...created a massive platform that reaches over a billion people. Facebook has been successful driving revenue by developing algorithms and application programming interfaces. These revenue drivers turned their social networking platform into an advertising tool, connecting third-party businesses to quality consumers. Although Facebook’s user base and revenue are growing at very rapid rate, there is concern with their future strategy. This paper addresses that concern and the doubt that the revenue streams the company has developed will be sustainable in the long-term. Examining Facebook’s history, competition, financials and target markets will reveal a direction for the future. Recommendations are made for a long-term strategy to diversify revenue streams and maintain year over year growth in profitability through: global markets, emerging technologies and integration. Keywords: Facebook, social networking, technology, advertising, data, Internet user, global market, application development, mobile, beacon Analysis of Facebook to Develop a Business Strategy Maintaining Revenue Growth in the Future Mark Zuckerberg created Facebook in a dorm room at the campus of Harvard University in February 2004. Its initial purpose was to form a social network exclusive to Harvard, allowing the viewing of students’ personal details to the entire student body and to create a platform for communication. Within four months, Facebook had expanded to thirty colleges and had 150,000 users. With...
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...Facebook Mini Case 1. Why is Facebook the number-one social media company, and not Myspace which enjoyed a first-mover advantage? The reason why Facebook replaced Myspace as the most popular social networking site is the different strategy they applied. Myspace’s strategy was getting more profit by concentrate on a few developed markets, since it owned by a public company and had a hard pressure of profitability. However, Facebook was a private company at the beginning and get some investment from investment group, so it didn’t have the pressure to make a lot of profit and revenue. For this reason, Facebook applied a real global strategy. The first target for Facebook is more users, and then profit. Since the strategy Facebook applied, it attracted more and more people all over the world. While Myspace suffered great from financial crisis in 2008. 2. Given the hallmarks of good and bad strategy (discussed in Chapter 1), do you think Facebook has a good strategy? Why or Why not? I think Facebook has a good strategy. The first reason is Facebook pursue a truly global strategy. Developed market is small compare to the developing market. There are more opportunities in the developing market. The second reason is Facebook keep push out new thing. Facebook launched News feed in September 2006, Timeline in September 2011 and Graph Search in January 2013. The new function and version provide better user experience than before. The last reason is customer-centricity. Facebook...
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...internet companies such as Facebook? Now, more and more people use social media to connect with their friends and family. Facebook could be the most popular one used by many people from all over the world. Up until 2013, Facebook got up to 1.06 billion monthly active users and 680 million mobile users (Smith, 2013). In terms of internationalization, Facebook successfully launched to the whole world and nowadays, almost all the countries are using Facebook even some poorer country from Africa (Facebook Statistics by Countries, 2013). The company successfully launched to almost all countries because it puts a lot of attention to the differences between each country has so it has succeed in terms of internationalization. First, new features could attract more people to join Facebook since the website is used by people from all over the world and this gives the company opportunity to have the free advertisement from one place to another. For example, in the year of 2013, Facebook just introduces a free call application for their the United States iPhone users and this could attract more people to join Facebook and get them connected to the rest of the world (Hamburger, 2013). From here, we might think this is good only for attracting more users from the United States, but it could attract more people from the rest of the world. Suppose, one person from the United States never had a Facebook before and he now know this free call feature of Facebook and find it is quite a...
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...determine whether a strategy is a winning strategy, the company’s strategy must pass three tests, which include the fit test, the competitive advantage test, and the performance test. Passing the fit test means the strategy is well matched to the company’s situation. Moreover, the competitive advantage test is used to make sure the strategy can help the company achieve a sustainable competitive advantage. In addition, passing the performance test indicates that a winning strategy produces strong company performance. Before IPO The primary mission and goal of Facebook CEO, Mr. Zuckerberg, before the company’s IPO, is to “connect the world digitally with Facebook” and increase its total membership (Rusli, 2014). Mr. Zuckerberg kept his primary mission of Facebook and cared less about the revenue. His strategy of Facebook at this point was to attract as many users as he would without placing more importance on how to make a lot of money. Facebook’s strategy before IPO is not a winning strategy. First of all, Facebook’s strategy at this point did not match well to the company’s best market opportunity of its initial public offering. Since Facebook wanted to go public, it needed a good performance to attract its potential investors and shareholders. The ability of gaining revenue is an important symbol and sign that potential investors will look for before deciding whether to invest. However, Mr. Zuckerberg’s primary mission of Facebook showed that “Facebook was not originally...
