Linkedin

1. What are the strengths and weaknesses of LinkedIn’s business model?
2. Are there network effects in professional networking services?
3. What are the major risks facing Jeff Weiner in 2012? What advice would you offer to Weiner?

LinkedIn provides a social network service, primary for professional networking, such as, employers posting jobs and job seekers posting their CVs. LinkedIn stands out among Facebook and Twitter, and other social media because its major revenue resource is not advertising, but rather Hiring Solutions. Hiring Solutions are LinkedIn Recruiter, job slots, LinkedIn Recruitment Media, and LinkedIn Career Pages. It changes the traditional job listing and change the traditional social media, and this is an advantage that LinkedIn has.

For sure there is network effect in professional networking service: An increase in the number of people who participant in LinkedIn can increase the network value. More people use, more networking could be the future source. LinkedIn gets to play both sides of the job market as it undergoes a structural shift towards social media.  

The weakness of LinkedIn: there is no background check, information lacks confidential. Some people might post false information about themselves; User’s privacy is not secure.

In 5 June 2012, LinkedIn was hacked, and passwords for nearly 6.5 million use accounts were stolen by Russian cybercriminals. I think a good way to prevent the cybercrime is for LinkedIn to increase the steps to register, adding more secure questions; Users’ personal information need to be verified by Photo ID; Automatically sending reminder to users to change their passwords periodically. I also think that LinkedIn should not let people see the users’ profiles free, could give people trial, but not the whole profile.

Secondly, join with action of law enforcement, government and ICT industry to help company to be more secure, especially when LinkedIn wants to expand their global market. Besides the help from outside, developing awareness of cybercrime in internal management is important too. LinkedIn should focus on training for avoiding cybercrime, such as intelligence analysis, and criminal research and profiling techniques.