Social media has large quantities of untapped potential for many businesses

Social media has large quantities of untapped potential for many businesses. In today’s world consumers get their information, advertisements, recommendations, and even news from social media sites. As a result, social media is a relatively inexpensive and crucial marketing tool for many industries because it can provide information in real time and reach a large number of people. However, the fact that it is inexpensive and in real time can cause negative impact for businesses because this means that average people have access to it and the information can spread all over the world in minutes creating reputational damage. In today’s world a single tweet or picture can cause stocks to lose value and whole groups of people to boycott a company or product. I think it is very important for company’s to understand these risk and put the appropriate risk management strategies in place such as acceptable use policies and Public Relations people.

Do you agree, why or why not? Can you provide some additional examples?