Question
SocialMediaInc was founded four years ago and is headquartered in San Francisco. Initially, the company struggled to attract users to its social media platform, as
SocialMediaInc was founded four years ago and is headquartered in San Francisco. Initially, the company struggled to attract users to its social media platform, as the company competes with the likes of Twitter, Facebook, and other dominant players in the industry. But SocialMediaInchas seen a sudden increase in users after some positive media coverage and after several high-profile writers and thought leaders signed up on the platform and began regularly posting content. Core to SocialMediaInc are proprietary algorithms that prioritize content and make viewing recommendations to users of the platform. User pages are also highly customizable in terms of layout and content prioritization (users select the types of content to prioritize). Users are attracted to the platform because of its flexible design, ease of use, and high-quality user-generated content. The company currently charges users $5 per month. It also generates ad revenue but has so far sought to limit the amount of advertising on the platform. In an effort to capitalize on the company's recent success, SocialMediaInc has secured major funding from venture capital firms. The investors are pushing the company to increase the number of users dramatically and quickly and to meet key targets. These targets include metrics such as the number of users added per month, and amount of user-generated content posted to the platform per month. SocialMediaInc's operations are currently limited to the U.S., but with the infusion of cash from investors the company is looking to expand to many more countries over the next few years. In addition to seeking to increase the number of users on the platform (currently 70,000) to over one million, the company is looking to expand its workforce from 150 to over 2,000 employees. Leadership has retained you as a consultant to provide organizational expertise.
Question 1 : What do you see as the most significant challenges facing SocialMedia Inc.?
Question 2: What would be your initial advice for the company and why?
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