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Tutor Marked Assignment 1 (TMA1) Managing Information Systems

Student Name: Liew Chang Yaw Student ID: 032120064 Class Code: 3MIF1 Course Coordinator: Dr. Ang Kee Seng Tutor: Mr. Aw Yoke Cheng
Date of submission: 17th March 2012

Turnitin’s 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 issues can be categorized into intellectual property disputes, privacy controls and advertising ads controversy, network capacity, market

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