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Ch 1 case study - XING

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Case study to support teaching material for chapter 1.

Source: Heinze, A., Fletcher, G., Rashid, T., & Cruz, A. (Eds.). (2017). Digital and Social Media Marketing: A Results-Driven Approach. Routledge. Accessible online http://mastersindigitalmarketing.org/book/ #passion4digital This work is licensed under a Creative Commons Attribution 4.0 International License.

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Ch 1 case study - XING

  1. 1. Source: Heinze, A., Fletcher, G., Rashid,T., & Cruz, A. (Eds.). (2017). Digital and Social Media Marketing: A Results-Driven Approach. Routledge. Accessibleonlinehttp://mastersindigitalmarketing.org/book/ #passion4digital Thiswork is licensed under a Creative Commons Attribution 4.0 International License. Chapter 1 Understanding Digital and Social Media Marketing Concepts Case Study Chapter 1: XING A successful professional social network in Europe Overview XING is a successful example of a professional social media business network. The company was founded in November 2003 by L.Hinrich in Hamburg, Germany, but at that time it was called Open Business Club (openBC). By the end of 2003 the platform was launched in German and English and the firstspecial interestgroupwassetup.The company’scapitalization during the IPO (Initial public offering) in 2005 was nearly 20 million euros and reached 55 million euros by 2010. According to Statista,in2014 XINGhad 14 millionmembers.The buyerpersonasof mostof the usersrepresented German-speakingcountries(Germany,Austria and Switzerland) and they were using XING to boost their business, jobs and careers. The Aims of XING are to: ● expand the platform ● develop new services Implementation By the end of 2004 openBC was accessible in eleven languages (Spanish, French, Portuguese, Japanese, Finnish, Dutch, Swedish, Chinese and Hungarian). At the beginning of 2005 there were sixteenlanguages.In2004 openBCconsistedof more than 500,000 members,and claimed to be the largest social network for professionals in Europe (Runge, 2014).
  2. 2. Source: Heinze, A., Fletcher, G., Rashid,T., & Cruz, A. (Eds.). (2017). Digital and Social Media Marketing: A Results-Driven Approach. Routledge. Accessibleonlinehttp://mastersindigitalmarketing.org/book/ #passion4digital Thiswork is licensed under a Creative Commons Attribution 4.0 International License. In December 2006, Open Business Club AG was the first Web 2.0 company to go public, floating in the Prime Standardsegmentof the FrankfurtStockExchange.Itchanged its name and became XING for the IPO (Faber Novel, 2007). XING’s primary target market is D - A - CH region - German-speaking region (Germany, Austria and Switzerland). XINGalwaysstrivedtobecome the numberone businessnetworkinEurope forprofessionals.Sucha positionisalsoveryattractive forcompaniesandrecruitingspecialists.The service offered for users was twofold: ● Free membership - enables members to access limited profiles of the other members, invite otheruserstojointheirnetwork,make basicsearches, receive private messages, join groups, organize one meeting per month, research job offers. ● Premiummembership - enables members to receive and send private messages, carry out advanced searches, post job offers, organize unlimited meeting and conferences, check which members have looked at their profiles and have access to the “premium world”. Three options are available for businesses – e-recruiting, advertising and company profile. Companies can also promote the information related to different events. AccordingFaberNovel (2007),the XINGbusinessmodel wassuccessful throughthe implementation of several aspects: ● Leveragingeconomyof scale - XINGusedviral marketingtechniqueshavingusedexisting and newmembersasmarketingagentsinorder to increase members and the premium members base. ● Attracting new members - XING attracted new premium members. Existing members can easilyexpandtheirownnetwork through simple tools. Members were encouraged to do this through an offer of one month’s free subscription to each new member subscribing to the premium option. ● Monetizing user’s base - this was achieved through several levers: the adaptation of local specificities; clear and readable offer for users; discreet and efficient advertising; specific offers for premium members and services of high quality. XING made several acquisitions: ● In December2010, XING acquiredAmiando AG, a Munich-based company and Europe’s leading provider of online event management and ticketing. ● In January 2013, XING acquired Kununu GmbH, the leading platform for employer reviews in German-speaking countries. Results
  3. 3. Source: Heinze, A., Fletcher, G., Rashid,T., & Cruz, A. (Eds.). (2017). Digital and Social Media Marketing: A Results-Driven Approach. Routledge. Accessibleonlinehttp://mastersindigitalmarketing.org/book/ #passion4digital Thiswork is licensed under a Creative Commons Attribution 4.0 International License. XING was the first Web 2.0 company to go public in Europe in 2006 and raised 35,7 million euros. The company’s capitalization during the IPO was nearly 20 million euros (2005) and reached 55 million euros in 2010. According to Statista, in 2015 XING generated a revenue of 122.9 million euros, up from 101.37 million euros in the previous year and in 2016 XING had over 15 million members. Most of the users were from German-speaking countries (about 8.7 million) and were using XING to boost their business, job, and career (XING, 2016). Currently the company employs around 500 people. However, the greatest challenge for XING is globalization. The increasing mobility and travel of businesspeople strivingforglobal reachfortheirbusinessnetworks, means that companies such as LinkedIn are becoming more useful. According to Oğuz Alp Tan of social world trips (http://www.socialworldtips.com/): “For small to medium-sized companies,aswellas forjob seekers in the German-speaking area, XING is very well suited.” Further Information 1. https://recruiting.xing.com/en/facts-and-figures/ 2. https://recruiting.xing.com/uploads/downloads/150824_XING_ImageBroschu__re_EN_01.p df 3. https://www.youtube.com/user/XINGcom 4. https://plus.google.com/+XING/posts 5. http://mashable.com/2008/02/19/XING-growth-2007/#ifVnt.hPHEqW 6. http://techcrunch.com/2012/06/14/business-focused-social-network-XING-announces- dividend-of-e0-56-per-share-total-payout-around-e3-million/ 7. http://techcrunch.com/2013/01/09/linkedin-competitor-XING-buys-glassdoor-like-startup- kununu-for-12-3m-but-will-it-fair-well/ 8. http://www.exasol.com/fileadmin/content- de/pdf/Success_Stories_Kunden/CSXINGEN0611B.pdf 9. http://etm.entechnon.kit.edu/downloads/XING_AG.pdf 10. https://www.crunchbase.com/organization/XING#/entity 11. https://www.cleverism.com/using-XING-de-business-purposes/ 12. Runge,W. (2014) Technology Entrepreneurship: A Treatise on Entrepreneurs and Entrepreneurship for and in Technology Ventures. Vol. 1. Discussion questions 1. Discuss the level at which XING is on the DIgital Business Maturity Model.
  4. 4. Source: Heinze, A., Fletcher, G., Rashid,T., & Cruz, A. (Eds.). (2017). Digital and Social Media Marketing: A Results-Driven Approach. Routledge. Accessibleonlinehttp://mastersindigitalmarketing.org/book/ #passion4digital Thiswork is licensed under a Creative Commons Attribution 4.0 International License. 2. Why was XING’s business model was successful? 3. What advantages did XING gain by acquiring leading event management and review management companies? 4. Describe the possible Buyer Personas for XING. 5. Why might the services offered by XING be of interest to English speaking countries? 6. In your opinion, what are the key revenue sources of XING? Class activities 1. In groups,researchhowthe digital economyislikelytochange and what impact this could have on small and medium size businesses. 2. Applying the Ansoff’s Matrix discussed in Chapter 1, what new services might be interest to professionals and business on XING?

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