The paper "Social Media and Firms’ Performance - Youcastr " is a perfect example of a macro & microeconomics case study. The emergence of social media in the modern corporate world has definitely come with a lot of blessings to corporations and an equal proportion of curses. Social media is a platform where millions of people get to interact such that one would get to get informed on real time events taking place thousands of miles away (Ho, 2014). Many companies all over the world have embraced social media since it is now easier for a marketer to reach a huge number of people at the same time.
Issues arise when the social media platforms are misused either by external detractors or people within the organization either deliberately or accidentally. The effect in most cases is irreversible considering the speed at which the information travels (Townsend, 2016). The main purpose of this report is to analyze the negative effects that social media has on a company. The report is specifically focusing on the financial losses that the particular company incurred as a result of its strategic teams to effectively deal with the social media to avoid mistakes that would cause negative reactions from the public.
The report will analyze YouCastr’ s financial losses that are a result of poor management of their social media platforms by assuming that the sporting networking site could guarantee them increased sales. Social media and Firms’ Performance Reports indicate that on average, firms are expected to lose up to 4.3 million dollars in sales globally as a result of mistakes they make in social media (Ho, 2014). Research has also indicated that the crisis brought about by social media is on the rise from year to year.
This shows that companies that do not pay closer attention to their branding strategy in social media can frustrate and in most cases confuse the customers whose concerns can now be able to reach millions of people all over the world thanks to the social media platforms (Ho, 2014). It is a major concern worth considering because any mistake is likely to lead to massive financial losses and in extreme cases, the collapse of the enterprise.
In some cases, organizations can decide to set up a social platform that would make it possible for the organization to communicate with its customers but eventually fail to connect to the customers.
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