In June 2008, the online professional networking service LinkedIn became a $ 1 billion company. But CEO Dan Nye understood that LinkedIn faced several strategic dilemmas. Founded in 2002, LinkedIn by 2008, the world’s leading professional networking service (PNS), with more than 23 million members had. With the aim of “dominate the business of business networking” in Nye words LinkedIn allows individual members to post a profile on the LinkedIn website and on the website of tools to use search technology … Read more »

In June 2008, the online professional networking service LinkedIn became a $ 1 billion company. But CEO Dan Nye understood that LinkedIn faced several strategic dilemmas. Founded in 2002, LinkedIn by 2008, the world’s leading professional networking service (PNS), with more than 23 million members had. With the aim of “dominate the business of business networking” in Nye words allowed LinkedIn individual members to post a profile on the LinkedIn site and then use it on the website of the tools to search for jobs to recruit applicants; Find suppliers, partners and customers as well as to seek expert advice. The company was also expanding into corporate services that enable organizations to build and manage their own online networks would. With revenue streams, advertising, premium subscriptions, job posting services and business solutions are included, was on his way to LinkedIn turnover in 2008 to bring up to 100 million dollars. A new round of funding in mid-2008 resulted in a $ 1 billion valuation for the company. Three key dilemmas faced LinkedIn however. First, at a time when the “walled garden” model of online community building was besieged, it had to decide how far to open their platform users. Second, given the competition from popular social networks like Facebook and MySpace, LinkedIn had to decide whether to incorporate social networking into its value proposition. Third, in an increasingly global environment, it had the possibility of merging with its leading international competitors XING.com weigh.
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from
David B. Yoffie,
Michael Slind,
Nitzan Achsaf
Source: HBS Premier Case Collection
23 pages.
Release Date: 7 August 2008. Prod #: 709 426 PDF-ENG
LinkedIn Corp 2008 HBR case solution