...Facebook Advertising Platform Gaining Competitive Advantage with user’s data 1 Executive Summary This research paper details a study of Facebook’s knowledge management. The user’s involvement, interaction and information were very important for the study. The main objective of the study is how Facebook utilises user’s information and help advertisers target the right audience. The study will be done using Porter’s Five Forces Model and Resource based Value to Facebook. The findings show that Facebook’s large database helped create an advantage over other platforms and benefited all the parties involved in the process. 2 Table of Contents Introduction………………………………………………………………………………3 About Facebook………………………………………………………………….3 Advertising…………………………………………………………………….…3 Conceptual Framework and Analysis ……………………………………………………5 Porters Five Forces Analysis……………………………………………………..5 Resource Based View of Facebook………………………………………………6 Conclusion and Recommendation………………………………………………………..7 References………………………………………………………………………………..8 3 Introduction As known Microsoft made computers easy for everyone to use. Google helps us search out data. YouTube keeps us entertained. But Facebook a social networking site has a huge advantage over those other sites: the emotional investment of its users. Facebook makes us smile, shudder, squeeze into photographs so we can see ourselves online later, worry when no one responds to our witty remarks, snicker over who got fat after high school...
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...Since the movie “the Social Network,” Facebook had been privately controlled without any outside interference. The company’s reluctance to go out in the public did not last long and realized it had to go public for two reasons. As it grew bigger with over 800 million users and 500 shareholders, it had to release financial details to SEC as a requirement. Moreover, going to public was the best way to attract more investors to fund and make it even bigger. So the company finally decided to start its initial public offering (IPO). On May 18th 2012, the news of its IPO hyped many investors and stockholders. Nasdaq even put a huge digital billboard welcoming Facebook on board. The stock was opened up with high price of $38(5) and expected to trade really well through the first day, but that did not happen. The stock price did go up as high as $42 in its opening hours before it settled back toward $38. And the nightmare of falling stock price still goes on and some of the major unforeseen issues of Facebook appeared on a surface. Facebook had been the leading giant of social network, because it had the technology to make SNS website more user friendly than those of its competitors. Then the users started to switch their computers for mobile phones, ever since the IPhone and other smart phones emerged. Regardless of what was happening around, Mark Zuckerberg, the Facebook found, decided to keep improving on the computer-based Facebook, not improving on the mobile-based one. Before...
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...Facebook’s Fate What is the true value of (and future of) Facebook? Facebook shares have recently climbed to all new highs with the purchase of WhatsApp and other smaller companies in an effort to expand its footprint with users. However, being almost 10 years old with over 1.1 billion users, the question that remains is “for how long will facebook last?” Many social media sites have been around before the whole facebook craze, and most if not all, have suffered the same demise; failure. If you look at other social media sites such as Myspace, it can be inferred that Facebook will most likely follow down the same path unless something completely new and innovative arises. Recent surveys suggest that young teen users in the US have started gravitating away from Facebook. “Facebook has a huge audience and provides a real service as a way of keeping track of a loose network of friends, but it will struggle to expand its brief beyond what it’s currently doing.” It is not the only “game” in town and must continually compete with other sites such as Twitter and LinkedIn. The user age group has begun to shift from teenagers to a more mature audience because of its ability to maintain in contact with long distance “friends”. This more mature genre is somewhat forcing the younger generation away. The “cool factor” is starting to wear off. In order to keep users interested, Facebook has begun investing large amounts of money to acquire other companies. Some...
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...Why I love Facebook? Just recently Facebook has celebrated its 11th birthday. For just over decade this global social networking website has 1.3 billion active users. It is a big number of people and possible exceeds some nations in the world. Yes, Facebook is popular and many people prefer virtual chatting rather than real. Why do we make it a problem? The World is changing: horse riding and pigeon post also are buried deep in history. Let`s face the 21st century reality. Janet is proud saying she has real friends, but are they so real? Let`s face the truth. What is friendship? It is relationship between friends, where people sharing spare time, secrets and so on. Basically, everyone is looking for his or her own benefits. Janet, when she feels lonely or need cheering up, calls to her friends. Obviously, she uses her friends, as she needs them right now. There is nothing to be ashamed of as it is in human being nature to use each other for own interests. However, having your friend in Facebook and browsing her photos and lifetime, you may actually be interested in her life. Every human being has his own life experience and sometimes a distance forces people to lose common interests with his real friend, not matter how close they used to be. My personal experience proves that theory. I used to have the best friend for more than ten years and we seemed so close that nothing in the world could change that fact. However, circumstances have separated us and a lack of the communication...
