Social Media's Role in Business: A Detailed Analysis Report

This report examines the significant impact of social media on modern businesses, emphasizing its role as a core competence for achieving competitive advantage. It explores how social media platforms function as effective internet marketing tools, detailing strategies for platforms like Facebook, Twitter, Instagram, LinkedIn, and YouTube. The report includes an analysis of Amazon's profit margins over the past three years, highlighting the influence of social media on its sales and customer engagement through platforms like Facebook, Twitter, and Pinterest. Furthermore, it projects the future of social media and its implications for businesses in the next five years, focusing on customer relationships, real-time interactions, and advertising strategies. The report underscores the importance of adapting to evolving social media trends to maintain a competitive edge and drive business success.

BUSINESS FUTURE

Table of Contents
INTRODUCTION...........................................................................................................................1
The social media as a core competence for competitive advantage in business..............................1
Social media platforms as effective internet marketing tools for businesses..................................2
Impact of social media on the profit margin of Amazon in the last three years..............................4
Future of social media and its implications for business in the next five years ........................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
There is a great impact of social media and its platform on businesses and life of people
which helps to connect people with their other family members and help business to increase
their sales. The report will demonstrate the social media as a core competence for competitive
advantage in business associated and Supported with industry examples. In addition to this, key
social media platforms as effective internet marketing tools for businesses in the UK by
providing some examples to support position will be discussed in this report. It is stated in this
report that social media is a emerging platform for both customers and businesses. In respect to
this, the impact of social media on the profit margin of Amazon in the last three years and the
future of social media and its implications for business in the next five years will be discussed
and supported with relevant examples.
The social media as a core competence for competitive advantage in business
The social media as a core competence for competitive advantage in business
It can be said that social media is a competitive advantage for business that it helps to promote
operational activities and products and services in order to increase profitability and production.
The internet created a broad range of network for businesses that helps to achieve effective
competitive advantage (Wirtz, Ullrich and Göttel, 2016). It can be said that social media plays a
major role in business plan which helps to bring customers and company both together in
innovative ways effectively. Social media advantage will also help towards effective use of
available resources. It is a powerful tool which provides success chance for business. In respect
to this, there are so many advantages and benefits of social media advertising and promotion.
Some of them are discussed below:
Market your business: Social media services will help business to drive their message out to the
local and international public. This will also help customers to take information regarding
business products and services. It can be said that it is a important aspect of every brand that how
will they provide better services as compared to any other. Accounts such as Facebook, Twitter,
Instagram, LinkedIn and Bingo will help business to promote their products in front of everyone
easily and effectively.
Engage customer: Social media is a place where business can easily interact with their
customers that helps to increase customer satisfaction and loyalty (Schaltegger, Hansen and
Lüdeke-Freund,2016). This will help to create a sense of community to consumers in the market.
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Regular connection and interaction with customers will also help to engage them with brand and
new offers as well as policies. Social media is also a platform for companies to promote their
incentives and sales to customers that helps to attract new consumers in the market which lead
towards production and profitability.
Attract quality staff: The firms are able to promote their success and also winning place by
working on promotional activities. Social media accounts will help to create a positive image of
business towards customers. Effective quality staff would be acquired by business by creating
job opportunities. A fast solution not only wins you a loyal customer, it also serves as evidence
of your winning customer service for other people, who see the way you handle the situation
before their eyes.
Real time response: It can be analysed that social media activities take place in real time. The
2012 London Olympics were dubbed the first social media Olympics ever, because before each
sporting event was over the social networks were buzzing with commentary, reports and opinion.
The businesses are able to provide rapid social media services in order to achieve strong
competitive advantage from customers in the market effectively and efficiently.
For an example, There are many popular brands such as Nike, provides sports items
shoes, clothing and other accessories that it is famous on Myntra and Amazon App by promoting
social media services (Ward, 2016). This will help loyal customers of Nike to get information
regarding discounts and other activities. Nike is able to increase its sales and profitability which
helps to achieve desired goals and objectives as well as competitive advantage.
Social media platforms as effective internet marketing tools for businesses
Social media platform are very effective towards marketing tool for business that helps to
drive sales and profitability which leads to achieve success by accomplishing goals and
objectives. Social media platform is a unique environment and base for companies to gain
competitive advantage making them aware of products and services as well as discounts and
policies. Different social media sites such as Facebook, Twitter, Instagram, LinkedIn and Bingo
will help business to promote their products in front of everyone easily and effectively.
Facebook for social media marketing: Facebook environment requires some effective strategy
such as friendly environment, followings and casual Facebook in order to take advantage of
promotional activities. Facebook is one of the biggest social media platform that helps to manage
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a account of yours or your business in order to provide information to customers. It is a large
platform and also free to use.
Google for social media marketing: Google is very famous now a days that business is able to
manage their online website that helps to provide information regarding business products and
service offered in the market towards customers effectively (Macaulay, 2018). Google is one of
the most famous internet service provider website that there are unacceptable things we can find
on google. This will help organisation to make their clear picture in front of customers.
LinkedIn for social media marketing: LinkedIn is a business and employment-oriented service
that operates via websites and mobile app. It can be described as a community that helps to
provide services regarding business reports, news, pictures and much more beyond the
imagination of a consumer. This will help businesses to create their account n LinkedIn which
helps to delieve their products and services marketing to customers in the market that helps to
increase sales and profitability.
YouTube for social media marketing: YouTube is social media platform which shares videos.
This is also a effective method for businesses that helps to promote their products and services
through video and voice presentation, YouTube is also a trending social media platform that