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...Percentage Index: 7% 1 I. Executive Summary This case study provides an analysis and evaluation of Facebook’s current strategy in the e-business of social networking. Facebook’s competitors are identified. Investigations are carried out to determine if Facebook’s strategy is effective in staying ahead of its competitors. It was found out that Facebook faced a few major problems. Intellectual property disputes with Harvard based houseSYSTEM’s creator, Aaron J. Greenspan and ConnectU had affected Facebook’s public image in 2004. Privacy issues problems forced Facebook to repetitively apologize to its users and made many amendments to its products. In late 2007, Facebook encountered over capacity in its data centers resulting in a drop in its user visiting Facebook website. With the existence of its competitors, MySpace and Twitter, Facebook found it challenging to expand its operation. It was recommended that Facebook should remain friends with its competitors and engaged in a collaborative alliance in developing technologies for the social network platform. Ensuring adequate privacy user controls is the key to customer satisfaction; therefore regaining trust back from Facebook’s user is crucial in its maintaining good business-customer relationship. 2 II. Statement of the Problem Since the day of its incorporation in 2004 until today, Facebook has faced several issues that affect the relationship with its customers and competitors. These issues can be categorized...
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...organization of your choice. Discuss the implications of the SWOT on elements of the marketing mix. SWOT Analysis : Facebook Mission Statement: Give people the power to share and make the world more open and connected. People use Facebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them. Statistics Statistics 819 million monthly active users who used Facebook mobile products as of June 30, 2013. 699 million daily active users on average in June 2013. Approximately 80% of daily active users are outside the U.S. and Canada. 1.15 billion monthly active users as of June 2013. Industries served | Internet | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | Mark Zuckerberg | Employees | 5,299 (2013) | Main Competitors | Twitter, MySpace, Google+, LinkedIn, and many others. | Strength: 1) Social networking site available to consumer 24/7 via mobile to share and connect with friends and family 2) Global reach with 80% of active users outside U.S and Canada 3) Targeted advertisements based on demographic factors such as location, age, gender, education, work history and the interests users have shared on Facebook 4) Provides a platform that enables developers to build social apps, websites and devices that integrate with Facebook and reach millions of people. 5) Number of products/feature to enhance the user experience like, news feeds...
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...Mini Case 1 Does Facebook Have a Strategy? Summary of the Case Facebook was founded in 2004 by Mark Zuckerberg and three college friends. This social networking site, became more popular with 1.1 billion users and over 5 billion in 2012. Facebook is the most popular website globally, even more than Google. Before Facebook popular, it has to overcome the first mover advantage which is by Myspace. Myspace was the early leader in the social networking, it’s attracted the attention of News Corp. After a couple years News Crop. Acquired Myspace for $580 million and year after year Myspace business drastically getting down. However, Facebook getting into IPO in 2012 and before that other investors, Microsoft purchased a $240 million equity and foreign investor group added $200 million following years. Facebooks strategy had less pressure to produce bottom-line results than Myspace did, so the company was able to pursue different business models such as more users first, profits later. Myspace strategy was different first concentrated on a few developed markets, Facebook concentrated on a truly global strategy. So Facebook more popular all across world, 70% percent of its users are outside the US. Facebook’s new competitors in the social media are Google+, LinkedIn, Pinterest and Twitter. Facebook’s business model is based on three pillars: News Feed, Time line and Graph Search. Summary of the Facts The Facebook is now the world’s largest social networking site, with more than 1...
