forAll<br />George Dy, Tian Wang, Timothy Yung, Anhang Zhu<br />
Agenda<br />Background<br />Social Media Landscape<br />Strategic Issues<br />Target Audience<br />Recommendation<br />Sol...
Background » Recommendation » Solutions » Impact » Timeline » ConclusionSocial Media Landscape<br />Facebook General Stati...
Background » Recommendation » Solutions » Impact » Timeline » ConclusionStrategic Issues<br />Reinforce Facebook’s mission...
Background » Recommendation » Solutions » Impact » Timeline » ConclusionTarget Audience<br />Cater to existing audience<br...
Background » Recommendation » Solutions » Impact » Timeline » ConclusionAlternate Audiences<br />Why not target teens?<br ...
Background » Recommendation » Solutions » Impact » Timeline » ConclusionRecommendation<br />Facebook must provide a suite ...
Background » Recommendation » Solutions » Impact » Timeline » ConclusionFour Solutions<br />Solution 1: Interactive Facebo...
Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Interactive Facebook Pages<br />Problem...
Implementation<br />Improve general accessibility to Facebook Pages<br />Removing “login requirement” increases available ...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Front Page Mockup...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Reservations Modu...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Reservation Notif...
Problem<br />Third-party developers are using Facebook’s user base and creating more competition for Facebook (e.g. iLike)...
Implementation<br />Allow users to purchase (via gift cards or electronically) Facebook Credits and use them in applicatio...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Existing Business...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Potential Busines...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2Facebook Gift Card...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 3 Current Facebook ...
Problem<br />Facebook does not exploit all the potential eCommerce opportunities involving social networks<br />Facebook l...
Implementation<br />Acquire Facebook Marketplace from Oodle.com<br />Aggregate all products offered by users or businesses...
Problem<br />Facebook is lacking a strong community feel outside of personal networks<br />New users lack retention rate b...
Implementation<br />Create Facebook Questions to provide a community that answers new user questions about Facebook or any...
Background » Recommendation » Solutions » Impact » Timeline » ConclusionFinancial Impact<br />	Estimated Annual Profit for...
	Additional Datacenter<br />	Due to the increased use in user base and Facebook Marketplace, Facebook will be required to ...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionTechnological Cost<br />	Est...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionTechnological Cost<br />	Est...
Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionImplementation Timeline<br />
Stronger Facebook community outside friend networks<br />Stronger monetization through Facebook Marketplace<br />Utilizati...
Questions<br />Facebook for All<br />
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Facebook for All

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  • Facebook is seeking avenues to grow as a company and address competitors in the continuously changing social networking landscape.
  • Points of interest:1) “Facebook helps you connect and share with the people and businesses in your life.”2) Search bar on left side allows public access to Pages.
  • Facebook for All

    1. 1. forAll<br />George Dy, Tian Wang, Timothy Yung, Anhang Zhu<br />
    2. 2. Agenda<br />Background<br />Social Media Landscape<br />Strategic Issues<br />Target Audience<br />Recommendation<br />Solutions<br />Solution 1: Interactive Facebook Pages<br />Solution 2: Extend Facebook Credits<br />Solution 3: Develop a Facebook Marketplace<br />Solution 4: Facebook Questions<br />Financial & Technological Impact<br />Implementation Timeline<br />Conclusion<br />Facebook for All<br />
    3. 3. Background » Recommendation » Solutions » Impact » Timeline » ConclusionSocial Media Landscape<br />Facebook General Statistics<br />400+ million users1<br />500,000+ active applications1<br />1.5+ million businesses have Facebook Pages1<br />2.7% of Global Search Search Growth2<br />Social Media Statistics<br />58.59% on Facebook3September 2009<br />30.26% on MySpace3September 2009<br />Facebook for All<br />1 http://www.facebook.com/press/info.php?statistics<br />2 http://www.insidefacebook.com/2010/04/10/facebooks-search-traffic-continues-to-grow/<br />3 http://www.hitwise.com/index.php/us/press-center/press-releases/2009/social-networking-sept-09/<br />
    4. 4. Background » Recommendation » Solutions » Impact » Timeline » ConclusionStrategic Issues<br />Reinforce Facebook’s mission to give people the power to share and make the world more open and connected.<br />Facebook for All<br />
