HI 6008S_T1_2017: Literature Review - Social Networks in Business

This literature review examines the advantages and disadvantages of using social networks in business. It begins with an introduction to social networks and their impact on communication and marketing, emphasizing their role in brand promotion and customer engagement. The review then explores the advantages, including increased customer reach, cost-effective advertising, instant communication, and improved customer service. It highlights how social media can enhance brand awareness, build customer relationships, and generate testimonials. The review also addresses the disadvantages, such as the potential for negative publicity, time consumption, data insecurity, and the risk of addiction. It discusses the dangers of sharing personal information and the importance of responsible social media use. The author concludes that while social networks offer significant benefits, users must exercise caution and make informed decisions regarding their online presence.

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business research
Assignment 1 Literature Review: Submitted to the Holmes Institute: Seyi Lagoke
In partial fulfilment of the
Business Research (HI 6008S_T1_2017)
By:
LILY KARKI, Student ID: FAS2943

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Advantages and Disadvantages of Using Social Networks in Business
Introduction
Social network is the online community, understanding the group, social graph of the people who
talks about the product or business on Twitter, Facebook and Snap chat is more significantly
active in the market place which is focused solely on brand and promotion. Social network is
way of communicating with the public and organization clients and societies and can be a
powerful tool for a businesses. According to Joe Cothrel, Lithium Technologies, INC “Social
media is any online platform or channel for user generated content”.
According to Erik Quadman ”Social media is the biggest shift since the industry of evolution”,
“Social media isn’t a fad, it’s a fundamental shift in the way we communicate”. It is now the
number one activity on the web and can be incredible and useful instruments.
“Web –based social networking occurs through a variety of websites that permit users to share
content, interact and develop communities around similar interests. Examples include websites
such as Facebook and Linkedin. Social networking isn’t for everyone , but it’s now such a big
part of all our lives, whether we accept it or not it can no longer be ignored.”
Online social networking encompasses networking for business, pleasures and all points in
between. Social Networking platforms may allow organizations to improve communication and
productivity by disseminating information among divergent group of employees in a further
efficient manner.

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Social networking is the grouping of individuals into specific groups and it is the practice of
expanding the number of one’s business and/or social contacts by making connection through
individuals.
Social media is the collective of online divulgence channels dedicated to social-based input,
interaction content-sharing and collaboration. With the advance of technology and the creation of
such thing as social media our lives became more “Simple”, “Faster” and “Easier”. We can talk
to and see people from all around the world. We can share our thoughts, opinions and tastes with
the entire world and get feedback from people like us. We can learn new things and perform
everyday tasks at work. The number of large and small business to promote their product and
services. Social media can be used to publish business and event details.
Advantage of Social network in business
Social network empower to reach the right customers without spending a fair amount of money
on advertising or encouraging while in touch with recent customers. Due to this technology, firm
is able to cope up with the changing mode or promotion tactics accordingly. The business needs
to grow and adopt the new ways of method to stay of the competition which leads ahead of
customers. To get or connect with the customers, technology is making easier than ever before.
Social network promote a site or business at no cost. For example, if we are opening a business,
we can publicize by creating a business profile through some of these networks like Facebook
and Instagram. Those business can upload the pictures, logos and any kind of details about them
which can make visible for mutual friends and all the users who visit the profile. The business

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can post any topics on group related to the business and add a new contact that can lead to sales
or subscriptions.
Social media is instant once upon a time announcement and press releases took several days to
get the word” out there”. Now one can share business announcements in minutes with the simple
click of a button and things can go viral within hours. Share the message instantly using social
networking sites. Social network is the speedy transmission. As the time is being stretched
thinner and thinner by work, but social networking sites offer the chance to communicate in a
speedy and efficient manner. Writing an update for Twitter takes all of 20 seconds, and that
update reaches everyone we want it to reach in an instant. If we talk about finding out the friends
of school, college and the tutor, the first thing will approach with the online network media like
Twitter, Facebook and Instagram is the easiest way or the short span of time to touch with the
web.
Social networks is engage with different kinds of networks which enables customer service and
sales efforts on social strengthening customer relationship. There is no such a distinction while
operating social media. The business can find out their brand, products and their competitors.
Over the last few years social media has completely revolutionize the internet. Actually, it
changed the whole world and also the global marketing. Showcase your brand is marketing
channel for creating brand awareness, relationship building or driving new sales so why not use
it if it is free of cost. To develop a loyal society, people enjoy being that part of that business
that is proactively active and lively community. Such an awesome environment can help to
establish emotional connection between the company and prospects. To improve the customer
service, social media great feedback source enabling the prospect to communicate with the
company and each other. It can improve the customer service on increase brand trustworthiness