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...will consist of many users discussing products and hearsay about potential products. In the past Apple has left much of its social media conversations solely in the hands of its consumers. Essentially, its strategy was to create a social buzz by staying completely silent, instead letting the rumour mill do the PR work instead (Moth, 2012). Moving forward the company will be more active in its social media in an effort to bridge the gap between consumer and company. Apple’s Target Audience Apple’s target audience is 25+ and more specifically between 25 and 45 years of age. Furthermore, Apple will primarily focus on middle to upper income individuals or families with disposable income. Apple’s brand will focus on people with musical, graphical and artistic and travel interests as well as those who are active, exploratory, avant-garde and early technology adopters (MetaFacts Inc., 2012). The company is known to create a sleeker more upscale technological product. The firm seeks to create more than a culture of singular consumers but rather a community that defines who the brand is and what it means to be a consumer of Apple’s products. After researching the target market, it has come to Apple’s attention that its audience primarily communicates through Twitter, Facebook, Wildfire, website blogs and YouTube. By utilizing the same channels of social media that Apple’s consumer identifies with, the company hopes to connect more...
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...from the company. Microsoft also depended on the viral movement to promote the Zune. Videos surfaced online from technological device reviewers that generated anticipation and excitement about this new device. Magazines would also feature articles on the Zune’s capabilities and high-quality characteristics versus the Apple iPod. Microsoft partnered with MySpace to influence the current social media users. Unsuccessful Advertising Strategies Microsoft’s attempt to stabilize the Zune in the competitive mp3 market did not satisfy consumers. Young college students were an important strategy that Microsoft chose to promote their new product. The iPod was the dominant and popular mp3 player at the moment. The youth makes a product popular because if they promote it other young individuals see that it is what everyone has or is speaking of. This strategy only worked for little time because Apple and other music player device companies introduce newer and better models that surpassed the Zune’s qualities. The viral videos of the Zune were an important strategy for Microsoft because the Internet is the number one source for research, especially for finding...
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...Facebook Facebook is the largest social network founded in February 2004 by Harvard University student Mark Zuckerberg. Zuckerberg’s original plan was to develop an exclusive site for students at Harvard, but within weeks, he had expanded the network to include 30 additional universities. As expansion continued, he was approached by Friendster and Yahoo and earned his reputation as the “kid who turned down a billion” (CrunchBase, 2012, p. 1). By October 2007, the company received $240 million from Microsoft making its valuation over $15 billion. This event gave annual revenue of $150 million bumping Facebook to the number five spot in the United States for internet companies. This year, the network filed for an initial public offering going public on May 18, 2012. The NASDAQ recorded opening shares trading at $42.05 (CrunchBase, 2012). The network has an estimated “845 million monthly active users” with 483 million logging in daily (CrunchBase, 2012, p. 1). Mobile users compose half of their market. It continues to be classified as the most trafficked site in the U.S., but its growth in the international market is astonishing. The global strategies orchestrated by Javier Olivan, Vice President International Operations, has allowed Facebook to expand their user base across the globe. Through the development of new tools and the communication with foreign countries, Facebook will continue to advance and create an atmosphere for their users and advertisers that far exceed...
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...two visionary Oregonians - Bowerman and his University of Oregon runner Phil Knight. They and the people they hired evolved and grew the company that became Nike from a US-based footwear distributor to a global marketer of athletic footwear, apparel and equipment that is unrivalled in the world. Today they operate in more than 160 countries around the globe. Through their suppliers, shippers, retailers and other service providers, they directly or indirectly employ nearly one million people. That includes more than 30,000 Nike employees across six continents, each of which makes their own contribution to fulfil their mission statement: to bring inspiration and innovation to every athlete in the world. Nike has successfully used Facebook to build a community around their organization and...
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...Count: 1588. Facebook Student Name: David Yew-Choong KAM Student ID: 09876307. 1 WHY do people use Facebook? Whether it's for posting updates, reposting articles, checking in locations/whereabouts, or playing Farmville – people participate in Facebook to stay connected, to relax, to be entertained, and to be kept informed (Bond, Ferraro, Luxton and Sands 2010, 4; Piskorski, Eisenmann and Smith 2012, 2). Some might even use it to spy on their partners, triggered possibly by romantic jealousy (Darvell, Walsh and White, 2011; Elphinston and Noller 2011, 631). Others use it as a platform to advance various social and political causes by creating public Facebook pages. Lynas is an Australian listed company with ambitions to process rare earths in Malaysia. Concerned about the carcinogenic effects of the post production waste, multiple Stop Lynas Save Malaysia (SLSM in short) Facebook pages have been created by various Malaysian green groups (Stop Lynas, Save Malaysia Facebook page, 2013). The resultant groundswell and widespread publicity on mainstream media could have well contributed to the share price slide over the last two years (Lynas Corporation Price Quotes, 2013). This case as well as the iconic Arab spring uprising in Egypt & Tunisia has clearly demonstrated the edge that Facebook has given to the small man on the street by conferring them a voice for their cause, even with limited cash (Chokoshvili 2011, 22-23). In a nutshell, Facebook is one of the top...
