Problem:
Through an e-mail, you inform the vice president of your company, Mr. Myers, that it is informative to obtain a good understanding of the industry environment when developing a strategic plan. You also explain to Mr. Myers that you will be submitting a report for his review that will conduct an analysis of the online social networking industry. You inform him that the analysis is a critical component of the business plan and eventually the topic will arise when presenting the final conclusion to the board of directors.
Discuss and assess the online social networking industry in terms of each of Porter's 5 forces of competition. In the report, you must also assess the industry's overall attractiveness and identify several of the key success factors.
Be sure to address the following:
1. Analyze the online social networking industry.
2. Discuss and assess the online social networking industry in terms of each of Porter's 5 forces of competition.
3. Assess the industry's overall attractiveness.
4. Give examples of other social networking Web sites, and address how they have faired in the global marketplace.
5. Identify 5 key success factors for a social networking Web site.
6. Address the long-term goals for your company's social networking Web site.
7. Discuss the competitive environment of the social networking industry.
8. Identify the overall objective of the social networking Web site (be creative, and address what type of social networking Web site your company is trying to design).
Case Scenario:
The online social networking industry is growing rapidly with a variety of both personal and business oriented applications emerging tapping into the global marketplace. There are also many niche applications popping up, such as those targeting a specific geographic region, industry, or customer group.
The Vice President for your company, Funder Mifflin Inc., recently approached you with a new social networking website that Research and Development designed. He explains that the company is extremely excited about the possibility of entering the industry and taking advantage of the growing demand for social networking. Your company has extensive technical experience and the ability to build most any feature into the website but they are unsure of what strategic direction to take when marketing the new website. For instance, should your company focus on a specific niche or keep the website more mainstream. Additionally, they would like to know the features, pricing, and marking strategy that would best support the new website.
Given your background and management expertise, your company, Funder Mifflin Inc. would like to offer you a bonus for helping the company implement a strategic plan to get the new website off the ground. The Vice President explains that in order to receive the bonus, you will have to present a plan of action to the Board of Directors in order to obtain funding to launch the new product.