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Information Systems Team # 5 Project

Erica LaRue

on 8 May 2015

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Transcript of FACEBOOK

Facebook's Major Missteps
Facebook's Profile
Competitive Advantage
Server Farm Technology
Average Revenue Per User is $2.21 per month.
Average Revenue Per User is $0.03 per session
Fundamental Revenue Model
Future Sustainability
Facebook's Main Competitors
Facebook Management
Do you trust Facebook with your personal information?
Valuation and Stock Offerings
Works Cited

Google +
SWOT Analysis
Brand recognition
Over a billion users
Top social media sites
Connects to users on personal level
User friendly
Global business
Authentication of users-fake users
Customer service
Lacks user customization
Overload of advertisements
Game Request/Invites
User Privacy
Advertising growth
Acquisitions and alliances
Collection of user data through polls and surveys
New products linked to Facebook-Oculus
New features
Loss of interest from current users
Bad publicity
Not capturing younger generations users (the future)
Emerging social networks and technology
Server Farm-
: "a group of computer servers usually maintained by enterprise to accomplish server needs far beyond the capability of one machine"
Facebook Data Center Location
Prineville, Oregon -307,000 Sq ft.
Forest City, North Carolina
Lulea, Sweden

Facebook has invested more than $1 billion in its infrastructure that serves its social network.

Facebook uses backup diesel generators to eliminate any possible downtown from power failure.

Facebook uses a cooling design for it data center to reduce energy cost and maximize space. The two-tier structure separates the servers and cooling infrastructure, which allows for maximum use of floor space for its servers.

Facebook & Kids
Parents' Guide
Educate yourself on social network mediums & protect and educate your children
Familiarize Yourself with Facebook
Monitor your teen's activity on Facebook
Familiarize yourself with Facebook's security settings and adjust them to properly protect your teen
Set your teen's security levels to the highest level of security possible
Restrict the search visibility by disabling the tagging feature
If your child is uncomfortable with being friends with you on Facebook, you can subscribe to your child's feed and maintain supervision.
Areas you can't see on teen's profile by just friending them:
tagged photos
who is tagging them
comments your teen makes on friends comments or posts made to their wall
Which of your teen's friends are most influential in their network
What conversation your teen has been involved in that may go viral
Monitor you teen's Facebook Timeline by deleting posts and photos you don't want displayed
(Socially Active.com)

Facebook's Response
Privacy Basics
Works Cited Cont'd
Stock Price and Volume
2014 Net Profit = $2.9 billion
2014 Valuation = $173.8 billion
May 18th, 2012: 2.138B Outstanding
Dec. 31st, 2014: 2.778B Outstanding
Launched on February 4, 2004
Headquartered in Menlo Park, California
Operated and privately owned by Facebook, Inc.
Most popular free Social Networking service and website in several English-speaking countries, including Canada, the United Kingdom, and the United States
Allows registered users the ability to create profiles, upload photos and video, send messages and keep in touch with friends, family and colleagues
Currently 1.19 Billion monthly active users--945 Million mobile users and 757 Million daily users
Offers Advertisers the ability to enhance the value of their ads through a unique combination of reach, relevance, social context and engagement
Services include timeline, news feed, messages, lists, ticker and mobile apps
3,200 Employees Worldwide
101 Executives and 16 subsidiaries
Operates as a company in 2 halves.
Mark Zuckerberg (Chairman & CEO) leads the team responsible for building products for consumers
Zuckerberg's job is user-growth and increasing engagement
Sheryl Sandberg (COO) & Google veteran, is in charge of the people involved in the revenue model.
Increase Users
Facebook Drone Project
Maintain Users
Simple User Interface
Just Enough Change
Increase Revenue
Facebook Payments
Mobile Ads
#1 social networking site dominating other sites in general use social networking, holding a strong
Network Effects (aka Metcalfe's Law)
platform with the highest # of users

Economies of Scale
in infrastructure with it's design, website development & apps allowing others to communicate and share information

Technological Capabilities
ombining other applications such as email, messaging, contacts, photo sharing and message board.

