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About facebook

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  1. 1. Business Research Methods Presented by: Ajay Ram K P M140039MS
  2. 2. Introduction I • Facebook (formerly Thefacebook) is an online social networking service headquartered in Menlo Park, California. • Launched on February 4, 2004, by Mark Zuckerberg with his college roommates and fellow Harvard University students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. • The international headquarters of Facebook are located in Dublin, Ireland.
  3. 3. Introduction I • Operations in 45 locations around the world. • Facebook had over 1.3 billion active users as of June 2014. • 9,199 employees as of December 31, 2014. • As of February 2015 Facebook reached a market capitalization of $212 Billion.
  4. 4. M Mission To 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.
  5. 5. SW OT SWOT Analysis Strengths • Integration with websites and applications • More than a billion active monthly users • Excellent user experience • Understanding of user’s needs and behavior Weaknesses • Weak CTR of advertisements • Social network lacks of some features • One source of revenues – advertisements on Facebook • Lack of website customization • Weak protection of users’ information
  6. 6. SW OT SWOT Analysis Opportunities • Increasing number of people using Facebook through mobile devices • Expansion to China • Diversify sources of revenue • Open Facebook marketplace Threats • Increasing number of mobile internet users • Users using ad-block extensions • Slow growth rate of online advertising • Identity thefts • Weak business model
  7. 7. P Porter’s Five Force Analysis Threat of New Entrants • Very Low • Google+ Threat of Substitutes • Moderate • Some countries do have their own social networks such as – Wer-kennt-wen – Renren Network – VK
  8. 8. P Porter’s Five Force Analysis Bargaining Power of Customers • Advertisers and Users are the main customers. • Bargaining power of users is fairly high. Bargaining Power of Suppliers • Users are also the suppliers. • Bargaining power is high.
  9. 9. P Porter’s Five Force Analysis Intensity of Competitive Rivalry • Low • No other Social Networking site with more than 1 billion monthly users.
  10. 10. 4P Marketing Mix Price • There is no charges incurred on Users for using Facebook. • Advertisers are charged for promoting their pages.
  11. 11. 4P Place • United States (2004–05) • Worldwide (2005–present) Marketing Mix
  12. 12. 4P Products Marketing Mix
  13. 13. 4P Marketing Mix Promotion • Word of Mouth • Uses People.
  14. 14. A Success Factors • Usability. – Identity – Visuals – Virality • Narcissistic attraction to Facebook. • Facebook provides the means for multidimensional conversation. • Opened Platform for various Upstream & Downstream Customers.
  15. 15. A Success Psychological addiction behind Facebook’s success Facebook has become a daily destination for millions due to its ability to meet our needs for psychological fulfillment. – Self Esteem – Impression Management – Enables our extroverted traits
  16. 16. A Success The Hacker Way • Zuckerberg summed up The Hacker Way as consisting of these five attributes: – Focus on Impact – Move Fast – Be Bold – Be Open – Build Social Value
  17. 17. Mergers & Acquisitions Acqusitions • Total of 53 acqusitions. – Friendster Patents (May 13,2010) – domain name (Nov 15,2010) – Instagram (April 9,2012) – Whatsapp (Feb 19,2014) – TheFind (March 14,2015) M& A
  18. 18. J CSR Green on Facebook ( • Infographic on the energy use and on the repartition of the carbon footprint. • Main goal is simply “reducing the per-person carbon impact over time”. • Actively working on the reduction of its environmental imprint. – Facebook’s new West Campus in Menlo Park is a state-of-the-art green infrastructure, combining “sophisticated energy systems, water-saving features and healthy building materials” (Silicon Valley Business Journal).
  19. 19. J CSR • Project seems to be a milestone in the company’s CSR history. • Providing Access to Free Basic Services. • The initiative violates net neutrality. • Mark Zuckerberg said in an article for Hindustan Times stated that and Net Neutrality can co-exist and will never differentiate between services.