Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 8 pages
Data source: Published sources
Topics:
Social networking; MySpace, Friendster, Linkedln; On-line advertising; Mergers and acquisitions; User generated content site; Mark Zuckerberg; Venture capital; Peter Thiel; Google''s AdWords; Business and revenue model; Web 2.0 trends; Value proposition; Focused differentiation; Key success factors; Components of business design
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Abstract
This is the first of a two case-series. The case series follows the success and strategic dilemmas of Facebook, the world's second largest social networking site. This case 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'.
Industry:
Other setting(s):
2008
About
Abstract
This is the first of a two case-series. The case series follows the success and strategic dilemmas of Facebook, the world's second largest social networking site. This case 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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Industry:
Other setting(s):
2008