A social network refers to any website or application that allows users to communicate, interact or socialize. There are many social networks around the internet and the globe in general that allow users to register, communicate and share ideas that may be related to business or job. In addition, nearly three quarters of business in the current society are involved in social media networks advertisements. Some of the current social media networks are Facebook, twitter, WhatsAp, Google+, Hungout, Instagram, YouTube and MySpace among many others. Social networks have facilitated celebrity among many users through interaction and posting of ideas. Companies, business organizations and government’s institution are also registered users of social media networks. According to Ariel and Avidar (2014, pp 19–30), social network statistics in Australia indicates that there are millions users for various social networks. For instance, Facebook has 15,000,000 users in Australia as at December 2016.
The scope of this research include what Lee and Kim (2011, pp 205–223) explain as a mixture of advantages and disadvantages of social networks to business. Like this research, Moreira, et al (2006, pp 6) compare advantages and disadvantages of using social network in business. According to Wellman (2008, pp 221–222), social networks are silent destruction to business performance and culture. In contrast, Cranmer and Desmarais (2011, pp 66–86) conclude in marketing research articles that it is wise also to appreciate the positive contribution of social network to every business enterprise involved. This research does not explain specific social networks that leads to great sales or social network that offers the best advertisements to business. However, the research seeks to examine how the literature presents advantages and disadvantages of using social network in effort to uncover the gap between social network and business performance.
According to Jones and Volpe (2011, pp 413–434), social networks has positively transformed the business community in so many ways that cannot be counted. Combine research by Peter and Scott (2011, pp. 1); Riketta and Nienber (2007, pp 61–77), highlights some of the advantages of using social networks as open communication of business products to customers, allow business get feedback from the market, act as contact platform, contribute to marketing research, provides platform for e-tailing, opportunity for expansion, basis of advertisement and avenue for product review.
Social networks are key business advertisement strategy in the current society. According to Nooy (2012, pp. 2864–2877), social medial allow introduction of new product in the market and building of brand strength. Social networks does not restrict business for registering as many brands or products as possible. According to Agozzino (2012, pp 181–204), social network currently stands as part of business network that provides communication avenues. Similar research conducted by Granovetter (2005, pp 33-50) also indicates that some business attributes their success to their wide business coverage in social networks. As Sebastián, Namsu and Kerk (2009, pp 875–901) concludes, social networks have totally transforms business operation in the current market since the introduction of e-tailing.
Social networks has facilitated open communication ware business management communicates to employees and customers. Study conducted by Spears et al (2015, pp 219–226), shows that social media has taken over various communication channels as mangers today communicate using Facebook and emails. In addition, new social networks applications such as WhatsApp ease communication between employees in business setting. Similarly, in Australia alone as Borgatti et al (2009, pp 892–895) explains have many social network users than the population of some countries. Another article by Spears et al (2015, pp 219–226), point out that in the near future all business will switch from direct communication to social networks. This implies that total switch from formal communication to social networks is more open to communication as compared to former communication channels. Paniagua and Sapena (2014, pp 719–728) concludes that nearly all social networks around the globe open communication without any restriction from the managing company.
Social networks facilitate feedback mechanism for business organization. Customers can give feedback to the management on their taste of product and evaluation. Study conducted by Granovetter (2005, pp 33-50) show that currently software that are applied in social networks website are integrated with rating interface that allow customers to rate their satisfaction with the product. Cranmer and Desmarais (2011, pp 66–86) confirms this software integration when it explains the importance of customer rating on social networks. To add on software, Huan and Kathleen (2016, pp 51) indicate that many businesses encourage their subscribers to like their social network page and give their rating on products or services. Rheingold (2002, p.288), summarizes the contribution of social network to marketing research through customer feedback.
Borgatti et al (2009, pp 892–895) studied contribution of social networks to business enterprise and cites its major use in giving contact information. In addition, giving contact information using social networks makes the business to communicate with customers coming from far locations. Similarly, Paniagua and Sapena (2014, pp 719–728) also agree with using social media for contact information as it explains that subscribes who also may wish to order products easily get contact information about the organization. Jones and Volpe (2011, pp 413–434) contradict giving contact information as a wrong way of contacting organization. Agozzino (2012, pp 181–204) on the other hand, conclude that business organization has experience efficiency in communicating with their client through pre-communicated contacts on social networks.
