Social Media & Business Competitive Advantage

The assignment examines the significant role social media plays in bolstering a business's competitive advantage. It delves into how businesses leverage social media to amplify their competitive edge, citing examples like Amazon's success. The document analyzes various aspects of this influence, drawing upon research and case studies to illustrate effective social media strategies for organizational marketing management.

Business Future

Table of Contents
INTRODUCTION...........................................................................................................................1
Key Sections....................................................................................................................................1
1a. Evaluate the use of social media as core competency in competitive advantage for
business.......................................................................................................................................1
1b. 2 Key social media tools for effective internet marketing tool for business in UK..............2
2a. Critical analyse the impact of social media on the profit margin of Amazon.......................4
2b. Future of social media and its implications for business in next 5 years..............................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business is a composition of diverse number of activities which need to estimated by
managers in an appropriate manner (Al-Aqrabi and et. al., 2015). Future of every association are
in hands of modern marketing approach through which wide number of customers could be
targeted easily. This project is based on Amazon which is one of a modern marketing company
and consider as future of business. It is an American commerce and cloud computing business
and consider as world largest company by revenue founded in 1994. a major aim of this project
is to signify the future of business by involving more and more online trading company. With
this consideration, it will reflect about the use of social media in order to gain competitive
advantage with 2 suitable platforms. Moreover, it will also enhance the profit margin of a
company in a beneficial frame.
Key Sections
1a. Evaluate the use of social media as core competency in competitive advantage for business
According to the Buckley and Casson (2016), modernisation of business with a course of
time is an essential aspect which need to understand by authority in an appropriate frame for
better operations. It is essential to modernise each and every activity in an appropriate and
suitable frame so that better and suitable working get done. Social media support an association
to gain core competency by differing them from others. With this aspect, management will going
to gain competitive advantage.
Core competency enable in making an organisation completely different from others so
that better and suitable gains could be done. As per the Cavusgil and Knigh (2015), core
competency always enhance the growth and development of a company and move it in positive
direction. Although, competitive advantage promote in taking leverage from others so that better
and efficient gains become possible.
Social media is consider as one of a new kind technique in order to promote business
properly and effectively (How social media amplifies competitive advantage, 2017). From past
few years, it get disseminate that many business use social media as a promoting tool in order to
enhance profitability and productivity. Thus, many business organisation either they deal in
online shopping industry or non online they both utilise this tool in order to expand operations.
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Amazon is one of a online shopping industry and identify as successful company in
context of digital shopping association (Gast, Gundolf and Cesinger, 2017). In its initial years,
their profit margin is low due to less interaction of customers with modify technology but
recently around 5 years before company use social media like Facebook, Orkut as beneficial tool
to introduce their business to wide range of customers. It could be stated that Amazon utilise al
its marketing efforts in order to make user satisfy by expanding their operations. A major
consideration or competitive advantage which Amazon could gain by using social media as
follow:
 Attracting wide range of customers t purchase as from past few years number of users for
social media are getting expand (Competitive Advantage of Social Media, 2018). Around
60% users get rises from last 5 years in context of previous era. Business gain an
opportunity to present their marketing slogan and targets to customers properly. This is a
major benefit for Amazon through which interaction with users become possible.
 Create brand value as well because new and modern users mostly prefer such products
and services whom have greater market preference and dealing at global level. Thus,
social media provide support for each and every single brand to establish them at global
level so that effectiveness and efficiency as well as brand creation could be done.
Amazon is a new kind of shopping tool for users where they could utilise it and support
many small brands to establish them at wide level.
Hence, social media enable Amazon and other associations to establish them at global level and
reach target market with lower cost. Although, with vast range of products and a slogan in
emerging market country like India “Aapni Dukan” enable them to create a distinct image them
others so that competitive advantage and leverage get gain in an appropriate and suitable manner.
1b. 2 Key social media tools for effective internet marketing tool for business in UK
Internet marketing is define as a process through which many business association
expand their exposure by applying it to their number of activities. A survey standardise that
around 92% manufacturer stated that they generate more and more profit by performing their
business through social media (Effectiveness of Social Media Networks as a Strategic Tool for
Organizational Marketing Management, 2018). Social media sites are useful for building social
network and exchange and share of ideas and views so that efficiency could be maintain and
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manage. With the current expansion of market and more involvement of celebrities in promoting
product and services, several key social media tools for effective internet marketing business are:
 Facebook
 Twitter
 Instagram
 Gmail
 Hotmail
Out of all these social media, two best and most consuming platforms are Facebook and
Twitter. Most number of individuals or youth are using these two sites for reaching and making
virtual friends. Business could be use these two platform for promoting their business and
advertise their product and services to target market world (Gibson, Rosen and Stucker, 2015).
Amazon utilise and actively participate these two tools for promoting their business. In its initial
days they use every second social media platform to make customers aware about them so that
effectiveness and efficiency could be manage and maintain in a beneficial frame. These tools
support to create brand value and enforce to manage position at global level. Position of Amazon
by using Social media define as follow:
 Amazon. com has likes on their Facebook page of more than 26.5 million and their
central account has product listing retail and consumer merchandise and use to market
their own product with appropriate deals.
