LinkedIn presentation

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LinkedIn presentation

  1. 1. LinkedIn<br />“From the day we launched, LinkedIn has been about helping professionals build and maintain trusted relationships online.”- Reid Hoffmann, founding CEO<br />GROUP 3<br />
  2. 2. Online Networking Communities<br />Social Network: (SNS) An online community that allows users to construct a profile, create a personal network, search, invite and communicate with other users.<br /><ul><li>Privacy Controls
  3. 3. Degrees of separation
  4. 4. Basic vs. Premium Membership</li></ul>Social Networking Explained<br />Professional Network: (PNS) A variation on the SNS model that was built around business rather than personal relationships.<br /><ul><li>Differed in content, communication style, and nature
  5. 5. Member profiles, classified ads, message boards</li></li></ul><li>Company Overview<br />“LinkedIn will be the leader in business networking. It’s a productivity tool, used for professional people search, reference check, recruiting, finding experts and getting expert advice, and workgroup collaboration.” – Dan Nye<br />Company Vision based on 3 assertions<br />1) The Web 2.0 PNS would remain highly differentiated from the SNS, as seen with Web 1.0<br />2) Maintain a hold on professional users for positive and negative reasons<br />3) Corporations will support LinkedIn’s PNS model<br />
  6. 6. History<br />2002: LinkedIn began in Reid Hoffman’s living room<br />2003: Officially founded May 5, 2003 (Cinco de LinkedIn)<br /> The 5 founders invited 350 of their closest contacts to join<br /> Ends the year with 81,000 members and 14 employees<br />2004: Ends the year with 1.6 million members and 33 employees; International members represent about half of all members<br />2005: LinkedIn launches its first premium service, subscription service and ends the year with 4 million members<br />
  7. 7. History<br />2006: Members can be kept up to do date through added newsfeed<br /> Ends the year with 8 million members<br />2007: Launches LinkedIn Answers, Intelligent Application Platform, news product, profile pictures and corporate blog<br /> Dan Nye made CEO<br /> Customer Service Location opens<br /> Membership surpasses 15 million<br />2008: Recruiter product launches and creates buzz in HR depts<br /> Mobile phone app launches<br /> LinkedIn partners with CNBC and The New York Times<br /> Ends with 33 million members<br />
  8. 8. Competitors<br />
  9. 9. Competitors<br />SNS<br />Orkut <br /><ul><li> High usage numbers in Asian and Latin American markets
  10. 10. Small usage in Europe and North America
  11. 11. Recently introduced some PNS features</li></ul>Plaxco<br /><ul><li> Pioneer for calendar and address book sharing
  12. 12. Comcast acquired in May 2008 to integrate into its </li></ul> Internet unit<br />
  13. 13. Competitors<br />MySpace<br /><ul><li> World's leading SNS with 117 million users worldwide as </li></ul> ofmid 2008<br /><ul><li> 12% of all time spent by users on the Internet
  14. 14. Promoted user creativity and autonomy, attracted teens
  15. 15. Extremely profitable
  16. 16. Tie between The Wall Street Journal and MySpace could</li></ul>pose threat <br />Facebook<br /><ul><li> More than 350 million users today (young professionals)
  17. 17. User base and platform made potential serious competitor in PNS market, social marketing
  18. 18. Corporate pages, networking tabs </li></li></ul><li>Competitors<br />PNS<br />XING<br /><ul><li>"the LinkedIn of Europe"
  19. 19. Strong presence in Germany, Austria, and Switzerland
  20. 20. Differed by giving open access to other members
  21. 21. Perceived as only modest threat because of its limited market share and lack of U.S. presence</li></ul>Monster<br /><ul><li>World's largest job search engine
  22. 22. Subscription fees per month led to tension between core businesses
  23. 23. Did not serve professionals not actively searching</li></li></ul><li>Competitors<br />Specialized Professional Networks<br /><ul><li>Vertical-specific populations
  24. 24. Minimal threat due to different scope
  25. 25. Markets could be served through applications inside LinkedIn platform</li></ul> <br />Microsoft<br /><ul><li>TownSquare enterprise social networking
  26. 26. Document editing and personnel updates
  27. 27. Similar to Facebook page</li></li></ul><li>Strategy<br />Founded to make professionals more effective<br /><ul><li>Productivity
