The last topic.
The weeks have been good, and overall the messages between lessons have been fairly easy and understandable. This week we look at Business Value and Crowdsourcing. Seems like a good way to end our talks of Social Media in business so lets get into it.
The questions discussed within this post is based around businesses, the world economy and how exactly social media effects these things. Crowdsourcing, which is a new word, will also be further explained and hopefully we can understand how it is used by the end of this post. Lastly, we will look at the drivers and inhibitors of using social media for businesses along with how they benefit/setback companies.
Social Media, Business & the Economy
So as we already know, Social Media is a giant place in which many people communicate and share ideas and their lives with each other. It is great for businesses as it creates a rapport with their clients and further promotes their brands all over the world. According to the Market Mogul, “As of August 2015, Facebook had over 1.18 billion monthly active users. Facebook’s global reach facilitates global economic activity – earlier this year Sheryl Sandberg, Facebook’s COO, declared that“Every day, businesses of all sizes, sectors and skill sets are using the Facebook platform to grow and expand.”” (The Market Mogul, 2016). Their article states the abilities in which Facebook helps companies/businesses by “enabling them to promote their activities, and matching them with the customers who are most likely to be interested in consuming their products and services.” showing that Facebook’s promotional capabilities greatly help the business in question.
Therefore, thousands of businesses that use the tool would greatly benefit from it. On a global scale, that could seriously effect how the world economy is run and fully affected. Facebook has probably one of the biggest effects on the global market and it it shown through the infographic provided my Market Mogul.
Crowdsourcing…never heard of it
It’s a different term, and relatively new as well. Basically it means, the process of getting work or funding, usually online, from a crowd of people. The word is a combination of the words ‘crowd’ and ‘outsourcing’. The idea is to take work and outsource it to a crowd of workers.
The best example within society today of this is Wikipedia. The fact that anyone from anywhere can edit/add knowledge to posts is something that Wikipedia relies heavily on. The information is usually reliable and accurate, unfortunately it cannot be referenced academically for the same reasons that make it great.
Another use of Crowdsourcing is such sites as Freelancer.com that use people from all over the world to create things that people need or ask for for a price. Crowdsourcing is a valuable tool when using social media as it brings in the ideas of others from anywhere around the world.
What drives business…what sets them back?
So, throughout the weeks, many things have been discussed and we have mainly always looked at the benefits of using social media for businesses. The fact that anyone can advertise anywhere and promote whatever they like is awesome right? Definitely! Businesses are able to communicate over borders and work together on global scale projects to reach their fullest potential. This creates an amazing place in which customers and other businesses can interact with each other and make decisions based off the market on the fly. So what could really go wrong with this method? Well not much to be honest.
Customers are the real threat here. Other businesses are competition yes, and do, to a point dictate how you run your business. However, customers are the ones to watch. The fact is, with so much online, and so many overseas businesses overseas, customers can easily find the same or similar products for a greatly reduced price. A new iPhone could cost upwards of $800NZD domestically, whereas with enough research you could find them for as little as $500NZD. The online market is the reason domestic markets fail, only to avoid the big bad GST costs.
With this in mind it should not deter businesses from using the amazing online tools presented. However it should make them aware that customers are looking for cheaper products and awesome deals are the best way to keep them enticed!
Thanks again for reading all these posts! It has been an absolute pleasure writing these over the weeks! Until text time!