    5. 5. Background » Recommendation » Solutions » Impact » Timeline » ConclusionTarget Audience<br />Cater to existing audience<br />Indirectly target older audience<br />Business is globalized<br />People all over the world have local businesses<br />E-commerce plays an increasing role in GDP<br />Exploits Facebook’s language support<br />Target independent artists and musicians<br />Facebook for All<br />
    6. 6. Background » Recommendation » Solutions » Impact » Timeline » ConclusionAlternate Audiences<br />Why not target teens?<br />Why not target children?<br />Teenage demographiccontinues to increaseregardless of marketing.<br />Facebook for All<br />1 http://www.istrategylabs.com/2010/01/facebook-demographics-and-statistics-report-2010-145-growth-in-1-year/<br />
    7. 7. Background » Recommendation » Solutions » Impact » Timeline » ConclusionRecommendation<br />Facebook must provide a suite of functions to attract users outside key demographics<br />Facebook must develop products that create a richer and more interactive experience for businesses<br />Facebook must utilize personal social networks to address competing services like MySpace and Yelp, and provide competing resources for independent artists and restaurants<br />Facebook for All<br />
    8. 8. Background » Recommendation » Solutions » Impact » Timeline » ConclusionFour Solutions<br />Solution 1: Interactive Facebook Pages<br />Solution 2: Extend Facebook Credits<br />Solution 3: Develop a Facebook Marketplace<br />Solution 4:Facebook Questions<br />Facebook for All<br />
    9. 9. Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Interactive Facebook Pages<br />Problem<br />Users without online social networks lack incentives to use Facebook<br />Facebook Pages lack user interaction and general accessibility<br />Goal<br />Establish Facebook Pages to become the de facto social profile for businesses<br />Expand Facebook Pages to serve as interactive avenues for general users, not just Facebook users<br />Facebook for All<br />
    10. 10. Implementation<br />Improve general accessibility to Facebook Pages<br />Removing “login requirement” increases available audience<br />Redevelop Facebook landing page to include page search or directory browsing based on locality<br />Begin by targeting restaurants and independent artists to establish Facebook Pages as the default profile for businesses and artists<br />Create modules catered to specific page categories<br />E.g. reservations for restaurants, music store for artists<br />Results<br />Expand Facebook’s user base and retain existing users by providing a more interactive experience<br />Monetize Facebook pages by offering premium modules <br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Interactive Facebook Pages<br />
    11. 11. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Front Page Mockup<br />
    12. 12. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Reservations Module Mockup<br />
    13. 13. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 1 Reservation Notifications<br />
    14. 14. Problem<br />Third-party developers are using Facebook’s user base and creating more competition for Facebook (e.g. iLike).<br />Facebook Credits only used for Gifts (which accounts for 30% of Facebook’s revenue)<br />Users are not aware of Facebook Credits and the potential business models are not fully exploited<br />Goal<br />Promote the use of Credits across more Facebook properties to increase trust in Facebook as a business<br />Enable Facebook to serve as a middleman to conduct transactions between its users and itself or businesses<br />Use Credits as a method to utilize Facebook’s exclusive eCommerce-style marketplace<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Extend Facebook Credits<br />
    15. 15. Implementation<br />Allow users to purchase (via gift cards or electronically) Facebook Credits and use them in applications<br />Allow users to store and manage credit card information<br />Allow users to purchase goods directly via credit card or other services (e.g. PayPal, Google Checkout)<br />Develop in-house and acquire promising 3rd-party applications<br />Offer incentives to use Facebook Credits outside of the new use for purchase of tangible goods in the marketplace<br />Allow Facebook Page owners to upgrade their service for enabled access to specialized business modules<br />Results<br />Greater monetization for the use of in-house or acquired Facebook applications, increasing revenue streams<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Extend Facebook Credits<br />
    16. 16. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Existing Business Model<br />
    17. 17. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2 Potential Business Model<br />
    18. 18. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 2Facebook Gift Cards<br />
    19. 19. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 3 Current Facebook Marketplace<br />