  28. 28. Strongly differentiated from SNS
  29. 29. Target "passive" candidates</li></ul> Revenue Streams<br /><ul><li>Advertising
  30. 30. Subscriptions
  31. 31. Job Postings
  32. 32. Corporate Solutions-passive candidates
  33. 33. Primary Research-Serve institutions through connections</li></li></ul><li>Strategy<br />International Expansion<br /><ul><li>Difficult to overcome cultural barriers</li></ul>Closed Platform ("Walled Garden")<br /><ul><li>No link between other networking sites, networking activity controlled
  34. 34. Presents dilemma as users seek expanded features</li></ul>Add some SNS features to pre-emt efforts by Facebook to enter PNS market<br /><ul><li>WSJ to LinkedIn as Facebook is to USA Today</li></li></ul><li>Porters Five Forces<br /><ul><li> Rivalry Between Competitors
  35. 35. Threat of Substitutes
  36. 36. Threat of New Entrants
  37. 37. Bargaining Power of Buyers</li></ul>- Bargaining Power of Suppliers<br />
  38. 38. Industry Rivalry<br /><ul><li> Competition in the industry is moderate to high </li></ul> -Have to not only compete with other PNS, but also SNS<br /> -Majority of new users come from invitations from existing users<br /> -MySpace, Orkut, Plaxo, Facebook, XING<br /> -If LinkedIn opens up its platform, it would increase competition <br /> -There is not much product differentiation<br /> -Industry concentration is low<br />
  39. 39. Threat of Substitutes<br /><ul><li> Threat of Substitutes is moderate</li></ul>Monster <br /> Used primarily for people searching for jobs, not networking<br />Microsoft<br /> Had look and feel of a Facebook page<br />Specialized Professional Networks: CIOZone, MedicalMingle, etc. <br />In the future we believe the threat of substitutes and industry rivalry will increase as large companies venture into this industry<br />
  40. 40. Threat of New Entrants<br /><ul><li> Threat of New Entrants is Moderate/High – YASNS</li></ul> -SNS’s have economies of scope over LinkedIn<br /> -Switching costs decrease the threat of new entrants<br /> -Introducing versions in different languages decreases the threat of new entrants from other countries<br /> -Microsoft bought a portion of Facebook, which increases possibility of Facebook emerging into the PNS industry<br /> -MySpace and Wall Street Journal are now owned <br /> by the same person<br />
  41. 41. Bargaining Power of Buyers<br /><ul><li> Bargaining Power of Buyers is Moderate/Low</li></ul> -LinkedIn is the largest PNS in the world<br /> -Buyer group is not concentrated<br /> -High concentration in PNS industry<br /> -Advertising that blends with core identity<br /> -Not many switching costs<br />( We did not analyze the bargaining power of suppliers because it is not relevant to a website)<br />
  42. 42. SWOT Analysis: Strengths<br /><ul><li>Sufficient investments to fund its projects
  43. 43. LinkedIn as a premier, trusted professional networking site
  44. 44. Corporate Intranet Offerings
  45. 45. Knowledge Management
  46. 46. Diversified revenue streams
  47. 47. Premium Accounts
  48. 48. Advertisements
  49. 49. Job Postings
  50. 50. Ability to watch expansion trends in different regions
  51. 51. Broad scope of professionals
  52. 52. Not limited to just doctors, just lawyers</li></ul>    <br />
  53. 53. SWOT Analysis: Strengths<br />30% user generated<br />50% self-promoting<br />
  54. 54. SWOT Analysis: Weaknesses<br /><ul><li>Limited access to all members
  55. 55. Platform openness creates cultural divide
  56. 56. Asia and formal introductions
  57. 57. Unique Visitors of LinkedIn among social networking sites is very low
  58. 58. 2% of facebook users, use LinkedIn
  59. 59. 40% of LinkedIn users, use facebook
  60. 60. Low Time Spent per Session per User
  61. 61. LinkedIn: 6.5 minutes/day
  62. 62. facebook: 55+ minutes/day</li></li></ul><li>SWOT Analysis: Opportunities<br /><ul><li>Moving beyond the “walled garden”
  63. 63. Leveraging social applications on other sites
  64. 64. Ability to capture the Asian market
  65. 65. Desire for social media to enhance the professional experience
  66. 66. Professional videos, lectures
  67. 67. photo album sharing from trainings and conferences
  68. 68. Young professionals attitude towards "referral marketing"</li></ul>    <br />
  69. 69. SWOT Analysis: Threats<br /><ul><li>Facebook
  70. 70. Clean interface with the potential to bridge the gap between something very social yet professional
