Impact of Global Social Media on Business Performance
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Added on 2023/01/10
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This report provides an understanding of the impact of global social media on business performance, reputation, and sales volume. It also explores the opportunities presented by emerging economies for global expansion.
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GLOBAL BUSINESS ENVIRONMENT
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 Rising risk global social media firms and its impact on firm......................................................3 Emerging economies are presented opportunities for global expansion for the businesses........4 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION Globalbusinessenvironmentrefersasanenvironmentinmultiplecountrieswith unfamiliar elements from local busines environment that impacts organization’s decision on utilizationofresourcesandcapabilities.Themainobjectiveofthereportistoprovide understanding about global environment of the business and it’s impact on firm performance, operations and productivity. Rising risk global social media firms and its impact on firm In modern world global social media plays significant role in the busines and people life because it acts as communication platform between people (Tolentino, 2017). It is not only helped to lead communication among people but also become major part of marketing toolbox for the business. Extensive application of social media has gained huge popularity among internet users and also forces companies to follow their marketing strategy with social media. Currently social media has empowered people and weak the brand positioning of the business by revealing them for their fake advertisement or statement which directly negative publicity of firm. Global social media firms are Facebook, Twitter and Instagram that permits people to freely communicate with others and provides different ways for marketers to access and engage with users directly (Khamis, Ang and Welling, 2017). Social media uses by billions of people across the world and becomes one of the fast defining technologies. Facebook is one of the main social media tools whereas billions of people spends more hours. Social media become major digital marketing channels for the marketers from past few years because they get direct access to communicate with users through advertisement. Apart from digital media it is offers services to people to share their viewpoints so it is also known as word of mouth technology. From past few years there are filed numerous cases associated with social media. The reason behind is that most of the companies adapts social media to reach customer and influences them to buy their products. This global social media posses’ risks like human errors for example in this modern era of connecting with people, in actual time then mistakes are sure to happen.Employees who offers it’s products and services to public has extensive chances to be hacked because they trust followers on it’s social media users and may possible trick by fraudsters. Before processing social media requires to define and approves, access and collaborating procedures etc. are
granted by firms so there has more chance of data leakage. Currently social media becomes as reputation threat for example most of the firm uses this platform for influencing sales revenue of products but sometime a wrong action of the business leads negative publicity and endangered their reputation. Legal risks like intellectual property, privacy law, ownership can face by organization while processing it’s marketing on social media. Apart from this, HR issues like unauthorize actions i.e. harassment, discrimination and defamation etc. are major risk that arises by and by. However social media has given huge contribution to improve business performance and customers’ satisfaction level. There has a great example of British Airway that uses global social media platform to access exiting and new customers (Lin and et.al.,2020). Social media is highly interactive platform for the people and business because they can direct communicate with through tools like Facebook, Twitter and Instagram. With the social media British Airway enables to aware people about it’s services and improves their engagement by offering comment, sharing and like facilities. With the digital marketing platform British Airway has boosted brand visibility among potential customers, allows to access a bigger audience. Thus, organization has established strong brand image in customer’s mind with the global social media. With the Facebook British Airway provides own website to the customer and allows customer to direct visit with the site regarding their queries. In addition, organization introduces customer about it’s new airline services so that they attract and love to buy airline services. organization provides own software facilities to the customer as well so that they can check out all holiday package and charges and offers online booking services. Instagram and Twitter help company to access other new customer by offering attractive discounted holiday packages. Twitter, Facebook and Instagram etc. posses’ like, dislike, well icon and comment section etc. to the people. This facility helps British Airway to encourage customer to keep their viewpoints regarding their experience and others which improve customer engagement. Such kind engagement builds large customer base for the organization and assists to generate high sales revenue on it’s airline product services (Wu and et.al., 2017). Thus, British Airway has achieved various benefits from global social- media platform on it’s performance, profitability and operations.