    20. 20. Problem<br />Facebook does not exploit all the potential eCommerce opportunities involving social networks<br />Facebook lacks an avenue for vendors (e.g. with Pages) to sell products and services<br />Goal<br />Acquire Facebook Marketplace as the de facto destination for all Facebook users looking to shop within friend networks or local businesses<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 3 Develop a Facebook Marketplace<br />
    21. 21. Implementation<br />Acquire Facebook Marketplace from Oodle.com<br />Aggregate all products offered by users or businesses in the Facebook Marketplace<br />Create a Facebook Marketplace shopping cart and wish list to aggregate purchases and allow sharing product lists with friends<br />E.g. Wishlists will appear on user profiles during birthdays<br />Allow users to make online transactions<br />Results<br />Increase revenue through business and featured product listings<br />Encourage the use of Facebook search for eCommerce<br />Develop Facebook into a sales intermediary between users, taking a percentage of seller fee<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 3 Develop a Facebook Marketplace<br />
    22. 22. Problem<br />Facebook is lacking a strong community feel outside of personal networks<br />New users lack retention rate because questions are often left unanswered<br />Goal<br />Develop a stronger Facebook community outside of friends networks to promote higher retention of new users and provide incentives for active users<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 4Facebook Questions<br />
    23. 23. Implementation<br />Create Facebook Questions to provide a community that answers new user questions about Facebook or anything trending<br />Develop a strong community feel that offers support and the promotion to Facebook Expert, which is a title that is offered to the users with highest answer count<br />Users can connect with people outside of personal networks if they are lacking friends, greater incentive to stay on Facebook<br />Results<br />Retain new users and provide stronger community incentives to increase time spent on Facebook by existing users<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionSOLUTION 4Facebook Questions<br />
    24. 24. Background » Recommendation » Solutions » Impact » Timeline » ConclusionFinancial Impact<br /> Estimated Annual Profit for Marketplace<br /> ($60BTraded2)/(90MActive Users2) = $667Traded per Active User<br />($8.7BRevenue)/($60BTraded2) = 14.5%Revenue Margin on Traded Goods<br /> ($2.4BProfit)/($60BTraded2) = 4%Profit Margin on Traded Goods<br /> Estimated active users that make at least $50k per year:<br />(400M Active Users)(67%1) = 268MPotential Marketplace Users<br />1 http://www.socialtimes.com/2010/04/demographic-of-the-7-most-popular-social-media-sites-infographic/<br />2 http://investor.ebayinc.com/<br />Facebook for All<br />
    25. 25. Additional Datacenter<br /> Due to the increased use in user base and Facebook Marketplace, Facebook will be required to upscale its datacenters in preparation for the surge in traffic<br /> Even though Facebook has already begun building a 35-acre custom datacenter in Oregon that is scheduled to be available in June 2011, Facebook needs to have enough hardware until this datacenter is complete<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionTechnological Impact<br />
    26. 26. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionTechnological Cost<br /> Estimated Total Cost for Development<br />Server Cost (775MUsers in June 20111)/(220MUsers in May 20092)<br /> = 352% user base growth($25Mserver cost in June 20112) * 352%4<br />= $88Mprojected server cost in June 2011<br />Operation Cost for Marketplace<br />Average: $9.38B <br /> High: $15.01B<br />Low: $1.88B<br />1 http://www.insidefacebook.com/2010/04/06/facebook-sees-solid-growth-around-the-world-in-march-2010/<br />2 http://www.facebook.com/press/info.php?timelined<br />3 http://www.salarylist.com/all-real-jobs-salary-at-facebook-inc.htm<br />4 assuming data grows parallel with user growth, compounded over 15 months<br />
    27. 27. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionTechnological Cost<br /> Estimated Total Cost for Development (cont.)<br />Labor Cost <br /> ($70KAnnual salary for Software Engineers1/12 months per year)*(50Software Engineers)*(9 months)= $2.63M in labor<br />Estimated Acquisition Cost <br />1 http://www.websiteoutlook.com/<br />
    28. 28. Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionImplementation Timeline<br />
    29. 29. Stronger Facebook community outside friend networks<br />Stronger monetization through Facebook Marketplace<br />Utilization of Facebook Credit, line of currency exclusive to Facebook users for exclusive Facebook offers<br />Pages become a default profile for business and independent artists, eliminating competition from Yelp and MySpace<br />Facebook for All<br />Background » Recommendation » Solutions » Impact » Timeline » ConclusionConclusion<br />
    30. 30. Questions<br />Facebook for All<br />
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