In appreciating the advantages of using social networks in business, Ariel and Avidar 2014, pp 19–30) gives details of contribution of social networks to marketing research within business of today. Furthermore, several businesses enroll their clients in survey using social networks. Statistics provide by Nooy (2012, pp. 2864–2877) show how it easy to conduct marketing research using social media platform. Consequently, Kaplan (2012, pp 129–139) cites business product as major contributor in the online business research feedbacks. Riketta and Nienber (2007, pp 61–77), highlight that nowadays there is many other product survey portals that conducts surveys on behalf of organization. To summaries this uses of social media platform in giving contact information, Bowler and Brass (2011, pp 70–82) gives different aspects of contact information such as location, address, and telephone as vital for keeping customer informed.
One of the current trending enterprise platforms according to Schoen et al. (2013, pp 528–543) is online retailing. Recent studies conducted by Spears et al (2015, pp 219–226) also advance this claim that online shopping is an innovative idea connected to increase social network online users. Some organizations are totally founded and based or operate in online platforms. This according to Lee and Kim (2011, pp 205–223), is aided by the advance computer software that manage inventory to ensure all business orders are running smoothly. Bowler and Brass (2011, pp 70–82) notice that most of this business such as Groupon, Amazon and many others are connected to social networks. Reinhart, Thomas and Toriskie (2011, pp 181), contradict use of social network in online retailing by indication that not all users can purchase products. However, Peter and Scott 2011, pp. 1) still explains that social network remain the best platform to advertise and sell business product and services.
An article by Rheingold (2002, p.288) cites that another advantage of using social network in business is that wider business opportunity looms in social networks. Some businesses that were originally operating in restriction or limited location are today trending in international market due their social network celebrity. Similarly, Nooy (2012, pp. 2864–2877) claims that social networks have lead to expansion of some business operations due to the selling opportunity available in online social networks. The steps involved for business to make huge sales according to Schoen et al. (2013, pp 528–543) are attracting attention of social network users through appealing advertisements. Catchy advertisement attracts many visitors that are curious to find more about the products leading to contact. Paniagua and Sapena (2014, pp 719–728) concludes that as many social media users become interested in business information, opportunity to sell products and services to them is also available.
The core advantage that business organization has on social media according to Kaplan (2012, pp 129–139), is avenue for advertisement. Social networks have many users spread across the internet making it the best marketing and advertisement platform for business. Similarly, Rheingold (2002, p.288) explains that placing advertisement over the social media is simple and reaches many users at ago. The only challenging field in social network advertisement based on study by Borgatti et al (2009, pp 892–895), remains designing a catchy advertisement. Catchy advertisement attracts many viewers making products in the advert to be preferred by customers. In contrast, Graham (2011, pp. 211–227), presents the possibility of many users not to like business advertisement or crises the advert.
Huan and Kathleen (2016, pp 51) shows that though social networks have contributed to expansion of many business around the globe, there are also many challenges that faces social networks and therefore disadvantageous to business. According to Spears et al (2015, pp 219–226), there are considerable disadvantages of using social networks in business. Some of the most cited disadvantages of using social networks for business include possibility of business hacking, negative comments by social network users, low production due to misuse of social network by business employees, potential platform for scams and requires software updates.
Graham (2011, pp. 211–227) authored an article on the increase in cyber attack on business around the globe. Reinhart, Thomas and Toriskie (2011, pp 181) also confirms that hackers have currently grown in number making cyber security lower day by day. When a business organization is hacked, Paniagua and Sapena (2014, pp 719–728) shows that the overall result may be collapse of business or company. Some of the business that has been causality of hackers is reported to loss millions of money to hackers leading to collapse. Filer and Fredheim (2016, pp 1539–1555) on assessing disadvantages of using social networks explains that social networks are the major gateway for many hackers who enter the system through social networks.
Subscribers may turn the business into fighting ground through posting of negative comment to destroy business. Spears et al (2015, pp 219–226) reminds social media advertisers that wars of word on social networks are detrimental to business. Some clients according to Moreira et al (2006, pp 6) may express their emotions on social networks or their negative attitude toward certain product by posting negative comments about that product. Schoen et al. (2013, pp 528–543), shows that some companies have been forced by social network users to withdraw their product from the market due to dissatisfaction by a single client. In addition, unsatisfied client can post or comment adversely about a product though there is minimal negative feedback about that product.
