An Analysis Of Business Model For Social Networking Sites: A Value Net Perspective

ABSTRACT:Social Networking Sites (SNSs) have been the rage of the tech industry for several years for their unparalleled advantages on attracting users. However, with their digits percent of increase on registered users each year, lingers a deeper and stickier issue:The business model of SNSs still remain unanswered.This thesis begins with introduction of the definition, classification and history of social network sites. By analyzing famous SNSs home and abroad following the guidance of value net theory coupled with the business model framework, this paper broke down the main parts of successful business models for SNSs.Renren.com, the first Chinese social network site went for IPO in NYSE (New York Stock Exchange) was then selected for further study, details on its functions and Open Platform was checked, and went on figuring out how to succeed against its competitors by practicing impactful strategies.The thesis finally draw the conclusion that for any social networking site, changing from a free-standing community into a business ecosystem, integrating targeted users and business participants into the value network is of vital importance to create sustaining competitive advantages.