A Literature Review on Advantages & Disadvantages of Social Media

This literature review examines the advantages and disadvantages of using social networks in business. It highlights the objectives behind using social networking, such as selling products or services, improving customer service, and increasing brand recognition. The scope for social networking includes gathering customer feedback, facilitating group discussions, and recruiting employees. Advantages discussed are gaining brand recognition, competitor knowledge, fast marketing, improved interconnectivity, and customer feedback. Disadvantages include potential negative customer responses, time consumption, security issues, and lack of physical contact. The review concludes that while social networking is important, its pitfalls must be considered for strategic management.

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ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORK
IN BUSINESS
LITERATURE REVIEW
[Pick the date]
STUDENT NAME

ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORK IN BUSINESS
LITERATURE REVIEW
INTRODUCTION:
One of the most important tools for managers and business owners in today’s business world
is social networking which provides assistance in gaining fast and quick response from
customers and employees within the organisation. It can also be defined as a stand in which
connection between people and organisation is created digitally and to establish relationship
among them to procure the desired goal. The interchange of information can be in form of
pictures, conversation, graphic presentation or videos but the purpose lies the same i.e.
sharing of information and getting instant reaction (Elison, 2007). There are many social
networking services (SNS) which are available and can be easily accessed with the help of
internet connection to digital devices like laptop, mobile, computers, etc. The most
commonly sites used in today’s world by both business management and consumers are Face
book, Twitter, LinkedIn, Google+, etc (ARCA, 2012). In this literature review pros of social
networking like cost efficiency, instant feedback, easy to use and several others will be
compared with its cons. It might be agreed that social networking has many advantages but
researchers have identified various disadvantages behind it like time consuming process,
security risks, lack of physical attachment, etc. With its increasing demand in all business
sectors, the advantages of SNS have become a major topic of discussion in literature.
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OBJECTIVES OR REASONS BEHIND USE OF SOCIAL NETWORKING:
Social networking has gained importance as purpose behind it is the core of any business i.e.
selling of product or service with ease. This can be further explained by an example of online
shopping which has increased in last decade to much degree. Customer service companies are
also taking help of SNS while making conversations with their clients online and also
considers it as the best way to attract clients in shorter and cheaper way (TDK Technologies,
2017). Many IT enabled services and web designing companies are working to make SNS
more effective and secure to use, as it has got many security issues also. In large firms where
area of operation is not limited to one place, SNS provides them get attached with each other
and makes digital connection for communication. Increase in brand recognition along with
product/service awareness is another major objective of social networking which enables
business sustainability.
SCOPE FOR SOCIAL NETWORING IN BUISNESS:
While launching any new product or service in the market, it becomes important on
management part to gain customer feedback so that further development can be made
according to their preferences. This method can successfully get accomplished through SNS
as more people are getting attracted to digital technology than traditional way of advertising
like television and Emailing. In organisations where requirement of graphic presentations or
group discussions between companies situated in different areas is higher, SNS serves an
important role by making them connected digitally (AT&T Intellectual Property, 2008).
While transmitting information’s and messages from one place to other, SNS keeps record of
them and can be used for further reference. Recruiting efficient employees is another area
where companies largely depends on SNS where new talent is invited by the company by
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ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORK IN BUSINESS
showing company’s brand significance and organisational culture while listing the areas
where they can engage new employees (Samson, 2015).
ADVANTAGES OF USING SOCIAL NETWORK IN BUISNESS:
The advantages of social networking in business can be broadly discussed under different
categories reviewed by researchers and authors. As an inevitable part of today’s strategic
business, it becomes necessary to understand its importance in business and areas of
consideration before implementing it. As shown in the figure below, the percentiles illustrate
different purposes which are used and observed by the companies. The major advantages of
social networking can be identified which will be further discussed in this review.
Figure: Benefits of Social Media in Business
Source: (ITIQ Solutions, Inc. , 2017)
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ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORK IN BUSINESS
Gaining brand recognition: This is one the major advantage observed in literature which is
why social networking is increasing rapidly. For example, if a company or product is
frequently posted in social websites like twitter and face book, the followers will get
informed with latest updates and make instant feedbacks. Millions of people using social sites
can get attracted by recitation of good qualities and overview of product/services that make
customers select them. This can even help in the launch of new product as the customers get
acquainted with it in much shorter time. At the same time the news about it must be posted on
different and famous sites or else delayed estimation is possible (Fernando, 2012).
Getting knowledge about competitor’s: While monitoring social Medias, information about
competitors can be gained which can further help in making strategic plans for organisations.
For example websites like Hootsuite which lists major social websites helps in getting
information about the socially listed products and services (Copp, 2016). Once mentioning
the required information and after attaining the same, the scope for improvement in business
is enhanced and strategic management gets acquainted with their competitors which assist in
making further necessary changes.
Marketing made fast with ease: Information related products can be shared in social media’s
and can be seen by millions of people simultaneously in shorter period of time. According to
the survey made by Hubspot, 57% of SNS users agrees that social media has provided them
with a scope for growth of business (ARCA, 2012). It communicates brand and description
about products in the market and enhances rumour about them both in a positive or negative
manner. Thus many business organisations use SNS for marketing purpose and some uses to
get feedback for making further changes or improvement.
Improved interconnectivity between organisations: Social media sites provide efficient way
to convey message or information’s to targeted audience. While it is enormously used by
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ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORK IN BUSINESS