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...in Business Strategic Profile and Case Analysis Purpose (page 12-1) Zuckerberg and his top management team knew that they needed to consider how to adjust the firm's strategies to compete as a public company, partly in response to the belief among some users and analysts that Facebook was losing its ability to satisfy customers and shareholders simultaneously. In this regard, what should the firm do strategically to ensure its long-term and profitable growth? While Facebook's advertiser base is constantly looking to the firm for additional innovative means to target users, its investors are questioning its ability to monetize its user base. Relatedly, in a highly dynamic and competitive industry, how will Facebook out-innovate its rivals and retain customer “mind-share”? Along with his top management team, Zuckerberg concluded that the firm should focus on both worldwide and domestic market growth. With many recent product innovations and strategic changes, 2013 and the few years beyond were expected to defining ones for the young, public social networking firm. Situational Analysis (pages 12-3--12-4) One of the most innovative creations in the twenty-first century is social networks. Connecting the world through schools, families, businesses, photos, and just about every other piece of information, social networks thrive on people sharing their life stories. In the last ten years, the most important networks have been Facebook, Myspace, Twitter, and LinkedIn, with several...
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...AD ACCOUNT STRATEGY TEST FOR FACEBOOK AND GOOGLE. FACEBOOK AD MANAGER. STEP ONE: Interest based targeting. I would use Audience Insights to get data so as to profile new potential customers. Based on the insights Facebook has provided, put the new target customers against your current Facebook followers in order to test the ad campaign. This information will help you generate meaningful ads. STEP TWO: Craft a compelling lead magnet. I would create something that would get the attention of the prospective customers. To achieve this, I would consider the following tactics; i.) Giving irresistible offers, like purchase discounts e.g. 20% discount on the 65 inch LG television. ii.) Having promotional sales. For example, Valentines offer on the...
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...Using Engagor, Excel and SPSS Statistical 22, we analyzed the e-business process support of Caterpillar on three social media platforms: Facebook, Twitter and LinkedIn. Next pie chart shows how much firm generated content had been analyzed, setting up a certain time frame. In the following, both quantitative and qualitative insights are provided. Number of analyzed firm generated content Processes supported on social media In order to give a brief overview of the business processes supported by Caterpillar on several social media platforms, we used SPSS Statistics 22. The following pie charts and frequency tables result from our statistical deceptive analysis. Facebook - Caterpillar Inc. Looking at the pie chart and the frequency table of the Facebook page ‘Caterpillar Inc.’, we can conclude that the overall presence of Trade Processes (Authentication, Customer Service and Search) is rather obvious. With 66.7% of the business processes, content regarding Authentication Processes are most likely to be generated by Caterpillar on this social media platform. The fact that this page is the main Facebook page of this company can be a logical explanation for its Trade Process focused nature. Since these processes are rather customer oriented, it is wise to reach their customers via their established brand name and the most well-known social media platform. Furthermore, we also recognize a small amount of Decision Support Processes. In light of the previous explanation...
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...line 1) the authors state, “Innovative use of a firm’s information resources can provide companies with substantial and sustainable advantages over competitors.” However Carr (2003) in his classic article, “IT Doesn’t Matter” makes the following assertion “IT is a commodity that does not offer a competitive distinction and therefore does not provide a competitive advantage.” More recently in February 2014 Facebook purchased WhatsApp for $ 19 billion. Earlier they had purchased Instagram in 2012 for $1 billion. Similarly in 2011 Google (now Alphabet) acquired Motorola’s cell phone business for $12.5 billion and in June 2013 Google (Alphabet) paid $1.1 billion to purchase social mapping startup Waze. This acquisition, the 10th acquisition for Google (Alphabet) in 2013, allowed the company to become a dominant player in online maps. What do you think and why; does Facebook’s and Google’s (Alphabet's) acquisition of other companies provide it with sustainable competitive advantage? As you form your thoughts about this question think of the ecosystem in which Facebook and Google (Alphabet) function and see how module 1 materials can be applied to answer this question. Video application advances in social media over the last 12 months is such a great example of the hypercompetition in a marketplace that Pearlson and Saunders refer to in our textbook (1). From the quick evolution of Meerkat, to Twitters $100 million acquisition of Periscope, to Facebook’s soon to be...