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and also digital exposure. Interacting the social network significantly raises the online presence
and leads tremendous exposure to world wide access shrinking capabilities huge amount of daily
use. Not only that it can boost traffic and SEO ratings but it can also expand sales and audience
listening to prospect on social network to ensure respond to the specific needs. This expanding
sale and consumer based not just because one is getting company name out, their research shows
2/3 people under 40 consult to media to check out testimonials, trustworthiness and reviews.
Social networking can generate testimonials for the business. Social network is the better place
for advertisement. Social media can hugely reduce the marketing costs, it is affordable to any
businesses channel itself free.
The managing of social media at taking care of all content, tweets or feedback can get really
time consuming, it need to focus primarily on business. Social networking connect with friends
and families in short time. Share feelings and opinion with each other. Fastest way of connecting
to people can find others who share the same interest or hobbies. Bring together people from all
different cultures and races breaking down boundaries that may otherwise exist in everyday life.
Sites gives bands to built up a fan base and show off their talent and also help you to find the job.
If the company wants to promote their business, goods and products using different types of
social media. Today Facebook has 1.28 billion daily active users on average for March 2017,
1.94 billion monthly active users as of March 31. So any business can take the benefit of it.
Twitter has 1st quarter 2017 320 million users, Instagram has 700 million and Pinterest have
275+ amazing Pinterest statistics and facts(February 2017) in which small or large corporation
can take advantages by promoting their products.

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Disadvantage of social network in business
People can use this social network sites to prey on the nave and vulnerable sensitive information
like date of births, addresses, marital status and jobs. All of this can be used against you by a
fraudster. It is also for people to harass, slag and bullying through these sites. People could
invent fake business or product an advertise sites, in a bid to take your money. Most of the
business are turning to social media for advertising and customer relations but how can an
individual foresee these social networking sites threat. Sometimes it may create trouble for an
individual, while everything is public and website known must of the things about them. Even if
you put these data inside the applications private section, yet your data is not 100% safe and
secure.
Everything is public in social network. The nature of social networking sites is that they are
‘well’ social, so things get shared. People really like to use social networking sites as a place to
express their frustration and disapproval of a business that they feel has wronged them in some
way which is negative publicity. Social networking sites can suck you in an before you know it’s
you’ve spent hours looking at pictures, videos, reading clever posts which is time consuming.
Large number of data is present on all the shared media sites which is insecurity of data and
incorrect utilization. People with second intention can invade the privacy of other major
problems causing themselves. Security specialist companies to affirm that is very simple hacker
which can get the confidential information of the members which is the violation of the privacy.
If social media is not use properly it can become an addiction.
In the face of social interaction people tend to lose their ability to focus. When social interaction
is available 24/7 via internet goes right out the window. Any negative information or content

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about any one or anything can be circulated faster through the social networking than anywhere
else. “The distribution between genuine friends and acquaintances is becoming blurred. Users are
spending time maintaining relationship with people they don’t really care about”. Our world is
always changing just like social media and technology. The important one is need not to use by
judgment and have good boundaries so just keep in mind that social network can be extremely
dangerous.
The final decision: the crucial part of using social networking sites are very serious, they are
good for the society as long as the correct precautions are taken. However, when it comes down
to whether social networking, is right for that is something only can decide using own judgment
and own experiences. Before becoming a member of social networking website do the
homework on what they have to offer but also find out about the risks involved.

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