FACEBOOK | 1.1 INTRODUCTION 4• Inception – January 2004• Invented By – Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz & Chris Hughes• Started as thefacebook.com, changed to facebook.com in 2005
FACEBOOK | 2.1 HISTORY 6Date: October 28, 2003Place: Harvard UniversityEvent:• Facemash, the Facebook‟s predecessor• Designed by Mark Zuckerberg, and three of his classmates – Andrew McCollum, Chris Hughes and Dustin Moskovitz• The website allowed Harvard Student to compare two student pictures side- by-side and let them choose who was “hot” and who was “not”• This created a rage amongst Harvard students overnight and overloaded the Harvard IT system
FACEBOOK | 2.2 HISTORY 7Date: January, 2004Place: Harvard UniversityEvent:• Mark Zuckerberg began writing the code for a new website, known as the facebook„• When Mark finished the site, he told a couple of friends ... then one of his roommates suggested putting it on the Kirkland House (Dorm name) online mailing list• Within the first month, more than half the undergraduate population at Harvard was registered on the service• In March 2004, Facebook expanded to Stanford, Columbia, and Yale. Later opened to all Ivy League and Boston-area schools.
FACEBOOK | 2.3 HISTORY 8Date: June 2004Place: CaliforniaEvent:• Facebook was incorporated in the summer of 2004, and the entrepreneur Sean Parker, who had been informally advising Zuckerberg, became the companys president• Facebook moved its base of operations to Palo Alto, California• The company dropped „The‟ from its name after purchasing the domain name facebook.com
FACEBOOK | 2.4 HISTORY 9Date: 2005- 2008Place: CaliforniaEvent:• Facebook expanded to 21 Universities in the United Kingdom• Facebook later expanded membership eligibility to employees of several companies, including Apple Inc. and Microsoft• On December 11, 2005, universities in Australia and New Zealand were added to the Facebook network, bringing its size to 2,000+ colleges and 25,000 + high schools throughout the United States, Canada, Mexico, the United Kingdom, Australia, New Zealand, and Ireland• Facebook was then opened on September 26, 2006 to everyone ages 13 and older with a valid e-mail address• In October 2008, Facebook announced that it would set up its international headquarters in Dublin, Ireland
FACEBOOK | 2.5 HISTORY 10Date: 2009-2011Place: CaliforniaEvent:• In 2010, Facebook began to invite users to become beta testers after passing a question-and-answer-based selection process• A set of Facebook Engineering Puzzles where users would solve computational problems which gave them an opportunity to be hired by Facebook• As of February 2011, Facebook had become the largest online photo host, having100 billion photos posted by summer 2011• As of October 2011, over 350 million users accessed Facebook through their mobile phones, accounting for 33% of all Facebook traffic
FACEBOOK | 3.1 CURRENT 12 3,976 employees at the end of June 2012 1bn monthly active users as of October 2012 Approximately 81% of monthly active users are outside the U.S. and Canada. 600 million monthly active users who used Facebook mobile products in September 2012.
FACEBOOK | 4.1 BUSINESS MODEL 16How Facebook makes money!1.Advertising• Facebook‟s single most important revenue channel is advertising• Facebook generates over a billion $ in revenue each year A. Self Serve: • By visiting the “Create your Ad” page on Facebook you can set up your own advertising campaign on Facebook • Small businesses like doctors, lawyers, restaurants benefit most • Facebook to generate somewhere in the range of $600 million from Self Serve B. Engagement Ads • Solution for Large Brands, enables brands to interact with users directly • Facebook would generate around $400million from Engagement Ads
FACEBOOK | 4.2 BUSINESS MODEL 172. Virtual Gifts and Shops • Facebook currently generates a large amount of revenue from the Facebook Gift shop • Allows users to send gifts to one another • At an average cost of $1 per gift, generating upwards of $200 million last year3. Facebook Credits • Allows consumers to buy credits for Apps such as Farmville, Airline Manager and etc • A percentage of the credit purchased goes to Facebook as fees • Facebook earned upwards of $200 million last year • Expected to cross $1 billion by 2016
FACEBOOK | 5.6 FINANCIAL HIGHLIGHTS 24• IPO stands for “initial public offering”. Now Facebook started its own public trading stock. This IPO is expected to be the largest run internet based company. Points to know:-• 82million shares traded in first 30 seconds on market• Mark Zuckerbergs stake is valued at $19.1billion• Critics have said $38 share price is too high - and it is FOUR times bigger than Googles $25bn when it launched as a public company in 2004
FACEBOOK | 5.7 FINANCIAL HIGHLIGHTS 25• Mr. Zuckerberg rang the Nasdaq opening bell from Facebook HQ, flocked by dozens of his employees and COO Sheryl Sandberg• Began trading under FB at $42 a share - 10% higher than expected• But closes at modest $38.23, only 23 cents higher than initial estimate
FACEBOOK | 6.1 COMPETITORS 27 Twitter, Inc. (Private) MySpace, Inc. (Public Subsidiary) LinkedIn Corporation (Public) Google, Inc. (Public)
FACEBOOK | 7.2 WEAKNESS 31• Harder To Customize• Harder To Judge by First Impressions• Viral Potential Restricted• Advertising Designs• Flash Distractions
FACEBOOK | 7.3 OPPURTUNITY 32• Emerging markets and expansion abroad• Innovation• Product and services Expansion• Takeover
FACEBOOK | 7.4 THREATS 33• Competition: Twitter• Cheaper technology• Maturing categories, products or services• Product substitution• Controls what people see• Spamming/Spam• No email controls• minimal tagging controls• Commercialized if sold