his research on social media is based on the concept of factors affecting supply: Production Technology because of the social media platforms that allow advertising and deliver improved customer service . In the article, the improvement of technology includes change in social technology; which leads to an increase in production, thus results in an increase in revenue of global economy. This article connects to the concept of technology that provides an increase of productivity of companies, more production is able to be produced. The result is driven by the fact that social media provides communication and collaboration within the workers and customers. As a result of this, companies are able to receive more information about the product from the customers, yet they can improve their product based on the consumer's wants and needs. This increases the supply of production due to the fact that the companies are able to come out with a product that satisfied with most of the consumers. The article states that: "Social technology application to continue to evolve and bring benefits to individuals, enterprises, and the overall economy with an increased productivity of 20% to 25%." (Cohn, 2010) This shows that the introduction of social media in the market eventually gives businesses with more opportunity to produce more products given the consumer's essential information in the fastest period of time. The investment on the social media has given the companies to lessen the reliance on the labour and reduces wages cost which will benefit companies in a long-term way as the human resources can be used for other parts of the businesses. (Cohn, 2010) For instance, the company could save time and cost on the traditional research method compared to social media. Technology is being utilized on a particular market (media sector) and then focuses on the specific demographics (young & adult). This shows that how technology could lead to efficient use of resources and help every business to grow. In conclusion, the article relates to the economic concept of 'Production Technology: Movements and Shifts, which the increased level of production technology affects the shift in supply to the right. With social technology taking over our lives, businesses have to make a change to follow up the latest technology or they won't stand a chance to compete in the market.
It only took Facebook just a year to hit 50m users while it took commercial tv 13 years to reach 50m households
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Analysis
Social Media
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