Value Chain Analysis of Social Networking Communities

Essay by casewriteupUniversity, Master'sA-, March 2009

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Value Chain Analysis of Social Networking Communities

Over the last few years, online social networking communities have become a global phenomena. This paper describes two social networks-Facebook and LinkedIn-outlining their value delivery process.


During the late 1990s and early 2000s, most of the communication was through e-mail, instant messaging and cell phones. Nowadays, most college students are using a host of communication technologies such as blogs, video and photo messages, and other technologies to discover new friends and to keep in touch with them (Stutzman, 2006). A social networking community combines all these and newer communication technologies, and provides an opportunity to contribute one's opinions, interests and skills to the largest creative work ever built by mankind: the Internet (Post, 2007).

The core value proposition of any social networking community is connecting and communication with people (Karp, 2007). Using new technologies, these communities have made possible new ways of meeting people, checking on loved ones, spreading ideas, all from the comfort of one's home or work computer.

Initially, social networking communities were a teenage phenomenon. Now, it is a part of all segments of the society. There are social networking communities for people varying from eight-year-olds to doctors and lawyers, to the aged (Post, 2007).

There are over 400 online social networking communities, each differing from the other in terms of profession, age range, culture and country. These communities could provide services for either business or personal networking. Most social network communities allow for richly-detailed personal profiles of the users. The data ranges from mild (favorite movies) to potentially invasive (political views) interests. This data serves as a snapshot for other users of the social network community. The user initially connects to people known to him either from work or from school. Based on similar interests, activities or communities,