Facebook Case

Facebook Write-Up

1. What business is Facebook in?

Facebook is in social networking business. It connects people with each other and allows them to share information. A user can share feeds, send messages, chat, share pictures/videos etc on Facebook. Facebook monetizes its business primarily through individually targeted advertising.

2. What are the key strengths and weaknesses of the company?

Facebook Strengths

1. Their biggest strength is the network they have. It can be used for marketing, advertising, recruitment & brand enhancement.

2. Enormous and permanent data about all its users. Even if Facebook goes bankrupt tomorrow, it will still own all the user data and be able to sell it.

3. The ability and interface to CONNECT with applications such as Travelocity, Digg etc., All this enables Facebook to gain more insight about the user and hence has more data which it can sell.

4. Constant innovation of the site and its offerings.

Facebook Weaknesses

1. Users are growing more concerned about privacy violation. It’s hard for Facebook to draw a line between providing great features to users and encroaching their privacy.

2. Facebook is having a hard time monetizing its business beyond advertising. They have tried several ways of selling their users’ data, but since users value privacy on the site, there is the danger that selling users’ data will cause users to share less information or exit Facebook altogether.

3. How should the company develop and monetize its business, and leverage its platforms?

1. Applications: Developers can build a wide variety of Facebook applications including games, coupons, gifts, charitable fundraising etc.,

2. Market research: Many surveys and polls are done on Facebook. This data can be sold for money. Demographic data of users (anonymous) can also be sold.

3. Direct advertisements: Advertisers pay each time a user clicks on their listing and is redirected to their website

4. TV...