This week I am going to talk about social networking sites (SNS). In the reading “Internet Giants can earn with ease” by Paul Sheen, he says this: “No company is safe. No brand is safe. Dominant one decade, irrelevant the next. Adapt or die and former customers will step over the corps”. What Sheen is referring to, by this comment, is how successful social networking sites get replaced at the drop of a hat when something better comes along. Sheen explains this process as “churn”, which is the lack of consumer loyalty to their service provider and moving on with out a second thought.

An example of churn can be found in the history of !Yahoo.com. Sheen explains how !Yahoo.com is still to this day making money, but it is only 10 per cent of the value when it was at its height in 2000. Sheen also says that “for all intents and purposes, it has disappeared” (Sheen 2012). Moreover, since 2000 there has been many more comings and goings of social networking sites. Now, in 2012 newest craze “Facebook” is showing some signs of decline. Evidence supporting this claim is also mentioned in the reading by Sheen. He says that a returns poll found that 34% of Facebook users have reduced their time on Facebook over the last six months. The question stands, will Facebook last, or will it to become the victim of churn?

Bibliography

Sheen, P. 2012, “Internet Giants can earn with ease”, SMH,

Annotation

This article gives information about churn and how many social networking sites need to keep up with their competitors, if they don’t want to go out of businesses.

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