Strategic Group Analysis of the Social Media Landscape for SMEs

Consumer use of Web 2.0 and social media is well documented. However, the use of such technologies by SMEs has received relatively little attention and the literature has focused on the major social media platforms such as Facebook and Twitter. In this paper the focus is on a different type of social media website, which is termed SME Social Media Platforms. These are websites designed specifically for SMEs to gain information, network with other SMEs and in some cases conduct online sales through an electronic marketplace. The landscape for SME social media platforms is mapped out using business model and strategic group theory. In total, 158 Social Media Platforms in the US and UK were analysed using a mixed method approach of online panel data and website content analysis. A taxonomy is proposed that is based on strategic groups and web 2.0 sophistication. The theoretical implications are described with respect to the analysis of social media systems and the use of strategic groups. Managerial implications are outlined for different stakeholders including the SME companies, the SME Social Media Platforms and banking and Government bodies wishing to sponsor such platforms.