Thursday, November 25, 2010

Social Media, The Latest Addition to Business

Social Media. Its rise and growth is spreading at a rapid pace; Twitter, just one form of social media, is now growing at an astonishing 1,382% and its not alone; millions of users sign into their Facebook and MySpace accounts several times a day! If I received a penny for every time individuals accessed or used any form of social media, I'd easily be a millionaire, if not billionaire, by now. Social media has numerous forms including Facebook, Twitter, LinkedIn, Flickr, Orkut, Photobucket, and blogging, of course. And with the ever-increasing pace of technology, social media is also changing with new forms and innovations for users to engage in.

Social media presents both challenges and opportunities for individuals and businesses. Social media certainly facilitates communication; an individual might have to wait hours upon hours for pictures to upload from her last vacation to email to various family members or she could simply upload them once onto Facebook or a photo-sharing media site, such as Flickr or Photobucket, for all of her contacts to see. However, the same user might upload thousands of pictures and create hundreds of albums and even add unknown people as friends thus losing her privacy and potentially risking her safety. Privacy and safety are two important issues concerning social media and users need to exercise immense caution as they incorporate social media into their lives. Users need to think twice about the content they post and make available for the world to see. It saddens me that I can know everything about complete strangers by spending less than two minutes on their Facebook profile. We need to stop making ourselves so transparent and vulnerable!

A number of businesses have also begun utilizing various forms of social media as a part of their regular routines and business strategies. At first I was skeptical about successes in business through social media, but with innovation, leadership, and effective execution, social media is quickly becoming interwoven within the infrastructures of a myriad of companies and business. The low cost associated with social media further encourages companies to make use of it. 

Research shows that there are various factors that lead to successful implementation of social media in organizations. I believe one of the key success factors is user-generated responses that allow a company to establish a two-way communication path and actually obtain usable and helpful  information from social media. Companies can create Facebook pages and add 'friends' or gain 'likes' but what benefit(s) does this have? Without feedback or involvement, its basically a dead end. However, by adding content and providing updates, user involvement can increase, generating responses, and potentially leading to information beneficial to the bottom line. A photographer could easily have a Facebook page and add friends, but only by uploading and sharing his portfolio and recent works on Facebook, and getting users to comment and generate interest will word spread about his services. 

But social media also has its costs and potential negativity. One such example is the Dominos Pizza incident in which employees messed with food being prepared for customers and then proceeded to post the video on YouTube; the incident shed much negative publicity on Dominos Pizza and many consumers, including myself, continue to question the food-preparation and management practices of the company. 

With social media being so powerful and persistent, companies and individuals need to carefully assess their level of involvement and usage with various forms of social media. Social media is sharing and often permanent. Both businesses and individuals need to be careful when employing any and all forms of social media; as with any other form of technology, there will be glitches.

15 comments:

  1. It’s great that you point out the possible negative effects of social media, especially when all we hear lately are praises to this new interface. Another good example, and less disgusting by the way (I’m only having frozen pizza now on) is British Petroleum’s, which tried to do some damage control through its facebook page after the oil spill and it backlashed when someone else created a “boycott BP” page that ended up having a lot more fans.

    ReplyDelete
  2. The new trend of using social media to promote companies’ brand awareness, attract new customers, promote business and services, get customer information and get popularity by positive comments, presents a great opportunity for enterprises. On the other hand this puts a pressure for companies to perform an excellent customer service, because just one negative comment could hurt the image and the reputation of the enterprise, and as we know is very difficult to create a good reputation but is very easy to lose it. This is good for customers because in the past they didn’t have many options to complain, now with the current technology with just one comment, good or bad, one person can drag thousands of followers, and as a result, companies have to make a double effort to satisfy their customers!.

    ReplyDelete
  3. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media.

    The case of Domino’s Pizza proves that it may no longer be a choice for businesses, both big and small, to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. The business did not even need to have social media presence to face the issues that came about. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    It would be wise of any company to learn from the mistakes of Domino's pizza. When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    Source: http://www.businessweek.com/managing/content/apr2009/ca20090421_555468.htm

    ReplyDelete
  4. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media.

