Capstone Facebook Essay

Submitted By Naim-Haque
Words: 2882
Pages: 12

Table 1, BM Canvas
1. Key Partners
Ref.
> Zynga is the biggest developer of games played on FB
> 30% cut of virtual goods sold by Zynga
> Microsoft bought FB 1.6% stake brings cash injection ($240m)
> Microsoft sells ads for FB outside US
> Microsoft’s IT specialty & innovation (Azure & Xbox)
> Skype’s premium functions are integrated into FB (Video chat, instant message, etc)
> Microsoft has previous experience on operating in Chinese market
> Oracle exalogic elastic cloud integrated application server –cloud in a box (2 can handle all)
> Dentsu Inc. is representative of FB’s sales & marketing support to companies in Japan
> Mobile providers, 35% of FB users access the site from a mobile device
1
3
4
4
6, 7
10
13
8, 9
11
12
2. Key Activities
Ref.
> Research & developments (10.5% of its revenue)
> FB’s core concepts forms integration of information (social design, social plugin, open graph, graph API)
> FB’s developers news with all latest updates
> Network dev & maint through developer blog
> Ftstart program give 3rd party developers advanced notice of new tools & features (network development)
> Innovation (Timeline created an entire eco-system of profile enhancement)
> Innovation ( No. of patents granted & applications filed)
> Innovation (mobile adverts, no one yet crack this service)
> Energy efficient green data centre innovation (reduce 1/2 power consumption)
> Data security management
> Platform development & maintenance (JavaScript / PHP / IOS / Android SDK)
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15
16
17
18
20, 21
14
22
25
23
24
3. Key Resources
Ref.
> 56 granted patens & 503 applications filed US, 33 granted & 149 applications filed outside US (2011)
> Large user base (845m+ MAUs, 483m+ DAUs, 425m NAUs use mobile products)
> My SQL user database (handles all user interaction)
> Personnel talents (IT engineers, financial, marketing & people with political background)
> IT infrastructures ( platform, apps, social plugins, payments & open compute project)
> Brand equity
14
26
37
2, 12
27, 28
4. Offers (Value Proposition)
Ref.
5. Customer Segments
Ref.
> Latest news for developers through FB’s developer news section
> Quick access to all developers new innovations through developer blog
> Corporate social responsibility (green data centre, open compute project)
> Products (Timeline, news feed, open source for developers, pages, photo, message, video call, etc)
> Brand equity
> New recruitment tool
> Innovation products (intellectual properties, Timeline, mobile ads, etc.)
> Data security, privacy policies
> User friendly
> Reliability (speed 0.7 sec, uptime 99.98%)
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17
25, 28
15, 27
29, 32
30
14, 20
21, 22
23
33
34
> Developers – Low costs
> Individual users (Social, Gaming)
- Differentiation
> Advertisers – Low costs
> Businesses (Pages)
- Low costs, differentiation
> Game providers - Differentiation
> Groups (Students, professionals, politics)
- Low costs
2

6. Customer Relationships
Ref.
> User friendly, tailored functions ( 70+ languages, adapt to suit different needs)
> Cost savings (data sharing, video calls, messaging, etc)
> Customer services (Table 3)
> Enhanced security
> Focus on relationship privacy
> Integration into other networks (yahoo accepting FB ID)
2, 33
2
39
2, 23
2, 23
40
7. Channels
Ref.
> Mobile devices (35%, 425m MAUs)
> Facebook.com
> Computer equipments
> World Wide Web
2, 12
2
2, 36
2, 36
8. Revenue Stream
Ref.
> Zynga account for 12% of total revenue
> Total revenue (2007-2011, $153m, $272m, $777m, $1,974m, $3,711m)
> Advertising (2009-2011, $764m, $1,868m, $3,154m)
> Gaming, FB credits, Virtual group products (2009-2011, $13m, $106m, $557m)
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2
2
2
9. Cost Structure
Ref.
> Research & developments (2007-2011, $81m, $47m, $87m, $144m, $388m)
> HRM (2007-2011, $123m, $80m, $90m, $121m, $280m)
> Mergers & acquisitions (Friendfeed $47.5m 08/2009, Friendster patents $40m 08/2010, Zenbe mail intellectual properties 10/2010, etc)
> Marketing (2007 – 2011, $32m, $76m, $115m, $184m, $427m)
14
2
12
2
Table 2, 9Cs &…