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alex teh

on 3 November 2012

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FOR THEIR PROFIT facebook Facebook is an internet born company, it is e-commerce case. What concepts in the chapter are illustrated in this case? Facebook's policies are not weak, but they have made weak decisions that have damaged their security credibility. Describe the weaknesses
of Facebook's privacy policies and features. What management, organization, and technology factors have contributed to those weaknesses? List and describe some of the options that Facebook managers have in balancing privacy and profitability. How can Facebook better safeguard user privacy?
What would be the impact on its profitability and business model? Do you anticipate that Facebook will be successful in developing a business model that monetizes their site traffic? Why or why not? Conclusion Richness is the Complexity and content of a message It use internet and web to conduct business, you can access Facebook from everywhere, even a cell phone. The access to this service is limitless. Interactivity is how e-commerce allows for two-way communication Information density is the total amount and quality of the information available to all market participants, consumers and merchants. All three areas that involved personal information and privacy was met with resistance. The Beacon program caused Coca-Cola and Overstock.com to pull their advertising and support away from Facebook. Facebook is king of the social network. Founded in 2004 by Mark Zuckerberg. They have become the most popular social destination on the Web. Popularity is great, but a company still has to be able to pay their bills and have some profit left over. Despite their success, Facebook has had a difficult time becoming profitable. Over the years they have tried many times to get over the hump in profitability. In terms of advertising, facebook know the advantage at the negotiating table because they have a large treasure of potential customers. The only reason why they have a large about is because customers are trusting them to protect their privacy so they can interact at their own discretion.

Consequently, Facebook users give them power position, and so their privacy will never be breached. However, it will allow the vendors to present their goods and services by selling ad space on the site. The site has over 118 million people who can see their advertisement and click the link to get more information, or make a purchase.

To be the number one site on the internet, Facebook have to protect the users who built the name, reputation, and business. Facebook did not always have a viable business model, but now they have one that could be successful. Facebook is following a trend that has been benchmarked by the iPhone and iPod markets by creating applications that compliment the base program.

In May 2007, Facebook Platform introduced, which is an effort to open up its site to third-party developers to become a platform for their applications. This is a perfect marriage between developers and Facebook because the developers want exposure for their technology and products, while Facebook has network of over 118 million potential clients of the developers. As a result, the site is more engaging, and more innovative than ever before.

In March 2008, Facebook launched new privacy protocols that placed more control of privacy content in the hands of the users. Users control who has access to the site, and what information the visitors will have a chance to view. Their growth has led Microsoft to purchase a stake in the company which increased its value to $15 billion. With all of their good news, it is imperative for Facebook to drive innovative application creation, and vigilantly protect the privacy of their users. SOCIAL NETWORKING The case involves richness, interactively, information density and personalization/ customization. Chairs are like Facebook Personalization/ customization is how merchants can target their message to specific individuals to promote their products Mark Zuckerberg - Facebook CEO Their weakness stems from the introduction of Beacon, the mishandling of News Feed, and the inefficient methods of deleting an account. Beacon was program that shared users' purchase information with their friends automatically because it was initially an opt-out program. News Feed is a program that was abruptly introduced to the Facebook users that shares actions with everyone on the Facebook Web. Finally, it was next to impossible to delete an account that a user no longer wanted to use. Facebook CEO had to publicly apologize and explain to the users about News Feed to usurp a possible firestorm. Finally, Facebook had to improve their technology to in order to allow the consumers to delete their accounts. A lack of interaction with their users is what led to the weakness in their policies and procedures. Each action was not formally presented and outlined by the company. In each instance, they only fixed the problem after damage had occurred. Ultimately, it was their faulty decision making that was the weakness in their privacy policies. As Facebook becomes a site where friends, family and colleagues all come together, users' willingness to share and be open with each other will depends on how knowledgeable users are about their privacy right on Facebook, and how diligent they are about actively managing their privacy setting. People often complain that there's no privacy on Facebook, but this is only true for those who aren't aware of the privacy configuration available to them. Thank you Prepared & Presented by: Teh Chin Boon References Laudon, K. C., & Laudon, J. P. (2010). Management information systems: Managing the digital firm (11th ed.). Upper Saddle River, NJ: Prentice Hall.

ABC News (http://abcnews.go.com/blogs/headlines/2009/07/chinas-facebook-status-blocked/) By Sadie Bass On Jul 8, 2009 9:22am

Privacy Solutions Consulting (http://www.facebook.com/PrivacySolutions) browsed on October 24, 2012

Emily Steel and Geoffrey A. Fowler, “ Facebook in Privacy Breach,” The Wall Street Journal, October 18, 2010

Jessica E. Vascellaro, “Facebook Makes Gains in Web Ads,” The Wall Street Journal, May 12, 2010 and “Facebook Grapples with Privacy Issues,” The Wall Street Journal, May 19, 2010

Geoffrey A. Fowler, “Facebook Fights Privacy Concerns,” The Wall Street Journal, August 21, 2010 and “Facebook Tweaks Allow Friends to Sort Who They Really ‘Like,’ The Wall Street Journal, October 5, 2010

Facebook Fanatic: Explode Your Popularity, Secure Your Privacy and Buzz Your Band on Facebook, Bottletree Books LLC, Jun 30, 2007 - 268 pages

The Facebook Effect: The Real Inside Story of Mark Zuckerberg and the World's Fastest Growing Company, Ebury Publishing, Jun 26, 2012 - 384 pages

Facebook: The Missing Manual, O'Reilly Media, Inc., Feb 21, 2011 - 282 pages
Summery of Facebook
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