Highest Market Share
compared to other sites

Return on Capital
exceeding Cost of Capital

Continue generating revenue from its customer base
Increase advertising
Maintain a strong platform
Transitioning in a mobile centric world
Create social value both online and offline
Create stronger safeguards on privacy to protect it's users
Collaborate with major companies
Develop new tools to organize consumer sampling and product development
Utilize Crowdsourcing
Maintain Corporate Social Responsibility
Initial Public Offering
Privacy Blunders/FTC
Unexpected User Interface Changes
Work Cited Cont'd
6 Facebook Management Secrets [Web log post]. (2013, June 13). Retrieved May 8, 2015, from http://www.cybermark.ca/seo-blog/search-engine-optimization/6-facebook-management-secrets/

Ante, S. & Holahan, C. ( 2008, March 2008). Facebook CEO Admits Missteps. Retrieved May 7, 2015, from http://www.bloomberg.com/bw/stories/2008-03-10/facebook-ceo-admits-misstepsbusinessweek-business-news-stock-market-and-financial-advice

Ball, J. (2014, July 25). Facebook worth 128 times its profits? That's beyond optimistic-it's euphoric. Retrieved May 7, 2015, from http://www.theguardian.com/technology/2014/jul/25/facebook-valuation-billions-market-buy-sell-profit

Bazilian, E. (2011, September 21) Facebook Overhauls News Feed and Friends, Users Revolt Don's want a live ticker of friends' activites? Too Bad. Retrieved May 7, 2015, from http://www.adweek.com/news/technology/facebook-overhauls-news-feed-and-friends-users-revolt-135014

Carlson, N. (2012, March 28)."How Facebook Managed 3,000 Twenty-Somethings Into A $100 Billion Company." Retrieved May 7, 2015 from, http://www.businessinsider.com/facebooks-100-billion-management-secrets-2012-3

Cutler, K. (2010, April 20). Risks and opportunities-what Facebook may unveil tomorrow. Retrieved May 5, 2015 from http://venturebeat.com/2010/04/20/facebook-f8/

Does Facebook Have a Competitve Advantage [Web log post], (2014). Retrieved May 7, 2015, from http://www.researchfactors.com/does-facebook-have-a-competitive-advantage/

Drew, P. (2013, January 14). Facebook represents the business of the future but is too much a relic of the past [Web log post]. Retrieved May 7, 2015, from http://www.thisisfishburn.com/blog-posts/facebook-represents-the-business-of-the-future-but-is-too-much-a-relic-of-the-past

Facebook. (2015). Data Policy-Minors and safety. Retreived May 8, 2015, from https://www.facebook.com/about/privacy/minors

Facebook. (2015). How old do you have to be to sign up for Facebook? Retrieved May 8, 2015, from https://www.facebook.com/help/210644045634222

Facebook. (2015). Mission. Retreived May 8, 2015, from https://www.facebook.com/facebook/info?tab=page_info

Facebook. (2015). Updating Our Terms and Policies: Helping You Understand How Facebook Works and How to Control Your Information. Retrieved May 5, 2015, from https://www.facebook.com/about/terms-updates

Facebook And Kids: A Parents Guide To Facebook Privacy And Security [Web log post]. (n.d.) Retrieved May 5, 2015, from http://sociallyactive.com/facebook-and-kids-a-parents-guide-to-facebook-privacy-and-security/

Facebook and Google: An Org Chart [infographic] [web log post]. (2013, February 2). Retrieved May 6 2015, from http://safehouseweb.com/facebook-and-google-an-org-chart-infographic/

Facebook Fellowship Award 2015 in USA - Sclrship. Retrieved May, 6 2015. http://www.sclrship.com/services/facebook-fellowship-award-2015-usa/

