Gordon Gekko is Dead

transcript

Gordon Gekko Is Dead:How Competitive Advantage

is Shifting in the Social Media Age.

Joanne JacobsSocial Media Expert Consultant

Email: joanne@joannejacobs.netTwitter: @joannejacobs

Skype: bgbsjj

How social media affects business

Why social media is crucial to competitive advantage

What traditional business practices need to be 'unlearned'

Where to from here?

Gordon Gekko: 'Greed is Good'

http://www.youtube.com/watch?v=7upG01-XWbY

Greed is Dead

Greed caused the current recession

Drive for higher profits can lead to poorer quality goods

Public relations and marketing disciplines grew from a need to manage customer service

Harder to deliver authenticity of customer service with poor quality goods

Competitive Advantage

Competitive advantage: Porter's 3 generic strategies:– Cost Advantage– Differentiation Advantage– Focus (niche)

All can be affected by greater access to information about products

Rise of comparison websites and user-generated responses has resulted in an increasing focus on value creation rather than cost, product or market differentiation

Value of Corporate Messages Brand perception versus

product quality Product quality versus reality in

product consumption Until the 1990s communication

power vested in media Rise of the internet diluted

media power Rise of social media inversely

proportional to perceived value of corporate messages

Social Media & Business Case Studies

Case studies: Negative impact Habitat: twitter idiocy Honda: fake endorsements on Facebook Reverb PR: Apple AppStore endorsements

Case studies: Positive impact Dell: Twitter (See also RWW) H&R Block (Tax agents): Facebook HSBC Business Network: private network

Where to from here?

• Ask yourself: WHY use social media?

• REMEMBER social media doesn't make money; it saves money

• MEASURE what you set out to achieve, not visits, hits, followers or fans

• COMPETE on value creation, not cost or product differentiation

Gordon Gekko is Dead

Technology