Mr. Myers, Research Paper Example

Introduction and Office Memo on Launching the Social Website

The following memo will outline what the key strategic resources are in order to open up a social network for the company. It will explain the role of resources and their capabilities in strategy formulation. It will cover the key resources of a social networking Web site. It will explain how these resources are linked to competitiveness. This memo will discuss how the steps associate with putting resources and capabilities to work will function together. The study will research a social network; in this case it will look at Facebook and explain its key resources. At the end of the study strategy recommendations as to what the company should offer before implementing the social network will be made.

The Role of Resources and Capabilities in Strategy Formulation

The software platform for the social network is the primary resource that must be decided upon in terms of strategy formulation for the social network site. The decision has to made as to what platform will provide the functionality that the company needs and what the costs are. There are many platforms such as ning.com which can be customized quite easily. They used to be a free platform but had to move to being a paying platform.  There are other platforms such as www.drupal.org, andwww.joomla.org, as well as www.mambo.org, andwww.plone.org. (Zelizer, 2012). Many of these require programming experience and some require how to utilize a “content management system functions”. This is similar to utilizing word processing software programs and edits fairly easily. (Zelizer, 2012). For an open source content management system one must the company would require a server to install, run and host software which requires a Webmaster and some of the platforms will provide this for a fee. There is also the option of hiring a Webmaster to build a community through an IT company, however; this is very expensive. The social site, once created must be moderated and it is important to decide if it will be open or closed and how to make the decision as to whom it will be accessible to and for what purposes. If we are advertising through it then a registration should be required with an email address and basic information on the user of the social network. This is a key strategy in building the social network ass it will allow the company to use it to advertise goods and services directly to the users and tracking cookies are needed to follow their interests in order to know what the company wants to advertise and to whom. This is targeting and it is an important strategy and resource for the site.

Key Resources of a Social Networking Web Site

Key resources for a social networking site break into two categories, the technical aspects of the networking site and the people. The technical resources of a social networking site use SEO and keywords to find out who is looking at what online and then being able to target the company’s products to the interests of the users. Tracking cookies also accomplish this. “Tracking cookies are only created to track a user’s movement. The movement can still only be tracked if the user visits a website that displays the advertisement scripts of the company that has a cookie stored on the system.”(Martin Brinkmann, 2010). There are loopholes to tracking cookies, that allow a site to follow the user and observe what they are viewing at other sites to target them, however; this is considered unethical. A tracking cookie along with SEO and keywords will allow the social network to see what the user looks at and target the company products to the user.

The users of a social networking site are key resources of the site. “The ultimate key benefit to employing a social media site to promote a small business is that it takes the impersonal side out of the advertising method.” (Hudson, 2011). As the user moves among the pages of a social network they develop a relationship to the site and the corporation which promotes their desire to use the site and the products the company offers through it. It is personalized to the user and this is a major strategic resource for a social network site used by a company. This is why, as a strategy, drawing users to a site should be to draw users to a social networking site. “Building a member base is another key component of launching a network “, (Zelizer, 2012). One way to do this is to have an e-mail list, (these can be bought or people can be hired to comprise them so that batch emails can be sent out to people who have interests in line with what the company goals are in terms of sales and advertising). Email can be used to invite users to the site but an even more effective way to bring users to a site is to link and advertise a social network through other sites that are either large like Facebook where one can create a page to advertise the site or link to sites with similar products and services and draw people to the site this way. “Another means of attracting members is to work out partnerships with like-minded sites/organizations and engage in cross-promotion of one another’s networks.” ((Zelizer, 2012). This is a highly successful strategy for social networking resources and is used often while also utilizing a “Like” page for a business at a huge site such as Facebook that has links or posts how to reach the social network for the company.

