Facebook

Any Guess about the below logo?

AboutSocial Networking

• Social networking is the grouping of individuals into specific groups, like small rural communities or a neighbourhood subdivision where individuals can set up an online profile, describing his/her interests, and add links to other profiles.

• Social networking sites can be a great way to stay in touch with a large group of people. If you have news you'd like to share with everyone you know, you can simply post it on your own personal bulletin board, and it will be distributed to everyone on your friends list.

• Helps us to reconnect with our old friends and keep in touch with your friends and relatives at any part in the world!

What is Facebook?

• Facebook is a social networking website launched in February 2004 that is operated and privately owned by Facebook Inc., with more than 500 million active users in July 2010, which is about one person for every fourteen in the world

What is Facebook?

• A place to connect with friends and share thoughts, links, photos, movies and schedule events.

• Keep Track Of Friends: Facebook tells you when your friends are updating their profiles, adding to their blogs or have some other news on their website.

• Most popular social media site & a Powerful Social Media tool

• Helps to boost Sales and Customer Loyalty

Founder

• Mark Zuckerberg with co-founders Dustin Moskovitz, Chris Hughes and Eduardo Saverin launched Facebook.

• Born on May 14, 1984 Mark Zuckerberg is one of the youngest CEO in the silicon valley.

• At the age of 26, Mark Zuckerberg is the youngest billionaire with a net worth of US $4 billion.

CEO & President

Idea

• In early 2004 Mark Zuckerberg a second year student at Harvard University. gave birth to Facebook, then at thefacebook.com. It was a way for Mark and other Harvard students to keep in touch over the Internet and get to know each other better.

• The academy had a tradition of publishing an annual student directory with headshot photos of students, faculty and staff known as the “facebook”.

The Idea• Once at college, Zuckerberg's Facebook

started off as just a "Harvard thing" until Zuckerberg decided to spread Facebook to other schools, colleges & universities.

• After it was initially started, it was forwarded to Harvard’s school admins and it was quickly shut down. Zuckerberg was charged and faced expulsion for breaching privacy.

• In 2005, he dropped “the” from the name and URL.

Idea

Their Mission!

Organisational Structure

It’s funding

• Facebook received its first investment of $500K in June 2004 from PayPal co-founder Peter Thiel.

• This was followed a year later by $12.7 million in venture capital from Accel Partners.

• And then $27.5 million more from Greylock Partners

Ownership

• Mark Zuckerberg owns 24% • Accel Partners owns 10%, • Dustin Moskovitz owns 6%, • Digital Sky Technologies owns 5%, • Eduardo Saverin owns 5%, Sean

Parker owns 4%, Peter Thiel owns 3%,

• Greylock Partners and Meritech Capital Partners own between 1 to 2% each,

• Microsoft owns 1.3%, Li Ka-shing owns 0.75%,

• Rest is owned by employees and outside investors.

Pie Chart

Ownership

24%

10% 6%

5%

5%

4%

3%

1%

1%

1%

1%

39%

17%

Mark Zuckerberg

Accel Partners

Dustin Moskovitz

Digital Sky Technologies

Eduardo Saverin

Sean Parker

Peter Thiel

Greylock Partners

Meritech Capital Partners

Microsoft

Li Ka-shing

Employess & Investors

Users Growth since Inception

Valuation

• Facebook turned down a $1 billion purchase offer from Yahoo! In 2006

• Microsoft is in talks to buy a stake of up to 5% in Facebook for $300 million to $500 million: the company could then be valued at more than $10 billion (Sept. 25th 2007)

• For 2010, facebook is valued for more than $20 billion

Awareness vs Penetration Analysis

MySpace

Facebook

LinkedIn

Hyves

Netlog

Twitter

Hi5

Orkut

Ning Xing

Other

0%

10%

20%

30%

40%

50%

0% 10% 20% 30% 40% 50% 60% 70% 80%

PEN

ETRA

TIO

N O

F SO

CIAL

NET

WO

RK

WEB

SITE

S

highlow

high

low

High awareness and high penetration !High awareness and high penetration !

AWARENESS OF SOCIAL NETWORK WEBSITES

USERS Bifurcation

ACTIVITY FREQUENCY

LOG

IN F

REQ

UEN

CY

SPECIAL OCCASIONS

13%

ADDICTS

26%

PASSIVE USERS

47%

CONSIDERATE USERS

14% • BRAZILIAN• MAINLY PERSONAL MEMBERSHIPS• CURRENT TWITTER MEMBERS

• FEMALES MOSTLY• 18-44 Y.O.• SINGLES WITH NO KIDS• THEY TRY TO BUILD AN IMAGE ON THEIR PROFILE(S)• THEY ARE AT EASE ONLINE• THEY FOLLOW RECENT INTERNET HYPES

• MALES MOSTLY• 30-55 Y.O.• CURRENT TWITTER MEMBERS• MAINLY PROFESSIONAL MEMBERSHIPS• NO INTERNET EXPERTS

• 18-30 Y.O.• USA & RUSSIA• MAINLY PERSONAL MEMBERSHIPS• LIKELY TO POST HAPPY EVENTS, HOLIDAY PICS,... • NO INTERNET EXPERTS

Business Model

• Business model is the mechanism by which a business intends to generate revenue & profits

• It is a summary of how company plans to serve its customers

• It involves both STRATEGY & IMPLEMENTATION

Business Model

• Facebook fits into the Network Effects Business Model, which was a common model in the dot-com boom of late 90’s.

