Business Report Essay Example | Topics and Well Written Essays - 1500 words

Business Report - Essay Example Industry analysis: background information Lucraspace.com is an online social site created out of the possibility of designing an online community for that could In essence pull a great online following that forms a massive pool for business advertising. Online social marketing in essence grew out of the need by business organizations to reduce operational costs associated with running any business while ensuring that maximum returns accrue to the business. While agreeing with Whiting, it is generally agreeable that online social marketing is no longer age restricted and therefore associated with all age sets in the 21st century. Daily, every social networking organization tries to make a huge following with different interests. Within these varied usage of social networking sites, different people relate social sites with different meanings and implications. From a business perspective, social networking site refers to a huge potential consumer group with homogenous product or servic e needs that gives the company a good avenue for advertising their products, within this definition, online marketers sees online social networking as a new consumer market. Equally, social networking site is composed of â€Å"individuals or organizations that are connected through various social contacts ranging from casual acquaintances to family members. (Dickerson, 2006) Dickerson, 2006 further attest that online social sites created â€Å"to encourage connections and communication to occur on a wide variety levels.† Popular online social sites include; MySpace, Facebook, Hi5, Xanga, and Friendster, which allows users an opportunity to create a user profile, connect with other online friends. User information and behaviors gathered used by marketing companies to determine the market niche and therefore be able to advertise their products on these sites. Revenue from online social site advertising often follows Uniform Resource Locator (URL) strategy that arbitrarily loca tes any file available in the internet. The figure below depicts the aggregated social network segment that lucraspace.com exploited as an alternative investment strategy for new venture creation. Marketing niche Lucraspace.com driven by the many opportunities that exist around social networking sites and a new need to develop revenues around social websites, as such advertising remained the main source of revenue for these sites in 2007. Within this new reality, online sites aimed at generating revenue from sites given their potentiality to reach millions of audiences and potential customers. Marketing estimates in 2006 indicated that markets and business companies paid $350million on advertising on social sites and further estimated that the figure could be higher with technological advances and internet access across many populations globally. The reported business success for these online social sites in their advertising strategy and their low operational costs associated with website design influenced many organizations to prefer these sites as advertising medium. (Cashmore, 2006; Venture Capital, 2007) Service/product information Lucraspace.com is an