This presentation summarizes Facebook's strategy. It discusses Facebook's mission to connect people on an innovative platform and its vision to provide users with value beyond interaction. Key points include Facebook belonging to the social networking industry and being founded in 2004 by Mark Zuckerberg. The presentation analyzes Facebook's internal environment, strategy using frameworks like PEST analysis and Porter's Five Forces, competitive landscape, SWOT analysis, and financial performance including growing revenues from 2007 to 2011. It concludes that Facebook's IPO will likely be the biggest financial event of 2012.

1. MD.Junayed Roman
Md.Al-Mamun Md . Mehedi Hasan
Md.kamruzzaman

2. Welcome to Our
Presentation
Summer-2012, MGT-501,--STRATEGIC MANGAEMENT ,
Course Advisor: Dr. M. Mahmodul Hasan

3. 1. INTRODUCTION
 Company & INDUSTRY BACKGROUND
2. Overview of Facebook
 facebook social media strategy framework.
3.Strategy of Facebook
4.Financial Performance
5. Conclusion

4. Covered by: MD. Junayed Roman
Id: 12-2-14-0118
MBA-MGT-501(D)
Panel Leader

5. Industry Background
Social Networking Industry building online
communities of people having shared interests.
Social networks have common themes of
information sharing, person-to-person interaction
and creation of shared & collaborative content
•The industry have been successful in getting a large
number of people at one place, but not very
successful in Monetization.
•Two-thirds of the world’s Internet population visit
a social network or blogging site and the sector
accounts for almost 10% of all internet time.

7. Facebook.com
• Facebook belongs to the online
social networking industry.
• Facebook.com is a free social
networking website operated by
Facebook Inc.
• Founded in 2004 by Mark
Zucherberg as a network for Ivy
League schools

8. Internal
Mission: To connect people on an innovate platform that
fosters increasing interaction.
Vision: To provide users with value beyond interaction.
Facebook Some of Facebook’s key personnel
Facebook known Name Designation Priors
as silicon valley Mark
Zucherberg CEO Founder of Facebook.com
companies Chamath AIM, ICQ, Spinner.com,
Palihapitiya VP Product Marketing Winamp.com
Gideon Yu VP Finance CFO of YouTube!
Sheryl
Sandberg COO VP of Sales at Google
Apple, Director at several
Dave Morin Sr. Platform Manager Startups

9. Internal
Long Term Objectives
To become part of daily life
by becoming a complete
communications tool
Bring people and
businesses on the same
page to deliver services
Create an enjoyable and
useful online experience

11. STRATEGIC ANALYSIS
1) Interface
2) PEST Analysis
3) Porter’s Five Forces
4) Critical Success Factors for
the industry
5) Competitors analysis
6) Strategic Map
7) SWOT Analysis

12. Interface External
Facebook has had a new design every year since 2005.
Continuous improvement and innovation with
site design has helped Facebook

13. PEST Analysis External
External Environment Analysis
POLITICAL ECONOMIC
- Pressure to crack down on child - Greater affluence, leading to more
number of users online
predators
- Increased emphasis on privacy
PEST
SOCIAL TECHNOLOGY
- “Everyone’s on it” & there is a - Increases in broadband speed and
pressure to Belonga penetration
- Decrease in bandwidth and data
center costs

14. Porter’s Five Forces External
Threat of New
Entrants (Medium)
Supplier Industry Buyer Power
Power (Low) Rivalry (High) (High)
Threat of
Substitutes OVERALL
-
(Medium) MEDIUM

15. Critical Success Factors for facebook External
Question: How
do we measure success in Social media like
Social networking sites?
•Design Key Business Imperatives
•Target Market
•Activity Focus.
Answer:
•User 1) Increase
Engagement advertising
• Transaction
revenue
2) Increase user
• Privacy
engagement
• Entry Barriers
• Trust
• Localization

16. Competitive Landscape : Worldwide External
Key Takeaways
•The major cmpititors of
Facebook are MySpace, Orkut,
twitter &
•Friendster.
• These global players face
issues in countries like China,
Japan and Germany
• Facebook now leads in the US market (in addition to worldwide)
• MySpace still leads in terms of ad-revenue

17. Strategic Map External
Mapping user
engagement to revenues • It is interesting to
note that facebook
with much greater
MySpace user engagement, but
$750 mil.
in sales
•FB cannot make as
revenue much as
MySpace
Facebook
$300 mil.

18. SWOT ANALYSIS
Strengths Opportunities
1.Huge active user base. 1.Advertising is moving towards
2.Popular Platform for application Targeted ads
development
2.Improve Email and Chat
3.Present in all geographies
4.Translated in over 40 languages
5.Email and Chat are integrated
Weaknesses Threats
1.Chat at monetizing 1.People may grow tired of
the highly structured FB and
2. delivering a high number move to MySpace
of ad’s per user 2.People have privacy
concern with Facebook
3.Inability to manage 3.Risk of losing young, hip
application image

19. 1. Financial Performance
2. Market share analysis

20. Financial Performance
Face book has seen its revenue grow
substantially from 2007 to 2011, increasing
from $153 million to $3.7 billion.
Facebook has been profitable since 2009
and has seen its net income rise to $1 billion.
Facebook generates 85% of its revenue from
advertising accounts with an additional 12%
coming from Zynga related transactions of virtual
goods and payment processing.
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21. Market share analysis
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22. Conclusion
Facebook’s IPO will most likely be the biggest
financial event of 2012, assuming that the Euro
zone doesn’t collapse, especially for those who
were lucky enough to acquire early shares in
the company.
Zuckerberg, who owns 28.2% of the shares, is
expected to walk away with a cool $28 billion,
making him the 9th richest person in the world.

23. Any query ?