Thursday, April 9, 2009

LinkedIn Case

Online social networks have become ubiquitous in the past few years. What forms of value do users get from these services and who is most likely to sign up on LinkedIn versus other sites?

The primary value that users get from online social networks is simple communication with persistence and a broad reach. With social networking sites, a user can simply post a thought, message, picture, video, etc, and all of their friends can see it. While emailing or making phone calls is not particularly difficult, posting on your wall is even easier. This ease of communication, though not necessarily as thorough, helps keep more people in regular contact. This persistent contact can strengthen relationships that could otherwise become stagnant due to a lack of communication. This is also aided by the ease of reciprocation between friends. Social networking sites become even more powerful as the network effects grow. I for one was initially resistant to joining Facebook. But once I did, I found a lot of my old high school and college friends, as well as old work associates. It seems like I find another one every week at least. The network effects are getting stronger- Facebook just announced that it has reached 200 million members. LinkedIn is an online social networking site that focuses on building business and work relationships. It does not have many frills like the games that can be played on other purely social networking sites. The users of LinkedIn post work related information like work experience, expertise, work recommendations, and can make connections with people that are linked to their profile in a professional context.

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