Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Global Strategy - LinkedIn


Published on

Published in: Technology, Business
  • Dating for everyone is here: ❶❶❶ ❶❶❶
    Are you sure you want to  Yes  No
    Your message goes here
  • Sex in your area is here: ❤❤❤ ❤❤❤
    Are you sure you want to  Yes  No
    Your message goes here
  • Earn Up To $316/day! Social Media Jobs from the comfort of home! ♥♥♥
    Are you sure you want to  Yes  No
    Your message goes here

Global Strategy - LinkedIn

  1. 1. Queen’s School of Business Global Strategy Prof. Douglas ReidStrategy Profile of LinkedIn Muneet Bhatia Queen’s MBA 2012
  2. 2. About LinkedIn LinkedIn is an Internet platform with a goal toconnectstudents, business professionals and cor-porates around the world. The business started in 2003 and is currently a global network with over 150million members, the largest online business network worldwide. The top decision makers of all For-tune 500 companies are represented in LinkedIn. The company has a diversified business with revenuefrom the areas of premium subscription, marketing solutions and hiring solutions. The headquarters ofLinkedIn is located in Mountain View, California (LinkedIn Press 2011).Strategy LinkedIn has created a niche for itself in the professional world over the last few years. It hasdifferentiated itself from other social networking sites such as Facebook and Twitter wherein it fo-cuses on professionals with specific business purpose in mind rather than just social networking. Itemploys a “freemium” business model wherein it spent its initial years (between 2003 and 2005) tobuild up the user network by offering free services andonce a considerable base was built, it launchedits premium services – LinkedIn Jobs and Paid Subscription to start making revenues. LinkedIn‟s freeservices, in a sense act as a base for its premium services. Fostering viral member growth and creatinga professional record of all its members is critical to the success of its premium services. Wanting to be seen as the hub for professional conversation, LinkedIn expanded made strategicpartnerships with Twitter, CNBC, Business Week and New York Times. LinkedIn is also continu-ously innovating itself through acquisitions for enhancing its services and addition of new features toits repertoire.Willingness to PayMonetized Solution – Premium Subscription LinkedIn provides active job seekers with premium subscription an edge over the free usersthrough features such as “Inmail”, “Profile Organizer”, and “Premium Search Filters” to effectivelyconnect, organize and search for jobs. Through premium features such as “3 rd Degree Name Visibil-ity” and “LinkedIn for Salesforce”, the service becomes indispensable for suppliers, buyers andsmall/medium sized businesses to make use of the arbitrage opportunities available globally. For ex-ample, a supplier in China could use LinkedIn premium service to find a customer in Brazil who 1
  3. 3. wouldn‟t be visible to him in LinkedIn otherwise. Also, with the increasing adoption among Fortune500 members, the premium subscription service has become a status symbol to possess for the higherexecutives. Thus, without subscribing to premium services, members cannot take full advantage ofLinkedIn‟s powerful features for getting a job or propagating their business quickly and efficiently.Monetized Solution - Hiring Solution LinkedIn increases its monetization while providing members (free and premium) with bettertools to manage professional relationships. The hiring solutions help corporate partnersto work moreefficiently and effectively to identify active and passive job seekers. Currently, LinkedIn‟s hiring solu-tions has become the primary tool for hiring companies to reach out to passive job seekers. TheLinkedIn profile maintained by user acts as an “ever” updated resume for the hiring companies toreach out to qualified candidates who are otherwise not seeking a career change.LinkedIn‟s “referralengine” enables the enterprises and professional organizations to leverage the current employee net-work to find qualified candidates who can be “vetted” by the employees themselves. The solutioncanalso be used by head hunting companies to target candidates and recommend them to clients therebyjustifying the cost of using this premium service.LinkedIn could soon overtake other job search en-gines and become a one-stop place for hiring professionals.Cost For LinkedIn, the cost of adding an additional member to its network is marginal. This couldeasily be covered by either converting a fraction of its existing free users to premium or by sellinghiring/marketing solutions to corporates. Also, the network effect in LinkedIn is huge. LinkedIn doesnot have to spend lots in marketing expenses. Most of the corporates/professionals join through word-of-mouth or due to the fact that their allies/competitors are already in LinkedIn.From the cost reduction perspective, LinkedIn has employed several strategies: LinkedIn has taken advantage of the AAA framework – Adaptation, Aggregation and Arbi- trage for global integration. By establishing local sales offices, it has adapted to the coun- try/region of existence to try and overcome the Cultural, Administrative, Geographic, and Economic distances from its US base. 2