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...Coca-Cola Supply Chain Management & Coca-Cola Facebook Analysis Dr. R. LeWayne Johnson Importance of Standardization in Supply Chain Management Supply Chain Management (SCM) according to May School of Business at Texas A&M University is defined as the strategic management of supply chain activities to maximize customer value and achieve a sustainable includes all the activities that must take place to get the right product into the right consumer’s hands in the right quantity and at the right time – from raw materials extraction to consumer purchase. SCM focuses on planning and forecasting, purchasing, product assembly, moving, storage, distribution, sales and customer service. SCM professionals are involved in every facet of the business process as they strive to achieve a sustainable competitive advantage by building and delivering products better, faster and cheaper.The importance of an organization’s supply chain is driven by the degree that the flow of goods from one destination to another destination is cost effective and timely to the business needs. An additional metric that determines the importance of an organization’s supply change is if the organization realizes profit from the supply chain. Supply Chain consists of many trading partners, from raw materials to finished products. A typical supply consists of several collaborative units such as (a) supplier, (b) manufacturer, (c) wholesaler and, (d) retailer. each party consists of 5 logistics activities...
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...BUSA 3134 Case Analysis Summer 2012 The focus of this analysis is the IPO of Facebook and subsequent decline in the stock price. Introduction – History of Facebook; what factors lead to the IPO. How the company expected the public/market to react to the IPO (stock price and trading, etc.) Body – What was the market reaction? What happened on the first day of trading and in the subsequent weeks (decline in market price, etc.) What items contributed to the loss of interest/loss of value in the stock (specific examples). Conclusion – What are the predictions for the future of Facebook and was it a good decision to go public. This is a suggested outline only. The analysis should provide insight into the company/owner and the decision to go public; what the company expected vs. what actually happened in the stock market; what does the future hold for the company/stock. INSTRUCTIONS: This assignment must be typed and a hard copy turned in on the due date. Be sure to save a copy of your paper just in case. The hard copy is due at the beginning of class on Monday, June 18, 2012. The first page of your paper should include the following information and NOTHING else: o Your name o The course and section o Semester o Title of Assignment Begin the paper on page 2. The paper should be double spaced to allow room for comments and edits. The paper should be no less than 2 pages in length (not including the cover page and works cited page). I expect...
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...Facebook in a Crowd by Hal Niedzviecki In the article, titled “Facebook in a Crowd” Hal Niedzviecki discusses his experience with Facebook. Niedzviecki started his account and quickly had about 700 on-line “friends.” In his own words, he was “absurdly proud of how many cyberpals, connections, acquaintances, and even strangers I’d managed to sign up.” (Niedzviecki, 958) But he also had a 2-year-old at home, was a workaholic, and liked being left alone. He had very few real friends. So he decided to have a Facebook party to get to know some of his new friends. Niedzviecki invited all 700 of his “friends” to a local bar for a party. People could respond to one of three options: “Attending,” “Maybe Attending” and “Not Attending.” Fifteen said they would be there, and sixty said they might be there. He guessed somewhere around 20 would show up. He writes about what happened, “On the evening in question I took a shower. I shaved. I splashed on my tingly man perfume. I put on new pants and a favorite shirt. Brimming with optimism, I headed over to the neighborhood watering hole and waited. And waited. And waited. Eventually, one person showed up.”(Niedzviecki, 959) And the one woman who showed up to meet Niedzviecki? He didn’t know her. She was a friend of a friend. They ended up making small talk and then she left. Hal waited till midnight but no one else showed up. So, he ordered a beer and sulked. He concludes his article with these words: “Seven hundred friends, and...
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...Original Report Percentage Index: 7% 1 I. Executive Summary This case study provides an analysis and evaluation of Facebook’s current strategy in the e-business of social networking. Facebook’s competitors are identified. Investigations are carried out to determine if Facebook’s strategy is effective in staying ahead of its competitors. It was found out that Facebook faced a few major problems. Intellectual property disputes with Harvard based houseSYSTEM’s creator, Aaron J. Greenspan and ConnectU had affected Facebook’s public image in 2004. Privacy issues problems forced Facebook to repetitively apologize to its users and made many amendments to its products. In late 2007, Facebook encountered over capacity in its data centers resulting in a drop in its user visiting Facebook website. With the existence of its competitors, MySpace and Twitter, Facebook found it challenging to expand its operation. It was recommended that Facebook should remain friends with its competitors and engaged in a collaborative alliance in developing technologies for the social network platform. Ensuring adequate privacy user controls is the key to customer satisfaction; therefore regaining trust back from Facebook’s user is crucial in its maintaining good business-customer relationship. 2 II. Statement of the Problem Since the day of its incorporation in 2004 until today, Facebook has faced several issues that affect the relationship with its customers and competitors. These...
