Benefits of using social network in business

Discuss about the Advantages and Disadvantages of Using Social Networks in Business for Woolworths.

The social media system entails the web-based communication technology, which could be executed by a corporation to share the data and communicate with the customers. In the existing business scenario, there are different social networking tools used by Woolworths, Australia like Facebook, Snapchat, Instagram, Twitter, WhatsApp, and Pinterest. In the modern business times, social networking plays a significant role in the business operation. By using these channels, Woolworths can persuade the high amount of customers and deals with business procedures. It could be also exercised by the company to spread the awareness about the products and services between customers (Turban, et. al., 2017). Consequently, social networking system can increase the revenue of company with minimum time, cost and resources.

The key purpose of this investigation is to assess the pros and cons of applying the social networking practices in the Woolworths. The given objectives will be executed to complete the main aim of the investigation:

RO1: To explore the conceptual understanding regarding social network: A case study of Woolworths

RO2: To identify the benefits of using the social network in business: A case study of Woolworths

RO3: To assess the limitation of using the social network in business: A case study of Woolworths    

The project scope is wider for the investigator as social networking aspect is currently practiced in the business. The literature review considered different sources such as several journals, articles, online publication and textbooks as it could be prominent for a corporation to develop the awareness about uses of social networking in the business. The project has a wider scope for retailers as it develops their understanding of the benefits of implementing the social networking into the business (Fuchs, 2017). It is also significant for Woolworths to understand the limitation of applying the social network in the business practices.

Introduction

This element demonstrates the literature review of research concern as it facilitates an investigator to develop the awareness of the social media concept in the workplace. It also demonstrates the evidence as well as facts regarding benefits of using social networking in Woolworths, Australia (Verhoef, Kannan, and Inman, 2015). It also facilitates the detail information with regards to the limitation of exercising the social network in Woolworths, Australia. 

According to Kim and Johnson (2016), social networking enables a business to control the variables that could impact on the performance of the business. This strategy is used by several retailers for developing the awareness among customers about the company. This system plays a fundamental role to grow the business and increase the customer’s demand due to the convenience of getting the information regarding products and services. This media is also beneficial for connecting the viewers and readers through different channels such as Twitter, YouTube, and Facebook.

Limitations of using social network in business

In support of this, Broekemier Chau and Seshadri (2015) evaluated that in modern times; it is significant for the company to retain their existing customer and persuades the new customers towards their products and services. It also makes competent to Woolworths for gaining attentiveness of customers towards their products and services in specified fields. Therefore, a company can approach the high set of customers towards their products and services.

On the other hand, Balaji Khong and Chong (2016) discussed that social networking act as an intermediary to make a connection with prospective customers in the broader market. It is also significant for Woolworths to spread the business into the large market by endorsing their products on different social media channels. There is a different type of company that deals in the different markets such as electronics, retail and travel and tourism. Therefore, the social network is a vital platform for selling the products and services at one place. A corporation can face challenges to apply promotional and marketing activities because of globalization effects in the market. In this way, a social networking is a good strategy for expanding the business by generating favorable responses from potential and current customers.   

In opposed to this, Moreno-Munoz et al. (2016) opined that traditional sales promotional tool could be implemented by the company as it is beneficial to gain the company’s revenue. It is also stated that social networking system is a costly and untrustworthy mode as it could simply ruin the goodwill of corporation in case of customer posts their unfavorable feedbacks. It is also stated that people can easily visit on the page of the company to influence of promotion and advertisement, however; there is more probability of avoiding the advertising by people due to inadequate time.

According to Brooks (2015), social networking is a website that serves people with same concern to come together and share the videos, ideas, and photos with each other. A social networking is dynamic resources to deal with the existing business situation. Social networking is an exhortation that can be applied by companies to gain the awareness regarding the company and spread their publicity. Therefore, the social networking plays a significant role in the company to enhance their business in long-term.

 On the other hand, Bharati et al. (2015) evaluated that social networking enables the company to communicate with a high amount of customers in the Australian market. It also helps the Woolworths to enlarge their business by promoting the product and services in front of the potential customer. There are different companies that deal in the online channel. In the international market, a company may face difficulties with regards to promotion and marketing of distinct products and services. Therefore, Woolworths should practice social networking channels as it could be prominent to get the positive responses from existing and potential customers.

Social networking for expanding the business and increase the customer’s demand

As per the view of Prpi?, et al. (2015), the social network creates the awareness about the product and services amid customers as well as it helps them to make their own decision towards buying the products. It is also significant for business to enhance their association with the existing and potential customers. It is assessed that there are a high amount of users, who use online mode to purchase the products as it provides a giant opportunity to Woolworths for enlarging their business across the world. It is also stated that online interaction is an inclusive and prompt procedure that permits a corporation to develop a relationship with the customers.  

In support of this, Trainor et al. (2014) opined that social networking is a beneficial approach to improve the ranking of the search engine of the company. It could be significant to enhance the goodwill of an organization. The search engine optimization could be beneficial to get the top position and pull the attention of a large number of customers with regards to business websites. It is analyzed that approximately 58% of the corporation has enhanced the search engine ranking by using the social networking. In addition, it is stated that Woolworths can shift and get favorable feedback from the customers about their products and services via social networking channels.

In contrast to this, Stamati et al. (2015) evaluated that social networking improves the association amid users and corporations and aids to expand the business. It is also analyzed that number of people uses social media in Australia with different intention such as products search and buy a quality product at the affordable price. As a result, it would be appropriate to increase the publicity and aids the corporation to gain their business growth and revenue. It is also stated that about 53% of Australians are loyal towards brand as they follow the corporation on social media channels. Further, company updates about their product and services such as new offer, and new product on social networks.  Thus, it is stated that social network can gain the customer’s loyalty with regards to Woolworths, Australia.

