7/31/2019 Facebook Assignment_Final Version
1/13
Foundation Certificate in MarketingMarketing Research
To : Dr. Ayman Etman
Facebook Case Study
Shady Ramez Nicolas A00040967
7/31/2019 Facebook Assignment_Final Version
2/13
Table of Contents
1-Introduction2-Methodology
Decision Research objectives
3-Findings4-Conclusion5-Recommendation
7/31/2019 Facebook Assignment_Final Version
3/13
1-Introduction:Facebook is a global social networking website that is operated and
privately owned by Facebook, Inc. Users can add friends and send them
messages, and update their personal profiles to notify friends aboutthemselves. Additionally, users can join networks organized by city,
workplace, school, and region. The website's name stems from the
colloquial name of books given at the start of the academic year by
university administrations with the intention of helping students get to
know each other better..
Mark Zuckerberg founded Facebook with his college roommates and fellow
computer science students Eduardo Saverin, Dustin Moskovitz and Chris
Hughes while he was a student at Harvard University. The website'smembership was initially limited to Harvard students, but was expanded to
other colleges in the Boston area, the Ivy League, and Stanford University.
It later expanded further to include any university student, then high school
students, and, finally, to anyone aged 13 and over. The website currently
has more than 300 million active users worldwide.
Facebook has met with some controversy. It has been blocked
intermittently in several countries including Syria, China and Iran,
although Iran later unblocked Facebook in 2009. It has also been banned at
many places of work to discourage employees from wasting time using the
service. Privacy has also been an issue, and it has been compromised
several times. Facebook is also facing several lawsuits from a number of
Zuckerberg's former classmates, who claim that Facebook had stolen their
source code and other intellectual property.
A January 2009 Compete.com study has ranked Facebook as the most used
social network by worldwide monthly active users, followed by MySpace.In April 2010 an estimated 41.6% of the U.S. population had a Facebook
account. Nevertheless, Facebook's market growth started to stall in some
regions, with the site losing 7 million active users in the United States and
Canada in May 2011.
7/31/2019 Facebook Assignment_Final Version
4/13
2- MethodologyProblem Definition:
Launching Facebook In Egypt or Not and choosing suitable features with its
culture
Research objectives:
1- Demographics population size, and age structure.2-Communications & Computer Users3-Legal situation4-Economical situation5-Competitive Landscape
7/31/2019 Facebook Assignment_Final Version
5/13
Facts & Findings
Demographics
Population83,688,164 (July 2011 est.)
Age structure:
0-14 years: 32.7% (male 13,725,282/female 13,112,157) 15-64 years: 62.8% (male 26,187,921/female 25,353,947) 65 years and over: 4.5% (male 1,669,313/female 2,031,016)
(2011 est.)
Literacydefinition: age 10 and over can read and write
total population: 70.3%
-male: 77.6%
-female: 62.7% (2006 est.)
Computer & internet usageInternet Usage (2009): 12,568,900
Internet Population Penetration: 15.9%
Internet User Growth: 2693.1%
7/31/2019 Facebook Assignment_Final Version
6/13
Communications & Internet
Telephones - main lines in use:9.618 million (2009)
Telephones - mobile cellular:70.661 million (2009)
Broadcast media:
Mix of state-run and private broadcast media; state-run TV operates 2
national and 6 regional terrestrial networks as well as a few satellite
channels; about 20 private satellite channels and a large number of Arabic
satellite channels are available via subscription; state-run radio operatesabout 70 stations belonging to 8 networks; 2 privately-owned radio stations
operational (2008)
Internet hosts:200,336 (2010)
Internet users:20.136 million (2009)
7/31/2019 Facebook Assignment_Final Version
7/13
Economy
GDP (purchasing power parity):
$515.4 billion (2011 est.)
$509.3 billion (2010 est.)
$484.3 billion (2009 est.)
GDP (official exchange rate):
$231.9 billion (2011 est.)
GDP - real growth rate:
1.2% (2011 est.)
5.1% (2010 est.)
4.7% (2009 est.)
GDP - per capita (PPP):
$6,500 (2011 est.)
$6,500 (2010 est.)
$6,300 (2009 est.)
Current account balance:
-$8.609 billion (2011 est.)
-$4.435 billion (2010 est.)
