LinkedIn: SWOT Analysis

LinkedIn as a social media has had a lot of opportunities as both one of the first social media platforms as well as being one of the first online operation solely based upon professionals looking to build a network and or find employment.

Strength

Which has to do with their first strength as a company. Their Network is based off making professional links and has done so effectively with around 600 million members. The company has both a large user base but is also all over the world in over 200 Countries. Another strength of LinkedIn is its recent attainment from Microsoft. This may not seem like an important factor, but it gives LinkedIn a large financial freedom. The last strength I would like to bring up is the sheer size LinkedIn has already reached as well as the fact that the number has only increased in its 16-year history. The size of the corporation only gives it more potential and credibility.

Weakness

One large weakness for LinkedIn is the popularity of Facebook and the constant user engagement of the service. LinkedIn has around 600 million members, but it is estimated that just around half of those are constant users. Whereas Facebook has over 2 billion users, obviously they are not all looking for jobs, or linking to other professional, but it does happen in small markets of the service. Also, where LinkedIn has around 300 million active users, Facebook as around 1.6 billion active users. Again, they are not all using the services in the same way, but it is still a threat.

Opportunity

One of the biggest opportunities is the recent expanding operation into the Chinese market. With the added population from China their users’ number will start to increase at a astronomical rate. Another opportunity is the use of smartphones. Industries are starting to catch on to the use of social recruiting through social media apps/hiring apps such a Facebook, Monster, Glassdoor, and of course the biggest in the industry LinkedIn. I myself recently got a job from LinkedIn without even looking for it. Through the use recruiters can look for candidates, search through their profile and hire directly, which is exactly how it happened to me. The last opportunity would be to increase user engagement. As I stated above it is estimated that around half of their users are active of the platform. But, by spreading their services through other apps/platforms/service providers they can increase their active users.

Threat

Lastly the threats of LinkedIn are services like Facebook, Monster, Glassdoor, Indeed, and even a service like Instagram. Both Instagram and Facebook are social media platforms that have their own respective markets within a professional world. Facebook is more like LinkedIn due to its nature of connecting, while Instagram is more a connecting application for more artistic fields. Either way both have opportunities to take a slice of the market. Platforms like Monster, Glassdoor, and Indeed are all specifically for hiring. They do not have the advantage of being a social media, but their goal is to help user find jobs which is one of LinkedIn’s primary functions. Overall LinkedIn has the best of both worlds, with its function as both a social media and a tool to find jobs. Another major weakness that goes for most internet service is the threat of privacy issues. Most companies that have an online presence has this risk of getting hacked and having their user’s data released. Although this is a risk that doesn’t just focus on LinkedIn.

I believe that LinkedIn’s Strengths and Opportunities far outweigh their Weaknesses and Threats. They have continued to prove that they are successful company throughout their history, and I believe that they will only continue to find success.

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1 Comment

  1. Very interesting analysis. I wonder if some of LinkedIn’s weaknesses are also related to its strengths — it is a more focused social media network than others. I found myself using it quite a bit when I was on the job market, but now that I’ve got a job, I barely use it at all…

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