Social Networks in Business: A Woolworths, Australia Case Study

This report investigates the advantages and disadvantages of utilizing social networks in business, with a specific focus on Woolworths, Australia. The study explores the conceptual understanding of social networks, identifying the benefits such as increased customer awareness, improved search engine rankings, and enhanced customer loyalty. It also addresses the limitations, including potential damage to brand reputation, the cost of implementation, and the challenges of managing customer feedback. The literature review synthesizes various academic sources to provide a comprehensive analysis of social media's impact on business operations, marketing strategies, and customer engagement. The report highlights the importance of social media in modern business, emphasizing its role in connecting with customers, expanding market reach, and adapting to the evolving digital landscape. It ultimately provides insights into how businesses can leverage social networks to achieve their objectives while mitigating potential risks.

Running head: BUSINESS RESEARCH

BUSINESS RESEARCH 2
Table of Contents
Introduction.................................................................................................................................................3
Project objectives........................................................................................................................................3
Project scope...............................................................................................................................................3
Literature review.........................................................................................................................................4
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

BUSINESS RESEARCH 3
Introduction
The social media system entails the web-based communication technology, which could be
executed by a corporation to share the data and communicate with the customers. In the existing
business scenario, there are different social networking tools used by Woolworths, Australia like
Facebook, Snapchat, Instagram, Twitter, WhatsApp, and Pinterest. In the modern business times,
social networking plays a significant role in the business operation. By using these channels,
Woolworths can persuade the high amount of customers and deals with business procedures. It
could be also exercised by the company to spread the awareness about the products and services
between customers (Turban, et. al., 2017). Consequently, social networking system can increase
the revenue of company with minimum time, cost and resources.
Project objectives
The key purpose of this investigation is to assess the pros and cons of applying the social
networking practices in the Woolworths. The given objectives will be executed to complete the
main aim of the investigation:
RO1: To explore the conceptual understanding regarding social network: A case study of
Woolworths
RO2: To identify the benefits of using the social network in business: A case study of
Woolworths
RO3: To assess the limitation of using the social network in business: A case study of
Woolworths
Project scope
The project scope is wider for the investigator as social networking aspect is currently practiced
in the business. The literature review considered different sources such as several journals,

BUSINESS RESEARCH 4
articles, online publication and textbooks as it could be prominent for a corporation to develop
the awareness about uses of social networking in the business. The project has a wider scope for
retailers as it develops their understanding of the benefits of implementing the social networking
into the business (Fuchs, 2017). It is also significant for Woolworths to understand the limitation
of applying the social network in the business practices.
Literature review
Introduction
This element demonstrates the literature review of research concern as it facilitates an
investigator to develop the awareness of the social media concept in the workplace. It also
demonstrates the evidence as well as facts regarding benefits of using social networking in
Woolworths, Australia (Verhoef, Kannan, and Inman, 2015). It also facilitates the detail
information with regards to the limitation of exercising the social network in Woolworths,
Australia.
RO1: ‘To explore the conceptual understanding regarding social network’: a case study of
Woolworths
According to Kim and Johnson (2016), social networking enables a business to control the
variables that could impact on the performance of the business. This strategy is used by several
retailers for developing the awareness among customers about the company. This system plays a
fundamental role to grow the business and increase the customer’s demand due to the
convenience of getting the information regarding products and services. This media is also
beneficial for connecting the viewers and readers through different channels such as Twitter,
YouTube, and Facebook.

BUSINESS RESEARCH 5
In support of this, Broekemier Chau and Seshadri (2015) evaluated that in modern times; it is
significant for the company to retain their existing customer and persuades the new customers
towards their products and services. It also makes competent to Woolworths for gaining
attentiveness of customers towards their products and services in specified fields. Therefore, a
company can approach the high set of customers towards their products and services.
On the other hand, Balaji Khong and Chong (2016) discussed that social networking act as an
intermediary to make a connection with prospective customers in the broader market. It is also
significant for Woolworths to spread the business into the large market by endorsing their
products on different social media channels. There is a different type of company that deals in
the different markets such as electronics, retail and travel and tourism. Therefore, the social
network is a vital platform for selling the products and services at one place. A corporation can
face challenges to apply promotional and marketing activities because of globalization effects in
the market. In this way, a social networking is a good strategy for expanding the business by
generating favorable responses from potential and current customers.
In opposed to this, Moreno-Munoz et al. (2016) opined that traditional sales promotional tool
could be implemented by the company as it is beneficial to gain the company’s revenue. It is also
stated that social networking system is a costly and untrustworthy mode as it could simply ruin
the goodwill of corporation in case of customer posts their unfavorable feedbacks. It is also
stated that people can easily visit on the page of the company to influence of promotion and
advertisement, however; there is more probability of avoiding the advertising by people due to
inadequate time.
According to Brooks (2015), social networking is a website that serves people with same
concern to come together and share the videos, ideas, and photos with each other. A social

