About facebook

1. Business Research Methods
Presented by:
Ajay Ram K P
M140039MS

2. Introduction
I
• Facebook (formerly Thefacebook) is an online social networking service
headquartered in Menlo Park, California.
• Launched on February 4, 2004, by Mark Zuckerberg with his college
roommates and fellow Harvard University students Eduardo Saverin,
Andrew McCollum, Dustin Moskovitz and Chris Hughes.
• The international headquarters of Facebook are located in Dublin,
Ireland.

3. Introduction
I
• Operations in 45 locations around the world.
• Facebook had over 1.3 billion active users as of June 2014.
• 9,199 employees as of December 31, 2014.
• As of February 2015 Facebook reached a market capitalization of
$212 Billion.

4. M Mission
To give people the power to share and make the world more open
and connected. People use Facebook to stay connected with friends
and family, to discover what’s going on in the world, and to share
and express what matters to them.

5. SW
OT SWOT Analysis
Strengths
• Integration with websites and
applications
• More than a billion active
monthly users
• Excellent user experience
• Understanding of user’s needs
and behavior
Weaknesses
• Weak CTR of advertisements
• Social network lacks of some
features
• One source of revenues –
advertisements on Facebook
• Lack of website customization
• Weak protection of users’
information

6. SW
OT SWOT Analysis
Opportunities
• Increasing number of people
using Facebook through mobile
devices
• Expansion to China
• Diversify sources of revenue
• Open Facebook marketplace
Threats
• Increasing number of mobile
internet users
• Users using ad-block extensions
• Slow growth rate of online
advertising
• Identity thefts
• Weak business model

7. P Porter’s Five Force Analysis
Threat of New Entrants
• Very Low
• Google+
Threat of Substitutes
• Moderate
• Some countries do have their own social networks such as
– Wer-kennt-wen
– Renren Network
– VK

8. P Porter’s Five Force Analysis
Bargaining Power of Customers
• Advertisers and Users are the main customers.
• Bargaining power of users is fairly high.
Bargaining Power of Suppliers
• Users are also the suppliers.
• Bargaining power is high.

9. P Porter’s Five Force Analysis
Intensity of Competitive Rivalry
• Low
• No other Social Networking site with more than 1 billion monthly users.

10. 4P Marketing Mix
Price
• There is no charges incurred on Users for using Facebook.
• Advertisers are charged for promoting their pages.

11. 4P
Place
• United States (2004–05)
• Worldwide (2005–present)
Marketing Mix

12. 4P
Products
Marketing Mix

13. 4P Marketing Mix
Promotion
• Word of Mouth
• Uses People.

14. A Success
Factors
• Usability.
– Identity
– Visuals
– Virality
• Narcissistic attraction to Facebook.
• Facebook provides the means for multidimensional conversation.
• Opened Platform for various Upstream & Downstream Customers.

15. A Success
Psychological addiction behind Facebook’s success
Facebook has become a daily destination for millions due to its ability to meet
our needs for psychological fulfillment.
– Self Esteem
– Impression Management
– Enables our extroverted traits

16. A Success
The Hacker Way
• Zuckerberg summed up The Hacker Way as consisting of these five
attributes:
– Focus on Impact
– Move Fast
– Be Bold
– Be Open
– Build Social Value

17. Mergers & Acquisitions
Acqusitions
• Total of 53 acqusitions.
– Friendster Patents (May 13,2010)
– FB.com domain name (Nov 15,2010)
– Instagram (April 9,2012)
– Whatsapp (Feb 19,2014)
– TheFind (March 14,2015)
M&
A

18. J CSR
Green on Facebook (https://www.facebook.com/green)
• Infographic on the energy use and on the repartition of the carbon
footprint.
• Main goal is simply “reducing the per-person carbon impact over time”.
• Actively working on the reduction of its environmental imprint.
– Facebook’s new West Campus in Menlo Park is a state-of-the-art green
infrastructure, combining “sophisticated energy systems, water-saving features
and healthy building materials” (Silicon Valley Business Journal).

19. J CSR
Internet.org
• Project seems to be a milestone in the company’s CSR history.
• Providing Access to Free Basic Services.
• The Internet.org initiative violates net neutrality.
• Mark Zuckerberg said in an article for Hindustan Times stated that
Internet.org and Net Neutrality can co-exist and Internet.org will never
differentiate between services.