I.

Slide 1
Background:
1. LinkedIn was founded in December 2002 by Reid Hoffman

‘‘one of the greatest hurdles when [the] company started out was expanding beyond
a limited Silicon Valley network Establishing small networks in cities around the
country and world proved key to the eventual success of LinkedIn”

2. LinkedIn is the world’s largest professional network on the Internet

2011:

 $522.2 million in revenue in 2011

 More than 150 million members in 200 countries and territories.

II. Slide 2

Timeline:

2004: 1.2 million registered professionals worldwide

370,000 in Europe and 70,000 in Asia
2005: Revenue Generation through advertising and subscription
2006: Profitable
2008:
 Raised $100 million in four rounds
 Over 30 million members in 150 countries
 Growth at a rate of half a million new members a week.
2010: Acquisitions:
 mSpoke, a provider of recommendation technology
 ChoiceVendor, B2B ratings and reviews provider
 CardMunch, a mobile application for digitization of business cards using
their cellphone camera
2011: First big company to go public since Google in 2004
It sold 9 million shares of common stock >>initially priced at $45 per share
End of the first day of trading?
The stock peaked at $123 per share

III. Slide 3

Value Propositions
 Identity—

Enable people to represent their experiences, skills, and ambitions via their
LinkedIn profile.

Insights—

Manage careers through LinkedIn insights and build professional dashboard

Everywhere—

 Mobile as the fastest-growing service

 Offered a robust set of APIs [application program interfaces] that are

being used by over 60,000 developers off of LinkedIn.

IV. Slide 4

Products and Services

1. Free solutions
Enhanced Ability to Access to
Ability to Build and Engage Knowledge, Ubiquito
Manage with Insights and us Access
Professional Professional Opportunities
Identity Networks
Profile LinkedIn Network Mobi
Public Connections Updates le
Profile Invitations Groups APIs
Profile Status Search LinkedIn Widgets
Skills (Beta) Introducti Today
ons Signal
People You May Company
Know Address Profiles Polls
book Importer Events
InApp
s
Answe
rs
Personalization
Platform Apply
with LinkedIn
LinkedIn Alumni
2. Revenue-Generating Solutions

Hiring Solutions Marketing Solutions Premium

Subscriptions
LinkedIn LinkedIn Ads Business
Corporate Display Ads Business Plus
Solutions/Recrui Custom Executive
ter Groups InMail
LinkedIn Referral Sponsorships Profile Organizer
Engine LinkedIn Whitepapers
Recruitment Media Recommendation
LinkedIn Career Pages Ads
LinkedIn Jobs
Talent Basic, Talent
Finder, Talent Pro
Job Seeker Basic, Job
Seeker, Job Seeker Plus
V. Professional Network Service Market (2010)

 Talent acquisition and administrative services market >> $85 billion

LinkedIn’s products and services addressed >> $27 billion
 The online advertising market was estimated at $69 billion
LinkedIn’s Marketing Solutions products addressed $25 billion
 LinkedIn had low user engagement but company executives argued that
unique visitors and page views were more relevant metrics
 Today, LinkedIn Signal, and the LinkedIn Share button to increase traffic
and time spent on the sit

VI. Competition

1. Social Network Services

 Facebook
 Google
 Twitter
 Microsoft and Salesforce.com

2. Professional Network Services

 XING AG (XING)
 Viadeo Group (Viadeo)
 Monster, and others

3. Other Professional Hiring and Advertising Services

 Talent management companies

 recruiting and executive search firms
 Hiring agencies.
Dice Holdings, for example, specialized in vertical communities such as
technology, engineering, and financial services professionals.
Indeed and Simply Hired that offered search engines for job listings.
VII. Growth Options

Investments:
1. R&D:
a. Technology ($132.2 million in 2011)

Performance and availability, to accumulate and leverage the right kind of data,
to keep the member experience secure

b. Product development:
To accelerate the company’s rate of innovation
Expand its product portfolio: To increase member growth and engagement.

- Teach people to manage their careers everyday through products like

LinkedIn Today and opening up our groups to make the members’ activity
streams more relevant and insightful.

2. Investment in growing its sales force.

The company’s sales and marketing head count increased from
2009: 125 employees
2011: 1,056 employees

3. Investment in International Expansion:

 International headquarters in Dublin, Ireland

 60% of the company’s members were from outside the U.S.
 Revenue from international operations represented 32% of total
company revenue in 2011

 The company translated sites into local languages

 Slow pace for huge Asian market

Why?

Social and cultural factors

2011: an Asia Pacific regional headquarters in Singapore & expansion

to Japan.

 Fastest-growing international markets included Asia Pacific, India,

 and Latin America.

VIII. Current Dilemmas

 what more LinkedIn should be doing to continue its hyper-growth

 How the company should assess its priorities.
 To stay abreast of the ways LinkedIn could be vulnerable due to
competition
 how do you start to expand functionality of providing value to people
who are already in a job on a platform that is largely for public
professional information and sharing
 How company should use data to benefit from potential enterprise
products and at the same time be sensitive to individual members
requirement
 To choose the right one amongst the multiple routes ahead (various
enterprise solutions which LinkedIn could provide to fulfill corporate
needs but it has to keep its users first).

IX. Swot: Put from picture in sent you

Ans 3) there are network effects in Professional Networking Services

 Network Effects came through free solutions in LinkedIn.

 It promote greater utilization of our solutions, higher levels of

engagement and increased value for our members.
 Through LinkedIn, users could locate service providers, subject experts,
business partners, and potential customers. They could also search for
job opportunities. Purely Professional.
 Connect with any LinkedIn member on mutual agreement

1. See updates from their network

New connections, job postings, shared articles and events, and member
recommendations.

2. Stay up to date with industry news relevant to them

LinkedIn Today:

Wisdom of crowds approach:

 News feed: articles about user’s company, products, competitors etc.

 Content on the basis of connections sharing behavior

3. Personalize their experience
 Highlight the most relevant areas of their experience in profile

 ‘‘People You May Know’’

 ‘‘Jobs You May Be Interested In’’

 ‘‘Groups You May Like,’’

 ‘‘Companies You May Want To Follow.’’

4. Update their status

There is likely to be a winner take all outcome only if people know how to network
through LinkedIn
LinkedIn taught people how to manage their careers online.
Through LinkedIn Today and opening up our groups to make the members’ activity
streams more relevant and insightful.
People would come on a network where they get connections. Its strong network
encouraged LinkedIn to think about probable enterprise solutions idea through its
massive data.