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Showing posts from July, 2012

Facebook's business problems are symptomatic of many large digital firms

Facebook is wrestling with a business challenge more traditionally found in legacy media: how do you translate consumers that don’t think they have a commercial relationship with you into relationships that that other firms will pay for?

Despite 955 million active users and increasing revenues, the company has lost a third of its share value since its IPO in the spring.The exuberance that surrounded its IPO and overpriced its shares has worn off and investors are realizing that being big isn’t enough to ensure business success. Its latest earnings reports show the firm lost money, $157 million, in the second quarter on income of $1.18 billion.

Facebook’s challenges are symptomatic of a long line of “successful” digital firms that are experiencing monetization problems, including Yahoo, You Tube, AOL, and Twitter. Despite large numbers of users globally, they still lack effective business models to generate revenue levels congruous with their size. They may provide great communication fu…

Digital journalism reaches sustainability, but transitional business problems interfere

The income streams of digital news providers continue to grow and many have now reached the point of sustainability. Fundamental financial and business problems, however, are keeping publishers from moving out of print and becoming digital-only operators.

This leads many publishers and journalists to continue bemoaning the fact that digital media do not provide as much income as print and many still argue that organized, regular newsgathering and distribution cannot survive in a digital-only environment. They point to the fact that digital advertising produces only about 15 percent the income of print advertising—largely because it does not appeal to retail, display advertisers--and that paid circulation for digital products is growing slowly.
Their analysis is flawed, however, because publishers do not require as much revenue online as offline because the costs of digital operation are so different.
Editorial operations account for only about 10-15 percent of total costs of operation o…

Human Resources Educational Training and Career Prospects

Businesses have a large responsibility when dealing with employees and the professional workplace. College training programs offer the skills needed to enter careers in the human resources field. There are several human resources educational training and career prospects available to students.

The career prospects available will be determined by the degree level students pursue inside educational training. Human resources schools and colleges prepare students to understand hiring, compensation, diversity, and much more. Students that are pursuing an education will have better career possibilities by researching what program levels and concentrations coincide with their goals. Career training is available to students at both the undergraduate and graduate degree level. The Bureau of Labor Statistics states that most individuals enter the field with a bachelor's degree. Students typically start at this level of education because it opens up the most career prospects until graduate d…

Cable firms and Facebook Continue to Disappoint their Customers

Serving and satisfying customers is a crucial part of  value creation in any business,but U.S. communication firms continue to struggle with the very basics and are being heavily criticized for poor service, price gouging, billing problems, and generally poor customer relations.
40 percent of the top 15 companies that most dissatisfy customers are communications firms, according to the latest data from the American Consumer Satisfaction Index.
The companies American most dislike include Facebook and cable systems, which operate as near monopolies and consumerss have no real competitors to turn to for better service. The scores for the companies are:
Direct TV: 68/100 Facebook: 66/100 Comcast: 61/100 Time Warner: 63/100 Cox Communications: 63/100 Charter Communications: 59/100
These are failing scores on any grading system. The companies have little incentive to spend time and money to improve service and relations with customers because there is no real competition that can discipline the marke…