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...Contents Executive summary 2 Introduction 2 Use of PEST analysis 4 PEST analysis of Facebook 5 References 7 Executive summary This assignment is all about PEST analysis of an organization. At first I’m going to talk about the history of organization that is Facebook and then will talk about what is PEST analysis and also the uses and would also talk about the PEST analysis of Facebook. Introduction Facebook is one of the most successful social networking sites which was founded and developed by Mark Zuckerberg. The 19 year old Mark Zuckerberg had released this site in the year 2004 and later was known as “thefacebook.com”. After this website was released, Mark Zuckerberg was sued by Cameron and Tyler Winklevoss (twins) and Divya Narayan (three Stanford citizens) as he had an agreement with the three Stanford citizens to create a similar social networking site known as Harvardconnection.com but instead Mark used their ideas and thoughts to develop social networking site which is now known as Facebook. This claim soon became a full-fledged suit as the three Stanford citizen charged Mark Zuckerberg for scam and robbery. In March 2004, Facebook had expanded from Harvard to Stanford, Yale and Columbia. Sean Parker who is the co-founder of Napster heard about Facebook and started giving advices to Mark Zuckerberg and later became the president of Facebook. In June 2004, Facebook was available for all 30 campuses in United States and connecting around 150,000 people...
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...Competitor Analysis Viadeo: Founded in June 2004, Viadeo is one of the many online sites for networking and recruiting for students, alumni and professionals. This site offers networking capabilities for students, recruiting abilities for businesses, and the ability to showcase career achievements for its members. This is a free service, as many of these sites are (CrunchBase, 2010). Viadeo competes with many sites, such as LinkedIn and Facebook. The chart below shows the steady, but declining, popularity of Viadeo from January 2010 through January 2011. (Compete.Com, 2011) Viadeo has received funding support of Series A (6/06), Series B (8/07) and Private Equity (7/09). As of May 2010, Viadeo had over 30 million members. Viadeo is heavily used in the French network in comparison to the other countries its members reside in (Gaynard, 2009). MySpace: In 2005 MySpace was the leading social media site with over 16 million members. MySpace is an interactive social media site powered by members with interests in music, movies, celebrities, etc. Targeted to a younger generation, Myspace quickly eclipsed its competition, most notably Friendster, and continually developed and evolved to captivate the interest of its younger members. Also in 2005, News Corporation purchased MySpace’s parent company for $580 million. This caused a skyrocket in memberships to over 33 million. Things quickly took a turn for the worse in January 2011 when competitors had decreased market share...
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...The success of advertising on Facebook. Facebook has gainfully evolved their advertising platform into the highly sophisticated Social Ads in use today. Social Advertising was released in late 2010 and exploits word of mouth and turn user interactions between friends into advertisements.[1] Early on, Social Ads generated up to ten times as many clicks as regular advertising and increased the advertising revenue contribution of its mobile platform. Today, text and display ads represent 87% of its Trefis stock price and is their most important division.[2] Figure 1 depicts Facebook’s success at monetizing mobile advertising as Revenue per Page View (RPM) rose from a low of around $0.27 in 2010 to $0.42 in 2013, and is forecasted to increase. Figure 2 illustrates quarterly revenue growth of 64% over the same quarter last year, and 70% increase of the same trailing nine months from 2013. A loyalty analysis suggests Social Ads can generate new growth in revenue while keeping the acquisition costs relatively low. Figure 3 depicts FB’s increase in Enterprise Value (EV) and EV/EBITDA multiple in recent years. The rising third quarter EV for 2014 also underlines the success in monetizing their Social Ads in the mobile space. The Facebook Platform and Facebook for Web sites. Developed in 2007, Facebook Platforms enables third-party developers to develop applications within the Facebook environment. Figure 4 shows how third-parties like Zynga can access user data through...
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