Organizations use blogs for numerous internal and external reasons.
EXTERNAL USE OF BLOGS
Companies and their employees use public blogs for many marketing purposes. These blogs are an easy and inexpensive way for the people of the organization to communicate information about the company itself, and its products to consumers. Blogs are also an effective channel for public relations, announcing updates, as well as receiving feedback from various publics.
One study showed that 90% of the time people spend on the internet is devoted to "searching". Along with a proper website, the chances for a company to be found on search engines increases with the creation and maintenance of an interactive and dynamic blog. Consumers are pleased with corporate blogs, which provide much more insight to the company's method of operations.
INTERNAL USE OF BLOGS
Organizations use blogs internally as a means of distributing information and collecting feedback from employees. These blogs promote internal communication in the organization. An example: I work for a rather large organization, with many locations across Canada. Our internal blog allows us to indirectly communicate with coworkers, and post blogs congratulating and/or recognizing a job well-done (or exceeding clients expectations) by one of our immediate coworkers. Employees are satisfied with the feedback they receive, and have an overall appreciation for the people they work with.
Disadvantages:
A disadvantage to external blogs is that consumers may not see them as credible sources of information. Anyone can create a blog.
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