  4. 4. It has established sales offices in many of its operating countries in order to be closer to the corporate customers instead of flying out the sales/marketing people from its US base. Through the sales offices, LinkedIn takes advantage of the local employees‟ profes- sional/corporate network to build their own network, overcome language differences and take advantage of the labour arbitrage existing in that country. They could also compete with the local competitors in the market with a perception of being a local and a global player. LinkedIn has started to move certain knowledge intensive work such as R&D to country like India in order to take advantage of the knowledge capital as well as labour arbitrage. LinkedIn has adopted an aggregation strategy by opening a Brazil (with membership of 6 mil- lion) office which serves as the regional headquarters for all Latin America (with membership of 14 million) instead of opening offices in individual Latin American countries.Industry analysisCompetition In talent acquisition market, it has revolutionized the talent sourcing activities for both SMEsand large corporates through its global database of professionals. Its competitors, mainly job portals,have struggled to maintain their relevance in the changing business environment and talent needs byboth the international and local enterprises. E.g. Monster, a well-known job portal, provides databaseof potential candidates to the enterprises at the regional level. On the other hand, users of LinkedInhave access to its entire global database once they take the membership. LinkedIn is taking a leader-ship position in the hiring industry as its competitors have failed to meet the industry requirements-ability to engage and attract inactive job seekers for the long term relationships. Another source of competitive advantage for LinkedIn comes from the fact that it is a socialplatform where members can view each other‟s profiles and connect with each other through commonprofessional interests. This not only provides an opportunity to both the potential employees and em-ployers to build their professional brand on the web, but also provides them an interactive platform.Organizations are finding it much more relevant to engage potential candidates through LinkedIn andthen hire the most appropriate talent. Professionals are able to learn much more about the potential 3
  5. 5. opportunities around the globe; position themselves for any future career move and build professionalnetwork. LinkedIn has differentiated itself from competitors through unique product and service offeringsat attractive prices. This strategy has driven customers from Monster and CareerBuilder towardsLinkedIn while increasing customer value (reduction in hiring cost, faster hiring cycles, higher qualityof candidates, access to passive candidates, access to global talent etc.). Due to this value creation,corporates have chosen to shift to LinkedIn from Monster and CareerBuilder despite high switchingcosts.Buyer power Corporates and SMEs have no other alternatives but to use LinkedIn for their local and globaltalent needs. LinkedIn has been proved to be the most effective tool for them in the long term. Thesebuyers are not price sensitive as LinkedIn has helped them in driving the hiring cost down signifi-cantly as compared to their traditional hiring methods. At the same time, LinkedIn has helped its cli-ents in meeting their talent needs much faster which in turn has impacted their business operations andhence their bottom line positively. They don‟t tend to negotiate on the quality of services as LinkedInhas provided them a unique platform through which they have been able to attract and hire high qual-ity talent. LinkedIn enjoys almost monopoly power in professional networking space which provides itfurther control over the customers. Since there are very large number of buyers across the globe, LinkedIn commands more author-ity on the buying decisions too. LinkedIn has been able to enjoy the advocacy by its current customersas senior talent acquisition executives of the corporates attend conferences arranged by LinkedIn andencourage attendees to start using LinkedIn‟s solutions. Since LinkedIn is directly selling its servicesto the customers, there is no dependency on the external distribution channels which further strength-ens its bargaining power. 4
