Essay on Advantages and Disadvantages of Social Networks In Business

7 pages
1803 words
Carnegie Mellon University
Type of paper: 
Literature review
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Social networks are a valuable tool particularly in the contemporary society we live in today. Via social networks, individuals connect and share their thoughts, ideas, and perceptions about different topics at a global scale. Most importantly, social networks are the most reliable tool in the 21st century given the fact that majority of individuals use their mobile phones and the internet to carry out their daily activities. Through social networks, they get to connect to as many individuals as possible, and they also get to receive comments and reactions towards their input. Initially, social networks were well-thought-out as a fad; something that young people used for sharing humorous stories and images. Over the years, business entities across the world understood the potential that social networks have towards advertising and improving the customer relations. Companies and enterprises lately, the majority of organizations and businesses use social networks as a tool for marketing their products and services to a large population. Old-style social networks have with time become large advertising houses offering valuable data about their customers by providing an easy way of reaching them. According to reviews from customers internationally, social media for businesses is no longer optional. For any business to be successful, the management must develop means of tapping the market most suitably. For example, a company dealing with clothes or sportswear must advertise their products through social networks as the majority of their clients use social networks to carry out their daily running's and also for finding out the latest products in the market. It is therefore clear that all business require social networks to achieve massive pouts. However, social networks have their disadvantages, i.e., some business owners and them time-consuming and a little overwhelming. Besides the development of technology, communication has expanded. It is now cheap and easy to converse and connect with individual around the globe. The issue of miles is no longer a hindrance for lack of communication. Communication infrastructure has expanded from using the wired device to the use of wireless devices.

Consequently, Internet-based networks have brought about a wide array of developments in the forms of connections that are currently being utilized internationally. Generally speaking, it has increased the use of social networks among the populations. Through social networks, one has a platform whereby they can converse and share their thoughts with multiple people at the same time. For the majority of the users, it is perceived as a form of entertainment. It is important to note that there are a wide variety of social networks in the market and different people have different personal preferences and taste. Similarly, social networks allow folks to manage and keep accounts precisely. It is an aspect of uniqueness, and business enterprises can customize social networks for the best of their business. It makes it simpler for people to and a friend of yours and get them. The power and the authority are the users to invite a large number of customers to your social network account. It makes it stress-free to hook up with colleagues, generations, friends, colleagues, and members of the family. Social websites applications for individuals to form and create a chat group. It is centered on the likelihood of ideas and objectives. It creates a secure mode of communication with people you have a common goal. Similarly, one can post essential messages in the sites, and every possible client can contribute their ideas. Social media community can serve as auxiliary to conferencing. It is because it is cost-effective, and even though it does not necessarily give room for video calls, it provides a platform where individuals can post slides and photos. Social interactions make it possible to reach many clients in a short period. This development has resulted to the invention of a sophisticated network that entails corporate social responsibility. The development of applications such as LinkedIn is purposely dedicated to assisting those individuals who are job seekers. Applicants make their CVs and upload them to these networks.

It is said that all good things have their wrong side. In this case, social networks have also been associated social vices such as immoral behavior, crime, theft, just to name a few. It is essential to address both the advantages and disadvantages of using social networks. In this study, much focus will be put on the usage of social networks in businesses today. Findings from this study will give a clear insight not only on the advantages but also the disadvantages of the same.

Project Objective

The primary goal of this research is to determine the advantages and disadvantages of using social networks in business today.

Project Scope

This study encompasses all social media networks currently being used by businesses. In most cases, these platforms are used to improve the customer relationship and services. This study will evaluate the pros and cons of using social networks among business owners and other relevant users.

