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LinkedIn - Essay Example

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The year 2011 marked the highest growth in income to 115% that had increased from 102% in 2010. From that point onwards, the level of income fell from 86% in 2012 to 45% in 2014. The primary determinant of net revenue is the…
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LinkedIn

Download file to see previous pages... The net growth of net income is different from net revenue. The interaction between costs and the net revenue results into the net income. In 2014, the company received the highest income but the costs incurred increased considerably, and the level of income decreased thus causing losses. In the year 2010, there was an exemplary growth in the income accrued as a result of the vast growth of income and the costs were slightly minute. The prices increased in 2014 by a significant and substantial percentage since the company had to incur enormous sale costs in an effort to make more sales. The company was growing significantly fast. Consequently, the administration costs increased.
Sales, marketing and product development costs mark the most significant costs of the company. The sales and marketing costs help the company are incurred when the company seeks to publicize the product thus improving sales. The costs include promotional costs like commission paid to salespersons and delivery costs. The product development costs are incurred when updating the features of the existing product to make it more appealing to the customers. This increases the likelihood of the customers to buy the product. The product development facilitates the necessary growth of the company (Sherman 67).
In 2014, LinkedIn members could be classified according to the countries where LinkedIn has established its operations. Such countries include USA, China, Mexico, United Kingdom and many other countries. In the previous years, the number of members was only substantial in USA and very few in other Nations. The insignificant number of members outside USA made it difficult to estimate the number of members in each ...Download file to see next pagesRead More
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