Facebook: Google and New Products Essays

Submitted By rosheenrennai
Words: 1871
Pages: 8

Table 1_Seven Cs
Company
Strengths
1.1-First mover advantage: attracting more conservative users(1)
1.2-Passes Google as the most popular site(2)
1.3-Huge market share: 845m users; Leading photo sharing site: more that 14 million photos uploaded daily(3,4)
1.4-Most innovative company beating Google and Apple, offering popular platform for apps developers(5,6,7)
1.5-Available in over 70 languages(8)

Weaknesses
1.6-Safety & Privacy issues: user accounts hacked and misused, users quit(9,10)
1.7-Too dependent on Zynga: 12% revenue 2011 of games & virtual goods, a significant number of pages generated by Zynga applications(11,12)
1.8-Shut down because of Islam cultural clashes, blocked because of conservative moral concerns(13,14)

Resources
1.9-Industry first mover knowledge and experience(1)
1.10-Huge user base & market share(3,4)
1.11-Highly skilled staff, $0.5m~$1m/engineer(15,67)

Core Competences
1.12-Strongly innovative and effective R&D, better than what Google, Intel & Microsoft did in their lifecycle stages(5)
1.13-B2B Partnership: ads for marketers & social apps for developers(57)
1.14-B2C Innovation: “Timeline”(8-B), “Like Button” & “Open Graph”(59)
1.15-Ecosystem relationship management: bring in a head of mobile developer for its mobile ecosystem(16)
1.16-Continuous enhancements of business processes, design and applications: exchange server capabilities, profile design & security applications(17,18)
Competition
1.17-Beating Google, Twitter & MySpace through capability of strong innovation and R&D(5)
1.18-Launching new products & applications: more advanced & higher speed than rivals(19,20)
1.19-Building barriers to entry & switching costs: establishing strong relationships, partnerships, strategic alliances such as with Microsoft for advertising & Skype for video chat(21,22)
1.20-More popular than competitors at colleges: started in 2004 as a site for college students(23)
1.21-Building a search engine on Microsoft’s search engine with its own data to rival Google(24)
Customers
B2C
1.22-Connecting people with people, everywhere permitted(68)

B2B
1.23-Marketers, free channels; Advertisers with budget, solutions to audience; Developers with resource, offer platform(69)
Currency
1.24-International revenue: 33%, 38%, and 44% of revenue in 2009, 2010, and 2011; as a net receiver facing risks of exchange rate and US Dollar strengthening(25)
1.25-Euro/US Dollar exchange rate uncertainty: affecting company’s revenue and other operating results as expressed in U.S. dollars, the exchange rate forecast to suffer significant losses(26,27)
Country
Political
1.26-Government policies & control in China cause Facebook blocked(12)
1.27-Use of Facebook in US politics: increasing Obama fans to 19 million(28)

Social
1.28-Increasing trend towards social networking, work related, colleges and universities; “Everyone on it”, pressure to belong(29)

Technological
1.29-Web 2: new Internet tools and technologies(30)
1.30-Mobile technologies and devices(53)
1.31-OSN sites developing software: easy to build, low barrier to entry(31)

Environmental
1.32-Environmental protection awareness, energy saving system, server center in cold area of Sweden(18)
1.33-Dell and Facebook: alliance to save energy(32)

Legal
1.34-Issue of uploaded materials ownership: certain use rights transferred(33)
1.35-US Federal Trade Commission’s investigation: Facebook tracking user activities after log-out, selling data of users to third parties(34)
1.36-EU Data Law: explicit consumers’ consent before data used (35)
Culture
1.37-Blocked in Saudi Arabian because of local conservative moral concerns(14)
1.38-Shut down in Pakistan & Bangladesh because of Islam cultural clashes(13)
1.39-Chinese culture: preferring productive activities such as studies and work (36,37)
Collaborators
Alliances
1.40-Facebook & Microsoft: advertising, search engine(21)
1.41-Facebook & Dell: energy saving and environmental…