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Bibek Chhetri

Prof. Julia Intawiwat

English 2116

20 November 2017

Social Medias Effects in Businesses


The social media is known and used everybody among peoples as a social interactions purposes

and on the other hand, the business has been using it as their marketing strategy tool in the aim to

build its connections and growth of the business. The use of these applications makes the

business at the top level of beneficiaries with the positive features as well as in the verge of the

potential downfalls in damaging its business practices from negative attacks. This paper has

strongly presents the proper use of the social medias application in to determine the uplift of

modern business strategy with examples and help to understand the current standpoint of how

social media can drive the modern businesses in an effective manner.


Bibek Chhetri

Prof. Julia Intawiwat

English 2116

20 November 2017

Social Medias Effect in Businesses

In todays business word, the social media has taken the vital platform in its operations

and functions regarding the reach of consumers. the development of this digital source among

businesses have revolutionized how we perceive business or how business world has adapted the

way to interact with their customers to achieve the organizational goals and the success in terms

of profitability and growth. It brings to the points of how our modern business practice has

highly dependent on doing business comprises the positive and negative impacts of social medias

throughout the world. Some of the most popular social medias includes Facebook, Twitter,

YouTube, LinkedIn, Yelp, and WhatsApp has changed the face of the business because of its

enriched roots in the changing the social behavior of the people who are customers. Certainly,

the benefits come with the cost of risks in achieving the success of business; hence, the use of

social media has profound positive factors on building the business and potential causes to

deteriorate the stand of the businesses.

Any businesses in this modern and digital interface has been associated with the use of

social medias in reaching the customers. Todays availability of this modern applications has

changed the face of business in every way in regarding the ease of connection with the

customers, efficiency on interactions, building an image of companies, the availability and better

understanding of the market places. It has really made the traditional way of businesses

campaign an outdate because all those can be done siting behind the computer and analyzing

without any field tasks. As of September 2017, the number of active users of social network sites

has been reached more than 2.6 billion making the humungous customer population to target for

businesses (Constine). Each people or customer holds at least two to three social medias account

which made any sorts of businesses an opportunity to reach them and able to implement their

marketing strategies in making aware of the products and services offered.

Additionally. the context of amass population context or customers source, as of June

2017, only the factbook itself hold more than 2 billion monthly users and following it by other

popular social medias such as YouTube around 1.5 billion, WhatsApp with 1.2 billion, Twitter

328 Million and so on (Moreau). By looking the statistics, the benefits can be clear on how

beneficial it is for any business to extend its customer which leads to the growth and

development by contributing the big profits and successful companies. In relate to the benefits

of use of social media, the social networking sites Facebook holds bigger target audience for the

business campaign activities by mapping all the connections (Piskorski). On attracting, engaging,

and acquiring the new and broad range of the customers, IKEAs photo tagging campaign on

Facebooks exemplifies the use of social media for the daily but new business campaign in an

effective manner, faster and the cost competitive ways than the traditional ones. Moreover, to

that, the opening of the new stores news was communicated through the created page and

engaged the customer with the incentives of tagging themselves in exchange of the rewards

resulting in the massive increase of the company and its new store (Zhou10). Similarly, an ease

of communication is also the biggest benefits of the use of social media among business. By way

of example, Virgin America holds more than 20,000 followers on Twitter which assists them for

a faster and effective communication method in reaching and engaging with their loyal

customers on any sorts of business related activities (Zhou11). By having all these benefits, the

companies have drastically improved the ways of doing businesses and the power of customer

source has made the growth of business possible.

On the contrary to the benefits of the social medias, it also has significant potential risks

that can harm the run of businesses in bigger scale. The power of social media can be mishandled

if it is managed without formal attention resulting negative effects on business such as burden of

marketing shift, increased customer power, tracking negative or misleading statements,

accidental release of confidential information, and unauthorized employees speaking on

companys behalf (Lovering). The social medias provide higher customer engagement; however,

this accounts for the more involvement of business in pressure to promote the culture of product

according customers demand. Thus, by having the greatest customer power, any customer can

ruin the reputation of any business upon disappointing products through social media networks.

Although these applications have the building imagining capability, but it can also quickly

deteriorate through negative publicity. To illustrate that, before social medias, negative company

experiences was just a case for the affected customer and company, but nowadays it can be the

international brand nightmare quickly such as the Dave Carroll with United Airlines. In the

unfortunate event where the baggage handlers of United Airlines mistreat his $3,500 guitar on

the tarmac went viral after posting videos in YouTube attracting more than 7 million views. This

made both the Dave Carroll and united Airline know to the whole world in short amount of time

and negatively became the reason in the fall of the airlines stock price up to 10 percent (cutting

its market cap by $180 million) (Zhou11). Although any business may not choose for the use of

social medias as their tools for business operations, but they should always monitor any potential

social medias attacks on their businesses.


Consequently, the use of social medias has been playing prominent role in capitalizing

opportunities for better business practices and market executions while mitigating the risks. In

order to happen that, the social media must be managed correctly which empowers companies to

accelerate their ability to launch new brands, incrementally strengthen customer relationships

and drive revenues from existing customer, new customers and new local/global markets

(Zhou9). In this new era of social media and the way of modern business, the customer segments

are highly categorized by the social interactions where a company stays on track with the use of

social medias with customers and indeed provide them with the best relationship and experience

consistently and flawlessly.


Works Cited

Constine, Josh. Facebook Now Has 2 Billion Monthly Users and Responsibility.

TechCrunch, TechCrunch, 27 June 2017.

Lovering, Catherine. Negative Effects of Social Media on Business. Chron.com, 2006.

Moreau, Elise. The Top Social Networks People Are Using Today. Lifewire, 17 Nov. 2017.

Piskorski, Mikolaj Jan. A Social Strategy. How We Profit from Social Media. Princeton:

Princeton University Press, 2014. Web. Retrieved 21 Nov. 2017.