Normally business that entirely operates online suffers due to misuse of its social network outlets by employees. As Graham (2011, pp. 211–227) identifies misused of social media pages, some employees take advantage of the business resources such as internet connection to do their own business and services. Sebastián, Namsu and Kerk (2009, pp 875–901) also show how Facebook page for organization has been misused by employees who update their own profiles instead of business. Similarly, Nooy (2012, pp. 2864–2877) also conducted research on misuse of social media network for business advertisement highlights how some company has recorded low production due misuse of their systems.
According to Rheingold (2002, p.288), for business organization willing to sell online key challenge is software requirement to avoid security issues. Some mega online business such as Amazon has powerful ecommerce software that is incorporated with security checks before social network plugging. In order to efficiently use social networks, Wellman (2008, pp 221–222) advises every business to update their software more so security checks so that it can protect the business from virus and hackers. Riketta and Nienber (2007, pp 61–77) concludes by stating that being updated with the modern social network, can make the business suffer from continuous attack by virus and hackers. However, Spears et al (2015, pp 219–226) contrast the idea of software update indicating that software is taken care of by social network application and website developers.
Another area of concern according to Spears et al (2015, pp 219–226) is the increase scam and sales of fake products. Some social networks are operated by fake business personalities that cone clients with intention to supply some products. Graham (2011, pp. 211–227) cites example of business that have suffers from loss of millions of money to fake suppliers. In contrast, Lee and Kim (2011, pp 205–223) explains that some scam business was initially genuine but due to huge amount of money they deal in leads to inefficiency handling of customers hence scam. This claim has been refuted by Nooy (2012, pp. 2864–2877), the author cites that once a business has been entrusted to handle customer money there is need for efficient monetary system.
It is quite important to compare advantages and disadvantages of using social network in business. A lot of work has been done on importance or advantages of using social network in business for instance, Moreira et al (2006, pp 6) presents marketing research and customers feedback as advantages to business. The feedback advantage of social network is contrasted by Spears et al (2015, pp 219–226) that state the need to reflect this customer feedback on sales. Therefore, the only serious concern that remains is on the direct reflection of sales and business subscribers mostly on social networks. Though Granovetter (2005, pp 33-50) presents advantages of having many social network followers, there are few studies done to assess the relationship between followers and customers. Bowler and Brass (2011, pp 70–82), also contradict most of research done on using social media in business citing little research have been done on using online social networks based on conversion efficiency between social network users and the real customers of a business organization.
Amidst all advantages and disadvantage of using social network for business, some of the most researched areas are importance of social media to business. Other areas that are also well researched on are maintaining online business enterprises. According to Borgatti et al (2009, pp 892–895), all research on social networks identifies loop hole for security challenges affecting current business. This research interacts on the advantage and disadvantage of social networks. The evident remains that there is connection between online stores and social networks. Schoen et al. (2013, pp 528–543), present the contrast is on the return evidence that connect social media users or subscribers and product purchased. Though inventory normally reflect the relationship between stocks, sales and shipping information, Inventory show no information about social network users that make sales at the same time (Cranmer & Desmarais 2011, pp 66–86).
According to Paniagua and Sapena (2014, pp 719–728), most of online businesses allow user registration before placing order or purchasing products and services. This does not necessarily reflect company’s sales since only few clients on social networks contact business organization with advert to buy products or services. In order to appreciate contributions of social network to performance there is need to evaluate the advertisement viewers and buyers of a product. Furthermore, for business that have greatly invested in social networks the profit and returns should reflect on this effort (Lee and Kim 2011, pp 205–223). This leaves the conversion area for researchers so as to improve business social media advertisement.
Conclusion
In conclusion, social media as presented by different literature materials has both advantages and disadvantages when used in business. Many authors agree that social networks are advantageous to business and have lead to expansion, transformation and offers communication media to reach the public or customers. In contrast, some other authors also explain the death of some business attributed to continuous use of social networks. The disadvantages of using social networks have results in collapse of business or products since there is low cyber security in most social network platforms. The only little researched areas in the uses of social media include the conversion efficiency of social network users and the business sales. More research needs to be done to determine the relationship between social network users and profit made by business.
References
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