  6. 6. Supplier Power In this case, the suppliers are the professionals themselves as they are creating the global net-work which LinkedIn is leveraging in its business. There are 150 million professionals on theLinkedIn network as of Feb 2012 and this number is growing at 4 million per month. While it mightseem that LinkedIn has a high dependency on this network, it was more so in its initial years. Nowthat the critical mass has been attained, this dependency doesn‟t exist anymore. Professionals haverealized that it is in their own interest to build and grow their network on LinkedIn. This long termcareer interest of the professionals is driving the growth of the network at such a rapid pace. Employ-ees in multinational companies are connecting on LinkedIn with their colleagues in the other parts ofthe world as it is increasingly considered to be the de-facto platform to maintain professional relation-ships. Since professionals are spending significant amount of time and efforts to build their networkand personal brand on LinkedIn, it would be extremely expensive for them to switch to another pro-fessional network in the future. This factor enhances the dependency of the professionals on LinkedInin the long term and provides substantial competitive advantage to LinkedIn over its competitors.New Entrants There is a very high barrier to the entry right now in to the professional networking space whichis steering LinkedIn‟s growth. On the supply side, the LinkedIn‟s professional network is growingacross the globe (Exhibit 6). This growth was primarily in North America in the initial years but hasspread in other continents rapidly, especially in the emerging markets, since then. It took LinkedInyears to build this network and it will take years for the new players too. LinkedIn is also enjoying thescale of economies now since its fixed costs (R&D, corporate expenses, administration, IT infrastruc-ture etc.) are spread across the continents now. On the demand side, LinkedIn has already proved itself as a trusted partner to its customers. Bydoing so, it has achieved the scale at the global level and is commanding the price. On the other hand,LinkedIn has to quickly ramp up its sales and marketing efforts across the countries and continents.This would allow it to leverage its network and the credibility that it has established (Exhibit 6). We 5
  7. 7. discussed the switching costs from both the corporates‟ and professionals‟ perspective earlier. Thatbarrier applies for the new entrants too. Capital requirement is not a deterrent in this case as internet start-ups can be started with verylittle capital in hand. Internet is a growing area in the developing markets and it attracts investmentfrom venture capitalists and financial institutions too. There are incubators in both developed andemerging markets which are encouraging entrepreneurs to venture in to new businesses. LinkedIn also has a first mover advantage in the professional networking industry. They havenot only built high quality engineering and research teams but also have been able to expand its pres-ence in a number of countries in the last 3 years. This head start has allowed them to build brand andclose relationships with both the corporates and the professionals at the regional level. LinkedIn hasdemonstrated its benefits to the customers by reducing their cost of operations and creating value forthem as explained earlier (faster hiring cycles, higher quality of candidates, access to passive candi-dates, access to global talent etc.). The above explained factors have created a significant barrier to entry for the new entrants inprofessional networking space.Substitutes Disruptive technologies have revolutionized the ways businesses are run over the last decade.With the rapid advances in internet and mobile technologies, no industry and business model can sus-tain without being aware of the changes and constantly evolving itself. However, LinkedIn has beenable to replace job boards like Monster, CareerBuilder etc. and has redefined the role played by thetraditional head hunting and executive search firms over years. Coming out of the recession, organizations have been looking for innovative ways to ramp uptheir teams. Moreover, organizations have become more quality and skills conscious. In this environ-ment, LinkedIn has to be ahead of its competitors through innovation. A large population on LinkedIn, especially from emerging markets, is building profiles on thewebsite but has not been able to serve the purpose –build a professional brand for themselves and be- 6
