FACEBOOKS DILEMMA

Presented By: Kriti Kashive 201067 Neharika Mallik 201086 Paras Dhawan 201101 Puneet Arora 201111 Radha Mohan Giri 201113 Rakesh Kumar G S 201116

INTRODUCTION TO FACEBOOK
Inception in 2004 Currently the leader in social networking Has around 750 mn users Messaging, groups, photo sharing, usercreated apps Simple & Crisp Interface

OPPORTUNITIES THROUGH

Advertisements can reach highly targeted audiences

Firms can have Facebook Pages News Feed and Status updates

PRIVACY ISSUES
Shared user activities without consent News Feed Considered to be an Invasion of Privacy Problems related to Account Deactivation &
Beacon

BUSINESS MODEL
Network Effects Model Value of a Good or Services to a Potential customer increases with number of customers already availing that service Revenue Generation Advertisement

1. Local Text Ads From local businesses

2. Traditional Banner Ads On side Panel 3. Sponsored Groups Pages of

Companies

BUSINESS MODEL
Facebook Platform for Widgets and Apps Win- Win Situation for both Facebook & App Developers Apps for Businesses Ex.: Flixster, We Read, etc.

The Viability of The Business Model

ADVANTAGES OF THE MODEL

More than 750 mn Potential Customers (Would have been the 3rd most populated country) Targeting the Customers is easier Companies can target based on the stage or condition of the user (Marriage, child birth, higher education, etc.) Easier to maintain an interactive page than maintaining a full scale website for small businesses

THREAT TO THE FACEBOOK MODEL

Immersive environment due to Apps - make the Ads less noticeable Apps advertising for other Apps No extensive external advertising Threat from Competitors Google+ gathered more than 25 mn users in less than a month

FUTURE OF FACEBOOK
E- Commerce of merchandise and services through Facebook Use of Facebook Credits to purchase real world objects

FUTURE OF FACEBOOK
Entertainment - Movie rentals, buying music, online gaming, etc. File hosting and sharing Platform for people with common interests to interact, share and publish their views

PROFIT VS PRIVACY
Simpler Privacy settings and controls for sharing of user content Conducting survey for knowing user preferences Effective segmentation of users based on usage patterns

PROFIT VS PRIVACY

Stop Link Cloaking Improved security features to assure user loyalty

Increase emphasis on e-commerce and M-commerce on Facebook itself

THANK YOU