Facebook and Twitter have been Affected Negatively by Most of Challenges (Essay Sample)

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Introduction
The social media business has flourished greatly in the recent years attracting several national and international companies into its market, great companies such as Facebook, Twitter, Skype, Linked in among others have grown from simple enterprises to multi-national conglomerates commanding millions of followers world-wide, although the success experienced in the social media industry doesn’t come without its challenges.
Some of the challenges includes; user resistance, difficulty in the translation process of popularity among its users into equally measured great profits, external interference from issues such as legal regulations, stiff competition from other social media companies offering similar products and services, high cost of investment in terms of incorporating new technology in the business and finally demeaning regulatory hurdles geared towards protecting personal user data, (Morrison, J (2011) ‘The rise of the social web sees Facebook soar in popularity’ in The Global Business Environment: Meeting the Challenges. 3rd edn. Basingstoke: Palgrave Macmillan, 4-5). Among other major challenges are involvement of much innovation that commands much funding and capital as compared to the revenues in expectation, some of these innovations are capital intensive, they require highly skilled manpower and high level of creativity which is rather too costly to obtain without certainty of good returns financially. There has been lack of entry restrictions in the social media business, issues that has brought negative impact on the competition aspect of the business making it stiff and cut throat, customers have lacked ability to make choices on whom to buy from making the whole business a more crowded business platform.( By MarcusCasalPublishedMay29,2013 /customer-experience/3-challenges-facing-social-media-crm-managers-0507394#U46jbu7Y8lIRXwDD.99)
Facebook and twitter have been affected negatively by most of these challenges
but specifically has its setback such as; Facebook or twitter fatigue syndrome, lack of a independent social search with all functional search requirement which should provide a wide scope of networking, excessive control by the advertising fraternity making them more of a business oriented platform than just social platforms.The global business environment has not been too friendly to both Facebook and twitter, they have struggled to remain relevant in the social media business despite all the hurdles involved in the business, investors have pumped in sums of money into them in the recent years in await of positive returns without taking into considerations numerous challenges experienced in the sector. Both Facebook and Twitter operates on the same business platform with almost similar functions and target groups. their challenges are almost the same, they have faced hard times to survive smoothly in the global business environment despite being multi-national business companies, there are challenges in meeting the speedy globalization expectations which are linked to high speed communication, effectiveness and accuracy in handling global business, financial, social, military among other issues.( The Global Business Environment: Meeting the Challenges. 3rd edn. Basingstoke: Palgrave pg 39-42, pg 193-206, pg 392-400)
They have failed to translate their popularity and high number of followers into financial returns inform of profit and dividend to its customers and shareholders, a issues that has sparked a great uproar in great investors summits, for instance Facebook holds huge amounts of customer personal information which is easily accessed worldwide by all its users.Facebook and Twitter have failed to meet the privacy requirements of its user data ending up into allowing personal user data to be viewed publically. This is a great breach of the privacy regulations and rules leaving users with the option of choosing to restrict the access, with Mark Zuckerberg having to say that ”privacy is no longer a social norm”(The Telegraph, 2010).Countries differences in monetary systems, law and regulations governing international businesses, tax rules and other regulatory requirements has been a great setback for the social media business .Cost of opening support centers vary from one state to another making the profit margins to drift low, the individual country relationship with the global economy also has negative impact when it come to the comparison of greater economies and the second world economy countries.( -strategist.com/blog/2008/08/07/the-ma0ny-challenges-of-the-social-media-industry/ Posted on August 7th, 2008)
Social and cultural environment in which the two social media businesses operates also create a different challenge to the smooth running of the business, different ethnic and cultural norms regulates the usage of the sites, this brings in the aspect of the language barrier, Facebook and Twitter main platforms are greatly in English, making it a extra expense to try cater for other languages in the world population adding up into the capital and expense side, religion has been a major setback in some communities whose beliefs and cultural theories contradicts with the sole purpose and functions of social media business, societal norms and regulations have been hard to break and allow users to enjoy Facebook and twitter in such a free and satisfying environment. Global issues of financial market, technology and innovation has dragged behind progress in the social media business, Facebook and twitter employ high modern technology highly skilled labor which are highly capital intensive, this has resulted to massive investment into the innovation without assurance of profitable returns, the technology world is growing at a high speed necessitating continuous invention and innovation ,this has been brought about by limited restrictions in the market resulting into a throat cut competition business environment. , (Mark Sweney The Guardian, Sunday 26 June 2011 22.30 BS)
Despite all these challenges accrued to the social media business, Facebook and twitter have the initiative to employ several remedies to make sure they remain relevant, resourceful and profit making in their market, some of the remedies are short term while as others are long term resolutions all aimed at boosting the reputation and the protecting investors input. A proper mechanism has to be put in place to deal with the legal restrictions on both the customer use and business operations in different countries, incorporation of basic cultural, societal and country norms in the business platform can see the customer base and access be boosted to better levels, better and secure means of safeguarding customer data must be formed with clearly stipulated directions to the customers to avoid confusion, complication or any difficulty in making ones information secure and private, entry regulations and restrictions are supposed to be arrived...