 Company also create valuable content for each and every customer as per the holidays
and festivals so that appropriate understanding and attractiveness could be maintain like
on beer day firm posted a video which signifies about “how to brew you own beer”?
They are not utilising Facebook but also work on Twitter by active posted about their products
and services (Goel and Jones, 2016). This enable them to create positive impact on their targeted
respondents. The below listed abbreviation define about use of Twitter by Amazon in order to
maintain their position at keen competitive world:
 Amazon use Twitter to make it understand that social media not only enable to market
product and services but also support in order to facilitate electronic commerce of
business and diverse number of activities.
 Creation of Amazon Web Service Twitter account a clear grip on the business2business
get done in an appropriate and suitable manner.
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Amazon use these two social media platform in UK in order to reach wide number of customers
so that better and appropriate relation between them could be manage and maintain. Although,
this will support to maximise and reach customer base in United Kingdom after the Brexit. Thus,
Amazon would support and provide chances for small vendors of UK to sale out their products to
other market area by putting them on their website. Amazon listen and respond to their
customers wish and offer such content to their valuables which have some specific value whom
interact with it. Hence, business invest into digital marketing in an appropriate and suitable
manner which facilitate towards them better and positive response.
2a. Critical analyse the impact of social media on the profit margin of Amazon
Social media depicts and provide a platform for many small business to operate and deal
with wide range of customers. According to the Lacity, Khan and Yan (2017), new and modify
activities really required for business in order to maximise effectiveness and efficiency towards
concerning operations. Thus, modernisation is essential in order to maximise profit margin of a
company in order to accomplish goals and targets (Businesses increase revenue with social
media, 2018).
On the basis of Schaltegger Hansen and Lüdeke-Freund (2016), social media working as
one of an important technique which could be implement by any association so that effectiveness
and efficiency get promoted. Thus, there is a need for understanding about the impact of social
media on modern working abilities for gaining better suited results in order to promote positive
results.
Thus, Amazon better understand such concept and implemented it into their working
which reflect positive alteration of management abilities and working:
 It is not essential that if an organisation have higher likes and dislikes on social media
promote good working. This get done by delivering quality services as well as with
relevant tag-line so that finance get enhance. Amazon provide appropriate content for
their customers as per the season which assist in attract them and their results could be
estimated with increase profit.
 Social media activity enable to create a bond between customers and a firm which
contribute around 5.6% to their overall revenue. Amazon better understand this
consideration for their working through which they offer valid and appropriate deal to
each and every individual which further assist to maximise their profit or revenue.
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This theoretical aspect only signifies the written content but enhancement of profit by social
media of Amazon get understand with signify profit growth and development from past few
years. The below stated graph define about the net sales revenue of a company from 2004 to
2017 (Net sales revenue of Amazon from 2004 to 2017 (in billion U.S. Dollars), 2018):
Illustration 1: Net sales revenue of Amazon from 2004 to 2017 (in billion U.S. dollars), 2018
(Sources: Net sales revenue of Amazon from 2004 to 2017 (in billion U.S. dollars), 2018)
This detailed information signifies the change in net annual sales of a company from past
14 years. Their is a rapid and vast increase got determine in such aspect through which it clearly
estimated that management have good position at market world. In the initial years, business
have a define profit or sales of 6 billion only but with change and rapid increase in utilisation of
modern technology it get expand till 177 billion which is so high in frame. With a course of time,
when organisation change their working style and pattern this expansion and exposure get
identify which get get ascertain without involving social media as a tool. As many users spend
their more than half time on every social media platform where they interact with wide number
of products. This enhancement is a reflection of utilisation of social media like Facebook and
Twitter so that beneficial results ad outcome could be drawn.
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There is a massive growth and upraise get evaluated in the shares of a Amazon with 7%.
The revenue of a company has increased 34% from the last few years in which 1.3 billion in
sales from whole foods which acquired late in August. There are many other business get
evaluated on which management need to invest on continuous basis so that better and appropriate
results could be drawn. All these things get articulate in the third quarter of a company and
expected that fourth quarter will also signify positive attribute towards business and its
stakeholders in order to maximise and promote effectiveness. Although, by using and
implementing appropriate and suitable strategies, management become able to reach and deliver
appropriate content to their users which further assist in better and suitable gain so that
appropriate maximisation of business and its working get done in an effective frame.
2b. Future of social media and its implications for business in next 5 years
Around 10 years ago, there was neither any social media interference into business and
its operations. This growth was determine from past few years that social media work as a
supporting tool for many organisation in order to manage and enhance effectiveness (Sheth and
Sisodia, 2015). Although, till now, social media and digitalisation made positive implications of
diverse range of activities so that better suited results could be drawn. Hence, with this
expansion, there is a need to evaluate about future of social media so that it could be utilise in a
beneficial and appropriate frame. Amazon need to evaluate the response of future of social media
in order to manage and maintain effectiveness for concerning operations:
 It will support business to frame relevant and suitable strategy so that better and
appropriate results could be drawn. Thus, strategies framing become more creative
because it will reflect to provide each and every information in minimum frame so that
better and appropriate strategy could be generated.
