Facebook Case Key Takeaways

About the Facebook: Facebook is the largest Online Social Network in the world. It was
founded by Mark Zuckerberg in 200.!he key features and the factors that differentiated
Facebook fro" other social networking sites are as follows
Newsfeed Displays recent activities of users friends
Timeline Profile redesign, a two-column interface with a cover photo and profile
Picture organized a users post and activities chronologically over the lifetime
Ticker Displayed a real time stream of updates on a column on right side of the site
ike !eature "llows people to like a friend post or other features#
!ace$ook "ds "dvertisements on the site %suggested and sponsored &
'aming through !ace$ook platform from third party applications
'raph (earch )mproved (earch *ngine let the users easily discover people, photos,
places and interests on !ace$ook#
Competitors: !witter and #oogle are the $ri"ary co"$etitors of Facebook. #oogle%s Orkut
ga&e a stiff co"$etition for Facebook in early 200' in India and (ra)il after 200* Facebook
outs"arted it. (y 200*+ !witter had around Si, Million -sers.!witter%s user feed ga&e better
di"ension than face book%s newsfeed and Facebook redesigned its $rofile si"ilar to that of
!witter. In 20..+ #oogle released #oogle/ allowed user $refer friends with the conce$t of
different circles and with additional features such as &ideo chatting.
Problem Statement: +hen !ace$ook went pu$lic, )t did not go as well as e,pected#
!ace$ooks stock struggled to stay a$ove )P- price closing at only ./#01 a$ove the original
&alue. Facebook re&enue fro" ad&ertising also beca"e low. 0ence in order to focus on their
re&enue growth Facebook ha&e two o$tions:
First+ it could in&est "ore to de&elo$ new ad&ertising $roducts.
Second+ to in&est further in $latfor" and enable co"$anies to de&elo$ their own
a$$lications.
Alternatives Evaluations: !he First o$tion create "ore re&enues in the ad&ertising s$ace
such that Facebook can turnaround the fall in stock $rice on the other hand second o$tion of
concentrating on hel$ing on co"$anies de&elo$ $latfor" a$$lications thereby $ossibly
ta$$ing into the thus1far1elusi&e tra&el+"edia+s$orts and financial "arkets.
Revenue Model: !he re&enue Model "ainly includes
2d&ertising fees through Facebook 2ds
Mobile 2d&ertising o$$ortunities with s$onsored stories.
2ffiliate 3eferral 4 5ia Suggested 6inks
7latfor" and Social #a"ing 4 !ransaction fees
!ace$ook 2redits
Submitted By
Arunkumar.
K
PGP!"#!
Se$% &
"lmost 345 of the revenue came from advertising and 645 came from the sales of virtual
goods $y the third-party developers on !ace$ook platform#
2nd also the Social 2ds+ allowed co"$anies that had a facebook $age to target friends of
fans of that $age. For websites and a$$lications 89onnect with Facebook: $ulled data fro"
Facebook.