As per the view of Rydén Ringberg and Wilke (2015), an advertising play vital role for a corporation to increase their productivity hence company should focus on advertising to make marketing strategy. There is a different strategy that provides the data to the corporation to target customers who are interested to purchase their goods as well as services. It aids a corporation to reach a large number of customers and diminishes the waste substance from a corporation. In the current scenario, social networking websites are focused by Woolworths to explore the information with regards to their products and services with high speed. Therefore, it can be stated that social networking sites are a prominent platform to gather and broaden the information about corporation’s goods and services (Ainin, et. al., 2015). It is assessed that Smartphone and internet are widely exercised by people in Australia as it directs the Woolworths to promote their product via social media.

Effectiveness of social network for targeting potential and current customers

In favor of this, Kohli Suri and Kapoor (2015) exhibited that social networking websites are required for a corporation to improve the liaison amid users and business. Therefore, it can aid the Woolworths to enlarge their business in the global market. It is also illustrated that a high number of customers in Australia could also lead the company for increasing their publicity and profitability. As per the study of Agnihotri et al. (2016), it is evaluated that about 53% of Australians are loyal towards their brand due to exercising the social network. It is analyzed that social networking aids the company to change the perception of customers towards their goods and services. In addition, there are about 3 million of people, who is highly engaged to use the social media as it could be an effective strategy for a corporation to create a favorable image in the customer’s mind. Furthermore, social media makes able a corporation to accomplish the customer’s need for customer reviews and their feedback after purchasing the products and services. It also makes competent for the company to promptly evaluate the customer’s information as it is an effective source to manage the negative responses of the customer with minimum time and costs.

Taneja and Toombs (2014) stated that social media plays a fundamental role to accomplish the need of customers as it enables an organization to frequently analyze the desires and needs of customers. By using the social media, Woolworths can create a unique picture in the mind of customers by delivering the prompt response on unfavorable feedbacks and comments towards products and services. Social networking can be prominent to satisfy the customers to the high extent. Social networking plays a vital role to enhance the effectiveness of business by pulling the customer’s attention with regards to products and services. Thus, Woolworths should be responsive when customers give their feedback and post a negative comment on social channels. Consequently, it would be beneficial to persuade the customers by dealing their concern promptly.

In opposed to this, Nadeem et al. (2015) demonstrated that social networking could be a beneficial approach for the company as it can improve its recognition at international level. Moreover, social networking marketing is applied by Woolworths to sponsor their products and services in front of both local and global customers. Consequently, it can be appropriate for a corporation to enlarge their valuable data among the bulk of customers in the least time. Social networking system facilitates the business connectivity to the global extent. In addition, it enables the people to directly interact with the company regarding their product and services as the company can modify their products and services as per their need. It could be effective to increase demand of customers. A social networking could be exercised by Woolworth in 24*7 hours as it would be significant to influence the customers towards their brand.     

Social network increases the visibility of the Woolworths, Australia’s product and services

According to Nielsen and Schrøder (2014), social media could be detrimental to a corporation as there is need of more time, cost and resources. It is evaluated that updating innovative information and replacing the previous facts and figures may take more time and cost. Furthermore, social media can decline the number of followers for a particular company such as if customers give their negative comment and company does not response, then it could discourage potential customers.  It may also generate different kinds of uncertainties as there is inadequate personal and emotional connection amid the business and customers. 

In favored to this, Beck et al. (2014) evaluated that social networking generates the fraud possibility and stealing concern in terms of marketing and advertising of corporation. Mismanagement of social media may also generate an adverse effect to attain the goal and objectives of the corporation. It is also stated that business, as well as legal uncertainties, can arise in advertising of products and services via using the social network. There is also the risk of losing the dependability and brand image of Woolworths as unreliable facts and figures regarding the corporation can adversely impact on the customers.

On the other hand, Dijkmans et al. (2015) stated that social network creates legal consideration in the company as it can be costly for business practices. In addition, the impact of social media can be for minimum time and moved out after occasionally as it generates difficulty for the company to endure the business in future.  Social media could ruin the company’s goodwill as users can give their unfavorable responses on the social network and company page.

As per the view of Nielsen and Schrøder (2014), there are different social networks, which are free to operate and join, but the company cannot target their customer base without paid advertising. Hence, local businesses end up with a group who are not local. The best application of marketing through social networking sites is to gather data from customers about their preferences and motivations for repeating the business. Social marketing can be prone when customers are not interested in local brands and do not provide the accurate data about using the services. Hence, e-commerce could be best option to overcome this limitation by facilitating online products and services.    

In support of this, Dijkmans et al. (2015) evaluated that social networking could be disadvantageous for business because it easily influences the existing loyal customers but more efforts are required to accomplish new business. It is complex to move the existing customers into repeated purchases. As per Beck et al. (2014), loyal brand users could actively consider into peer-to-peer marketing by using the social network. Further, existing customer can persuade the new customers to try the product and services of Woolworths. Thus, the marketing balancing act is used to eliminate the pure advertising that social consumers loathe as well as used to generate the long-term relationship bond.   

Social network aids the company to change the perception of customers towards their goods and services

Conclusion

From the above interpretation, it can be concluded that social network is essential for Woolworths to make their recognition as the global business. It can be also summarized that social network is beneficial to enhance the business competencies and directly communicate with the bulk of customers. It is evaluated that there are different channels used by Woolworths to promote their products and services through social networks such as Facebook, YouTube, Twitter, and Snapchat. But, at the same time, Woolworths faces different challenges due to using the social network in business practices such as fraud, legal risk and more time and cost.

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