Literature Review

Social networks help in gaining improved customer insights. Consequently, owners of the businesses generate a massive variety of info regarding their clients in the shortest time possible. Social networks act as an essential tool for growing brand loyalty and consciousness. An efficient business entity should have a social media account whereby their clients will connect easily with them and get to know more about the brand, and product and services being offered. Accordingly, connecting with clients through the social media platforms increase the chances of brand loyalty and client's retention. Social network platforms provide a cheap way to promote a business as well as distributing the content. In additions; they are a suitable market targeting option for reaching out to the right audience. For instance, a corporate running a Facebook announcement can target the clients based on demographics, interests, connections, and behaviors. Similarly, one has the opportunity for measuring the presence of the original ads in real time. Social networks aid in increasing sales clients retention through continuous interaction and timely customer service, a cording to a report generated by the state of social selling, over 75% of business enterprises that engage their clients on social media platforms reported an increase in their sales in less than 12 months.

Social networks offer qualified customers experience thus, improving profits in the enterprise. In todays society, most of us customers search our preferred products and services online through social networks. Not only does social media help one to direct clients to your website or portal, but also improve your search ranking (Robins, 2007). This increase will be beneficial to the commercial as much more persons will view your brand. Likewise, social networks assist business owners in finding out what it is that their contestants are doing (Girvan, 2000). Every successful business must know that it is a modest world and thus finding out what the competitors are doing is a plus. The managers will come up with strategic measures to ensure their brand remains relevant and acceptable in the market. According to reviews from customers universally, social media for industries is no longer optional. For any business to be successful, the management must develop means of tapping the market in the most appropriate way (Gordon & McCann, 2000).

It may not be suitable for all businesses to take up and utilize social networks. Poor planning could result in wastage of time and resources when using social networks. More specically, failure to have an appropriate social media strategy or an unclear market may result in one way or another lead to lowered benefits for a business entity (Wright, 2005). Similarly, additional resources may be required to manage the social networks accounts for the business efficiently. An active social network account needs much attention and a lot of time for management. It involves continuous monitoring as clients' needs prompt Responses about the brand and the goods and services being offered. A poorly managed account will relight to losses towards the business (Gordon & McCann, 2000).

According to Zhou et al., (2007), professional IT knowledge and expertise is needed for there to be the efficient and sustainable management of the social networks accounts. He further suggests that these networks lack a sense of emotional connection with the clients as it would have the case during actual personal interactions (Kossinets, 2007). It might affect the business entity as emotional needs of the customers needs to be realized and met in an adequate method possible. Moreover, social networks might be used as tools for crime by some individuals. It will, in turn, affect the sales and brand in general. While students can gain useful knowledge when they use social networks, it can be a tool for social wickedness and thus affect any commercial activity that can be carried out on this platform.

Research questions

Primary question

What are the advantages and disadvantages of using social networks in businesses?

Secondary questions

1. What is the impact of social networks in generating more profits for enterprises?

2. What are some of the vices attributed to social networks in the business world?

3. What are the opinions and views of the users of social networks?

Research Design and Methodology

A cross-sectional study will be conducted among various business owners using social networks platforms to carry out their daily commercial activities. Inclusion and exclusion criteria will depend solely on the respondents consent. For qualitative research, opinions, views, and beliefs, of the users will be evaluated to create a distinct line between the advantages and disadvantages. A pilot test will be carried out to ensure validity and credibility of the results. Data will be collected using a semi-structured questionnaire. Respondents will be fully informed prior conducting the study. For quantitative data, relevant reports and books of accounts will be evaluated to assess the impact of using social networks in the businesses.

Research Limitations

One common limitation that may arise is when a participant fails to consent to the study. Similarly, such a review will be time-consuming and costly as well. Another barrier to this survey may arise when evaluating qualitative data on advantages and disadvantages of social networks.

Time ScheduleThis study will take two months. For the first one week, a pilot test will be conducted to ensure validity and reliability of the results of the study.


In conclusion, business entities all over the world must realize the potential that social networks have towards advertising and improving the customer relations. Businesses recently, the majority of companies and enterprises utilize social networks as a tool for marketing their products and services to a large population. Popular social networks have with time become large advertising houses offering valuable data about their clients by providing an easy way of reaching them. This study will help to determine the advantages and disadvantages of using social networks and thus filling any gaps where necessary.


Browne, K., 2005. Snowball sampling: using social networks to research nonheterosexual women. International journal of social research methodology, 8(1), pp.47-60.

Girvan, M. and New...

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