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- 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 NetworkingIndustry 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 belongsto 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 connectpeople 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 Tobecome 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 Factorsfor 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. 8/7/2012 20
- 21. Market share analysis 35 30 25 20 15 10 5 0 tw e ar ys ok nd r t ku ie e c st fr i tt pa bo or ce m fa 8/7/2012 21
- 22. Conclusion Facebook’s IPO willmost 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.
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