The Impact of Social Media on Business
Added on 2020-12-29
12 Pages3831 Words60 Views
Business futures
Table of ContentsIntroduction......................................................................................................................................31a. Evaluating the social media as core competence.......................................................................3a.) Organisation and its core competence...............................................................................3b.) Merits and demerits of social media.................................................................................3c.) The way social media is used by Amazon.UK to gain competitive advantage.................4d.) Industry example...............................................................................................................41b. Two key social media platforms................................................................................................5a.) Identifying as many social media platforms as possible...................................................5b.) Choose two key ones and analyze them............................................................................5c.) industry examples to support your analysis......................................................................52a. The impact of social media on the profit margin of Amazon....................................................6a.) Research Amazon’s financial statements for the past three years.....................................6b.) The trend in Amazon’s net profit margins over the three years........................................8c.) The impact of social media on Amazon’s profit levels.....................................................92.b The future of social media and its implications for business...................................................10a.) The current impact of social media on the bottom line...................................................10b.) Changes affect businesses in the near future...................................................................10c.) Position company to take advantage of the changes.......................................................10Conclusion.....................................................................................................................................11Reference.......................................................................................................................................12
IntroductionIn present time, social media marketing is playing significant role among people andcompanies in all over the world. There are large number of companies who are advertisingproducts and services on social sites in respect to create brand awareness and enhance sales(Armstrong, Kotler and Brennan, 2015). Customer are highly influenced by the methods usedby companies for promoting products on social networking sites. The present research is basedon Amazon company who is continually using various social networking platform to createbrand awareness and profits. This report will cover, merits and demerits of using socialnetworking sites. Apart from this, the trend in Amazon’s net profit margins over the three yearswill be discussed. 1a. Evaluating the social media as core competencea.) Organisation and its core competenceAmazon is one of the top electronic commerce and cloud computing company which hasbecome an popular in internet business. It is known as one of the largest internet retailingcompany in all over the world which sells wide range of products from books to electronicworldwide. Product of the firm are displayed with great advertising publish with the use of pressrelease. A core competence is the result of a specific unique set of skills and productiontechniques which deliver value to the customers. These types of competence provide the firm toa widespread variety of market (Marchand, Hennig-Thurau and Flemming, 2018). The firmfocus on making strong relationship with its customer in respect to retain them for longer time.Here, Amazon use social media in order to keep regular communicate with its customers. Theysend promotional emails to customer through providing various offers. Along with this, Amazontake review of its customers on Facebook, Twitter and another social media platform. Superiorquality products and services is provided by Amazon. Its online services are convenient, reliable.Firm actively use social networking sites in respect to respond its customers on time, and foradvertising products and services. Through responding on social networking sites made easierfor the firm in enhancing their customers satisfaction level.b.) Merits and demerits of social mediaSocial media has basically change the way firms interact with its public and its potentialcustomers. Use of social media by firms drive lots of benefits that are as follows:
Increase brand awareness: With the use of social networking site Amazon can enhance itsbusiness visibility (Leung, Bai and Stahura, 2015). Along with this more and more customerscame to know about company and its quality products. They can easily see the information ofproduct and price which help them in differentiating their firm products from others. Enhance sales: Sales can be increase of the firm if company use social networking sites in aneffective manner. When customers watch any product with offer on Facebook or other socialsites, their buying behaviour get influence and they make purchase decision. It lead to increasesales of the firm and enhance profit. Some of the disadvantage of social networking sites are as known as unclear social mediamarketing strategy which lead to reduce benefits. Along with this, negative feedback can directlyimpact the firm and image (Leung, Bai and Erdem, 2017). It is because social media users havefree rein to post whatever they want therefore. If customer is not satisfied with the products thenthey may put negative feedback on their Facebook page. c.) The way social media is used by Amazon.UK to gain competitive advantage.Social media is known as one of the effective platform that provide huge opportunities tocompanies in order to advertise and promotes their products. Amazon company is receivingbenefits through effectively using social networking sites. For instance, Amazon is getting intoInstagram and Pinterest territory with its new Spark (Tiago and Veríssimo, 2014). It leads tocreate awareness among customer about its new products and wide range of offers provided onit. At present Amazon have over28.7 million like on its Facebook page. Company use to putdaily post on twitter and Facebook. Along with this firm also respond to customers commentsgiven on post in order to show their activeness on Facebook. d.) Industry exampleFor example, Forever 21 used to promote its product though email marketing. They sendmail to their potential customers on occasion and festival with offer which encourage companyto make purchase decision. (Kim, Lim and Brymer, 2015) Apart from this, there are manycompanies who focus in making relationship with customers on social networking sites such asFacebook, twitter etc.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
(solved) Business Future PDFlg...
|14
|3353
|37
Business Plan : Assignment Samplelg...
|10
|2713
|216
Report on Online Marketing of Amazonlg...
|12
|3556
|57
Project on Business Future of Amazonlg...
|13
|3484
|60
Assignment on Business Future of Vodafonelg...
|9
|3217
|45
Digital Business and New Technologieslg...
|12
|978
|204