helps to enhance productivity and profitability by increasing advertising and promotional
activities (Xi, Filser and Kellermanns, 2015).
For an example, Emerging companies such as HRX, John Players, Levie's, and many
other brands from every sector promoting their activities on social media platforms that helps to
increase profitability and production which also helps to achieve desired goals and objectives
effectively and efficiently. Social media platform work as a effective marketing tool for business
which helps to enhance productivity and market share by attracting customers.
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Impact of social media on the profit margin of Amazon in the last three years
It can be said that social media is one of the best platform for business that helps to
promote different organisational activities and products and services. This will help to provide
enough information regarding business. Social media platform such as Facebook, Instagram, and
Google etc. helps to promote business activities towards a large number of people using such
accounts (Sheth and Sisodia, 2015). Social media is emerging platform for business which
increases profitability and production. It can be said from the above analysis of social media
impact on Amazon profits that social media playing a major role in order to enhance productivity
and profitability of business. Some of the factors are described below:
Facebook: It is very important to understand the role of social media in order to promote
business. Amazon has currently 23million likes on Facebook and it is all because it engages
customers effectively. The main element of business success is customer satisfaction and loyalty.
Amazon quickly responds to their angry and frustrated customers who have any question or
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queries regarding products or services. It helps to create a conversation which is helpful for
business. The firm also highlights products and services as well as offers and policies to
encourage in sales and profitability.
Twitter: Twitter is a effective social media platform that people enjoy its services and shopping
through Amazon which helps to blown people mind. Amazon has currently 108million followers
on Twitter which is a very good number from the point of view a business. Amazon achieves this
success by making innovation at workplace and in operations (Spieth, Schneckenberg and Ricart,
2014). In respect to this, the company started to include a code, when a customer see product or
service featured on it, there is way to add item in Amazon cart by replying with #Amazoncart.
Genius. This is an effective move of Amazon which helps to attract many customers that
increases sales and profitability of firm. A large number o follower requires advertising and
creative ways to remain sustain and connect with business directly and effectively. This will help
business to achieve desired goals and objectives which also provide strong competitive
advantage.
Pinterest: Pinterest is a very good platform for business in order to sell stuff. The platform is
able to share pictures of products and services offered by Amazon in the market towards
customers. This will do by making no detail explanation of why customers should purchase the
product effectively. The firm also highlights products and services as well as offers and policies
to encourage in sales and profitability. Creative ways help Amazon to remain sustain and
connect with business directly and effectively. This will help business to achieve desired goals
and objectives which also provide strong competitive advantage.
Future of social media and its implications for business in the next five years
It can be analysed that social media is improving day y day. There are a lot of trends managed
and controlled by social media emerging platforms. This will also help businesses and other
people to promote their personal and business activities effectively. Social media advantage will
also help towards effective use of available resources. It is a powerful tool which provides
success chance for business. In respect to this, there are so many advantages and benefits of
social media advertising and promotion (Beamish and Lupton, 2016). Social media is a place
where business can easily interact with their customers that helps to increase customer
satisfaction and loyalty. Social media services will help business to drive their message out to the
local and international public. It can be said that it is a important aspect of every brand that how
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will they provide better services as compared to any other. Social media is also a platform for
companies to promote their incentives and sales to customers that help to attract new consumers
in the market The businesses are able to provide rapid social media services in order to achieve
strong competitive advantage from customers. Social media platform such as Facebook,
Instagram, and Google etc. helps to promote business activities towards a large number of people
using such accounts.
In respect to this it can be understand that social media will improve and develop for the
next five years. Social media is mainly focused on relationships which can be from customers
and friends and relatives or anybody in the world. It is an effective broad cast tool for business
that helps to make an effective communication between them (Short, Lumpkin. and Pearson,
2016). Amazon has currently 23million likes on Facebook and it is all because it engages
customers effectively and 108million followers on Twitter which is a very good number from the
point of view a business. Amazon achieves this success by making innovation at workplace and
in operations. It can be said that social media is increasing its popularity and number of
customers that for the next five years it will be boost to a incredible level.
CONCLUSION
It can be analysed from the above report that social media works as a core competence
for business that helps to gain competitive advantage effectively. It is a powerful tool which
provides success chance for business. In respect to this, there are so many advantages and
benefits of social media advertising and promotion. It can be said that it is a important aspect of
every brand that how will they provide better services as compared to any other. Regular
connection and interaction with customers will also help to engage them with brand and new
offers as well as policies. It can be said from the above analysis of social media impact on
Amazon profits that social media playing a major role in order to enhance productivity and
profitability of business. It helps to create a conversation which is helpful for business. This is an
effective move of Amazon which helps to attract many customers that increases sales and
profitability of firm. Creative ways help Amazon to remain sustain and connect with business
directly and effectively. In respect to this, there are so many advantages and benefits of social
media advertising and promotion.
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REFERENCES
Books and Journals
Beamish, P.W. and Lupton, N.C., 2016. Cooperative strategies in international business and
management: Reflections on the past 50 years and future directions. Journal of World
Business, 51(1), pp.163-175.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
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.
Short, J.C., Lumpkin, G.T. and Pearson, A.W., 2016. Oh, the places we’ll go! Reviewing past,
present, and future possibilities in family business research.
Spieth, P., Schneckenberg, D. and Ricart, J.E., 2014. Business model innovation–state of the art
and future challenges for the field. R&d Management, 44(3), pp.237-247.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Wirtz, B.W., Ullrich, S. and Göttel, V., 2016. Business models: Origin, development and future
research perspectives. Long Range Planning, 49(1), pp.36-54.
Xi, J.M., Filser, M. and Kellermanns, F.W., 2015. Mapping the field of family business research:
past trends and future directions. International Entrepreneurship and Management
Journal, 11(1), pp.113-132.
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