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Strategic case analysis of the firm LinkedIn

Strategic case analysis of the firm LinkedIn



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    LinkedIn LinkedIn Presentation Transcript

    • This presentation is a research project from students at San Francisco State University and is intended for educational purposes only, any other uses are strictly prohibited.
    • Agenda
      • What is LinkedIn?
      • Company background
      • Current business model
      • Competitors
      • Sustaining success
      • Summary
    • What is LinkedIn?
      • LinkedIn is a networking tool that enables people to establish, manage and build their professional network.
      • Most powerful networking company in the world
      • Scalable revenue model and clear vision for future growth
      • Represent the gold standard of web 2.0 business
      Logged out homepage screenshot
    • History of Growth
      • Founded Dec. 2002, launched May 2003
      • Current market reach continues to grow (see below)
      Unique Visitors only counts a user once no matter how many times they visit the site in a given month—this is the industry standard for measuring a website popularity Source: Compete.com
    • Reid Hoffman
      • Reid Hoffman, Chairman and CEO
      • ▫ Chairman, CEO and Co-founder of
      • ▫ Previously Executive Vice President of
      • ▫ Background in management & technology
      • Known as..
      • “ The most connected man in Silicon Valley”
      • (which is practically/statistically true)
      Reid is also involved with other successful start-ups, including;
    • Management Team
      • Steve Sordello, CFO
      • Previously served as Tivo, Inc.’s CFO
      • Was also CFO for AskJeeves, heading a turnaround strategy to turn the company profitable again.
      • Jean-Luc Vaillant, CTO
      • Co-founder of LinkedIn
      • Previously was Director of Engineering for Logitech
      • Jeff Weiner, President
      • Oversees all day-to-day operations
      • Over 14 years of experience as an internet executive
      • Most recently spent seven years as Executive Vice President of Yahoo! Network Division
      • Kevin Eyres, Managing Director - Europe
      • Responsible for leading company strategy and growth
      • Has experience internationally as European Managing Director of SideStep and GM of AltaVista International
    • Vision & Mission
        • Vision
        • Become the new global medium for how business gets done.
        • Mission
        • Connect the world’s professionals to accelerate their success.
    • Revenue Model
        • 1) Advertising Fees-
          • 4 basic advertising options for simple, clean and professional ads
          • Reach target customers directly
          • Cohesive with the ‘User Experience’ by avoiding flashy/irritating ads
        • 2) Premium Membership Fees-
          • Generated from membership fees for upgrade accounts
          • Additional services for professionals to improve productivity
          • *These features are useful for marketing professionals, head hunters, etc
      LinkedIn revenue model is based on 2 revenue streams , which include:
    • Revenue Model (cont) Membership ‘feature matrix’ screenshot
    • Industry Analysis
      • Professional Networking Site Industry (PNS)
      • LI is the gold standard for professional networking
        • Their current industry position in the broader SNS industry
      • Social Networking Site Industry (SNS) characteristics
        • Target markets slow to adopt
        • Hyper-Competition
        • Perpetual Innovation
        • Rapid technological developments
    • Competitor Analysis
      • Direct Competitors
      • Indirect Competitors (numerous)
    • Market Analysis
      • Target User Characteristics
      • Mostly males
      • Age 40 (approx)
      • No kids
      • Income $100k+
      • High Education level
      • California/New York
      Sample User Profile
    • Company Growth
      • Company
        • 33 employers to 345 as of January 2009
        • Memberships have more than doubled, surpassing 38 million users as of March 2009
        • Projected Growth for 2011 (below)
    • Company Growth Membership Statistics Property Average Age Average HHI %Comp Co Size <100 % Comp Business Decision Makers % Comp That Read Business Magazine Last 30 Days LinkedIn 41 $109,703 26% 49% 29% WSJ.com 48 $101,701 18% 40% 45% Forbes.com 47 $93,896 18% 38% 47% BusinessWeek.com 48 $95,668 18% 42% 51%
    • Company Growth
    • Company Growth
      • Added Services: Building value proposition to Users
        • LinkedIn Jobs
        • LinkedIn Mobile
        • Featured Apps:
      iPhone App screenshot
    • Company Growth
      • International expansion
        • - Roughly half of the members are
        • international users
      • Currently available in six
      • languages – Chinese, English,
      • French, German, Japanese,
      • and Spanish
      • Interest in LinkedIn by search volume
      Interest in LinkedIn by search volume
    • Company Growth
      • Investments
        • Sequoia saw potential growth in LinkedIn and invested 4.7 million dollars in May 2003.
        • Other important investors include;
    • Marketing
      • LinkedIn uses three main forms of marketing:
      • Search Engine Optimization (SEO)
        • Optimizing search results in search engines through carefully selected keywords and being connected to other high-traffic websites.
      • Viral Marketing
        • Offering free web-based services and products as a means of encouraging individuals to create exposure for LinkedIn.
      • Word-of-Mouth
        • Exposure created through the personal experiences and knowledge of individuals.
    • Value added
        • LinkedIn also offers vital services that enhance their overall product:
        • LinkedIn Polls
        • LinkedIn Answers
        • Applications to create synergistic interactions
          • One-stop connection to blogs, business websites, online calendars, and events.
    • Closing
      • Young market with large growth potential
      • Sustainable business model
      • Unique product offering
    • Thank you for your time! For additional info regarding this presentation, please contact Adam Pastana-- [email_address] This presentation is a research project from students at San Francisco State University and is intended for educational purposed only, any other uses are strictly prohibited.