Product Strategy
Strategy can be considered from two main perspectives. One way is the strategy
implemented by the actual social media firm (e.g., Facebook, Linkedln, etc.); another
by how firms use social media to enhance their branding and marketing. In keeping
with the overall theme of this chapter, our focus is on the former, not the latter.
In the rapidly evolving social media industries strategy seems to change
overnight. Strategy involves many considerations for social media firms, and like
any business operating for profit, is trying to position their products and services
to gain a competitive position in the market. In the social media industries, we
have observed that the first-mover advantage strategy is not always successful.
While Myspace was an early leader in social networking, Facebook was able to
overtake Myspace in a relatively short time span to become the largest SNS in the
world, forcing Myspace to redefine itself on more than one occasion to remain
competitive.
Social media strategy is also tied to the development of mobile media Social media's popularity in all of its various markets has been enabled In t he growth of smart phones and tablets, and most sites/application designed for use in a mobile environment. Twitter, Groupon, Foursquare, and other sites are perfect for a mobile environment, and add to their utility. Social media firms encourage users to "like" and "check-in" when visiting retail establishments and restaurants to take advantage of digital coupons and other offers for consumers.