  8. 8. come a potential future hire for the corporate partners of LinkedIn. It is because of this reason thatcorporate partners in those regions might find it difficult to extract the value they are expecting fromLinkedIn. Further, niche industries and skills would always find its ways through the traditional hiringchannels. LinkedIn should carefully analyze its offerings and make sure that it doesn‟t become a meretool for the recruiters and head hunting firms and rather maintain its professional networking essence. However, in the short to mid- term, LinkedIn has low threat of being substituted by anotherproduct or service.Value Chain Analysis In an internet corporation, information becomes the main medium through which business proc-esses flow. The greater the amount and the value of information that flows through the value chain, thegreater the firm‟s value proposition will grow and therefore the consumer‟s willingness to pay willincrease. For these kinds of businesses, the concept of Virtual Value Chain was introduced in 1995 byRayport and Sviokla, which consisted of „„gathering, organizing, selecting, synthesizing, and distribut-ing of information” (Rayport, Sviokla, 1995). However for a firm whose business relies on social me-dia, we can even talk of Value Chain 2.0 which puts the consumer in the heart of this new model. Indeed, Michael Porter‟s vision of a company‟s value proposition was more oriented to manu-facturing firms. Therefore, a new vision was developed in order to be able to analyse these new firmswith a significantly different business model. Social Media enables the consumer as an actor of thefirm‟s development and he or she becomes part of the company‟s value chain. A new term whichcould be used to describe this new type of consumer is “ConsumActor” (Comtesse X.,Huang J., 2008). In order to analyse LinkedIn‟s value chain, we chose to transpose activities from Michael Por-ter‟s value chain to adapt them to the social media industry as described in Xavier Comtesse and Jef-frey Huan‟s article published in 2008 (Exhibit2). LinkedIn‟s primary activities in their value chain are the following:Open Inbound Logistics (Inbound Logistics) In LinkedIn‟s case, the raw materials are the different members of its website. LinkedIn mem-bers are as described in the overview of the company, professionals or students looking to increase 7
  9. 9. their network in order to enhance their opportunities.The more the quantity and the quality of themembers they attract, the more they will possess relevant data and information which will become thecore of their business model in order to develop their three offers: premium subscriptions, marketingsolutions and hiring solutions.Co-operations (Operations) In a social media company, the ConsumActor is responsible for creating value by networkingwith other professionals. In economics, this effect is called a network effect or network externality(demand-side economies of scale). As we have mentioned above,the ConsumActor will generate rele-vant data and information which will give value to the firm‟s offers. In general, social media is a busi-ness where the ConsumActor will drive the value of the firm, as shown in Exhibit4.Outbound Logistics by Customers (Outbound Logistics) Regarding how its service is distributed,LinkedIn does not managethis part of the value chaindirectly. In fact it is not part of its core business to deliver the package which contains their service.This activity is being handled by complementary industriessuch as computer manufacturers or phone,tablet manufacturers and service providers for mobile use of the service. Moreover these stakeholdersmight offer complementary services to consumers and add value to LinkedIn‟s services. What theyprovide to these stakeholders is the technical platform that members and other customers use in orderto enjoy their services.Viral (Marketing and Sales) LinkedIn hired an external firm to work on sharpening its positioning, expanding marketplaceand public perception of the site. However, we cannot consider that this activity is outsourced as it wasmore a consulting work.LinkedIn has own marketing offices in its main markets: Australia, Brazil,Canada, France, Germany, India, Italy, Japan, the Netherlands, Singapore, Sweden and the UnitedKingdom etc (LinkedIn Form 10-K, 2012). LinkedIn does not focus only on subscriptions in order to earn revenue. Premium subscriptionsaccounted for only 20% of their yearly revenue in 2011. The other activities that create their revenueare the sale of their hiring solution (50%) and their marketing solution (30%) – Exhibit6. 8
