Introduction Facebook is estimated to have over 845 million users, mostly college-aged young adults. Its explosive growth and reputation in social networking have made it not only a market leader, but also a household brand name. The audience is global (excluding China) and the site has now been translated into 70 different languages. Strengths Customer features are very appealing. These include instant chat, video conferencing, free communications and applications, customized personal pages, games, and advertising for events or small businesses as well as major corporations. It is a platform for different people around the world where they can share their ideas and reconnect. It has a solid reputation. 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. Weaknesses Facebook has a high valuation of $75-100 billion which is difficult to justify. After the first quarter, the company failed to produce financials which caused stock prices to plummet. This is not good in terms of attracting new investors. In addition, customers often complain of bugs and problems when interacting online
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
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
First is the advertising. According to the case, we know that the major revenue of Facebook is advertising, which took up 98 percent in 2009, 95 percent in 2010 and 85 percent in 2011. Facebook uses all information uploaded by users to become the property of the firm. By analyzing database, Facebook provides advertisers target customized services and products based on users’ preferences and connections. In its view, the advertising which based on social
Facebook has been operating almost worldwide. Facebook is more popular than other social network like Twitter and Instagram .Facebook has over one billion active user from around the world.The number of user is increasing every year since its inception. To increase the number of user, Facebook has created a application set up for smartphone. This application has been downloaded over a billion.
3) Facebook has matured in US market but is expanding in global market. Facebook should put in strategy to attract new user in US market.Slow growth rate of online advertising. Although online advertising still grows in double digits (14% in 2012, down from 23% in 2011) that growth is slowing down, thereby threatening growth of Facebook’s advertising income.
Facebook, Inc. is a social networking service founded by Mark Zuckerberg in February 2004 and that provides online users with the opportunity to create personal profiles, interact with other individuals, and generally focus on domains that they are fans of. The company experienced significant progress in recent years as a result of its constantly increasing number of users.
Every day, there are over 900 million visits to Facebook. This presents a unique opportunity for businesses looking to attract new business. Unfortunately, advertising to 900 million people is neither helpful nor effective. Instead, it is important to focus on only a small portion of that number.
The growth of the revenues directly depends on the growth of users. I believe this leaves the business very vulnerable and dependent on continuous growth of users, which will eventually be only marginally, as the social network already attracted so many users. The low barriers to entry is a direct threat to Facebook as expressed in paper #1. There are multiple new entries and advertising budgets are distributed over a broader social media platform to maximize their profitability. Ideally, investors would like to see multiple revenue streams. Facebook should explore new sources of revenue starting with monetizing some of core product lines. This report has proposed a suggestion on the resources that could be used.
At the time, analysts said the company was expected to be valued at $75 billion to $100 billion. But according to the filing, Facebook made only $3.7 billion in revenue last year, the bulk of that from advertising.
Facebook noted in its IPO prospectus that, as of the most recent quarter, it garners $1.21 average revenue per user (ARPU) globally. In the U.S. and Canada, the company has an ARPU of $2.86. For 2011, Facebook reported earnings of $1 billion on revenues of $3.7 billion. For the first quarter of 2012, its earnings were $205 million on revenues of $1.06 billion.
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 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
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
Apples i-phone, i-pad, smartphone applications and Kindle platform all led it to become the giant of the mobile internet. Further peoples internet experience was transformed with the growth of the Facebook. By 2014, at least there were 153 million people in US that visited the Facebook in 2013. While Facebook had started dominating the social networking it was relatively sower when it came to attracting advertisers before to Google. It displayed one fifth of all the display advertising impressions in 2012, still its presence in this area
One of the most used social networking sites nowadays is Facebook, created by Mark Zuckerberg on February 2004. According to Statista Inc., “there are about 1.32 billion global monthly active users of Facebook as of June 2014”. Locally, 34 million active Facebook users comprises here in the Philippines as of January 2014 (wearesocialsg, 2014). According to Mazman and Usluel (as cited in facebook.com) “Facebook is defined as a social utility that helps people share information and communicate more efficiently with their friends, family, and co-workers.”