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ENTREPRENEURSHIP DEVELOPMENT AND
IPR LA COMPONENT
Case study on – LinkedIn
Submitted in the partial fulfillment of the completion of 7th-semester
Entrepreneurship Development and IPR during the academic year
2020-21
Bachelor of Engineering
In
Computer Science and Engineering
Prajwal Pandit 1NT17CS124
Department Of Computer Science and Engineering
2021-22
ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task would be
incomplete without the mention of the people who made it possible, whose constant guidance
and encouragement crowned our effort with success. I express my sincere gratitude to our
Principal Dr.H.C. Nagaraj, Nitte Meenakshi Institute of Technology for providing the
facilities.
We wish to thank our HOD, Dr. M. N. Thippeswamy for the excellent environment created
for further educational growth in our department. We also thank him for the invaluable
guidance provided which has helped in the creation of a better project.
I hereby like to thank our guide, Miss. Bhuvaneshwari P, Department of Computer Science &
Engineering on their periodic inspection, time to time evaluation of the project, and help to
bring the project to the present form.
ABSTRACT
Linkedin, the network for working professionals is one of the social networks with an older
user base. Young adults entering the job market face strong competition and networking can
make a difference in the job search. The study explores Linkedin usage among young adults
and investigates strategies the network can employ to increase participation and engagement
among the demographic. However, participants who did not yet have a Linkedin account
were largely not planning on signing up, since they reported that Linkedln did not provide
sufficient incentive to create an account. The survey provided insight into features
participants would like to see on Linkedin, which form the basis of recommendations for
enhancing user interaction. This case study focuses on the success of Linked In and how the
company is looking for hiring talented individuals or selling a product, and any business can
benefit from creating a Company Page and engaging on the LinkedIn business network.
INTRODUCTION
These tools are designed for a younger user base specifically, however, user numbers show
that Linkedln does not appeal to young adults, despite them representing the network’s
fastest-growing demographic.
Since social media can be a powerful source for young adults in terms of providing valuable
career and networking opportunities, using the resources available online can create a
competitive edge in the professional world. Teaching students how to utilize the tools
available can help connect the right person with the right position. Being able to find reasons
why the service is neglected and what can be done to change that can draw more young
adults to the site, giving them access to a site that offers a broad range of services to its users.
Although it may be seen as leaning more towards serving the recruitment industry, there are
opportunities to use the community for lead generation, finding new contacts, or even for
gaining knowledge from an industry expert. The reach of your website content can be
increased by enabling users to share articles that may be seen as too dry for sharing on a more
informal channel.
Analysis Summary
Future Value
According to the financial projections by 2020 LinkedIn earning per share would be $ 8.34
per share from today’s EPS value which is $1.61. This indicates EPS growth of 418%. As per
company valuation projections LinkedIn share would price at $312.86 in 2020. Current
projections indicate Linkedin will be able maintain 35% revenue growth in the future, hence
it will be appealing to growth investors.
LinkedIn SWOT
Strengths:
Established membership base: LinkedIn has a strong user base and has been growing
rapidly, showcased by the fact that two members join every second. Now it has more than
433 million users worldwide. Outside US users now make up over 60% cumulative users
indicating LinkedIn’s international presence. Company has increasingly become a bigger
internet platform over time and now has over 187 million unique users monthly and ranked
22nd among most visited websites in the world.
Revenue Model: LinkedIn has a strong business model, gaining big bucks from 3 revenue
streams including talent solutions, marketing solutions and premium subscriptions. Mostly
known as a recruitment portal, companies spent a lot on recruiting suitable candidates online.
Corporate clients have been adding rapidly at double digit rates and now have more than
18,000 clients. LinkedIn has taken a lot of business from earlier dominant players such as
CareerBuilder and Monsters.
Weaknesses:
Weak presence in emerging markets such as China and India: Even though LinkedIn is
active in more than 200 countries, most of the users are from USA and Europe. Website still
has not been able to penetrate India and China which represent a huge chunk of the global
market.
Opportunities:
Publishing and content platform: LinkedIn has done a good job ramping its website as a
publishing and content platform. Now a lot of business leaders users LinkedIn as an
influencer platform to voice their opinions and speak to millions of users. This trend has
allowed LinkedIn to establish itself as a content publisher on the web. Slide share and Pulse
have paved the way for this trend. LinkedIn should further initiatives to establish itself as a
publishing platform which influence users to engage more with the website.
