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LinkedIn Will Conquer The German Market

Summary

There are two competitors on this German market, XING and LinkedIn.

LinkedIn's international presence is a huge competitive advantage.

Finally, XING will be wiped out by LinkedIn.

Let me tell you a story. In 2006, there was only one really successful social network in Germany. It was called "StudiVZ" or "SchülerVZ." Everything went well for the unchallenged German market leader. The numbers of users were rapidly raising. Facebook (NASDAQ:FB) even offered 4% of its shares to take over StudiVZ. Stefan von Holtzbrinck, the owner of StudiVZ and SchülerVZ, rejected the offer self-confidently.

This was a mistake. In subsequent years, StudiVZ lost more and more users while its rival Facebook conquered the German market. Facebook offered the same features like StudiVZ - and even more. Users on StudiVZ were only able to connect to German users, whereas Facebook users could connect to the whole world. In 2013, Stefan von Holtzbrinck buried StudiVZ while Facebook exceeded the 25 million user mark in Germany.

This is exactly what will happen a second time on the German market soon. LinkedIn (NYSE:LNKD) will play the role of Facebook while XING will be the victim.

An overview of Germany's business-oriented social networks

Before we draw...


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