FACEBOOK

GROUP 09TEAM MEMBERS

AMAR PRATAP (2014PGP030)ARUN N (2014PGP061)

MILAN BHATI(2014PGP081)DIVYA MATHUR (IPM2011026)RAJ THILAK RA (2014PGP286)RASHI GEHLOT (IPM2011081)SAWAN KUMAR (IPM2011095)

BUSINESS MODEL OF FACEBOOK

• Advertising business• Self serve advertising• Promoted posts and pages• Revenue from mobile advertising• Advertisers were also paying for the right to re-message to users on Facebook who had

visited their sites but had not made a purchase• Virtual goods and the gift shop-Enables users to send virtual gifts to one another• Facebook Platform-Facebook gets 30 % revenue share on each transaction that takes

place within games and applications on its platform• Integration of various websites with Facebook which has increased users on third party

websitesROBUSTNESS-The model does not seem very robust considering the revenues are very small considering its market capitalization of over $200 billionThe revenue model is not very concrete and varies widely with the preferences of the users .The exit of Zynga supports this.However it is riding high on the positive sentiment associated with Mobile advertising

STAKEHOLDERS AND THE VALUE CREATED

• Shareholders of Facebook owning shares worth $21.24 billion• Companies who advertise via Facebook which contributes to a major part of

Facebook’s revenue• Application and game developers who develop applications for Facebook which

has contributed substantially to the increase in the number of users• Owners of companies whose websites have been integrated with Facebook. This

has resulted in these websites getting a large number of users and Facebook getting more revenue out of such agreements

NEEDS OF SOCIETY THAT FACEBOOK MEETS

• Provide global platform to interact with people around the world • Provide information to people about people they care • Enable people to share information about themselves• Provide latest updates about groups, organizations, personalities people like or they

are a part of• Help society to spread awareness about social issues• Provide news and updates about events going on around the world• Provide information to people they are looking for

DIFFERENCE BETWEEN LINKEDIN AND FACEBOOK

• LinkedIn is for business and professional networking. Facebook, on the other hand is a social network designed more to connect with family and friends

• LinkedIn provides a Job Search option that allows people to look for openings in various companies, the profile requirements etc. People can also upload resumes for potential recruiters to have a look at. Facebook does not provide these features

• Both LinkedIn and Facebook makes money through advertisements. However, LinkedIn offers premium subscription model that allow users to initiate contact with users they have no connection with. LinkedIn also earns revenues through job classifieds

• It allows users to gain contacts and introduction through 1st degree, 2nd degree and 3rd degree connections

• LinkedIn groups is another feature that can be used to form business groups in any area like professional group, sports group, alumni group etc.

DIFFERENCE BETWEEN WIKIPEDIA AND FACEBOOK

Wikipedia and Facebook can primarily be differentiated on the following bases:• Content: While the information shared on Facebook involves the details of personal

lives, experiences and opinions of its users, Wikipedia basically serves as an online encyclopaedia that encourages people to collaborate to generate content. Anyone can add information, cross-references or citations

• Revenue Model: Facebook’s main revenue comes from advertising and the rest from sales of virtual goods (the gift shop) whereas Wikipedia is a not-for-profit organization and only conducts fundraisers where users may contribute

• User accounts: While it is necessary to create an account on Facebook to use it, Wikipedia allows the users to chip in without doing so

SOCIAL IMPACT

• Social media allows people to keep in touch more regularly than was possible before because of time and space constraints

• Professionals use social media sites like LinkedIn to enhance their career and business prospects

• Social networking giants like Facebook, twitter,etc have created a new world where we are free to express our opinion and share it with our friends and peers

• However, with the constant use of these social technologies, less people are communicating in person. Many people are becoming isolated due to the lack of personal interaction

POLITICAL IMPACT

• Social media has enabled greater political awareness and organization, which has in some cases rewritten entire political landscapes. It has particularly played a large part in elections in the U.S., Iran, and India

• Politicians are using Facebook, Twitter,etc to talk directly and efficiently with voters• Political parties produce commercials and publish them for free on YouTube instead

of, or in addition to, paying for time on television or the radio• Social websites have also served to rally people for a cause, and have inspired mass

movements and political unrests in many countries

ECONOMIC IMPACT

• Rather than investing in mass channels ads, companies are becoming more consumer-centred through use of social media

•  Companies are using social networks to build teams that solve problems faster and share information better among their employees and partners

• Companies are using blogs and social sites to bring customers into their product-design process. Eg: Through its IdeaStorm site, Dell has taken in more than 17,000 ideas for new or improved products, and has adopted nearly 500 of them

• Interactions and feedback from customers help businesses to understand the market, and fine-tune their products and strategies. Eg : use of Tripadvisor, Yelp

EXPERIENCE WITH FACEBOOK

POSITIVE EXPERIENCE• I got connected with almost all of my childhood friends. And just because of

Facebook I got to know about the vast alumni network of my school and college• It was an amazing experience to see my new born nephew’s picture on Facebook

uploaded by his Father. He uploads her photo (only visible to family members) on daily basis to make her complete childhood album

• I get to see many inspirational videos and content shared by my friends. Sometimes jokes too

NEGATIVE EXPERIENCEIt kills much of our useful time Liking, sharing or commenting on unwanted and useless topics

FACTORS THAT HELPED FACEBOOK’S GROWTH• Facebook’s features like messaging, groups, events, discussion boards, photo sharing,

video sharing and mobile access appealed to general public and helped it gain over 1 billion users

• The main factor for Facebook’s growth was that it kept user experience at forefront of every decision. The users’ privacy concerns that started to emerge when it launched the News Feed and TimeLine were immediately addressed by redesigning their user Privacy policy

• Business firms saw Facebook as a platform to advertise and create pages and stories to get the users to ‘like’ them.

• With the advent of smart phones, Facebook released mobile advertising products. This attracted many mobile app developers to market their products

• Facebook also entered the gaming industry by supporting online gaming websites like Zynga to provide their apps to the users. These gaming apps alone saw around 30 million users monthly.

These factors cemented the position of Facebook as an important element in the internet ecosystem.