Impact of Social Media on Small Compared to Large Businesses

Introduction

The use of social media such as facebook, twitter, plnterest and many more has gained popularity in e-business as compared to a simple blog.

Problem Statement

The need to maximize profits and still satisfy customer needs has forced small businesses to close up due to lack of capacity to compete large businesses.

Background

Traditionally, businesses relied on one-on-one interaction with the customers and persuading them to buy products, hawking, displaying of the products on banners and posters, advertising on radios and television, common with large businesses and lastly using a simple company blog to interact with customers. Lately, social media usage has replaced all these since technological evolution.

Literature Review

The need to reach to high number of customers or clients and stakeholders by businesses, institutions, companies and other groups has necessitated expansion in the way of communication. Similarly, technological advancement has played a greater role in ensuring this transition is successful. For instance, the development of web design softwares such as XHTML and HTML has accelerated the creation of websites. Integrating websites to reach various groups brought in the use of social media (that is internet) for communication.

Social media helps collect information from customers such as suggestions on the ways to improve products or services offered and customer complaints and demands such as loyalty rewards to those constantly using the products. This also bridges the gap betwee.............