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Emerging economies are presented opportunities for global expansion for the businesses Emerging economies is a term of emerging market or developing countries that gives more opportunities to grow global economy. There are various developing countries i.e. Nigeria, Egypt China, Saudi Arab, India, Pakistan, Taiwan and others are known as emerging market because these are developing countries so there have large capacity to make business more productive and effective as compared developed countries (Meyer and Grosse, 2018). The reason behind is that developed countries already has high growth and strong GDP rate due to high potential brand in that situation a medium size business cannot sustain or may possible does not get chance to become more productive. A effective emerging market opportunity allows a business to expand it’s business activities across the world by offering high quality products and services. emerging market gives more growth to organization in term of brand image, volume of sale and profitability. However emerging market also posses’ several characteristics i.e. less than average per capital income, recent and rapid growth, high market volatility, higher compare average return for investors and others that expresses it is best emerging market for global business expansion (Siddiqui and Singh, 2016). To select appropriate opportunity needs to understand growth of emerging market and people attitude then they can take right decision for their global growth objectives. it often happens that emerging market posses’ biggest challenge for the business expansion into emerging market when marketer does not have any knowledge about consumer’s choices and expectation. ion other word, an organization can benefit when it has created detailed plans and products for the targeted market. To enrich itself from such kind knowledge needs dee research of consumer habits or local users or customer available in an organization’sdesiredortargetedmarket.Therearenumerousemergingeconomies opportunities that are described as follows: Leapfrogging technologies It is one of the greatest opportunities in emerging economies because their side most of the firm operate it’s business on the ground floor of businesses. Such as Market for machinery: Goods are manufactured in these countries are quite nominal or smaller as compared the product of developed countries. This is the main reason that keeps them one step backward in developed countries. In that situation MNC’s has opportunity to build large customer base by offering high quality product in less developed countries as well as improves
people living standard. For example, Tesco has opened it’s franchises in multiple emerging countries and offers high quality products and services like developed countries products and in return generate high revenue (Felix, Rauschnabel and Hinsch, 2017). These emerging market helps Tesco to expand it’s business in global market effectively. Computer and software technology: Most of the businesses has benefited of the high education rate and low-cost of living in the emerging markets. These countries have less performance of technology as compared developed countries so developing countries customers always looks for advanced technological products. So, it becomes easier for the MNC’s to recruit highly talented expertise at affordable price. Thus, companies enable to generate high revenue and global expansion as well with the support of top-level expertise. Growing the middle class Emerging market is actual great market whereas a middle class are emerging. There have created extensive job and opportunities for the people so that they can move from poverty to comfortzonewhereastheycanaffordluxuryproductsandserviceswhichareprior unimaginable. MNC’s or medium scale size business can expand it’s business into these emerging market easily and can build strong base of customers by offering affordable price products and services (Grover Goswami, Medvedev and Olafsen, 2019). For example, British Airway has expanded it’s business into several emerging markets like South Africa, Europe, German, Denmark and others and targets middle class audience as targeted customers. These markets have supported organization to build strong image by generating high profit margin on airline ticket and flight services. With the emerging market opportunity British Airway has achieved positive publicity in people and popularize as second largest airline in UK. From the above discussion it can be interpreted that emerging economies gives extensive opportunities to the business to globally expand it’s business effectively. CONCLUSION The brief report provided understanding about global social media impact on business’s performance, reputation and it’s volume of sales. This report can be concluded emerging economies has represented opportunities for global expansion for the businesses.
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REFERENCES Books and Journals Khamis, S., Ang, L. and Welling, R., 2017. Self-branding,‘micro-celebrity’and the rise of Social Media Influencers.Celebrity studies,8(2), pp.191-208. Lin, W.L and et.al.,2020. The adoption of technological innovations in a B2B context and its impact on firm performance: An ethical leadership perspective.Industrial Marketing Management. Wu, K.J and et.al., 2017. Toward sustainability: using big data to explore the decisive attributes of supply chain risks and uncertainties.Journal of Cleaner Production,142, pp.663- 676. Siddiqui,S.andSingh,T.,2016.Socialmediaitsimpactwithpositiveandnegative aspects.InternationalJournalofComputerApplicationsTechnologyand Research,5(2), pp.71-75. Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media marketing: A holistic framework.Journal of Business Research,70, pp.118-126. Grover Goswami, A., Medvedev, D. and Olafsen, E., 2019.High-growth firms: Facts, fiction, and policy options for emerging economies. The World Bank. Meyer, K.E. and Grosse, R., 2018. Introduction to managing in emerging markets.Oxford handbook of managing in emerging markets, pp.3-34. Tolentino, P.E., 2017. Technological innovation and emerging economy multinationals: the product cycle model revisited.International Journal of Technology Management,74(1- 4), pp.122-139.