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Facebook Case Analysis

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Facebook Inc. is one of the most successful online social media companies in the USA which established in 2004. There are many factors lead the huge success. Currently, more than ten billion active users in the world. The average users per month is 1.8 billion in 2016, but the number is continuously increasing. According to the research, the growth rate of Facebook users is 17% per year. As increasing number of users engage in the Facebook, the market expectation is very bright and it exceeded $500 billion in market value in 2017. Meanwhile, Facebook focus on developing new hardware which can also earn high profits, such as unmanned plane, artificially intelligence. Facebook earns their majority profits from commercials. Lots of companies like to promote themselves through commercials in Facebook because the core users in Facebook are college students, white-collar. These are the people who like spending money on pursuing the latest trends in the world. In contrast, most users in MySpace, which is the major competitors of Facebook, earns low-income. Thus, more companies willing to invest in Facebook to earn high return. In return, it enables Facebook to development rapidly. One of the biggest advantages is how to keep users’ privacy. There are many times where the company who leaked the customers’ information went bankruptcy in the end. Moreover, Facebook does not have a well-developed operation system which can results in higher risk and pressure. I bought 152 shares of

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