  10. 10. Even though most of their revenue is not made on subscriptions, the key of their businessmodel is to attract consumers, not necessarily premium subscribers. Indeed enhancing their customerbase will make their hiring and marketing solutions more valuable to potentials clients.Communities of Practice (Services) For LinkedIn, this activity is critical to developing their member base. As a result of poor ser-vice, they could indeed decide not to be active on their platform and that would damage the viral effectfor enhancing their value. LinkedIn also adds value through its support activities which can be described as follows.Multi-stakeholders infrastructure (Firm infrastructure) LinkedIn Corporation performs such activities as finance, accounting, auditing, general man-agement, strategic planning mainly by itself (seldom it uses outside consulting and accounting ser-vices). Although there are functions, which the company prefers to outsource. For instance, the com-pany hired Atomic PR to provide public relations services – it should help to improve public percep-tion of the site. Also, LinkedIn outsources legal services – law firm Cooley LLP helps with protection,maintenance, enforcement of its marks. Moreover Cooley helped LinkedIn to go public in 2011(CrunchBase, 2012). All mentioned services are outsourced in the USA, because the location of head-quarters. LinkedIn web-site is a good example of multi-stakeholder environment. By means of REST ap-plication programming interface (API) it lets companies to organize their own professional networks,own web sites inside LinkedIn infrastructure (LinkedIn, 2012).Customer network management (Human resource management) LinkedIn Corporation recruits employees using its own recruitment team. The majority ofLinkedIn‟s recruiting efforts take place on Also the company head-hunts some personsfor crucial positions from big, international technological and consulting companies such as Google,Yahoo, Booz & Company etc. Main HR departments are situated at headquarters of the company inthe USA and at international headquarters in Dublin (Ireland) (LinkedIn Form 10-K, 2012).Co-Creation development (Technology development) 9
  11. 11. LinkedIn Corporation provides opportunities to customers of LinkedIn and even to people allover the world to create new and develop existing features of its social network. The company main-tains a LinkedIn Engineering Blog and LinkedIn Labs. The goal of the blog is to share the latest tech-nological developments at LinkedIn, discuss them and update. LinkedIn Labs hosts a small set of pro-jects and experimental features built by the employees of LinkedIn (LinkedIn, 2012). It solicits feed-back from people in order to improve these projects. These are bright examples of co-creation devel-opment. Design of LinkedIn is developed by internal specialists as design is considered to be one of themain factors of success in e-business. LinkedIn‟s team works on anddevelops special systems, which facilitates processes for flowand storage of information: information retrieval systems, the social graph system and supporting datainfrastructure.Open procurement (Procurement) Procurement activities of LinkedIn mainly principally include purchasing of different com-puter equipment, especially data centres. All data servers, which are purchased by LinkedIn, are pro-duced by Oracle Corporation – the world leader in database management systems (LinkedIn, 2012). Material data centre facilities are provided by Equinix Operating Co., Inc. pursuant to a masterservice agreement with Equinix dated February 2008. Under this agreement, Equinix providesLinkedIn with data centre space in Silicon Valley and Chicago (LinkedIn Form 10-K, 2012). There areseveral reasons for that decision. First of all, organizing such facilities is quite expensive and insteadLinkedIn decided to focus on its primary activities. Secondly, headquarters of LinkedIn are situated inSilicon Valley and it is quite convenient and safe for company to have servers close to it. Also,Equinixhas brand new, fully-equipped facilities in mentioned areas what guarantees high level of renderedservices. All new innovations will be rapidly implemented at these data centre facilities as they aresituated in the high-tech innovation and development area. If we look at LinkedIn‟s raw materials as each of its members, we can see that he or she willthen add relevant information in his or her profile and by linking with other members, enabling theother activities of the value chain to increase their value. The more this viral effect will occur the more 10
  12. 12. LinkedIn‟s hiring and marketing solutions will become valuable, therefore driving the customers‟ will-ingness to pay up.The value chain for LinkedIn is presented in the Exhibit 3.Motivation for Globalization LinkedIn‟s core of business is linking professionals around the globe. This approach is twofoldas on the one hand individuals can get in contact (e.g. through groups) with other likeminded people inorder to conduct business, collaborate or share ideas; on the other hand, LinkedIn is actively used byindividuals to find future employers and vice versa employers which are on the lookout for new em-ployees use LinkedIn as a tool to facilitate their search. This can reduce recruiting costs dramaticallyand therefore LinkedIn is more and more integrated in the recruitment process (LinkedIn Press 2011).ADDING