Trial run! Smart art didn't transfer but you get the point

1. Facebook
Sarah Buckley
Evan Liu
Bethany Stachenfeld
Zane Turpin

2. AgendaAgenda

3. facebook

4. • Online social networking
• Founded by Mark Zuckerberg in 2004
at Harvard University
• Transitioned from exclusive
membership to general public (13+)
• Headquartered in Menlo Park, CA
o 4,619 employees
• Second most visited website in the
US
o Over 1 billion users worldwide
• Talent Acquisitions
o "We have not once bought a company for
the company. We buy companies to get
excellent people." - Mark Zuckerberg
Overview

5. Agenda
• Went "public" May 18, 2012
o Company value: $104B
o Single share: $28
o Biggest in Internet history
§ Overvalued
• Stock price dropped
o Market Cap: $61.89B
o Single share: $25.98
Shareholders

6. Challenges
How to keep Facebook relevant
• Maintain Network Effect
How to please shareholders
• Increase profit
How to respond to imposing threat
of other social networking sites
• Google+, LinkedIn, Twitter
Challenges

7. Profit
Facebook generates revenue from:
• Advertising
o Cost Per Click (CPC)
o Cost Per Impression (CPM)
• Payments
o Games (Zynga)
§ "Connecting the world through games"
o Gifts
Profit

8. Interactive Online Media IndustryIndustry Analysis

9. Industry AnalysisIndustry ROA

10. Revenue
Company 2012 Reported
Revenues
Facebook $5,089,000,000
LinkedIn $972,309,000
Twitter $350,000,000
Tumblr $13,000,000
Revenue

11. RevenueRevenue

12. RevenueRevenue

13. Competitive Positioning
Broad
Narrow
Cost Leadership Differentiation
Competitive Positioning

14. VRIO Analysis
Relative Cost Position
Low
HighLow
High
Differentiation
Michael E. Porter, “What is
Strategy?,” HBR (1996)
VRIO Analysis

15. S-Curve
Harvard Business Review
S-Curve

16. Recommendations
Sell Data
Directly Target Consumers
Advertising
Recommendations

17. RecommendationsRecommendations

18. Recommendations
UserID A9A3BECE0563982D
Recommendations

19. Recommendations
UserID A9A3BECE0563982D
Male Likes tennis
Likes Coldplay
Recommendations

20. RecommendationsRecommendations

21. RecommendationsRecommendations

22. RecommendationsRecommendations

23. AdvertisingAdvertising
Personal Interactive
Relevant

24. Changes to Online AdvertisingChanges to Online Advertising
More relevant
to users
Did this ad
apply to
you?
Klout
Charge
influential
users more

25. Integrated Mobile Marketing
§ "Check In" capability very popular on mobile
devices
§ Related or nearby experiences will not come
off as annoying or intrusive
Integrated Mobile Marketing

26. SummarySolutions
• Selling Data • Effective Advertising