  71. 71. Expectations of young professionals
  72. 72. less boundaries between work and social life
  73. 73. XING’s access to Asia
  74. 74. Alienating both companies and individuals, by targeting both</li></ul>    <br />
  75. 75. SWOT Analysis<br />
  76. 76. SWOT Analysis: Offensive<br /><ul><li>When STRENGTH meets OPPORTUNITY
  77. 77. Strength: User Generated Advertisements
  78. 78. Opportunity: Positive young professional attitude towards "refferal marketing"</li></ul>Referral Marketing: LinkedIn already uses user-generated ads, and can capitalize on their effectiveness as more and more young professionals come from the facebook generation.<br />
  79. 79. SWOT Analysis: Defensive<br /><ul><li>When WEAKNESS meets OPPORTUNITY
  80. 80. Weakness: Platform openness creates cultural divide
  81. 81. Opportunity: Ability to capture the Asian market</li></ul>Must keep a close eye on competition: XING. And turn weaknesses into strengths. Adapt to the needs of the Asian market.<br />
  82. 82. SWOT Analysis: Adjust<br /><ul><li>When STRENGTH meets THREAT
  83. 83. Strength: Ability to watch global expansion trends internally
  84. 84. Threat: XING and other PNSs targeting the Asian market</li></ul>Use this strength to track the rate of Asian expansionon LinkedIn and make adjustments to compete head on.<br />
  85. 85. Strategic Dilemmas<br /><ul><li>Platform Type
  86. 86. Adding Social Aspects
  87. 87. Global Expansion
  88. 88. Timing of Decisions</li></ul>Where does LinkedIn fit?<br />
  89. 89. Open or Closed Platform<br /><ul><li>Current proprietary system closed to members
  90. 90. “Walled Garden”
  91. 91. Controls/monetizes users’ activity
  92. 92. No “customer service problem” today
  93. 93. Ex: Facebook
  94. 94. Option to open platform to users/developers
  95. 95. Industry analysts view
  96. 96. Prior industries
  97. 97. Ex: Google
  98. 98. Middle Ground
  99. 99. DataPortability Work Group
  100. 100. RSS feeds</li></ul>--NOT URGENT--<br />
  101. 101. Recommendation<br /><ul><li>Utilize real option to delay decision
  102. 102. Lack of urgency
  103. 103. Dependency
  104. 104. Technology advances
  105. 105. Other firms’ decisions
  106. 106. Maintain middle ground
  107. 107. RSS feeds/other opportunities
  108. 108. Creates favorable positioning
  109. 109. Uncertainty
  110. 110. Customer service strength </li></li></ul><li>Adding Social Aspects<br /><ul><li>Maintain focus on strictly professional
  111. 111. Demographics
  112. 112. Income, age, career
  113. 113. Add social networking features
  114. 114. Fading social / professional distinctions
  115. 115. Corporate America acceptance
  116. 116. Increase time/visit</li></ul>--URGENT--<br />
  117. 117. Recommendation<br /><ul><li>Remain professionally focused
  118. 118. Maintain identity and loyalty to target market
  119. 119. Business first attitude
  120. 120. Slowly incorporate social features
  121. 121. Subtle yet useful
  122. 122. Strict acceptance policies
  123. 123. WSJ of online networking</li></li></ul><li>Global Expansion<br /><ul><li>Doubling of non-U.S. membership in 2007
  124. 124. Strong base
  125. 125. English language
  126. 126. U.S. Market
  127. 127. June 2008 - 150 countries
  128. 128. Western World/India vs. Asian market
  129. 129. Plan to introduce other language versions late 2008</li></li></ul><li>Recommendation<br /><ul><li>Strive forward globally
  130. 130. Millions of professional worldwide 
  131. 131. Streamline vital languages
  132. 132. Multinational Corporations
  133. 133. Asian market
  134. 134. Business practice differences yield issues
  135. 135. Discreet / private
  136. 136. Emerging economies
  137. 137. Approach tentatively yet opportunistic
  138. 138. Challenge competitors
  139. 139. Foreign and domestic</li></li></ul><li>Timing<br /><ul><li>Global financial crisis 
  140. 140. High unemployment
  141. 141. Recovery?
  142. 142. Growth of college graduates and professionals
  143. 143. First mover vs. second mover
  144. 144. Actions of Google, FB
  145. 145. Flexible AND focused </li></li></ul><li>Recent News<br />2009: LinkedIn launches the Grad Guide, to help graduating students in today’s economy<br /> Celebrates 6th birthday with 600 cupcakes and 40 million members<br /> Jeff Weiner named as new CEO<br /> Closed platform opened up to developers at large<br /> Around 50 million members to date<br />

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