This literature review investigates the advantages and disadvantages of social networks and social media in the context of business. It highlights target marketing and cost reduction as key advantages, while addressing copyright issues and time consumption as potential disadvantages. The review also discusses the importance of social interaction for brand reputation and customer relationships, balanced against privacy and data security concerns. Customer service is identified as a crucial area, with the potential for e-loyalty development, but also the risk of negative feedback and brand damage. The review concludes by emphasizing the need for companies to efficiently manage their social networks, respond to customer feedback, and address privacy concerns to effectively leverage social media for business success. Desklib provides access to this and other student-contributed assignments.