By: Divya Dhawan Divya Kumari Neha Ahuja

About Facebook

History
Business Model Promotion Strategy Facebook Stats How does it Make Money? SWOT Analysis Impact on Society

Launched in February 2004 Founder & CEO Mark Zuckerberg

Operated and privately owned by Facebook, Inc Has over 2,000 employees & offices in 15 countries.

Allows users to Create Profiles with Photos List of Personal Interests

Add Contact Information & Other Personal Information.

To Communicate with friends and other users through private or public messages or through chat feature. Create and Join Interest Groups and Like Pages

Oct 28, 2003 Mark wrote a Facemash Site made for comparing photos of students of Harvard. Attracted 450 visitors and 22000 photo views in its first 4 hrs online.

4th Feb 2004 launched thefacebook originally located at thefacebook.com Six days later Mark was accused by 3 Harvard seniors. Later they filled lawsuit against him, subsequently settling. Facebook Inc got established in summer 2004. Sean Parker became the President of the Co.

In June 2004 facebook moved its base of operations to Palo Alto, California. It received its first investment in June 04, from PayPal co-founder Peter Thiel. They purchased the domain name facebook.com in 2005 for $200,000. On Sept 2006 facebook was opened to everyone of age 13 and older with a valid email address.

 Facebook fits into the Network Effects Business Model

The more registered users there are on the site, the more useful the site is.

Facebook Business model involves: Selection of customers

It is open for all, anybody can join it

Definition and differentiation of its product offerings People with particular interests, views, or hobbies are able to form and join online groups.

Creates utility for its customers Keeping in touch with friends and family Keeping up with social events

Promotion has never been a major issue for facebooks success Promotion of the site has been mostly by word of mouth Not funded any major advertising campaigns

General Growth
More than 300 million active users 50% of our active users log on to Facebook in any given day

User Engagement
The average user has 130 friends on the site. More than 8 billion minutes are spent on Face book each day worldwide.

More than 45 million status updates each day.

More than 10 million users become fans of Pages each day. People spend over 700 billion minutes per month on Facebook.

Applications
More than 2 billion photos uploaded to the site each month, More than 14 million videos uploaded each month, More than 2 billion pieces of content shared each week, More than 3 million events created each month, More than 45 million active user groups exist on the site

International Growth
More than 70 translations available on the site About 70% of Facebook users are outside the United States Over 300,000 users helped translate the site through the translations application

Platform People on Facebook install 20 million applications every day Every month, more than 250 million people engage with Facebook on external websites More than 2.5 million websites have integrated with Facebook

Mobile

There are more than 250 million active users currently accessing Facebook through their mobile devices.
People that use Facebook on their mobile devices are twice as active on Facebook than non-mobile users.

There are more than 200 mobile operators in 60 countries working to deploy and promote Facebook mobile products

Total Active Users

Date August 26, 2008 April 8, 2009 September 15, 2009 February 5, 2010 July 21, 2010 January 5, 2011 July 6, 2011

Users (in millions)

100 200 300 400 500 600 750

Monthly growth
178.38% 13.33% 10% 6.99% 4.52% 3.57% 2.54%

Facebook generates MONEY through :

APPLICATIONS

GIFTS

CASH CARDS

 Ads Appear on the right hand side of the page. Facebook advertising scheme is a cost per click (CPC) and cost per thousand impressions (CPM).

Applications Like Farmville, Cityville, Poker etc. It takes a rental fee from the revenue generated by the game

 Gifts Allows sending virtual gifts such as gift baskets, balloons, stuffed animals etc. Some gifts are although purchased using real money too.

Cash cards To facilitate the exchange of real money for Facebook gifts, games, and other virtual possessions.

STRENGTHS Translated in more than 70 languages. The integrated Wall and minifeed feature Sharing is very easy regarding the website Privacy options

WEAKNESSES Security/Privacy Over use of advertising Constant change to page design Lack of ability to customize page Too many irrelevant and useless applications Facebook chat has too many glitches in its system

OPPORTUNITIES Creates business partners Communication that is free

Innovation
Facebook Email Facebook Video chat

THEREATS Other social media networks (twitter, etc.) New entrants into the industry (Google +) Privacy settings- leak millions of photos a year Spamming Users get bored easily when using applications and programs

POSITIVE

Communication with anyone and anywhere in a much more timely fashion

Meet new people, make new friends Join groups of same interest

Increase of knowledge from communicating with other people

NEGATIVE Purposeful loss of privacy

Very small control over information flow that may affect your privacy
Ability for someone to use the information about you that may have effect on you Increased movement of social interactions from the physical domain to the digital domain