Facebook (A): The Start-up’s “Social” Success



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Code : SNW0001

Year :
2007

Industry : Internet and e-commerce

Region : US

Teaching Note: Available

Structured Assignment : Available

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Abstract: The Facebook case series follows the success and strategic dilemmas of Facebook, the world's second largest social networking site. Case (A) is about how it evolved from a US college-goer's portal into a full-fledged social networking site, in less than 3 years. With 52 million unique visitors in 2007, Facebook has seen a 270% increase in its site's traffic than previous year's. This case assesses social networking site's potential to become multi-billion-dollar profit machines and questions students if other players like MySpace and YouTube erred by selling themselves off. This case is an example of a start-up, with a clear value proposition and focused differentiation, which commanded premium pricing. It also analyses Facebook's differentiating factors in a competitive environment and ends discussing its intent to become the 'new Google'.

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Pedagogical Objectives:

  • To understand the concept of social networking and its emergence as a profitable industry
  • To understand the behaviour of social networkers
  • To discuss the business model of Facebook and differentiate its key success factors from its competitors
  • To analyse the threat posed by Facebook to other companies like Google and debate whether they can in fact become the 'new Google'.

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    Contents :
    » Facebook: The “Social” Success
    » Facebook: Can it be ‘Googled’?
    » Web 2.0 Trends


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