Value Framework - Growth It is obvious that LinkedIn internationalizes as the company‟s platform can be universally em-ployed in any country in order to connect professionals with managers and companies. Regarding theADDING Value framework, therefore, the main driver of internationalisation is growth (Ghemawat2007).As LinkedIn is truly an online-company, new markets can easily be penetrated as basically onlythe homepage needs to be translated into various languages and a specific country‟s domain to be reg-istered.ADDING Value Framework - Increasing Willingness-to-pay LinkedIn‟s main income is generated through advertising of companies, HR solutions, and pre-mium members (Exhibit6). Therefore, offices in active countries have to be installed (Greenfield) asawareness has to be created in order to sell products (ads, HR solutions). “Capturing revenues fromHR Solutions and advertising requires a massive sales team in close proximity to the client” (Woir-haye 2011). In order to be successful and increase revenue the brand LinkedIn has to be strengthenedso that the willingness-to-pay can be raised from both individuals and companies (as advertisers andmostly HR tool users).In going international, LinkedIn is getting more popular (brand awareness), asmore people know about it and in the best case then use it.Location As it is clear by now that LinkedIn relies on actives members, preferably premium ones, andcompanies which use LinkedIn mainly as an HR tool, the company aims in its internationalization 11
  13. 13. endeavour to enter large and growing economies. The more people and companies LinkedIn use themore powerful the network gets; this is also known as the network effect (Marketing Terms n.d.).Therefore, not only major economies like North America, Europe or Japan are important but also fastgrowing industries, especially the BRICs As business is growing fast, many new connections are beingmade from which LinkedIn can profit. Also, there is a need for companies to establish their brand inthese emerging markets. With LinkedIn they can target advertising campaigns at professionals or canuse the platform to identify top talenteasier and faster particularly in emerging countries (Kak-kar2011).Entry Mode LinkedIn enters countries through a Greenfield strategy (LinkedIn Press 2011). As previouslystated, LinkedIn needs proximity to (business) customers in order to sell professional products like HRtools. Therefore a sales team needs to be installed to create awareness in new entered countries in or-der to being able to serve clients, i.e. to sell ad-packages and HR tools (Woirhaye 2011).CritiqueProfitability One of the primary criticisms of LinkedIn‟s strategy over the years was its lack in focus of prof-itability. It spent its initial years after inception to gather the critical mass of quality business profes-sionals which is the current selling point. Hence, from our perspective it is a sound strategy which thecompany had adopted. Looking at the net revenues for the past 3 years (Exhibit 6), it is clear that therevenues are increasing at the rate of 100% year over year.Local (US) Focus LinkedIn has also been criticized for being too locally focussed on its US operations. However,with the establishment of International offices in Amsterdam, Bangalore, Delhi, Dublin, London, Mel-bourne, Milan, Mumbai, Munich, Paris, Sao Paulo, Singapore, Stockholm, Sydney, Tokyo and To-ronto as well as an R&D centre in Bangalore, India LinkedIn has started to diversify its global pres-ence. Also, the revenues from international operations (Exhibit 6) are increasing at the rate of over 12
  14. 14. 100% year over year with percentage contribution at 32% for 2011. The revenues from internationaloperations are set to increase with the opening of more and more global offices wherein LinkedIn‟ssales staffs strive to be near the customers to effectively market their products/services and supportthem.Internationalization LinkedIn has taken advantage of the AAA framework – Adaptation, Aggregation and Arbi-trage for global integration. By establishing local sales offices, it has adapted to the country/region ofexistence to try and overcome the Cultural, Administrative, Geographic, and Economic distances fromits US base. By establishing regional office in Brazil (Sao Paulo), it has consolidated its operations forentire Latin America taking advantage of the cultural/language similarities. It has also taken advantageof the labor arbitrage and knowledge capital existing in a country like India by setting up an R&Dcentre along with sales office.Generic Pricing LinkedIn employs a generic pricing strategy in all countries wherein it charges a flat rateequivalent to its US dollar pricing. This could deter potential subscribers based on the purchasingpower parity of the local economy. This is especially true for consumers in the