Facebook – A Social Network

Bruno SilvaDiogo CardosoInês SousaLuis ReisMiguel Lopes

Agenda

1. Problem Statement

2. Context

3. Alternatives

4. Recommendation

5. Implementation Plan

6. Financials

7. Risk Analysis

8. Sum-up

Problem Statement

How can Facebook sustain its competitive

advantage and continuous growth?

Context

1. Company Profile

2. Market Key Features

Company Profile

Who we are?A social networking service launched in February of 2004, with Mark Zuckerberg as its main founder and representative.

What we do?We offer a free service that allows people to share photos, play games and communicate with friends, relatives and even co-workers, obtaining the needed revenue mainly from advertising in our platform.

How we do it?By allowing users to create an account where they have their own “wall“, add friends, start groups, among other functionalities.

Company Profile – Revenues

• Mostly from advertising;

• Major marketers are still questioning the effectiveness of advertising on Facebook;

Company Profile – Financial Data

Market Key Features - Competition

Market Key Features - Users

Market Key Features - Users

Market Key Features - Users

Market Key Features - Users

• Brazil– Orkut – 40% Market Share

– Facebook – 24% Market Share

Problem Statement

How can Facebook sustain its competitive

advantage and continuous growth?

Back Up (Users – Social networks in Brazil)

http://thenextweb.com/la/2011/10/26/social-networks-in-brazil-orkut-in-decline-facebook-growing/

Back Up - Competition

• ORKUT• Q-ZONE• TWITTER• ODNOKLASSNIKI• LINKEDLN

• http://whatisfb.com/2012/02/09/top-five-facebook-competitors/

Back Up - CompetitionMARK ZUCKERBERG

“We compete with different companies in different ways. One of the things I try to do as CEO of this company is not make mistakes that other companies make — I make different ones, he jokes.

The world is changing so quickly now that I think the biggest competitor for us is someone we haven’t heard of. So we just need to stay focused on doing what we do and doing at well.

I think people look to us a the leader in this space. And I think there’s a widely held belief that we’re much closer to the beginning of the space than the end … it would be easy for us to just keep things as they are, but we don’t believe that if we did that we’d be doing the best thing for us or the industry. So we do what we think are the best things even if they are controversial.”