    The case of Domino’s Pizza proves that it may no longer be a choice for businesses, both big and small, to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. The business did not even need to have social media presence to face the issues that came about. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    It would be wise of any company to learn from the mistakes of Domino's pizza. When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    Source: http://www.businessweek.com/managing/content/apr2009/ca20090421_555468.htm

    ReplyDelete
  5. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media.

    The case of Domino’s Pizza proves that it may no longer be a choice for businesses, both big and small, to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. The business did not even need to have social media presence to face the issues that came about. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    It would be wise of any company to learn from the mistakes of Domino's pizza. When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    Source: http://www.businessweek.com/managing/content/apr2009/ca20090421_555468.htm

    ReplyDelete
  6. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media.

    The case of Domino’s Pizza proves that it may no longer be a choice for businesses, both big and small, to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. The business did not even need to have social media presence to face the issues that came about. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    It would be wise of any company to learn from the mistakes of Domino's pizza. When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    Source: http://www.businessweek.com/managing/content/apr2009/ca20090421_555468.htm

    ReplyDelete
  7. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media.
    The case of Domino’s Pizza proves that it may no longer be a choice for businesses, both big and small, to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. The business did not even need to have social media presence to face the issues that came about. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.
    It would be wise of any company to learn from the mistakes of Domino's pizza. When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.
    Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    Source: http://www.businessweek.com/managing/content/apr2009/ca20090421_555468.htm

    ReplyDelete
  8. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media.

    The case of Domino’s Pizza proves that it may no longer be a choice for businesses, both big and small, to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. The business did not even need to have social media presence to face the issues that came about. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    It would be wise of any company to learn from the mistakes of Domino's pizza. When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    Source: http://www.businessweek.com/managing/content/apr2009/ca20090421_555468.htm

    ReplyDelete
  9. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media.

    The case of Domino’s Pizza proves that it may no longer be a choice for businesses, both big and small, to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. The business did not even need to have social media presence to face the issues that came about. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    It would be wise of any company to learn from the mistakes of Domino's pizza. When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    ReplyDelete
  10. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media.

    The case of Domino’s Pizza proves that it may no longer be a choice for businesses, both big and small, to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. The business did not even need to have social media presence to face the issues that came about. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    It would be wise of any company to learn from the mistakes of Domino's pizza. When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    ReplyDelete
  11. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media. As a matter of fact, the case proves that it may no longer be a choice for businesses to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    It would be wise of any company to learn from the mistakes of Domino's pizza. Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    Source: businessweek

    ReplyDelete
  12. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media. As a matter of fact, the case proves that it may no longer be a choice for businesses to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    It would be wise of any company to learn from the mistakes of Domino's pizza. Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    Source: businessweek

    ReplyDelete
  13. The Domino's Pizza example you referenced, clearly illustrates how people can cause massive damage to a business by the simple use of social media. As a matter of fact, the case proves that it may no longer be a choice for businesses to engage in the world of social media. This was not a case where the business had a Facebook page and customers posted detrimental comments, or even a case where the business posted a YouTube video of their own and received negative reactions from consumers. In this case, two employees simply had access to a camera and a computer, and dragged Domino's pizza into the world of social media, whether they liked it or not.

    When the video first came up on YouTube, the company decided that it would not make a statement about it, since doing so would just add to the heat of the debate, or so they thought. However, according to businessweek, “overnight the YouTube video had reached more than a quarter million viewers.” It was then that the president decided to publicly apologize, come up with a video in response, and state what was being done to handle the issue. For some of us that was too late.

    It would be wise of any company to learn from the mistakes of Domino's pizza. Clearly, it is important for companies to react immediately to the issues that arise with social media, before they become viral--and that may very well mean, within 24 hours.

    ReplyDelete
  14. Here's a helpful link I found for the case of Domino's Pizza: Source: businessweek

    ReplyDelete
  15. Great example with the Dominoes pizza incident! Media sites are very powerful when it comes to sharing information with their users which makes it a great tool for businesses to promote their products but dangerous at the same time if its contents are not monitored carefully. Like you mentioned, effective execution is a must in order for small businesses to effectively market their products in social media sites. Without the proper execution, problems can arise and money could be lost because users won't be able to access the information properly.

    ReplyDelete