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Managing in Troubled Times Case Study

Case Title:

Facebook Charging Ahead in an Economic Downturn: Is it a Wise Decision?

Publication Year :  Aug 2010

Authors: R Shah, S Chaganty

Industry: Internet and e-commerce


Case Code: TRT0095IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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Facebook, a US based social networking site helped people to connect with friends and colleagues who work, study and live around them. Initially, it was only accessible for high school and college students, later it was available to everyone after it received huge success. Facebook was able to generate the highest number of users with the continuous introduction of new features to the site. While most companies adopted the strategy of cost cutting during the economic downturn of 2008, Facebook went against the tide and adopted the expansion strategy. The company planned to introduce different languages to the site, hire talented people and introduce new advertising programmes. This case highlights Facebook's growth since its inception, the expansion strategy during the downturn and challenges it might face during expansion.

Pedagogical Objectives:

  • To understand the dynamics of social networking.
  • To analyse Facebook and its various features.
  • To examine Facebook's expansion strategy during the economic downturn and any challenges it may face.

Keywords : Facebook; Social networking; Social utility; Mark Zuckerberg; Sheryl Sandberg; MySpace; AOL-Bebo; Clones; Economic downturn; Strategy


  • Facebook: Evolution and Growth
  • Expansion Strategies

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