Case Study "Facebook Dilemma

Chapter 10 Case Study “Facebook’s Dilemma”

1. What concepts in this chapter are illustrated in this case?

The concepts are the unique features of e-commerce technology, especially personalization/customization, richness, and social technology.

2. What is the role of e-commerce and Web 2.0 technologies in Facebooks’s widespread popularity?

The Web 2.0 technology that Facebook created became popular for its simplicity and they enjoy the advantage of being a first mover. This resulted in Facebook having over 100 million subscribers in 2008. Many companies are launching applications on Facebook that makes it even more popular. Opportunities for advertisers to reach targeted audiences based on demographic information, hobbies and personal preference, geographical regions and other specified criteria is located in a comfortable environment. Facebook’s massive subscribes is the mother lode to advertisers and Facebook offers primary features that make advertisement fully integrated.

3. Describe the weaknesses of Facebook’s privacy policies and features. What management, organization, and technology factors have contributed to those weaknesses?

Facebook faces controversy over the handling and usage of the extensive information it collects from its users. Users biggest concerns are the privacy and user controls over the information granted to Facebook. Facebook faces the dilemma of how to gain revenues from user information without violating their privacy. The management and organization failed to consider its users privacy concern when it introduced new software that users felt to be invasive. Had Facebook address these concerns users may have been more agreeable.

4. Does Facebook have a viable business model? Explain your answer.

Yes because they have heavy site traffic and troves of personal information. This will attract advertisement and create wealth if they take in account customer privacy. I also agree that the large audience will be...