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The 21st century has witnessed a unique evolution of communication after the internet era, which almost revolutionary. The resulting reshape of the manner in which individuals access information and correspond almost demands relocation to the central interface of all this-social media. Any successful organization produces and from then it has to walk and talk with the client. Social media is offering this service for businesses that approach the market through this concept. This paper interrogates the role of social media in business models; it explores vast e-business modes, challenges to these e-organizations, modern models such as Hamel’s and their applicability (Amit & Zott 2001).
Social media refer to online content created by applying high accessibility and scalable technology; it is shifting and changing rules on people’s mode of discovering, reading and sharing content and information. Consequently, its increasing role emanates from its ability to impact on how businesses captures value, creates and delivers it. Social media have seven categories: Social networks, which allow online communities to build websites such as Face Book, YouTube, flickr, StumbleUpon, MySpace or LinkedIn. (Dailey 2009).
Hermkens, Kietzmann, and Silvester assert that it is the high time the corporate world gets serious on the social. Firms gain a lot from engaging in the social media realm since this is where information concerning them is discussed with or without their permission. Nevertheless, majority of managers do not entertain this though, due to inadequate knowhow on the complexities in the social field. Hermkens et al, present seven blocks upon which social media is build; they include sharing, presence, communication, identity, relationships, groups and reputation. Identity is the block upon which managers learn to balance disclosure and privacy while the conversation block entails exchange of information and its frequency; it reveals preferences. Sharing is the distribution of content block, which indicates audience interest mediation. Presence block deals with knowledge of accessibility between social media; it determines the relationship block of audience association. Reputation block requires the firm to build upon it and create a positive image, on the other hand the group block indicate the resultant web of groups and subgroups. A manager understands of each block and its impact resultant to best utilization of social media (Kietzmann et al 2011).
Kaplan and Haenlein acknowledge the souring rise in social popularity among managers; however, they provide an in-depth teaching on their differences so as a business utilizes them optimally. Their advice comes in handy, when research indicates that companies are increasingly using social media to create new relationships and shape them with various stakeholders.. Studies by comScore indicate an increase in social sites by 34% in 2008 reaching a 530 million people mark. Dell engages 2 billion people annually in its estimations, while Face Book welcomes 1 million members in the social network daily. The growing impact of mainstream media forcing realignment of company models is evident from research and various studies (Kaplan and Haenlein 2010).