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Social Network - Facebook

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Social Network Facebook

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Social Network - Facebook

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  2. 2. Agenda  Executive Summary of Global Market – Social Network  About Facebook  Facebook - Mission  Current Core –Team  Facebook – Timelines  Facts & Figures  Facebook Users Worldwide  Competition  Acquisition  SWOT - Analysis  Financials  IPO  Case I – Indian Case  Case II – International Case  Conclusion  Video – 7 Minutes 2
  3. 3. Executive Summary- Social Network  In 2013 around 1.61 billion people log in to social networking sites at least monthly, from any electronic device  That’s a 14.2% gain on social networker numbers from 2012  Market will grow at the rate of 10 % CAGR  By 2017, 2.33 billion people will use social networks.  Social media advertising market is expected to grow 52% to 58% YOY Drivers  Increasing popularity of social media sites  Emerging countries like India and China large potential internet users in future  Increasing sale of smart phones is a key driver for this market  Most of the social networks are free for the users Challenge  Increasing abuse of social media and security concerns  The risk of confidential information leakage example: - Personal information 3
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  5. 5. About Facebook Facebook® is a “social networking website” that allows you to create an online page to connect with friends, family, or make new friends with anyone anywhere. On your Facebook® page you can share pictures, personal information , messages, videos , join groups and add applications. 5
  6. 6. Mission 6
  7. 7. thefacebook 7
  8. 8. Facebook Current Core Team Mark Zuckerberg (Chairman and CEO – 28.2% Stake) Age-29 • Personal wealth, as of April 2014, is estimated to be $25.3 billion • Mark Zuckerberg receives a one-dollar salary as CEO of Facebook Sheryl Sandberg (COO) Age-44 • American businesswoman, activist, and writer • Worth over US$1 billion -17.2 million Facebook shares, 0.5% stake David Ebersman (CFO) Age - 45 • He was hired as he had "public company experience" • Facebook issued an IPO of its stock on May 18, 2012 Mike Schroepfer (Chief Technology Officer) Age -39 • Mike Schroepfer is an entrepreneur & technical architect • Schroepfer holds 2.1 million shares of Facebook 8
  9. 9. Facebook Users Worldwide 9 Source: Facebook
  10. 10. Facts About Facebook  Facebook employed only 6,337 people directly  Facebook has more than 1.23 billion users globally  Mobile monthly active users were 945 million as of December 31, 2013, an increase of 39% year-over-year.  Facebook Deals with Everyday: 2.7 Billion Likes, 300 Million Photos Uploaded and 500 Terabytes of Data in real time  Facebook Handles 300 Petabytes of Daily Data, it stores for its active users  Users are exposed to 1500 pieces of potential content every day.  There are 70 different languages available for users on Facebook  The average person spends between 18 and 20 minutes viewing their Facebook account  Originally, engineers wanted to call the “Like” button the “Awesome” button  By 2010, Facebook became profitable 10
  11. 11. 2004 2005 Oct 2005: Facebook begins to add international school networks, Launch of Facebook Photos & reached 6 million users Sept. 26, 2006: Facebook expands registration so anyone can join- reached 12 million users Feb 4, 2004: Mark Zuckerberg and co-founders Dustin Moskovitz, Chris Hughesand Eduardo Saverin launch Facebook Source: Wikipedia, Facebook & Google Facebook - Timelines 2006 2007 Nov. 26, 2007: Launch of self- service Ads platform + Facebook Pages – reached 58 million users 2008 2008: Launch of Facebook Chat, Facebook iPhone app & New Facebook launches 2009 2009: Introduction of the Like button, New Facebook home page launches & reached 356 million users 2011: Launch of video calling, Timelines -reached 845 million users 2011 2012 2012: Facebook announces acquisition of Instagram, IPO & More than 1 billion people are active on Facebook 2014 2014: Facebook is 10 Year Old, Acquired WhatsApp & Oculus-1.23 Billion users
  12. 12. Competition 12  Connecting  1.23 Billion  $152.58bn  Passive  Friends  Information  232 Million  $33.05bn  Active  Followers  Business Oriented  260 Millions  $ 21.4 Billions  Passive  Connection Type of Social Media Active users Market Cap Communicati on Form Difference
  13. 13. Major- Acquisitions by Facebook WhatsApp Messenger ( $ 19 Billion) 55 Employee • WhatsApp has 450million users with 70% active daily, which is already 60% the size of Facebook’s daily user community (550million.) • 50bn- Number of messages WhatsApp processes a day Oculus VR ( $ 2 Billion) 75 Employee • Oculus VR is a virtual reality technology company • Oculus Facebook's answer to Google Glass? Instagram ( $ 1 Billion) 13 Employee • 13 employees created a billion dollar app • The average Facebook user has 26 profile photos 13
  14. 14. SWOT- Analysis 14 Strengths  Integration with websites and applications  More than a billion active monthly users  Excellent users experience  Understanding of user’s needs and behavior Opportunities  Increasing number of people using Facebook through mobile devices  Expansion to China  Diversify sources of revenue  Open Facebook marketplace Weaknesses  Weak CTR of advertisements  Social network lacks of some features  One source of revenues – advertisements on Facebook  Attitude towards users’ privacy  Lack of website customization  Weak protection of users’ information Threats  Increasing number of mobile internet users  Users using ad-block extensions  Slow growth rate of online advertising  Identity thefts  Weak business model
  15. 15. IPO & Share Price History 15
  16. 16. Financials- Last 5 Years 16 Years/ Particulars 2009 2010 2011 2012 2013 Revenue 777$ 1,970$ 3,711$ 5,089$ 7,872$ Revenue Growth % 154% 88% 37% 55% Net Income 122$ 372$ 668$ 32$ 1,490$ Net Income Growth % 205% 80% -95% 4556% Years/ Particulars 2009 2010 2011 2012 2013 Total Assets 1,110$ 2,990$ 13,790$ 15,100$ 17,900$ Total Assets Growth % 169% 361% 9% 19% Total Liabilities 241$ 828$ 1,430$ 3,350$ 2,430$ Total Liabilities / Total Assets 22% 28% 10% 22% 14% Debt Ratio 0.22 0.28 0.10 0.22 0.14 All figures are in Million $777 $1,970 $3,711 $5,089 $7,872 $122 $372 $668 $32 $1,490 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 2009 2010 2011 2012 2013 Facebook Revenue & Net Income Revenue Net Income
  17. 17. Indian Case Study – Election Campaign 17
  18. 18. Global Case Study- Zynga Social game services company founded in July 2007 Zynga states its mission as "connecting the world through games." Social gaming pioneer Zynga, creator of the Facebook games Farmville, CastleVille, and Mafia Wars, among others, is one of tech’s big success stories FarmVille became the most popular game on Facebook 18
  19. 19. Conclusion 19 Mobile Monetization:– Facebook still has yet to find the right formula for monetizing on mobile. Compete with Google:- Focus on evolving its search engine & compete directly  Growth from Subsidiaries :- The Subsidiaries companies like Instagram, WhatsApp & Oculus VR is diversifying the business & can fuel the growth any time in near future
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