The effect of horizontal expansion strategy of social media firms on user’s disconrinuance behavior

2020 ◽  
Vol 22 (4) ◽  
pp. 267-289
Author(s):  
Inwon Kang ◽  
Gayoung Park
2015 ◽  
Vol 11 (1) ◽  
pp. 26-38
Author(s):  
Susan White

Synopsis Groupon, an online coupon company, was one of many companies that considered an initial public offering (IPO) during what might be a second technology/internet/social media IPO boom in 2011. Some companies chose to postpone their IPOs, while others took advantage of the media attention focussed on technology companies, and in particular, social media firms. Should investors hop on the tech IPO bandwagon, or hold off to better evaluate the long-term prospects of tech companies, and in particular social media companies? Would the valuation of Groupon justify an investment in IPO shares? Research methodology The case was researched from secondary sources, using Groupon's IPO filing information, news articles about the IPO and industry research sources, such as IBIS World. Relevant courses and levels This case is appropriate for an advanced undergraduate or MBA corporate finance or investment elective. Most introductory finance classes do not have the time to cover later chapters in a finance textbook, where information about IPOs is generally found. It could also be used at the end of a core finance course, where the instructor wanted to introduce this topic through a case study of a hard-to-value internet-based company to illustrate the difficulties in setting IPO prices. The case could also be used in an equity analysis class, an entrepreneurial finance class or an investment class, to spur discussion about valuing an internet company and choosing appropriate investments for pension fund investing. This case could also be used in a strategy class, focussing on the five forces question, and eliminating the valuation question. Theoretical basis There is a great deal of literature about IPOs and their long-term performance. An excellent source is Jay R. Ritter's research, http://bear.warrington.ufl.edu/ritter, which has a longer time period and more data than could be contained in this case. IPO puzzles include persistent undervaluing of IPOs; in other words, the offer price is lower than, and sometimes substantially lower than, the first day close price. A second issue is the generally poorer long-run performance of companies after their IPO when compared to similar firms that did not do an IPO.


2012 ◽  
Vol 201-202 ◽  
pp. 613-616
Author(s):  
Zhi Qiang Bu ◽  
Zhi Bin Xie

This paper adopts the methods of horizontal expansion ideas, multi-angle studies and examples validation to study special dynamic factors in a product project. It is found that the dynamically changing social, policy and economic factors outside the company will produce a strong interference with the normal operation of product project, the actual operating condition of the project also strongly influence on the economic profit and loss in the product project. The results show that the company management, technical and financial staffs can avoid the risk rapidly by taking response strategies, and enterprise can take measure of releasing project development information in advance to create a favorable environment for future product project to be on the market, lead to a good social media for the product project, and reduce the interferences which come from policy and public opinion against this product project operation. The strategies have the significance of promoting a brand image effectively, warning competitors, and misleading competitors.


Author(s):  
Ahmed Omar Bali ◽  
Sherko Jabar ◽  
Hazhar Jalal ◽  
Mahdi Sofi-Karim

Influenced by digital technologies, the cost of media production has considerably decreased, and the traditional media is faced with new agile, flexible and low-cost media entrepreneurs. This article examines the dynamics of the Iraqi media market transformation with an emphasis on factors that help to merge media entrepreneurs and digital media firms that target an audience on social media. A qualitative method was adopted in this study using open, in-depth interviews with nineteen media entrepreneurs and three managers of media firms. The study revealed that relative freedom and advanced communication technologies have encouraged media entrepreneurs to drive the new media on producing short videos and broadcast them on social media, which has become popular among media consumers. This new era in Iraqi media entrepreneurship has created an abstract space in which media entrepreneurs get involved in the media market, collaborate with international media and deliver values through the use of user-generated content and flexible journalism. This opportunity is shaped by three key interrelated factors: first, the relative freedom of journalism that resulted from the political environment, current regulations and advanced communication technologies that provide more space of freedom; second, the development of communication technologies that allow journalists and media entrepreneurs to employ the media market effectively; third, the emergence of media entrepreneurs themselves who are convinced to seize the opportunities presented by the two previous factors.


Subject Election meddling. Significance With elections due in the EU, Canada and Australia in 2019 and the United States next year, social media firms have made significant efforts to prevent further misuse of their platforms. These efforts are likely to be effective, and manipulation of the kind attempted between 2016 and 2018 will not re-occur. However, the nature of the adversary has changed. The platforms are at risk of preparing to re-fight yesterday’s battles. Impacts Containing the spread of harmful content via fringe platforms is a significant regulatory challenge. Governments may increase their reliance on offensive cybersecurity campaigns to contain foreign interference. Increased privacy on Facebook will make policing fake content harder as the platform will have restricted access to user content.


Significance The bill will move to the Senate, where Republicans fear it over-reaches into states’ powers to manage elections. The standoff takes place within the context of the aftermath of the 2016 presidential election, in which Russians interfered via informational techniques and social media. The bill is designed to prevent another such occurrence, but the ability for actors to manipulate election results is more far-reaching than the methods addressed in this bill. Impacts The bill would authorise federal money annually to improve and maintain states’ election systems. Social media firms will face more government and public pressure to prevent foreign election interference via their platforms. Social media firms will find it difficult to police their platforms without increasing editorial control.


Headline ASEAN/INDONESIA: Terrorism could hit social media


Significance Interim Prime Minister General Prayuth Chan-ocha's government has already retained power for twice the length of the usual time between a coup and return to elected government, compared to recent military regimes (1991-92 and 2006-07). If elections are held in late 2018 as currently planned, it will be three times that length. Impacts Foreign social media firms such as Facebook will likely slow plans to expand their Thai operations. Bangkok will do what it can to keep both Washington and Beijing on side. Restrictions on the activities of journalists and rights activists are tightening.


Significance Proposed measures include a plan outlined by European Commission President Jean-Claude Juncker in September, wherein the EU would oblige technology firms to remove terrorist and extremist content within one hour of being notified by the authorities or face fines of up to 4% of their annual turnover. Impacts Social media firms will invest more in automated filters -- regardless of their drawbacks. Removing extremist online content may impair law enforcement work by limiting their access to relevant materials and networks. Terrorist and extremist outfits will adapt to evade filters.


Subject Falsehoods on social media Significance Recent reports that Russia is continuing its attempts to meddle with the 2020 US presidential elections has once again spotlighted efforts by social media firms to tackle the circulation of falsehoods on their platforms. Impacts Major geopolitical events, such as US elections, remain the primary focus of large disinformation campaigns by state-linked adversaries. The use of images, videos and fringe platforms will make tackling disinformation harder. Small changes to how social platforms work will prove ineffective.


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