This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
Facebook is aÂ social networkingÂ website that connects people. In February 2004, Mark Zuckerberg and two of his roommates built Facebook as an alternative to Harvard's printed student directory. Facebook core service is free and supported by advertisements. The site allows individuals to create profiles that include information about anything of interest to them like sharing information, photos etc.
Users find Facebook very interesting because it allows users to create a profile on Facebook, update their pages, looking for people with shared interests, and reading others' profiles and looking at their photos.
However, despite its popularity, Facebook has been less successful at generating revenue. Also, it failed to generate revenue by entering into banner advertisement through Facebook beacon program which met a backlash from users. Other problem is with Facebook connect platform not capable of developing on-line functionalities that is value-add to revenue.
Facebook's revenue has been doubled in just one year, it went $150 to $300 from year 2007 to 2008. The main source of Facebook revenues is from ads and the applications that have been launched on it. Now according to the latest data Facebook, the ubiquitous social network made upwards of $700 million in 2009 and is expected to reach a phenomenal $1 billion in revenues in 2010.
I recommendation for the face book will be to go for online marketing in the web using Facebook connect platform covering wide area in web using newer online Facebook applications.
All the applications should come onto news feed based on user profile, interests etc. so that user can select website or advertisements accordingly, same is the case with Google Adsense where in user gets money added to his/her account based on a click which is a good mechanism to improve advertising.
The placing of the advertisements in user home page should be in such a way that it creates interest for user to click on that advertisement. The new tools let operators of other Web sites share user data with Facebook, providing the social networking firm with new online advertising opportunities.
The advertising option had the potential of tapping into a vast pools of money allocated to marketing budgets. However, this option was feasible only if Facebook increased the frequency with which members clicked on the ads.
There are chances that this could create a kind of mistrust in the mind of the Facebook users because it involve the personal information of the users, but the problem can be sorted out by protecting personal information on Facebook just by using proper privacy tools, which are available on Facebook. And guiding the users that how they can protect their personal information.
A little understanding of protecting personal information will allow users to enjoy the facilities that are been offered by the Facebook. There are a few things I learned not only on Facebook is that never share your personal information with stranger, it could all be a scam.
Recommendation for Facebook connect
Facebook is one of the leading social networking site, but its instant messenger in not the best one. So the top management should look to form collaboration between Facebook and Skype. This will give strength to the Facebook in terms of the chat service. And with the help of Skype, Facebook user will be able to call, SMS and chat with their other friends. This new affiliation gets Facebook all the capabilities of Google chat. Unless Google Me which is new product from Google has out-of-this-world features, Facebook seems set to be on top for some time to come.
Facebook had clearly emerged as the largest and the fastest growing on-line social network with its unique business model as discussed above. To generate more revenue, to deepen Mark Zuckerberg focused more of online marketing, improve the functionalities associated with Facebook connect platform. The advertising option had the potential of tapping into a vast pools of money allocated to marketing budgets. However, this option was feasible only if Facebook increased the frequency with which members clicked on the ads.
The main source of revenue of the Facebook is the Ads, and the applications which are launched on it
The other issue is privacy of Facebook users which can be resolved by giving simple knowledge to the users about the privacy settings, how network functionality works when it comes to online social networking sites.
Business Plan Template
What is your mantra (3-10 words on why your company should exist)?
Facebook is aÂ social networkingÂ website that connects people.
What is the overall mission of the business (1-3 sentences on what your company does or will do)?
Facebook's mission is to provide a platform so that people can share information, discuss and make the world more open and connected.
How will you make money in terms of product differentiation and/or being the low cost producer?
Facebook Applications- Performance advertising is how it is differentiated from other social networking sites. Take an example of Farmville, which is doing well and generating a huge revenue
Ads-main source of generating revenue.
Facebook gifts-Simply writing 'happy birthday'suffices for some, the 'send a gift tab'on your friend's wall encourages others to send a virtual gift - paid for online. All the money almost always goes to the company.
What are your goals & objectives over the next 3 months to year (2-6 phrases on precise performance intentions)?
Over next 3 months the goals and objectives would be:
Doing on line marketing.
To focus on target advertising.
Educate people so that there is no chance of leaking of personal information.
Developing more Facebook applications.
What tactics will you use over the next 3 months to a year to reach your objectives and mission (2-6 phrases)?
Taking a continuous feedback from the users.
Online marketing in the web using Facebook connect platform covering wide area in web using newer online Facebook applications.
Thoroughly monitoring the revenue generating process from end to end.
Organizational and Industry Analysis Template
Give a brief description of your business model including what products or service you are producing or will produce?
Facebook is a social networking web site, which allow user to connect with each other. It's a service which allows users to share their information among their friends.
Describe your customers?
Facebook allow users who have age more than 12 years, generally the maximum people are of the age between 12 to 35 years
Students of high school, college and university communities, Networking Professionals and relationship seekers
List and describe your current competitors?
MySpace (A place for friends)
Twitter (Social networkingÂ andÂ micro bloggingÂ service, enabling its users to send and read other users' messages calledÂ tweets.)
Orkut (Connect with friends and family using scraps and instant messaging. Discover new people through friends of friends and communities)
Tagged (Tagged is all about social discovery. Tagged claims that they are the social network to meet people)
List and describe your potential competitors?
MySpace is one of potential competitors, which is older than Facebook and have more number of users.
The Google ME platform is going to launch in few months can give a stiff competition to the Facebook.
Who will you purchase materials, components or other inputs from?
Facebook takes input from--Third-party applications, facebook gifts, Red-Bull etc.
SWOT (consider human resources, R&D, marketing, procurement, manufacturing, distribution, engineering, IT, finance, accounting, and legal)
What are your strengths (products, R&D, supply chain, brand, pricing core competencies, resources, infrastructure, scalability &interfaces)?
Sharing of information, newsfeed and photos
Unique features and loyal customers
Millions of users
What are your weaknesses (products, R&D, supply chain, brand, pricing, core competencies, resources, infrastructure, scalability &interfaces)?
No scope for customization
Misuse of personal information.
Difficult to judge right user
No shortcuts allowed on profile page
What are the opportunities (growth, market share, product lines, Blue Ocean, complimentary products, lock-in, brand, &first mover adv.)?
Building proper instant messaging, calling and web chat
Service expansion(different applications)
What are the threats (substitutes, emerging technologies, new entrants, economic climate, government regulations, and social/culture issues)?
Competition from MySpace and Google
Strategy canvas for existing products compared to competitor or industry
If appropriate, complete strategy canvas for new product compared to competitor or industry