Facebook: An Analysis of the Future In 2004, Harvard University was graced by the presences of Facebook, which began as a startup directory service specifically for students. Mark Zuckerberg envisioned a business plan that would provide networking services to college, then later, high school student, which grew extremely rapidly. As he continued to build on his business strategy, other groups of people were added that evolved into this massive internet technology (IT) business of today. Facebook sparked the interest of sites, investors as the pool of stakeholders increased phenomenally. As a business grows, so does increased risks in which Facebook was no exception. Risks such as competitors, privacy and security issues, user’s denial, …show more content…
According to Business Insider (2017), Facebook 2017 stock price on the NASDAQ closed at $172.02 US that is up by .05 cents, since previous close at $171.97; an overall increase of 36.32% throughout the year (see Appendix D). Facebook and Alphabet, Inc., who is the owner of Google and YouTube, also compete as a duopoly for digital advertising; whereby, Ingram (2017) indicates the two organizations will share 50% of the market revenue worldwide (see Appendix E ), along with 60% of the United States (US) sustained market profitability. Hence, no other companies earnt more than 5% of said mentioned shares (Ingram, 2017). This strengthens the position of Facebook financial agenda; furthermore, includes purchases of notable businesses that created additional value to its strategic goals to expand. Such acquisitions include WhatsApp, Oculus Virtual Reality (VR), and Messenger, gave Facebook the needed competitive edge, further increases users, reaching 1.65 billion per month (QUOTE), and increase revenues from effectively priced prominent advertisements. Increase Users and Partnerships. Secondarily, another core business strategies that led up to competitive advancements included how Zuckerberg understood the need to capitalize on its user’s base of people, intrigued with digital friendship, relationships and corporation’s fulfillment of bannered advertisements (Barnett & Han, 2011, p. 2). Prior, in the year 2004
handle business. Facebook is one of the main social media cites around the world. Society
Facebook is a very greedy company. The initial public offering or IPO for Facebook was a joke to them because they use it to gain money their personal use, pocketing it. The greed shown is a whole new way of running a company. They made the
Facebook is one of the top social media platforms with more than 1.23 billion active users worldwide. 62% of the 1.23 billion users log in on a daily basis making it the best medium to reach for new customers. Today, businesses both big and small use Facebook as an advertising source to help their brand expand.
Facebook is a social networking website that was launched by Mark Zuckerberg in 2004. It was initially designed as a means for Harvard University students to communicate, but it quickly grew and now boasts over 1 billion users worldwide (Facebook 101, 2014). This paper will evaluate the business strategy of Facebook. An overview of the company will be presented, with identification of the company mission statement, financial performance and global operations; a SWOT analysis will be completed, and the strategic objectives will be identified with discussion of specific strategies and contingency plans that will need to be in place to recognize those goals. Lastly, the strategy will be critiqued, with suggested changes presented, if any.
The downturn of the economy was only able to affect negatively the stock. It went below its 50-day moving average for a little period before bulls rushed in. Facebook has showed since in entrance in the stock market an increasing of its stock price in general. Whatever the state of the market, Facebook can lose a little bit of its value but rapidly it will return to its pace. “Despite its giant footprint in the social media business, the company is growing like a startup” (Pan Jing, 2016). Facebook has also taken a step further in the future. It could be one of the first company to enter a multibillion-dollar industry. In effect, they are investing in the virtual reality (VR), one of the hottest field of tech today. According to Goldman Sachs, “Virtual Reality Could Become an $80 Billion Industry” (CNBC, 2016). In effect, their research predicts that in less than 10 years, the VR/AR industry could pull in $45.0 billion in hardware revenue and $35.0 billion in software revenue. Facebook has well anticipated this event by acquiring in the past Oculus, a firm specialized in virtual reality. It positioned itself among other big names in the market such Alphabet, Microsoft and Samsung that have already launched some products. For
Facebook relies on ad advertisements in their business model. Facebook platform empowers developers to build applications and web sites that integrate with Facebook to reach its global network of users and to build personalized and social products.
