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  1. 1. FACEBOOK’s DILEMMA<br />Presented By:<br />KritiKashive – 201067<br />NeharikaMallik – 201086<br />ParasDhawan – 201101<br />PuneetArora – 201111 <br />Radha Mohan Giri – 201113<br />Rakesh Kumar G S – 201116 <br />
  2. 2. Inception in 2004 – Currently the leader in social networking<br />Has around 750 mn users<br />Messaging, groups, photo sharing, user-created apps<br />Simple & Crisp Interface<br />Introduction to facebook<br />
  3. 3. Opportunities through <br />Advertisements can reach highly targeted audiences<br />Firms can have Facebook Pages <br />News Feed and Status updates<br />
  4. 4. Privacy issues<br />Beacon – Shared user activities without consent<br />News Feed – Considered to be an Invasion of Privacy<br />Problems related to Account Deactivation & Deletion<br />
  5. 5. Business model<br />Network Effects Model – Value of a Good or Services to a Potential customer increases with number of customers already availing that service<br />Revenue Generation – Advertisement<br />Local Text Ads – From local businesses<br />Traditional Banner Ads – On side Panel<br />Sponsored Groups – Pages of Companies<br />
  6. 6. Business model<br />Facebook Platform for Widgets and Apps – <br /> Win- Win Situation for both Facebook & App Developers<br />Apps for Businesses – Ex.: Flixster, We Read, etc.<br />
  7. 7. The Viability of The Business Model<br />
  8. 8. Advantages of the model<br />More than 750 mn Potential Customers (Would have been the 3rd most populated country)<br />Targeting the Customers is easier – Companies can target based on the stage or condition of the user (Marriage, child birth, higher education, etc.)<br />Easier to maintain an interactive page than maintaining a full scale website for small businesses<br />
  9. 9. Threat to the facebook model<br />Immersive environment due to Apps - make the Ads less noticeable<br />Apps advertising for other Apps – No extensive external advertising<br />Threat from Competitors – Google+ gathered more than 25 mn users in less than a month<br />
  10. 10. Future of Facebook<br />E- Commerce of merchandise and services through Facebook<br />Use of Facebook Credits to purchase real world objects<br />
  11. 11. Future of facebook<br />Entertainment - Movie rentals, buying music, online gaming, etc.<br />File hosting and sharing<br />Platform for people with common interests to interact, share and publish their views<br />
  12. 12. Profit vs Privacy<br /><ul><li>Simpler Privacy settings and controls for sharing of user content
  13. 13. Conducting survey for knowing user preferences
  14. 14. Effective segmentation of users based on usage patterns</li></li></ul><li>Profit vs privacy<br /><ul><li>Stop Link Cloaking
  15. 15. Improved security features to assure user loyalty</li></ul>Increase emphasis on e-commerce and <br /> M-commerce on Facebook itself<br />
  16. 16. Thank you<br />