BUSINESS RESEARCH 6
networking is dynamic resources to deal with the existing business situation. Social networking
is an exhortation that can be applied by companies to gain the awareness regarding the company
and spread their publicity. Therefore, the social networking plays a significant role in the
company to enhance their business in long-term.
On the other hand, Bharati et al. (2015) evaluated that social networking enables the company to
communicate with a high amount of customers in the Australian market. It also helps the
Woolworths to enlarge their business by promoting the product and services in front of the
potential customer. There are different companies that deal in the online channel. In the
international market, a company may face difficulties with regards to promotion and marketing
of distinct products and services. Therefore, Woolworths should practice social networking
channels as it could be prominent to get the positive responses from existing and potential
customers.
RO2: ‘To identify the benefits of using the social network in business’: A case study of
Woolworths
As per the view of Prpić, et al. (2015), the social network creates the awareness about the
product and services amid customers as well as it helps them to make their own decision towards
buying the products. It is also significant for business to enhance their association with the
existing and potential customers. It is assessed that there are a high amount of users, who use
online mode to purchase the products as it provides a giant opportunity to Woolworths for
enlarging their business across the world. It is also stated that online interaction is an inclusive
and prompt procedure that permits a corporation to develop a relationship with the customers.
In support of this, Trainor et al. (2014) opined that social networking is a beneficial approach to
improve the ranking of the search engine of the company. It could be significant to enhance the

BUSINESS RESEARCH 7
goodwill of an organization. The search engine optimization could be beneficial to get the top
position and pull the attention of a large number of customers with regards to business websites.
It is analyzed that approximately 58% of the corporation has enhanced the search engine ranking
by using the social networking. In addition, it is stated that Woolworths can shift and get
favorable feedback from the customers about their products and services via social networking
channels.
In contrast to this, Stamati et al. (2015) evaluated that social networking improves the association
amid users and corporations and aids to expand the business. It is also analyzed that number of
people uses social media in Australia with different intention such as products search and buy a
quality product at the affordable price. As a result, it would be appropriate to increase the
publicity and aids the corporation to gain their business growth and revenue. It is also stated that
about 53% of Australians are loyal towards brand as they follow the corporation on social media
channels. Further, company updates about their product and services such as new offer, and new
product on social networks. Thus, it is stated that social network can gain the customer's loyalty
with regards to Woolworths, Australia.
As per the view of Rydén Ringberg and Wilke (2015), an advertising play vital role for a
corporation to increase their productivity hence company should focus on advertising to make
marketing strategy. There is a different strategy that provides the data to the corporation to target
customers who are interested to purchase their goods as well as services. It aids a corporation to
reach a large number of customers and diminishes the waste substance from a corporation. In the
current scenario, social networking websites are focused by Woolworths to explore the
information with regards to their products and services with high speed. Therefore, it can be
stated that social networking sites are a prominent platform to gather and broaden the

BUSINESS RESEARCH 8
information about corporation’s goods and services (Ainin, et. al., 2015). It is assessed that
Smartphone and internet are widely exercised by people in Australia as it directs the Woolworths
to promote their product via social media.
In favor of this, Kohli Suri and Kapoor (2015) exhibited that social networking websites are
required for a corporation to improve the liaison amid users and business. Therefore, it can aid
the Woolworths to enlarge their business in the global market. It is also illustrated that a high
number of customers in Australia could also lead the company for increasing their publicity and
profitability. As per the study of Agnihotri et al. (2016), it is evaluated that about 53% of
Australians are loyal towards their brand due to exercising the social network. It is analyzed that
social networking aids the company to change the perception of customers towards their goods
and services. In addition, there are about 3 million of people, who is highly engaged to use the
social media as it could be an effective strategy for a corporation to create a favorable image in
the customer’s mind. Furthermore, social media makes able a corporation to accomplish the
customer’s need for customer reviews and their feedback after purchasing the products and
services. It also makes competent for the company to promptly evaluate the customer’s
information as it is an effective source to manage the negative responses of the customer with
minimum time and costs.
Taneja and Toombs (2014) stated that social media plays a fundamental role to accomplish the
need of customers as it enables an organization to frequently analyze the desires and needs of
customers. By using the social media, Woolworths can create a unique picture in the mind of
customers by delivering the prompt response on unfavorable feedbacks and comments towards
products and services. Social networking can be prominent to satisfy the customers to the high
extent. Social networking plays a vital role to enhance the effectiveness of business by pulling

