Question

Case Study #2: Linkedin: The Social Network and e-Marketplace for Professionals (pg 194)

'Introduction to Information Systems by Patricia Wallace, 3rd Edition'.

Questions:

1) LinkedIn does not rely heavily on targeted advertising but gen-erates revenue from other sources. Identify other sources of revenue that LinkedIn uses and explain how each contributes revenue.
2) What are some of the advantages for college students to use LinkedIn?
3) What are some of the advantages and benefits to Microsoft in the acquisition of LinkedIn?
4) Describe how Microsoft could integrate its products with LinkedIn to provide greater value to LinkedIn customers.

Answer 1

LinkedIn makes money through various sources such as Talent solutions, marketing solutions and premium subscriptions. There most of the revenue generated from the recruitment services, where recruiter and employers purchase the access to candidates profiles. Apart from that around 18-20% gained from the marketing and advertisements. There site could be joined by any one at free of cost. But to send messages or contact with unknown or out of profile person, you need to get premium membership. So they are earning huge amount from premium memberships also. This premium membership gives the privilege to the recruiters to view or contact with candidates. There are around 25% premium subscribers on LinkedIn. This site is available in other languages also, so they were able to generate the revenue from outside of U.S also.

There are various advantages for collage to use LinkedIn.

Building of professional network: - On this site you can contact with people in your career zone. You can contact with your senior classmates who may become business referrals. It will be helpful for college student. Try to find people who are employed as per your dream job and check their profile. It will help you to find the path to get your dream job or career.

Preparation for Interviews: - It will help you to prepare for interview. Yes it is possible because you will able to see the interviewer academic background and experience. It will be helpful to impress the interviewer.

Join the group: - When you will join the group, you will able to see the updates related with company. Those update could be job related or other information. You will be able to find the jobs and conference at LinkedIn.

Microsoft will be benefited from its large customer management and social selling. It generated the revenue around %65 million in first quarter of this year and they are growing 25 % each year. LinkedIn network have around 9 million companies pages, Sales channels and Enterprise relationships which will be helpful to generate new clients.

They will be able to sell their products such office365 and online learning courses. They could use the profiles to hire the candidates for their own organization. They could link this recruitment part of LinkedIn with SAP or Oracle to attract HR teams of various industries.

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