market division in business, interconnected activities among organisations whether small or
big are also enhanced and depend largely on SNS. Where organisations have subsidiaries
spread within limited area or worldwide, SNS proves to be a great support. To interact with
clients, business associates or executives who are not present at one place but are required to
participate in meetings or group discussions; SNS gives a medium where they are able to
have live discussions along with access to graphic presentations (Claywell, n.d.).
Getting customer feedback: This is yet another benefit of social networking where company
can get idea about customer preferences and feedback.
Figure: Showing percentage of people using Social Networking for product selection
Source: (Delzio, 2015)
As shown in the above picture a recent survey shows the percentage of customers who agrees
that they use social medias for product selection and responds about them socially. This is the
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ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORK IN BUSINESS
reason why companies choose SNS to enhance their marketing survey for getting customer
response related to their product and to compare the same with their competitors. They can
even communicate with their customers for getting knowledge about their feelings or their
thoughts about product or service offered.
Platform for customer related services and job seekers: Social media not only provides
opportunity to business, but also to the ones who seek to work with them. Business firm’s
gives opportunities to job seekers by giving details of employee’s requirement in social
Medias along with showing company portfolio to attract more people to apply for newer
posts. While job related and individual potential information is shared, it becomes easier for
the management to select the ones who seems promising to the company and the procedure
for connecting them is made. Social networking also gives assistance in promoting public
related services which are advertised in cost effective manner in social sites. Normally these
are group of people like labours, mechanics, carpenters, decorators, etc who promotes
themselves in social sites to get work online and can be carried physically after making
contacts.
DISADVANTAGES OF USING SOCIAL NETWORK IN BUISNESS
While making review on social networking uses in business, its consequences shall not be
ignored and taken into consideration by business owners before making it an integral part of
their enterprise. While increasing its uses in day to day business its outcomes are sometimes
not predicted which can result in fallback of business. The below figure demonstrates the
reasons why it is not used by many organisations due to negative impacts of SNS. Other
disadvantages are discussed further in this research paper.
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Figure: Reasons for not using social network in business
Source: (QuotesGram, 2017)
Negative response from customers: Social Medias possess nature where easy accessibility of
information among organisations and consumers are made possible which are used
simultaneously by large number of people. Not all the time positive response is made by them
as human nature and preferences differs from each other. Thus any bad or negative comment
posted in social websites can prove dangerous for firms and can directly hit on its sales.
While information is absorbed by millions of people, competitors can also take advantage of
this factor and can create hindrance in marketing of product or services. The same applies for
employees also when any circumstances of mistreatment or any false remark about their
employers is made on social websites; it damages the company reputation and image
(WebpageFX, 2017).
Takes lot of time: To reach ultimate goal of business i.e. utmost sales and getting customer
feedback for longer sustaining of organisation, it can sometimes take lot of time if SNS. The
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ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORK IN BUSINESS
period between launching any new product and getting customer feedback can sometimes
become time intensive as consumers may require time to judge effects of products like beauty
product, health related product, construction service etc. To reach maximum consumers is
another challenge faced by business owners and even SNS are digitally faster, can sometimes
take lot of time to reach in all ends. There are other reasons also where people take social
networking as time wasting process and are unaware of company products, thus lead
company in reducing customers (Wiegand, 2017).
Security issues: This is the most common reason why organisations are afraid of using social
networking. While transmitting information to other departments, the information is
sometimes hacked by hackers which are further used in wrong way. Sharing internal data via
social media can prove risk oriented as there are chances of getting its leakage. Many banks
and organisations have faced such cyber attacks where they had to bear millions of losses
(DeMers, 2014). Many fraud companies use copyrights and trademark of famous companies
and sell their products under the name of others. If the product or service is not genuine and
up to the mark it results in negative customer feedback (Bank, 2014).
Lack of physical contact: While making promotions and launching products online, physical
contact is eliminated that can make customers difficult to believe in them. Earlier door to
door selling was made by salesman along with product live campaigning where customers
were made to touch and feel the product physically and make quick decisions about them.
SNS here lacks preference as this factor also entails loss of customers. SNS within
organisation also faces problems if contacts are made only through digital devices.
Employees may lose morale and discipline in the absence of their boss and as a result reduces
their work quality. Business clients will be more affected in a positive way if personal care
and physical response is given to them along with spending quality time (Popova, n.d.).
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CONCLUSION:
Through this report, analysis of social networking in business has been made and advantages
and disadvantages have been recognised. After making evaluation it can be said that social
networking gains importance in today’s business world and cannot be eliminated completely.
The pitfalls associated are also required to be considered to make organisation successful and
set an example of strategic management (Knutsen, 2012).The benefits of social networking
are majorly cost effective and increase of brand exposure along with engaging consumers in
large numbers. Security risks along with negative feedback are few disadvantages observed
in this review. The areas needed to be considered are outsourcing made by the company
through SNS and should be made only after building detailed study of resource. While
implementing business in SNS, company must also make contracts with the websites so that
any breach of data can be tackled by them. Social networking if adopted with caution can
prove beneficial to the business and help in getting identification in shorter and economical
way (ARCA, 2012).After evaluating social networking in business and its importance it is
clearly understood that the positive factors of it can only be gained if the negative ones are
observed before implementing it.
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REFERENCES:
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