Drew, P. (2013, January 14). Facebook represents the business of the future but is too much a relic of the past [Web log post]. Retrieved May 7, 2015, from http://www.thisisfishburn.com/blog-posts/facebook-represents-the-business-of-the-future-but-is-too-much-a-relic-of-the-past

Facebook-How Do They Do It. (Video file). (2013, November 22) Retrieved May 8, 2015, from

Facebook Inc. CNNMoney. (n.d.) Retrieved May 7, 2015, from http://money.cnn.com/quote/profile/profile.html?symb=FB
Facebook Shares Outstanding. (n.d.). Retrieved May 7, 2015, from https://ycharts.com/companies/FB/shares_outstanding

Fiegerman, S. (2015, January, 28). Facebook's annual revenue topped $10 billion for the first time in 2014. Retrieved May 7, 2015, from http://mashable.com/2015/01/28/facebook-q4-earnings-2014/

Gabbert, E. (2011, October 17). Facebook Wall of Shame: Facebook’s Failures, Criticisms and Missteps [Infographic]. Retrieved May 7, 2015, from http://www.business2community.com/facebook/facebook-wall-of-shame-facebooks-failures-criticisms-and-missteps-infographic-069718

Gupta, R. (2015). Interesting Facebook Facts and Figures 2013. Retrieved May 8, 2015, from http://www.guptaranjan.com/blog/interesting-facebook-facts-and-figures-2013/

Hill, K. (2011, November 29). Facebook's Mark Zuckerberg: 'We've Made A Bunch Of Mistakes'. Retrieved May 7, 2015, from http://www.forbes.com/sites/kashmirhill/2011/11/29/facebooks-mark-zuckerberg-weve-made-a-bunch-of-mistakes/

How Does Facebook Make Its Money? (n.d.) Retrieved May 7, 2015, from http://www.business-management-degree.net/facebook/

Investopedia. (2015). Who are Facebook's Main Competitors. Retrieved May 7, 2015, from http://www.investopedia.com/ask/answers/120314/who-are-facebooks-fb-main-competitors.asp

Johnston, S. (2015, April 7). Should You Send Money to Friends Through Facebook Messenger? Retrieved May 7, 2015, from http://money.usnews.com/money/personal-finance/articles/2015/04/07/should-you-send-money-to-friends-through-facebook-messenger

Kar, S. (2012, September 3). Facebook’s Big Data: New Concept in Data Management. Retrieved May 8, 2015, from http://cloudtimes.org/2012/09/03/facebooks-big-data-new-concept-in-data-management/

Kellogg, C. (2014). Facebook in China? Maybe. Retrieved May 7, 2015, from http://www.babble.com/tech/facebook-in-china-maybe/

Kilgore, T. (2015, March 20). Facebook's stock-market valuation tops $230 billion. Retrieved May 7, 2015, from http://www.marketwatch.com/story/facebooks-stock-market-valuation-tops-230-billion-2015-03-20

Lafferty, J. (2014, August 7). Do you trust Facebook with your personal information? Retrieved May 5, 2015, from http://www.adweek.com/socialtimes/do-you-trust-facebook-with-your-personal-information/300654

Lavars, N. (2014, September 24). Facebook to start testing internet beaming drones in 2015. Retrieved May 7, 2015, from http://www.gizmag.com/facebook-testing-drone-enabled-internet/33964/

Pepitone, J. (n.d.) Facebook testing one-click checkout for mobile shopping. Retrieved May 7, 2015, from http://money.cnn.com/2013/08/15/technology/social/facebook-mobile-payments/

Pramuk, J. (2014, December 26). Facebook in China? Something's coming: Tech writer. Retrieved May 7, 2015, from http://www.cnbc.com/id/102296231

Mack, E. (2011, September 23). Another Facebook User Revolt on the Horizon? Of Course! Retrieved May 7, 2015, from http://www.pcworld.com/article/240486/another_facebook_user_revolt_on_the_horizon_of_course_.html