 Social media promote and support to make things and process more creative in nature. As
it will support to Amazon to analyse and understand all kind of customers properly which
facilitate an option to grow and develop each course of activity. This will assist that
chances of positive and suitable gain could be enhance with working and utilisation of
social media.
 It will also aid in develop organisation to adopt beneficial technologies as well as gain
optimum solutions so that appropriate outcome could be gain in a beneficial frame.
Amazon become able to determine and identify various new and modern technology into
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with appropriate and suitable solutions so that users will going to greed with more
appropriateness as well as suitable targets get accomplish with effective resolution.
Along with all these things, management also need to determine and understand the implications
of social media on business within next 5 years so that better suited results could be drawn in a
beneficial manner (Ward, 2016). Amazon have to determine the implications of using social
media in next 5 years so that further modifications will going to done as per them in order to
maximise effectiveness and efficiency. Technology: Within next 5 years more than 90% people will start using internet and
many broadband become wireless in nature. This will enhance the working as well as
many individuals become able to utilise such technology in a better and suited manner so
that effectiveness and efficiency could be manage. Thus, a new phase of technology will
going to determine in near future context.
 Stronger and stronger: With changing course of time, social media become more
stronger and stronger due to maximum number of users (Wirtz and et. al., 2016). More
than average individuals getting expand as well as more new emerging technologies also
get introduce. This will reflect to gain better associated results so that chances of
minimisation of negative suitability get reduces.
Amazon have to understand the implications of social media on their business within next five
years so that better suited results could be drawn. This will going to enhance effectiveness of
business and its concerning operations. Amazon sales will also going to maximise which made a
positive reflection on their sales which should be major objective. Thus, such aspect need to
understand take in account properly which enable management to understand its importance for
better working ability.
CONCLUSION
It get concluded from the project that business future is modern marketing world where
traditional concept will going to completely neglected. This will assist in better and appropriate
understanding of working so that better results could e drawn. In this aspect, social media
support and promote business to gain competitive advantage and work as a core competency so
that suitable effectiveness could be manage and maintain. Along with this, business need to
adopt suitable platform of social media through which positive results could be gain. Although,
social media always support to increase profit margin which further enable to maximise
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appropriateness of working. With this expansion, implications and future of social media need to
underpin appropriately in order to enhance operational potency.
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REFERENCES
Books and Journals
Al-Aqrabi, H. and et. al., 2015. Cloud BI: future of business intelligence in the cloud. Journal of
Computer and System Sciences. 81(1). pp.85-96.
Buckley, P. J. and Casson, M., 2016. The future of the multinational enterprise. Springer.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies. 46(1). pp.3-16.
Gast, J., Gundolf, K. and Cesinger, B., 2017. Doing business in a green way: A systematic
review of the ecological sustainability entrepreneurship literature and future research
directions. Journal of Cleaner Production. 147. pp.44-56.
Gibson, I., Rosen, D. and Stucker, B., 2015. Business Opportunities and Future Directions. In
Additive Manufacturing Technologies (pp. 475-486). Springer, New York, NY.
Goel, S. and Jones III, R. J., 2016. Entrepreneurial exploration and exploitation in family
business: A systematic review and future directions. Family Business Review. 29(1).
pp.94-120.
Lacity, M. C., Khan, S. A. and Yan, A., 2017. Review of the empirical business services
sourcing literature: an update and future directions. In Outsourcing and Offshoring
Business Services (pp. 499-651). Palgrave Macmillan, Cham.
Schaltegger, S., Hansen, E. G. and Lüdeke-Freund, F., 2016. Business models for sustainability:
Origins, present research, and future avenues.
Sheth, J. N. and Sisodia, R. S., 2015. Does marketing need reform?: Fresh perspectives on the
future. Routledge.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Wirtz, B. W. and et. al., 2016. Business models: Origin, development and future research
perspectives. Long Range Planning. 49(1). pp.36-54.
Online
How social media amplifies competitive advantage. 2017. [Online]. Available through
:<https://www.businessesgrow.com/2011/02/20/how-social-media-amplifies-competitive-
advantage/>.
Competitive Advantage of Social Media. 2018. [Online]. Available through
:<https://yourbusiness.azcentral.com/competitive-advantage-social-media-8288.html>.
Effectiveness of Social Media Networks as a Strategic Tool for Organizational Marketing
Management. 2018. [Online]. Available through :<http://www.icommercecentral.com/open-
access/effectiveness-of-social-media-networks-as-a-strategic-tool-for-organizational-marketing-
management.php?aid=66382>.
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Net sales revenue of Amazon from 2004 to 2017 (in billion U.S. Dollars). 2018. [Online].
Available through :<https://www.statista.com/statistics/266282/annual-net-revenue-of-
amazoncom/>.
Businesses increase revenue with social media. 2018. [Online]. Available through
:<https://phys.org/news/2013-03-businesses-revenue-social-media.html>.
Amazon shares soar after massive earnings beat. 2017. [Online]. Available through
:<https://www.cnbc.com/2017/10/26/amazon-earnings-q3-2017.html>.
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