Case Study Description of LinkedIn Corporation, 2012
Since its inception in 2003, LinkedIn had become a leading Silicon Valley institution with a brand name that was recognizable throughout the U.S. and in many countries overseas. As of March 2012, LinkedIn was the world's largest professional network on the Internet with $522.2 million in revenue in 2011 and more than 150 million members in over 200 countries. Unlike other major social networking sites, LinkedIn focused exclusively on fostering connections within the professional market. As LinkedIn's CEO thought about the future, he recognized the challenges in continuing to massively scale the company. At the same time, he focused on how LinkedIn could continue to use its vast amount of data to provide additional products and services for its members and customers.
Swot Analysis of "LinkedIn Corporation, 2012" written by David B. Yoffie, Liz Kind includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Linkedin 522.2 facing as an external strategic factors. Some of the topics covered in LinkedIn Corporation, 2012 case study are - Strategic Management Strategies, Collaboration, Disruptive innovation, Internet, Networking, Social platforms, Social responsibility, Strategy execution, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the LinkedIn Corporation, 2012 casestudy better are - – challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%,
banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of LinkedIn Corporation, 2012
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in LinkedIn Corporation, 2012 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Linkedin 522.2, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Linkedin 522.2 operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of LinkedIn Corporation, 2012 can be done for the following purposes –
1. Strategic planning using facts provided in LinkedIn Corporation, 2012 case study
2. Improving business portfolio management of Linkedin 522.2
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Linkedin 522.2
Strengths LinkedIn Corporation, 2012 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Linkedin 522.2 in LinkedIn Corporation, 2012 Harvard Business Review case study are -
Learning organization
- Linkedin 522.2 is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Linkedin 522.2 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in LinkedIn Corporation, 2012 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Linkedin 522.2 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Linkedin 522.2 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Linkedin 522.2 is present in almost all the verticals within the industry. This has provided firm in LinkedIn Corporation, 2012 case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Superior customer experience
– The customer experience strategy of Linkedin 522.2 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Linkedin 522.2 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in LinkedIn Corporation, 2012 Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Strategy & Execution industry
– LinkedIn Corporation, 2012 firm has clearly differentiated products in the market place. This has enabled Linkedin 522.2 to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Linkedin 522.2 to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Linkedin 522.2 are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy in the LinkedIn Corporation, 2012 Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Linkedin 522.2 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Linkedin 522.2 has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Highly skilled collaborators
– Linkedin 522.2 has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in LinkedIn Corporation, 2012 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Linkedin 522.2 in the sector have low bargaining power. LinkedIn Corporation, 2012 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Linkedin 522.2 to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Linkedin 522.2 is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by David B. Yoffie, Liz Kind can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses LinkedIn Corporation, 2012 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of LinkedIn Corporation, 2012 are -
Capital Spending Reduction
– Even during the low interest decade, Linkedin 522.2 has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Linkedin 522.2 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study LinkedIn Corporation, 2012 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study LinkedIn Corporation, 2012 has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Linkedin 522.2 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the LinkedIn Corporation, 2012 HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Linkedin 522.2 has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Linkedin 522.2 needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Linkedin 522.2 supply chain. Even after few cautionary changes mentioned in the HBR case study - LinkedIn Corporation, 2012, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Linkedin 522.2 vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Linkedin 522.2 is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Linkedin 522.2 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Linkedin 522.2 to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Linkedin 522.2 has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - LinkedIn Corporation, 2012 should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study LinkedIn Corporation, 2012 that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case LinkedIn Corporation, 2012 can leverage the sales team experience to cultivate customer relationships as Linkedin 522.2 is planning to shift buying processes online.
High cash cycle compare to competitors
Linkedin 522.2 has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow decision making process
– As mentioned earlier in the report, Linkedin 522.2 has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Linkedin 522.2 even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities LinkedIn Corporation, 2012 | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study LinkedIn Corporation, 2012 are -
Loyalty marketing
– Linkedin 522.2 has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Linkedin 522.2 to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Building a culture of innovation
– managers at Linkedin 522.2 can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Linkedin 522.2 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Linkedin 522.2 can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Better consumer reach
– The expansion of the 5G network will help Linkedin 522.2 to increase its market reach. Linkedin 522.2 will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Buying journey improvements
– Linkedin 522.2 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. LinkedIn Corporation, 2012 suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Linkedin 522.2 is facing challenges because of the dominance of functional experts in the organization. LinkedIn Corporation, 2012 case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– Linkedin 522.2 has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study LinkedIn Corporation, 2012 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Linkedin 522.2 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Linkedin 522.2 can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Linkedin 522.2 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Linkedin 522.2 to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Linkedin 522.2 to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Linkedin 522.2 can use these opportunities to build new business models that can help the communities that Linkedin 522.2 operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats LinkedIn Corporation, 2012 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study LinkedIn Corporation, 2012 are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Linkedin 522.2 in the Strategy & Execution sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study LinkedIn Corporation, 2012, Linkedin 522.2 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Linkedin 522.2.
Consumer confidence and its impact on Linkedin 522.2 demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Linkedin 522.2 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Linkedin 522.2 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Linkedin 522.2 is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Linkedin 522.2 high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Stagnating economy with rate increase
– Linkedin 522.2 can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Regulatory challenges
– Linkedin 522.2 needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Linkedin 522.2 can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study LinkedIn Corporation, 2012 .
Weighted SWOT Analysis of LinkedIn Corporation, 2012 Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study LinkedIn Corporation, 2012 needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study LinkedIn Corporation, 2012 is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study LinkedIn Corporation, 2012 is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of LinkedIn Corporation, 2012 is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Linkedin 522.2 needs to make to build a sustainable competitive advantage.