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...Facebook: Winning the world Or has it already been won? | AbstractThis project aims to analyze the factors contributing to Facebook’s success in the social network industry and what competitive advantages they have that outperform other social network rivals. Anas Hamshari & George Khunjgurua European School of Economics - International Strategic Management – Professor Angelo Arcuri | Facebook: Winning the world Or has it already been won? | AbstractThis project aims to analyze the factors contributing to Facebook’s success in the social network industry and what competitive advantages they have that outperform other social network rivals. Anas Hamshari & George Khunjgurua European School of Economics - International Strategic Management – Professor Angelo Arcuri | TABLE OF CONTENTS Executive summary. 2. Introduction. (ANAS) 3. Mission & Vision Statements. (GEORGE) 3. Strategic Vision. (GEORGE) Analysis. 4. Competitive Advantages. (GEORGE) 8. Summary of Competitive Advantages. (GEORGE) 8. Other success factors of Facebook. (GEORGE) 11. PEST. (ANAS) 13. Porter’s five forces. (ANAS) 15. Exploration & Exploitation. (ANAS) 16. Red and Blue Ocean Strategies. (ANAS) Conclusions. 19. Final Conclusion. (ANAS) References. 21. Reference. EXECUTIVE SUMMARY INTRODUCTION Among social networking organizations, Facebook is one of the most talked about and the most popular choice for people around the world...
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...offers an insight on the Facebook phenomenon and how they are used by brands as one of their main marketing channel especially by food and beverage companies. It also describes on how it changes the way we communicate with one another and how it can have an impact on brands. The chapter further presents the problem statement of the study, research objectives, research questions and the significance of study. 1.2 Background of study As the world is moving in a faster pace, rapid changes have occurred in the way we live. The evolution of current internet had made our lives more interesting and convenient. Social media has been brought to a whole new level with the advents of social media on the new Web 2.0 where the Internet has gone social. The social media has transformed online monologues into engaging dialogues by redefining how people connect and communicate with other people as well as brands and businesses. This communication platform has now become imperative in being a part of the lives of the modern society by opening the door of endless possibilities of how information is being shared and exchanged. The social media as we know today encompasses all the social networking sites which include the top major players of the industry which is Facebook, Twitter, YouTube and LinkedIn. One such social networking site that grows in an instant rate is Facebook. In short, social media is the social software that improves human communication. Facebook started off with a humble...
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...17 March 2011 LinkedIn Corp., 2008 Individual Case Memo LinkedIn's strategy to date was to become the leader in professional networking (PNS), a leader in business networking. Dan Nye has called LinkedIn a productivity tools that is used to search individuals of various professionals, recruit, find experts and get expert advice. Their strategy was to emerge as a major player in PNS which they successfully did. In 2008, LinkedIn was the largest PNS in the world, drawing members from about 170 industries. The company wanted to keep a strong differentiation between PNS and SNS along with maintaining a large crop of their professional users. The company, through continued innovation and expansion of new products, employees and a growing number of members has made their initial strategies come to fruition. The main risk in their current strategy is that they may be leaving a large number of prospective members on the table by being solely professional networking rather than expanding to social networking, ala Facebook. Most notably, MySpace and predominantly Facebook, has continued to grab a stranglehold of more members each day passing than LinkedIn. Both social networks target a much younger audience that has grown up with the networks. Both have also targeted entering the professional networking platform. Another main competitor is Monster, the world's largest job search engine. The strengths of LinkedIn include their high revenue stream which allows the company...
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