• This type of business model is based on the network effect which causes a good or service to have a value to a potential customer dependant on the number of customers already owning that good or service.

• Facebook fits this model because the more registered users there are on the site, the more useful the site is.

How it selects its Customer?

• Social Networking sites have been on the rise in the last few years such as MySpace, Twitter, LiveJournal ..etc

• Most of these social networking sites are not specific and have a variety of users.

• Facebook due to its popularity and ease to use applications has been successful in getting

higher number of users.

How it Differentiate its product offerings?

• One of the key elements to facebook success is differentiation, particularly from other networking sites.

• Some of the features enlisted below;– News Feed– Share (Pics & Messaging)– Wall– Mini Feed– Mobile

– Public listing search

How it configures its Resources?

• Major resources of facebook are the servers that keep the site running despite the heavy amount of traffic.

• Facebook is the second most trafficked website in the world and one of the largest MySQL installations running thousands of databases.

• Facebook has built a light weight but powerful multi-language RPC framework that allows the company to seamlessly tie together subsystems written in any language, running on any platform.

How is facebook generating

REVENUES????

Revenue Model

• Microsoft Advertising: Microsoft has been running banner advertising on Facebook for years, one of the perks of its which it started doing when it made a strategic investment in the company

• Virtual Goods/Credits: At $10 million a year, the gift shop would be bringing in $25,000 a day

• Performance Advertising: As the biggest success so far in terms of monetization, performance advertising grew by roughly $150 million in July 2010

• Brand Advertising: Facebook also continued to upgrade Pages and its home page advertising units, testing out a range of new features like engagement sampling ads.

SWOT Analysis

Strengths• Strong brand• Truly compelling product• Innovation• Continual viral growth• Open Platform• Virtually unlimited feature set• High user retention

Weaknesses• Low revenue per user• Application Availability and Consistency • Inexperienced in overseas market & culture• Not so appealing Instant Messaging• High learning curve for new users• Flash Distractions

Opportunities• Technology • To grow internationally• Partnership to drive peer-to-peer, community-to-community services• To concentrate on increasing company revenue

Threats• Emergence of better social networking websites• Lose its appeal to users• Privacy issues• No Email Controls• Commercialized if sold

N Global = 2065 / Filter = If user

In 2009 we have measured that...

The Power behind FACEBOOK

Average user has 130 friends

5,000,000,000The number of minutes spent on facebook everyday

If facebook were a physical nation it would now be the 3rd most populous on earth

124 mn 195 mn 1.35 bn1.21 bn500 mn310 mn300 mn232 mn

SOURCE U.S. CENSUS 2010

More than 500 Million Users

More than 700,000 local businesses have active Pages on Facebook

3 Billion +

Number of photos uploaded each month

100+Million Mobile Users

Average User creates 70 pieces of content every

month

1700+

Employees 

How many

employers checking up

on you?

With 16,490,570 likes the biggest person on Facebook is

not even alive

 $20 Billion

Valuation?

1 Hollywood Blockbuster

Age of man who built and is in charge of all

this.

26

Corporate Social Responsibility

• Mark Zuckerberg, chief executive of Facebook, has agreed to donate $100 million to improve Newark’s long-troubled public schools

• The $100 million for Newark is the initial gift to start a foundation for education funded by Mr. Zuckerberg. This would be by far the largest publicly known gift by Zuckerberg

Mark Zuckerberg is donating $100 million to the Newark public school system. The donation will be the first part of a foundation intended improve U.S. education. Photo: Facebook

Some other Successful Campaigns

• A Consortium of Pub-going, Loose, and Forward Women :- Famously know as the ‘Pink Chaddi Campaign’ – Started by Nisha Susan after some political party workers roughed up women at a pub in Bangalore! The group saw an overwhelming response with hundred thousand supporters joining in a few days. Though the group was deactivated shortly after the campaign took for it had already served its purpose and had sent an widespread message all over the country!

• Initiative started by Mumbai Police to hunt down on errant driversIncase you see traffic jams, people breaking common traffic rules or face errant Taxi/Auto rickshaw drivers then you just need to click their photo using your basic mobile phone which has a camera. If you want to make a statement then go for a digital camera.

• Meter Jam CampaignThe Meter Jam campaign used the power of Online campaigning and social media to call upon commuters in Mumbai to boycott auto-rickshaws and taxis on August 12.The idea behind the boycott campaign started as a reaction to the problems caused by auto-rickshaw and taxi drivers in the city, such as frequent refusals and overcharging by using tampered meters, with the objective of instigating collective action

Achievements

• Mark Zuckerberg has been named as a Media Person of the Year Award at the 57th Cannes Lions International Advertising Festival.

• Agenda Setter CEO of 2007 by silicon.com• The Economist's Innovation Award for “No

Boundaries” (2009).• Tops in Vanity Fair’s 16th annual New Establishment

list of the 100 most influential people of the Information Age.

Achievements

• The website has won awards such as placement into the "Top 100 Classic Websites" by PC Magazine in 2007.

• Winning the "People's Voice Award" from the Webby Awards in 2008.

• Facebook is named the second most popular thing among undergraduates, In 2010.

• Facebook was recognized as one of the "Hottest Silicon Valley Companies" by Lead411.

• Facebook won the Crunchie “Best Overall Startup Or Product” the third year in a row.

Thank You !!!!!