Social Media in Business

Social Media in Business

By

Tara Backes

Lena Ramos

Jennifer Schilling

IS535 Managerial Applications of Information Systems

Keller Graduate School of Management

R. Mickler

October 17, 2009

Abstract

Social media has gained significant momentum as a business tool in the past five years. The following study will explore how selected small businesses currently use social media, how the businesses may expand the use of social media and precautions small businesses should consider when utilizing social media. The business owners interviewed for the research study vary in their product and service offerings: personal training, music, systems consulting and a karaoke machine retailer. The conclusion of the research will include recommendations for why a small business may consider the utilization of social media as a strategy to gain competitive advantage.

Purpose of the Report

Social media outlets such as Facebook, LinkedIn, MySpace and Twitter have widespread, worldwide popularity. According to Facebook's Press Room statistics, there are over 300 million Facebook active users worldwide, and more than six billion minutes are spent each day, by users, online (Facebook, 2009). The allure of social networking is tremendous, making it possible for people to connect globally, with ease and free of charge. Many small businesses utilize social media as a marketing tool because it costs nothing and it reaches a large audience. The purpose of this study is to reveal the strategic implications social media and networking provide for small businesses seeking competitive advantage. The research team will first analyze how social media advertising differs from traditional marketing and advertising. Interviews conducted with four small businesses, currently using social media sites, will identify how they currently use social media in terms of marketing. The conclusion of the report will include recommendations for why businesses should utilize social media for...