BUSINESS RESEARCH 9
the customer’s attention with regards to products and services. Thus, Woolworths should be
responsive when customers give their feedback and post a negative comment on social channels.
Consequently, it would be beneficial to persuade the customers by dealing their concern
promptly.
In opposed to this, Nadeem et al. (2015) demonstrated that social networking could be a
beneficial approach for the company as it can improve its recognition at international level.
Moreover, social networking marketing is applied by Woolworths to sponsor their products and
services in front of both local and global customers. Consequently, it can be appropriate for a
corporation to enlarge their valuable data among the bulk of customers in the least time. Social
networking system facilitates the business connectivity to the global extent. In addition, it
enables the people to directly interact with the company regarding their product and services as
the company can modify their products and services as per their need. It could be effective to
increase demand of customers. A social networking could be exercised by Woolworth in 24*7
hours as it would be significant to influence the customers towards their brand.
RO3: ‘To assess the limitation of using the social network in business’: a case study of
Woolworths
According to Nielsen and Schrøder (2014), social media could be detrimental to a corporation as
there is need of more time, cost and resources. It is evaluated that updating innovative
information and replacing the previous facts and figures may take more time and cost.
Furthermore, social media can decline the number of followers for a particular company such as
if customers give their negative comment and company does not response, then it could
discourage potential customers. It may also generate different kinds of uncertainties as there is
inadequate personal and emotional connection amid the business and customers.

BUSINESS RESEARCH 10
In favored to this, Beck et al. (2014) evaluated that social networking generates the fraud
possibility and stealing concern in terms of marketing and advertising of corporation.
Mismanagement of social media may also generate an adverse effect to attain the goal and
objectives of the corporation. It is also stated that business, as well as legal uncertainties, can
arise in advertising of products and services via using the social network. There is also the risk of
losing the dependability and brand image of Woolworths as unreliable facts and figures
regarding the corporation can adversely impact on the customers.
On the other hand, Dijkmans et al. (2015) stated that social network creates legal consideration
in the company as it can be costly for business practices. In addition, the impact of social media
can be for minimum time and moved out after occasionally as it generates difficulty for the
company to endure the business in future. Social media could ruin the company’s goodwill as
users can give their unfavorable responses on the social network and company page.
As per the view of Nielsen and Schrøder (2014), there are different social networks, which are
free to operate and join, but the company cannot target their customer base without paid
advertising. Hence, local businesses end up with a group who are not local. The best application
of marketing through social networking sites is to gather data from customers about their
preferences and motivations for repeating the business. Social marketing can be prone when
customers are not interested in local brands and do not provide the accurate data about using the
services. Hence, e-commerce could be best option to overcome this limitation by facilitating
online products and services.
In support of this, Dijkmans et al. (2015) evaluated that social networking could be
disadvantageous for business because it easily influences the existing loyal customers but more
efforts are required to accomplish new business. It is complex to move the existing customers

BUSINESS RESEARCH 11
into repeated purchases. As per Beck et al. (2014), loyal brand users could actively consider into
peer-to-peer marketing by using the social network. Further, existing customer can persuade the
new customers to try the product and services of Woolworths. Thus, the marketing balancing act
is used to eliminate the pure advertising that social consumers loathe as well as used to generate
the long-term relationship bond.
Conclusion
From the above interpretation, it can be concluded that social network is essential for
Woolworths to make their recognition as the global business. It can be also summarized that
social network is beneficial to enhance the business competencies and directly communicate with
the bulk of customers. It is evaluated that there are different channels used by Woolworths to
promote their products and services through social networks such as Facebook, YouTube,
Twitter, and Snapchat. But, at the same time, Woolworths faces different challenges due to using
the social network in business practices such as fraud, legal risk and more time and cost.

BUSINESS RESEARCH 12
References
Agnihotri, R., Dingus, R., Hu, M.Y. and Krush, M.T., 2016. Social media: Influencing customer
satisfaction in B2B sales. Industrial Marketing Management, 53, pp.172-180.
Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N.I. and Mohd Shuib, N.L., 2015. Factors
influencing the use of social media by SMEs and its performance outcomes. Industrial
Management & Data Systems, 115(3), pp.570-588.
Balaji, M.S., Khong, K.W. and Chong, A.Y.L., 2016. Determinants of negative word-of-mouth
communication using social networking sites. Information & Management, 53(4), pp.528-540.
Beck, R., Pahlke, I., and Seebach, C., 2014. Knowledge exchange and symbolic action in social
media-enabled electronic networks of practice: A multilevel perspective on knowledge seekers
and contributors. MIS Quarterly, 38(4), pp.1245-1269.
Bharati, P., Zhang, W. and Chaudhury, A., 2015. Better knowledge of social media? Exploring
the roles of social capital and organizational knowledge management. Journal of Knowledge
Management, 19(3), pp.456-475.
Broekemier, G., Chau, N.N. and Seshadri, S., 2015. Social media practices among small
business-to-business enterprises. Small Business Institute Journal, 11(1), p.37.
Brooks, S., 2015. Does personal social media usage affect efficiency and well-being?.
Computers in Human Behavior, 46, pp.26-37.
Dijkmans, C., Kerkhof, P. and Beukeboom, C.J., 2015. A stage to engage Social media use and
corporate reputation. Tourism Management, 47, pp.58-67.
Fuchs, C., 2017. Social media: A critical introduction. USA: Sage.