Linkedin Case Study Model

1645 Words 7 Pages
Company Overview
The LinkedIn Corporation was started in 2002 in the living room of founder Reid Hoffman. Today, under CEO Jeff Weiner, LinkedIn is the world’s largest online, professional network with over 350 million members in over 200 countries and territories (Papacharissi, 2009). LinkedIn’s mission is to “connect the world’s professionals to make them more productive and successful” (About Us, 2015). In order to achieve this, LinkedIn provides products that allow its users to create and share their professional profiles online, engage with their professional networks, access relevant knowledge and business insights, and find business opportunities.
LinkedIn provides products to cater to individuals, enterprises, and professional organizations.
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As the technology industry has shown extreme growth, LinkedIn’s revenue has grown from $94 million to $643 million between the beginning of 2011 and the end of 2014 (D’Onfro, 2015). Although LinkedIn has a large user base, it holds a relatively small market share of 28%, while Facebook has 71% and Twitter has 23%. It is important to note that there is overlap between these forms of social media, as many people have accounts for more than one site (Paulette, 2015). LinkedIn has consistently beat analyst predictions of growth measured by EPS up until April, 2015. This constant outperformance has provided steady confidence in the company by investors, but its unanticipatedly slowed growth has shaken this confidence and resulted in an almost immediate 25% drop in stock …show more content…
LinkedIn has a unique mix of products that can be classified within various industries, which makes it difficult to pinpoint exact competitors. It is widely labeled and utilized as a social media company, but it operates beyond that base categorization with the service of connecting people on a professional level. LinkedIn is heavily used by organizations to connect employers with both current and potential employees. LinkedIn’s primary company goal is to be the go-to networking site in a professional setting, creating its niche in the social networking world. While maintaining a career-oriented network, LinkedIn can be used by members as a way to communicate for professional matters as well as maintaining personal connections. It is because of this duality of professional and social uses that it is important to consider both aspects of LinkedIn when determining its direct competitors. We feel that by comparing LinkedIn’s financials to these companies, we can most accurately predict future financial strength and growth for LinkedIn as well as the industry as a

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