Key Resources Linked to Competitiveness

Because the internet has been a huge factor in globalization it has increased competitiveness and being innovative when dealing with a social network requires key resources of that network to be able to compete with business that used to be local and is now global as a result of social networking and the internet. Innovation and the use of people as resources as well as linking with other like-minded businesses are two resources linked to competitiveness in the market place that will help a company to do well in the social networking marketplace. Positioning one’s company with others that have similar goods and services but are not in the same business helps a social network for a company to do well and draw the network users to a company site. Having a social network and establishing brand loyalty is one way to link the key resources of the company in a way that allows its goods and services to compete with other companies that sell similar products. Brand loyalty will be established through the user’s affiliation with the site and seeing it as a “home” base. Therefore, content on a social network will be a resource that links it to being competitive with other brands. Content is the information on the company and product that the site will convey to the user and can be built through a Webmaster or anyone who is able to create a site. Content needs to make the user feel as though they know the company, the CEO and the employees in order to establish a relationship between the brand name and the user. Photos of employees, owners and other customers need to be used to convince the user they are part of the company “family” on the social network and thus establish brand loyalty. Brand loyalty will help an organization compete well through a social network and boost sales.

Facebook and its Key Resources

Facebook has enormous financial backing and when it changed hands back when MySpace went down the new owners poured millions of dollars into the site. This was not the only key resource that Facebook had, however; it did not hurt the network which is now the most used social network globally. Facebook had key resources such as its use of applications and games that made it attractive to users. The social network used connecting old family members and friends as its major key resource. The site design and ability to have groups and “Like” pages make it even more attractive to users and this makes it easy for Facebook to advertise.To advertise on Facebook costs fifty dollars a day and it is well worth it to those who advertise on the site. Facebook reaches “350 million people log onto Facebook each month. And 175 million people log into Facebook each day,” (Carlson, 2012).  With these kinds of numbers Facebook can track almost anything a user does. If the user posts something about their dog in their status, advertisements for dog accessories pop up on the side of the user’s page. If they list that they are engaged on their profile ads for wedding planners, rings and other wedding related items pop up on the side of their profile page. All this is done through tracking and information held permanently in Facebook’s databases. Users sign away rights to these privacy and copyrighted materials when they join the site, although; few pay attention to them. It is important to have a user agreement when creating a social network and have it looked over by a team of lawyers before launching the site. Facebook also uses iPhone applications and numerous links to other applications in order to draw so many users as key resources.

Conclusion and Recommendations

Before launching the site a platform must be chosen along with the decision of whether to employ a Webmaster. If this is the choice the company makes linking to like-minded businesses would be a useful way to draw users to the site. Email lists should be comprised and prepared to send out to prospective targeted individuals for the site. A decision must be made as to whether the site is going to be open or closed. Once this is decided marketing can be escalated to the target groups. The social network should be built to collect information such as email addresses, marital status, city and states and other information from users. It should allow the use of music and videos as well as photos and other key resources that attract users. If possible the owners need a page that makes the users feel they know the company and its members. This will help establish brand loyalty. Linkdn, Twitter and Facebook should all be used to announce the website to those it wishes to attract. Consistent posts on these other social networks should be used to draw colleagues and users to the site. Content for the site should be carefully considered and designed as well as the site design being user-friendly If these recommendations are followed the site should be successful and with the use of keywords, SEO and linking to other companies the launching of the site should be highly profitable for the company.

References

Carlson, F. (2012). Guess how many people log into Facebook each day. Business Insider. Vol. 5 http://articles.businessinsider.com/2010-02-01/tech/30100731_1_techcrunch-scale-log#ixzz2EQj8OhmD

Martin Brinkmann  (2010) What is a tracking cookie? http://www.ghacks.net/2010/07/17/what-is-a-tracking-cookie

Hudson, J. (2011) Stimulating Resources On How Social Networking Sites Are The Key To Success In Businesshttp://onlinemlmtrainingcom/stimulating-resources-on-how-social-networking-sites-are-the-key-to-success-in-business/

Zelizer, C. ( 2012) Guide to Social Networking (How to Create One Network and Key Resources.