Initially, Mark Zuckersburg , Dustin , Chris and Eduardo launched Facebook in Harvard in 2004 started with Facebook Wall. Facebook started with 1 million users from the Harvard , Yale , Stanford and Columbia university campus and then they concentrated to more university campus to growth for the company. The company then over the years have evolved design layout of Facebook and making more and more easy to use by concentrating overseas and local users and now they have 86% of total users are outside the USA and Canada. The company have launched Facebook video , Platform launches , Video calling , Facebook Search, Messenger , acquisition of Instagram and atlas and Whatsapp and Oculus and Facebook paper , trending in Facebook and many more. The key strategy of Facebook in past was to expand the social network and innovate new technology to make it more effective so that users can share and connect with people through Facebook. Also Facebook is concentrating in innovation starting with oculus - the virtual Reality. The increasing amount of data created by users and to maintain the data and finding the data patterns from the data is among the biggest challenges the company is facing. To provide the security to each account and help users to maintain their privacy is also a big challenges in today's world. Currently Facebook is on the top list of Social network services and they
Second, by going public, Facebook can raise funds from a broader base of investors. With much money, the company can have enough resources to develop new products and invest in their business, which make the company become more competitive. Meanwhile, it’s a good opportunity for the shareholders to gain the best possible value for their own stakes in a long term.
Facebook has an array of information assets that it owns by collecting information on its users.
Revenue streams are diverse and continue to grow 2012 estimates are $4.51 billion. The company has several major corporate business partners and in 2012 launched its first IPO. which has shown a strong initial stock performance. Facebook is an early adapter of technology and was one of the first social networking sites to optimize its platform for mobile devices. Its technical platform allows for millions of applications, including Zynga.
(Attention Getter) What kind of company would Facebook, one of the most successful companies in recent history, spend one billion dollars to buy (Stern)? What company with fewer than twenty employees could warrant such a huge investment by one of the world's most visible companies?
Facebook is involved in a serious controversy in the United States. And last but not least they are being accused of nothing less than ideologically manipulate the news that serves its users , all this is happening on the campaign trail, so the whole thing takes on an even greater dimension that already itself has.
Moreover, Facebook is estimated to be worth at least $25 billion, and even as much as $100 billion. Although no one knows if Facebook has been profitable in years past, it is reportedly on track to earn as much as $2 billion before interest, taxes, depreciation, and amortization (EBITA) in 2011. According to Sortprice, almost $4 billion worth of merchandise has been put on Facebook storefronts using its app, 8th Bridge offers storefronts that can be embedded in tabs on Facebook pages and within news feed stories (Laudon and Traver, 2012). Clients include Lands’ End, Brooks Brothers, and Hallmark. Currently about 12% of Internet Retailer’s Top 500 retailers have a Facebook shopping application, and that number is sure to grow so one can conclude that Facebook has a going concern (Phillips, 2007).
Facebook is a social net working service, which is started in the United States by Mark Zuckerberg with his friends in 2004. The website's membership was initially limited by the founders to Harvard students, but was expanded to other colleges, and gradually globalization. In 2012, the fonder of Facebook, Mark Zuckerberg decide to convert the structure of Facebook from private limited company to public limited company. Facebook values shares at £24 each, and that its shares would began trading in New York on 18th of May 2012. It is seem that Facebook would be worth £66bn at this price. The following will analyse whether Facebook can benefit from the changing between private limited company to public limited company.
Facebook generates a significant amount of its revenue from advertising and from fees associated with their payments infrastructure that enables users of Facebook to purchase virtual and digital content from developers. Facebook’s has a Market Capital of $240 billion and an Enterprise Value of $234 billion. Key financial statistics from the company’s 2014 annual 10-K report shows recorded revenue of $12.47 billion, income from operations of $4.99 billion, and net income of $2.94 billion. Facebook operates in a world of innovative competition, global political focus, shifts towards smaller screen devices, growth in global markets for online advertising, virtual goods, social commerce, and a wealth of opportunities. As the industry continued to grow and develop, U.S. social games players had all eyes on Asia where companies had innovated in terms of monetization models, new platforms like mobile and game content. Strategic analyses of Facebook’s resources and capabilities are performed, finding that it is in lock-in and ability to imitate