Final Facebook

8/4/2019 Final Facebook

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OUR PEOPLE

AND US


3/26

EVOLUTION OF FACEBOOK

A simple directory growing to become

an individuals identity.

Won friends in all age groups.

If Facebook was a country, it would be

as populated as Brazil.


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MARK ZUCKERBERG-LEADING FROM THE FRONT

Evolved into being one of the best CEOs.

Long term vision and Risk taking ability.

Easily approachable from everywhere.

Generous Leader but a Hard Taskmaster.

Machiavellian Manager.


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COMPANYS POLICIES

Recruitment and Selection.

Ruthless Meritocracy.

Its incentives, after all!

The young brigade.

Research says it all.


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THE BRAND


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Threat of New Entrants (Medium)

-Network effects have historically not

helped retain market share (but have

helped only to grow it).

- Specialty networks (eg. FourSquare,

Tumblr) are still entering the online space.

Buyer Power (High)

- Switching costs are minimal.

- Users maintain 1.6 accounts

on social networking sites and

check both accounts in

transition periods.

Threat of Substitutes (Medium)

- Internet sites with large user bases

may create a social networking

component (blockbuster,

amazon,ebay)

Supplier Power (Low)

- Widgets and Application

providers are usually

small developers with

little bargaining power.

Industry Rivalry (High)

- Intense competition

between competing sites

fueled by venture capital and

speculative valuations.

PORTERS FIVE FORCES

OVERALL

-

MEDIUM


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Design Organized, simple to use interface

Trust When approving a friend request, FB shows you the

number of friends you have in common

Broad TargetMarket Isnt targeted to a specific

demographic, but there is something for everyone (applications,

musicians pages etc)

Activity Focus FB focuses on connecting and not on a

certain activity like music, business networking etc. FB is the

largest repository of pictures on the internet (bigger than Flickr)

Transactions Innovative features like applications, people

you may know, pokes, comments, likes etc., serve to increase

user transactions.

Privacy Advanced privacy filters and controls

Localization Available in 70 languages (50 in development)

WHAT IS FACEBOOK GOOD AT?

STRENGTHS


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WHAT IS FACEBOOK NOT GOOD AT?

THREATS AND WEAKNESSES

Applications Clutter

Keeping the user base intact


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WHAT FACEBOOK CAN BE GOOD AT?

OPPORTUNITIES

Business Partners

Pages leading Company

Cultural Expansion

Varied Services

P2P

Pace ofinnovation is important!


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KING OFTHE

JUNGLE


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STATISTICS ABOUT FACEBOOK

People on Facebook

Activity on Facebook

Global reach

Platform

Mobile

USE S

male

female


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FACEBOOK AGE GAP HAS CHANGED

JAN 2010

13-17

18-24

25-34

35-54

55+

JAN 2011

13-17

18-24

25-34

35-54

55+


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COMPETITIVE ANALYSIS OF FACEBOOK

FACEBOOK vs MYSPACE

Application

InterfaceSpam/Viruses

Social Media

Integration

Mobile Apps Alerts


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COMPETITIVE ANALYSIS OF FACEBOOK

FACEBOOK vs ORKUT

Lets Play

L

ike Us Tag me

Security

Glamour Quotient


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FACEBOOK VS TWITTER VS GOOGLE+

Facebook Twitter Google+

Relationship Friends Followers and

Following

People

Sharing with

specific groups

Lists No Circles

Shared Contents

Visibility

Contents can be

shared with

specific people

Open profile

Private Profile

Contents can be

Visible to specific

people

Contents I publish Can be seen by my

friends

Can be visible to

my followers

Visible only to my

circleI see What my friends

are publishing

What people I

follow are

publishing

Who are publishing

for the circle


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THE SMALL BIG PICTURE

FACEBOOK

OTHER NETWORKING SITES

2x

x

BUDGET LINE INDIFFERENCE CURVE


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UNLOCKING

THE VALUE


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WHAT IF FACEBOOK CHARGES ITS USERS?

2006: Yahoo bid for FB for $1

billion, negotiable till $1.62 billion.

2007: Microsoft invested $240 million at a

$15 billion evaluation.

2008: Rumours of Valuation popped up

based on the prices at which ex employees

were selling their stock for.

2009: Sold some preferred stock to Russian

investor DST at implied valuation of $10 billion.

Cash flow positive by September 2009.

Revenues(estimated, in

millions US$)

YearReven

ueGrowth

2006 $52

2007 $150 188%

2008 $280 87%

2009 $775 177%

2010 $2000 158%


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THE NEXT BIG STEP

Facebook IPO set to be unleashed in F.Y 2012.

Growth fast enough to justify a $100 billion valuation.

Goldman Sachs and DST invested in FB at a $50 billion

valuation.

Expected EBDITA 2011: $2 billion.

To cross 500 private investors before April 12.

Employee Stock sales in private markets such as

Second Market now disallowed.


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BANKER BOUQUET

No bake-offs Frontrunners are Goldman

Sachs, Morgan Stanley and GSV

Bankers proposing add-ons like convertible debt

deals, credit facilities and potential acquisition targets.Only 1 Bank to land the lead left spot.

Sachs already an investor, Morgan on a roll in tech IPO-

land.

Lucky recipients can get biggest chunk of 7% IPO

underwriting fee.


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BLUETHINKS

GREEN


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INITIATIVES

Green on Facebook

Alliances

GreenBiz.com

Digital Energy Solutions

Campaign (DESC)

Alliance to save Energy


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ACTIVITIES

HipHop for PHP

Haystack

In houseprograms


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PLATFORM

44 Companies

Sectors

Microsoft, Wal-Mart, GeneralElectric, Nestle, Citi Group and

many others

Examples

LG

Standard Chartered


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Documents

Final Facebook