2. ABOUT FACEBOOK, INC.
Founded in 2004
Mark Zuckerberg, 23 year old psychology student at
Harvard.
Within 24 hours of launch, Facebook had over 1,200
Harvard Students sign up for an account.
4. PEOPLE-TARGET CUSTOMER PROFILE
Originally intended for students & faculty at Harvard
University.
Shortly after, invitations were extended to students at Boston
U. & other Ivy League schools.
Today, 1 of every 7 people on Earth have a Facebook
account.
5. PRODUCT-SERVICE OFFERED
Facebook makes their profit from advertisements, so
essentially, their product is advertising space.
Facebook offers the service of social media networking.
Additionally, Facebook is a great platform for marketing.
6. PRODUCT-COMPETITORS
Myspace
•Was considered the biggest competitor at the start of
Facebook.
•Has since tried to remodel & gain back previous users.
Twitter
•Has grown in the social media world.
•However, lacks the profitability that Facebook has seen
over the years.
Instagram •Would be a strong competitor, however, Facebook has
recently purchased this App.
7. PLACE-DISTRIBUTION SYSTEM
Facebook is an internet-based
social media networking
website.
It is known globally, with the
more conservative and
censoring countries of China &
India joining the trend.
8. PROMOTION-COMMUNICATION STRATEGY
Facebook’s initial promotion was through word of mouth.
Today, it is considered a phenomenon.
Facebook is something we keep up with and maintain, just as our
homes or bills.
10. PROMOTION-COMMUNICATION STRATEGY
As word of mouth increased, companies began including
Facebook in their marketing strategies.
Likes, comments, contests & various content allow for companies,
icons, & groups to promote themselves, as well as the site.
11. PRICING
Facebook is free for users to join.
Pages allows you to promote posts, however, this option is not free,
it comes at a fee that varies based on your preference.
12. PROFIT/FINANCIALS-THE BEGINNING
2004
•Sean Parker, co-
founder of Napster,
became president of
Facebook.
June 2004
•Facebook received it’s
first private investment
from founder of
Paypal, Peter Theil, for
$500k
•This was in exchange
for 10.2% of the
company.
2005
•Facebook became
Facebook.com after
the web address was
purchased for $200k.
13. PROFIT/FINANCIALS-2012
Facebook filed for an IPO in February
Seeking to raise $5 Billion in investment capital.
Zuckerberg would retain 22%
ownership stake in Facebook
with 57% voting shares
Shares valued at $38 each,
pricing Facebook at $104
Billion.
This would make Facebook the
largest valuation ever to date
for a new company going
public.
845 Million active
users.
2.7 Billion likes & comments
on the website daily.
14. PROFIT/FINANCIALS-BUY-OUT
Yahoo & Google are just two of many companies to express
interest in a buy-out of a rumored $2 Billion.
All offers have been refused.
17. SWOT-STRENGTHS
Profits
• Facebook’s net income is rapidly
increasing as user base expands
and advertising space becomes
available.
User Base
• With such a high user base,
Facebook has great advantage
(as far as numbers go) over their
competitors.
Values in 000’s.
Source: NASDAQ
18. SWOT-WEAKNESSES
Privacy
• Issues such as activating the
computer/phones microphone
while using Facebook messenger is
becoming quite an issue for the
social media site.
“Creepy”
• FB has gained information about
users by “hacking” into their
browsers history and apps to
provide the most appealing
advertising for that user.
Values in 000’s.
Source: NASDAQ
19. SWOT-OPPORTUNITIES
Pay for FB
• I believe if Facebook charged users to not have advertisements, they could
increase their revenue and keep retention.
• While most will not pay, I believe a great deal will pay for this service, as they
do for Pandora or any other streaming website.
Values in 000’s.
Source: NASDAQ
20. SWOT-THREATS
Lawsuits
•As Facebook gets closer to the
border of what is “creepy” or against
their user’s privacy, lawsuits have
been an issue. While FB has been
lucky with recent cases, updates to
the site may bring along more
lawsuits that might not have as
fortunate of an outcome.
Slowed Retention
•Toying with privacy and increased
advertising has made Facebook
more of a billboard then a way to
connect with friends. This has slowed
retention for the site, and may even
be the site’s downfall.
Values in 000’s.
Source: NASDAQ
21. WOULD I WORK AT FACEBOOK?
Yes. Here’s why:
1. You’re encouraged to be yourself.
2. They have tunnels, just like Disney, connecting their buildings. I currently
have to drive and walk between buildings while working….in the
summertime, I love it. However, in the winter it’s brutal!
3. They provide your meals. I’d probably be more consistent with my
arrival time at work if I didn’t have to worry about getting my lunch
together.
4. FREE computer accessory vending machines.
5. You can actually write on the walls.
6. Stand-up desks.
7. & they have an arcade…
22. WOULD I WORK AT FACEBOOK?
But for real, I love the comfortable culture in a work place. Work
can be stressful enough. To be encouraged to be yourself, to be
given an arcade where you can easily meet someone who works
on another floor or in another department, is truly great.
Work doesn’t have to lack the fun and games. Facebook is a
unique market that requires their employees to be on their toes and
to be innovative.