Minore, N. (2014, December 3). Facebook’s Privacy Terms for 2015. Retrieved May 5, 2015, from http://photofocus.com/2014/12/03/facebooks-privacy-terms-for-2015/

Nimrodi, J. (2014, September 8). 10 Facts You Didn’t Know About Server Farms. Retrieved May 5, 2015, from https://www.cloudyn.com/blog/10-facts-didnt-know-server-farms/

Nolan, B. (2014, November 18)."What Does Mobile Engagement Even Mean?" [Web log post] Retrieved May 6, 2015. http://blog.converser.io/what-does-mobile-engagement-even-mean/

Number of Facebook Employees 2014 | Statistic.(n.d.) Retrieved May 7, 2015, from http://www.statista.com/statistics/273563/number-of-facebook-employees/

On, C. (2012, May 15). Facebook's business model [web log post]. Retrieved May 7, 2015. http://cdixon.org/2012/05/15/facebooks-business-model/

Pepitone, J. (2012, May 23). Facebook IPO: What went wrong? Retrieved May 7, 2015, from http://money.cnn.com/2012/05/23/technology/facebook-ipo-what-went-wrong/

Protalinski, E. (2014, January 29). Facebook Passes 1.23 Billion Monthly Active Users.Retrieved May 7, 2015, from http://thenextweb.com/facebook/2014/01/29/facebook-passes-1-23-billion-monthly-active-users-945-million-mobile-users-757-million-daily-users/

Stu, R. (2014, March 2014). Facebook and Internet.org announce flying internet. Retrieved May 7, 2015, from http://www.gizmag.com/facebook-internet-org-internet-drones/31407/

What social Media Means to your Dealership [Web log post]. (2014, September 4). Retrieved May 8, 2015, from http://www.cdkglobaldigitalmarketing.com/blog/dealership-social-media/social-media-means-dealership/

The World of Facebook and it's Social Graph
Presented By:
"Facebook's mission is to give people the power to share and make the world more open and connected."
(Facebook and Google: An Org Chart [infographic] [web log post], 2013)
Mark Zuckerberg, Facebook Founder, CEO and Social Media Pioneer who was a 19 year old Harvard Sophomore spending more time on building a website than his class work, later dropped out of college.
(Facebook, 2015)
(Robarts, 2014)
(Fiegerman, 2015)
(Facebook Fellowship Award 2015 in USA - Sclrship)
(How Does Facebook Make Its Money?)
(How Does Facebook Make Its Money?)
(How Does Facebook Make Its Money?)
(How Does Facebook Make Its Money?)
(Lafferty, 2014)
(Lafferty, 2014)
(Minore, 2014)
(Socially Active.com)
(Socially Active.com)
(Cable News Network, 2015)
(Gabbert, 2011)
(Gabbert, 2011)
(Gabbert, 2011)
(Gabbert, 2011)
(6 Facebook Management Secrets [Web log post])
(Kar, 2012)
(Gupta, 2015)
With much fame, Facebook is one of the largest and most successful social media sites today with its concept called
Social Graph
Allows the ability to collect, express and leverage connections between site users.
It's a global mapping of users and organizations and how they are connected/related.
(Facebook, 2015)
(Facebook, 2015)
Where is the Facebook headed?
The MAIN question is......
In our analysis, we find they are fundamentally prepared
to continue growing with their strong infrastructure and innovative team. They appear to be ready to compete with new entries into social media as well as their existing competition to maintain their competitive advantage. By staying current with trends and listening to feedback from their site users, they should be able to continue their #1 position in the world of social media.

(Facebook, 2015)
(What social Media Means to your Dealership [Web log post], 2014)
(Nolan, 2014)
(Nolan, 2014)
(Nimrodi, 2014)

(Facebook-How Do They Do It, 2013)
(y-charts, 2015)
Full transcript