Better Advertising: LinkedIn advertising business has not reached its potential yet. Online
advertising market is huge and currently they reasonably utilize data from customers to show
targeted ads. In 2015 LinkedIn earned $ 581 million from marketing solutions, however this
is a mere fraction compared to big social media giants such as Facebook which earns billions
from advertising.
Threats:
Newer social platforms: New breed of social media websites such as Instagram, Pinterest,
Tumblr and SnapChat have emerged and are gaining solid ground rapidly every year. All
these platforms competing directly or indirectly with LinkedIn over users and minutes spent
on respective websites. And fewer professional networks with advanced features pop up
every year. These companies could potentially steal LinkedIn users if they manage to earn
popularity.
Outdated technology: New Entrants and existing professional network sites are keep
updating their technology, adding new tools and features. If LinkedIn didn’t manage to keep
up with the new features users will get attracted to these other websites. Website performance
problems due to reasons such as server overloads during peak times, security problems,
server break downs also would lead to customers seeking other websites.
Additionally in a case of natural disasters or other catastrophes web service would get
interrupted. Even though companies have implemented a disaster recovery program which
allows them to use backups, it is still unable to maintain all the functions. In that case
business and operating results may get affected negatively.
Mobile technology issues: No. of users who access LinkedIn through mobile carriers have
increased a lot compared to PC users. There is a threat that if mobile operating systems are
updated and they are not compatible with LinkedIn, some features may not work, which
would result in decreasing users.
User Issues: Business could get adversely affected if LinkedIn was unable to attract and
retain active users. Even though numbers show huge user base, some users are inactive, dead,
incapacitated or fake profiles. Hence LinkedIn cannot reliably determine active members who
could add value to the service. If they cannot attract enough active users LinkedIn services
would be diminished.
Outdated, inaccurate profiles: If users do not provide accurate data, full potential of the
website would not be reached and clients will lose the trust in the website.
Possible legal problems: LinkedIn collect, process, share and disclose personal data which is
highly sensitive which are subject to government regulations and legal obligations. Any
failure to comply with these laws could lead to loss of trust and huge legal costs.
Legal environment changes could affect the business: Internet privacy and security issues
are huge concerns worldwide. If rules and regulations increased in the future this would
prevent LinkedIn from storing, processing and disclosing some data which would harm the
business.
Competition from online professional networks and social media sites: Industry is
evolving every year and competition getting fierce every day. In addition to existing
competitors and new entrants, Larger and established companies could enter the market
which would directly affect the business.
Unable to attract and retain customers: If LinkedIn does not attract new users and if
existing customers do not update their subscriptions revenue projects could go wrong. In
order to continually attract new customers to the network and provide additional solutions to
remaining customers to keep them engaged. And if LinkedIn does not manage to connect
talent with the recruiters effectively on a day to day basis business would be harmed.
Possible staffing issues: If LinkedIn does not manage to attract world class talent to work for
them operating results would deter over time. And if they do not manage to hire best
managers strategically the company would lose its advantage and competitors will get hold of
the business.
Acquisition issues: LinkedIn’s strategy in recent years for growth has been to acquire
complementary companies and technologies. Identification of suitable targets is difficult,
time consuming and costly. The process of integrating these companies could lead to
operating difficulties and unforeseen expenditures. Due to these reasons LinkedIn’s value
could diminish over time.
Recommendation to investors:
Taking all these factors into consideration it would be concluded that LinkedIn has the
opportunity to maintain its position as the leading professional network service provider in
the world. However there are risks and threats in the industry which could harm LinkedIn’s
business and make the current financial projections incorrect.
LinkedIn should keep investing in its product development and acquire companies and
products which would allow it to stay ahead of the market. LinkedIn will be highly valued in
the future and will continue to grow at a 35% rate. Hence growth investors should invest in
the company today.
Conclusions:
As the social business network, LinkedIn has a lot to offer small and medium sized
businesses. Whether the company is looking for hiring talented individuals or selling a
product, any business can benefit from creating a Company Page and engaging on the
linkedin business network. Linkedin is the only owner and authorized user of its registered
trademark (tradename “linkedin” with label and logo) and/or service mark appearing on the
Electronic Channels.