrast to this, Agnihotri et al. (2016) evaluated that traditional technique of sale is the key method of stimulating the revenue of the corporation since social networking is costly and not reliable. It is analyzed that people may visit through the advertisement and promotion but they may ignore this. It may also decline the goodwill of company and gain the expenses of the organization.
Advantages of using Social network in business
According to Tsimonis and Dimitriadis (2014), the social network creates the awareness regarding the products and services among customers as it supports them to make their own decision. Through the social network, a business can improve the interaction with the customers. From the different studies, it is observed that a large number of users have increased their presence online as it creates the opportunity for the organization to enlarge their business through an online platform. It is stated that online communication is easier and faster procedure which enables the organization to make an effective relationship with the customers.
In support of this, Zikmund et al. (2013) stated that social networking is a significant technique which has increased the popularity of current globalization era. Social networking marketing is entailed by business for marketing product and services. It could be economically good for the corporation because it spreads the valuable data in minimum time to the customers. Social network system facilitates the international connectivity. The forums and communities on social network aid the people to communicate with others and share their views as it would be beneficial to make final buying decisions. Furthermore, target advertising could be done by using the online social networks within the business. It is the significant approach to bringing the information of a corporation in front of a large number of customers which can be performed 24*7.
He et al. (2015) opined that the advertising could be successful in most of the cases hence it should be practiced by a company. There is different fee-based alternation which offers the content to the corporation in order to target the customers who have interest in their products and services. It aids the corporation to reach a large number of population and minimize the waste. Social networking has used to uprising the speed of information and news regarding the company. In the current scenario, there are large numbers of businesses which pool the spread the information regarding their products and services through social networking sites. Since, uses of smartphones and the internet have been increasing hence it leads to increase the access to social media.
In favored to this, Bolton et al. (2013) stated that social networking improves the good association amid the business and their users as it aids the company to get business growth. Moreover, the number of customers is increasing which will aid to increase the publicity and supports the business to increase the profits. From the study conducted by social habit, it is analyzed that there are about fifty-three percent Americans which are loyal towards the brand if they follow it on the social media channel. It demonstrates that social networking aids to lead the customer’s loyalty to their brand. There are more than 3 million of internet users where 2 million of customers are active on the account of social media. Hence, it is a prominent option for business which aids to increase their valuable insight among a large number of customers. Thus, social media ultimately aid to meet the needs of the customers. Moreover, business needs to regularly check the online content of business. Hence, unfavorable feedbacks and comments could be managed at the time.
Kim et al. (2015) illustrated that social networking plays an effective role to improve the customer’s satisfaction level. It is a significant tool for a company to persuade the organization with respect to products and services and improve the productivity in long-term. Furthermore, the consumer should be aware when consumer comment and posts on the page of the corporation as they can positively persuade the consumers by responding promptly.
Prpi? et al. (2015) opined that social network engages the business activity with the customers and provides opportunities for the corporation to gain the customer retention and loyalty. It also creates the opportunity for the business such as increasing customers towards their business. It is evaluated that clear visibility can aid to gain more opportunities for alteration. Moreover, each image, videos, blog post, and comment may influence the customers towards products and services and improves traffic. The social media marketing can facilitate the corporation to build favorable impression by humanization factor. Furthermore, social media could be used by the corporation to share their creative post, ideas, and comment to increase their productivity methodologically. It is evaluated that when the business implemented social networking then they can advertise and market their offering with minimum costs to the larger audience. It could be effective to enhance the ranking of the corporation on search engines and engages the customers in an effective way.
Kim et al. (2015) evaluated that there are different social media platforms within the market which are used by the company to advertise the business such as Facebook, LinkedIn, Instagram, YouTube, and Twitter. There are approximately 70% of the companies which cannot exist in the current business circumstances to communicate with the customers without using digital social media tools. The company should exercise this platform in which it can engage with their audience and target customers without difficulty. For example, Woolworths Company uses Facebook which has more than1.59 billion users and these users belong to different demographics and nationalities. Twitter is exercised by the corporation to create the awareness among customers about their special feature and characteristics.
Disadvantages of using social network in business
According to Piotrowicz and Cuthbertson (2014), updating the data and information regarding business practices on social media may need efforts and time. Furthermore, updating of new information and replacement of existing data may take more time. Social media may lead to decline the number of followers in the business practices. It also creates several uncertainties within the business. There is lack of personal and emotional connection amid the business and customers.
In contrast to this, Ioan?s and Stoica (2014) evaluated that social networking entails the legal consideration which could be costly for the corporation. Its effect could be temporary and disappeared after a certain period of time. Thus, it creates wastage of time and may generate unfavorable feedback of the users which destroy the image and reputation of a corporation. Social networking system also makes competent to business to arrive at the larger population. It also persuades the users to become an honest user as it leads the rivalry to hamper the company’s image.
In support of this, Carlson, and Lee (2015) exhibited that there is a risk of fraud and identity theft in case the business implemented social networking for advertising and marketing. It is stated that poor management of social media strategies may affect the business goals and objectives. When the company advertises through social media and network then it may create different risks such as business and legal risks. Another risk is associated with the image of the brand and loss of trustworthiness to the corporation. It is evaluated that customers may post misleading information which will negatively reflect the amount of revenue to the corporation.
Schaltegger and Wagner (2017) evaluated that there are hidden expenses could be occurred when a company advertises through social media. For advertising through the social network, the company needs to make videos by professional videographers and photographers. These people are creative people which are to be paid for their work. There is need to measure the outcome of social networking within the business. It becomes complex to assess the brand communication and relations which is made with the customers through online platforms. The company needs to act on all type of online media to gain the presence of brand as it takes more time.
From the above discussion, it can be concluded that social networking in business is essential when the company needs to add a mechanism in current globalization era. Social networking system is used to enhance the capabilities of the business to communicate with people and also gain the business profitability. It can be summarized that there are different channels of social networking system which could be used the company to gain the business potential and to arrive at a large amount of customer in the marketplace. But, at the same time, it is analyzed that there are different risks which the company faced while using the social networking system in the business practices.
It can be concluded that social networks generate the opportunities for the corporations and create certain challenges which need to be attained. It also enhances the business connectivity with the customers and aids the business to grab the opportunity and to take benefits of it. It can be summarized that social networking system can mislead the customers as negative publicity. It can be also evaluated that when the business uses social networking system effectively then it aids to generate the outcome in the competitive atmosphere.
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