developing world.LinkedIn‟s rationale could be that the target customer segments in the economy could afford the cur-rent pricing system. LinkedIn could gain more customer base and improve its revenues by localizingthe pricing strategy pertaining to the country it is operating in.Awareness Creation LinkedIn relies on word-of-mouth advertising for its solutions. Awareness is not created amongcertain lesser technology savvy industries such as manufacturing. If we look at the Industry segrega-tion (Exhibit 7), we can see the effects. However, the growing popularity of Information Technologymakes its application in the manufacturing sector indispensable. Thus, creating awareness initiallyamong the higher and mid-management executives and then propagating to the lower tier employeescould present a significant business opportunity especially in the marketing and subscription solutionssegment of LinkedIn. 13
  15. 15. Targeting Premium Subscription Market LinkedIn is not aggressively targeting the premium subscription segment. It is currently focus-sing more on the hiring and marketing solutions. With the subscription rate of 0.8% (1.2 million ap-proximately– Exhibit 8), it is far behind its competitors such as “Xing” and “Viadeo” who have con-verted up to 20% and 10% of their users respectively into premium subscribers (Woirhaye 2011 andIko-systems 2011). There is a huge business potential in this segment especially from thesmall/medium enterprises who are trying to expand their global reach. Hence, LinkedIn needs to im-prove its marketing strategy to capture this segment more effectively. 14
  16. 16. Bibliography - LinkedIn 2012, Annual report Form 10-K, <> - CrunchBase 2012, LinkedIn Company Profile, <> - LinkedIn 2012, LinkedIn engineering web-site, <> - Ghemawat, P., 2007. Redefining Global Strategy: Crossing Borders in a World Where Differ- ences Still Matter 1st ed., Harvard Business School Press. - Iko-systems 2011. LinkedIn against its European competitors, accessed on 14 March 2012, <> - Kakkar, M. 2011. LinkedIn India reaches 10 Million users milestone, accessed on 14 March 2012, <> - LinkedIn 2011, Pressebereich, accessed on 14. March 2012, <> - LinkedIn 2011, Press, accessed on 14. March 2012, < expands-european-footprint-new-office-opening-stockholm-sweden> - Marketing Terms n.d., Network Effect, accessed on 14 March 2012, <> - Woirhaye, N. 2011. Why LinkedIn Does Not Generate Revenue From Its Monster Userbase, accessed on 14. March 2012, < from-its-monster-userbase-2011- 6?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider +%28Business+Insider%29> - Xavier Comtesse, Jeffrey Huang 2008. Value Chain 2.0, ThinkStudio, Genève/Lausanne - Rayport, Jeffrey F. and Sviokla, John J. (1995) Exploiting the Virtual Value Chain, Harvard Business Review, November/December 1995. - Leah Burdick, I. F. N. K. P. K. a. D. R., n.d. Thunderbird Student Voices. [Online] Available at: of-the-online-network-linkedin%E2%80%99s-strategic-position-and-power/ [Accessed 16 March 2012]. - LinkedIn, 2012. [Online] Available at: [Accessed 16 March 2012]. - Reuters, n.d. LinkedIn Corp (LNKD.K). [Online] Available at: [Accessed 16 March 2012]. ii
  17. 17. Exhibits1LinkedIn Ads - Targeting2 iii
  18. 18. 3 MULTI-STAKEHOLDERS INFRASTRUCTURE Recruiting technical, administrative person- Recruiting techni- Recruiting marketing and sales, technical, Customer nel cal staff administrative employees networkmanagement Providing training and development programs: Employee assistance programme, Professional development and Management development program M Supporting Supporting informa- Marketing re-Co-creation JavaScript tion retrieval sys- search, sales and Service support Web design tems, social graph marketing sup- Adevelopment and REST APIs system, data infra- port structure ROpen pro- Different computer equipment, flow of information Gcurement LinkedIn members : Members add in- Platforms in order Members build Service is critical to I formation on their to use LinkedIn: their network and the quality of inte- - Students profile which computers, mo- the solution be- raction between - Professionals N creates valuable biles, tablets. comes more and members which is data. more attractive. the core of Linke- dIn‟s business. Open in- Co-operations Outbound Viral (Market- Communities of bound logis- logistics by ing&Sales) practice tics customers ii
  19. 19. 4Value creation in social media –source : by Product Line (in thousands of dollars) – source : LinkedIn Financial Report, From 10-K $300,000 $250,000 $200,000 2009 $150,000 2010 $100,000 2011 $50,000 $0 Hiring Solutions Marketing Premium Solutions Subscriptions ii
  20. 20. 6Revenue distribution (in thousands of dollars) – source : LinkedIn Financial Report, From 10-K iii
  21. 21. 7 iv
  22. 22. 8 =Feed%3A+ businessin-sider+%28Business+Insider%29, accessed 14. March 2012 v