FACEBOOK’S DILEMMA

Presented By: Kriti Kashive – 201067 Neharika Mallik – 201086 Paras Dhawan – 201101 Puneet Arora – 201111 Radha Mohan Giri – 201113 Rakesh Kumar G S – 201116

Inception in 2004 – Currently the leader in social networking

Has around 750 mn users Messaging, groups, photo sharing, user-

created apps Simple & Crisp Interface

INTRODUCTION TO FACEBOOK

OPPORTUNITIES THROUGH

Advertisements can reach highly

targeted audiences

Firms can have Facebook Pages

News Feed and Status updates

PRIVACY ISSUES

Beacon – Shared user activities without consent

News Feed – Considered to be an Invasion of Privacy

Problems related to Account Deactivation & Deletion

BUSINESS MODEL

Network Effects Model – Value of a Good or Services to a Potential customer increases with number of customers already availing that service

Revenue Generation – Advertisement

1.Local Text Ads – From local

businesses

2.Traditional Banner Ads – On side

Panel

3.Sponsored Groups – Pages of

Companies

BUSINESS MODEL

Facebook Platform for Widgets and Apps – Win- Win Situation for both Facebook & App Developers

Apps for Businesses – Ex.: Flixster, We Read, etc.

The Viability of The Business Model

ADVANTAGES OF THE MODEL

More than 750 mn Potential Customers (Would have been the 3rd most populated country)

Targeting the Customers is easier – Companies can target based on the stage or condition of the user (Marriage, child birth, higher education, etc.)

Easier to maintain an interactive page than maintaining a full scale website for small businesses

THREAT TO THE FACEBOOK MODEL

Immersive environment due to Apps - make

the Ads less noticeable

Apps advertising for other Apps – No

extensive external advertising

Threat from Competitors – Google+ gathered

more than 25 mn users in less than a month

FUTURE OF FACEBOOK E- Commerce of merchandise and

services through Facebook Use of Facebook Credits to purchase

real world objects

FUTURE OF FACEBOOK

Entertainment - Movie rentals, buying music, online gaming, etc.

File hosting and sharing Platform for people with common interests

to interact, share and publish their views

PROFIT VS PRIVACY Simpler Privacy settings and controls

for sharing of user content Conducting survey for knowing user

preferences Effective segmentation of users based

on usage patterns

PROFIT VS PRIVACY

Stop Link Cloaking

Improved security features to assure

user loyalty

Increase emphasis on e-commerce and

M-commerce on Facebook itself

THANK YOU