7/31/2019 Facebook Assignment_Final Version
8/13
Legal Situation
Legal system:
mixed legal system based on Napoleonic civil law and Islamic religious law;
judicial review by Supreme Court and Council of State (oversees validity of
administrative decisions)
International law organization participation:
accepts compulsory ICJ jurisdiction with reservations; non-party state to
the ICCt
Competitive Landscape
7/31/2019 Facebook Assignment_Final Version
9/13
Conclusion
KSF Weights MySpace FacebookOrkut Twitter
People-to-People
interaction 25% 4 9 5 7
Pace of
Innovation
(features,
etc) 20% 7.5 9 7 7
Networkeffects 20% 6 7 5 9
Applications
available 15% 6 9 6 3
User
engagement 20% 7 8.5 7 7
TOTAL 100% 6 8.5 5.95 6.8
Facebook SWOT Analysis
Strengths
--Currently the Market Leader in SocialNetworking
--Largest social network Company--A platform for millions of applications,including Zynga.--Has a wide audience - Close to Billionactive users--Household brand name--Highest quality of workforce--Has video chat
Weaknesses
--Liabilities regarding bugs and problemsthat users face when operating the website
--Don't get real answers to your problems,have to figure out problems based on FAQs--Lack of ability to customize page--Flash animation banners are distractingand need to be positioned differently so itwon't get in the way of the user
Local Markets Not the leader inkey markets like China, Germany,
7/31/2019 Facebook Assignment_Final Version
10/13
--Corporate Business Partners--Free Communications--Global (NOT IN CHINA)--Diverse sources of Revenue
Design Ease of use,Attractiveness etc.
Target Market Some sitestarget niches, some target goegraphies Activity Focus Target marketcan be connecting people overrelationships, or over shared interests User Engagement Site needsto retain user minutes Transactions Innovativefeatures like applications, people youmay know, pokes, comments, likes etc.,serve to increase user transactions.
Japan, India User Engagement There are
earlyreports of Facebook fatigue.Not everyone is a fan of their newdesign
Applications FB usersfrequently complain about theclutter brought about byapplications
Infrastructure Costs FB hasbeen EBIT positive for 5 quartersbut is not turning a profit because of(theorized) huge depreciationexpenses for data centers etc.
It is not being able to monetizeitself in keeping with the growthtrajectory
Keeping the user base intact Much of the recent growth has comefrom older people (and not the earlytech-savvy adopters like earlier).The challenge is to not alienate theoriginalFB users.
Opportunities
--Become a default address book--Advertising impact will be anopportunistic approach in reaching targetmarkets globally--Way of showing consumer behavior for
businesses--A way of drawing people into stores byoffering promotions etc. to them via thefacebook page--Businesses can collect user data throughpolls and surveys--Buy/sell via Facebook marketplace Privacyprivacy filters and controls Entry Barriers Easy sign ups Trust Different outlooks to Trust. Localization Local content,
languages etc.
Threats
--Copycats include Companies like Google--New entrants into the industry--Privacy settings- leak millions of photos
a year--Spamming--Users get bored easily when using
applications and programs(one timeusage)--Other competitors- twitter
7/31/2019 Facebook Assignment_Final Version
11/13
Recommendation
TOWS Matrix STRENGTH
1. Huge active userbase.
2. Popular Platformfor application
development
3. Present in allgeographies
4. Translated inover 40
WEAKNESSES
1. Weak atmonetizing the
user base and
delivering a
high number ofads per user
2. Inability tomanage
application
feeds leading to
Focus on monetization to improve valuations when
it needs to go in for further funding.Use the Status Updates to deliver targetedadvertisements
Deliver Local advertising based on user locations.
Monetization
The display of updates from applications annoysusers & results in comparisons with MySpace. Thisshould be controlled
Privacy concerns from Apps to be addressedClutter forces users to miss out on news about thepeople they are interested in
Applications (rules &controls)
Improvement in storage, archival and search in theemail and chat functions. (challenge is for FB to
become the users primary email and chat client.)Solve the problem of how businesses can contactcustomer looking for services in a manner that doesnot infringe privacy
Communications
7/31/2019 Facebook Assignment_Final Version
12/13
languages
5. Email and Chatare integrated
clutter on the
website &
reactions from
users
OPPORTUNITY
1. Advertising ismoving towards
Targeted ads and
not blanked
advertising. FB is
perfectly
positioned for this
since it has a huge
amt. of personal
user information
and preferences.
2. Improve Emailand Chat
S - O
1. Increase targetedadvertisements
and develop
local ads A
way of showing
products relevant
to the users
location.
2. Improve qualityof the integrated
email and chat
apps.
O - W
1. Work on waysto reduce the
increasing
amount of
clutter on FB
homepages
2. Create moremonetization
opportunities
THREATS
1. Social networkingaudience is fickle
and thy frequently
shift providers
2. People may growtired of the highlystructured FB and
move to MySpace
3. People haveprivacy concern
S - T
1. Try to deliverlocalized content
and ads (i.e.
move beyond the
language
translations)
2. Improvedevelopment
platform on
aspects like
security, privacy,
monetization and
T - W
1. Always keepenhancing and
innovating
features to keep
users coming
back to the
website.
2. Increaseopportunities
to customize
pages without
7/31/2019 Facebook Assignment_Final Version
13/13
with Facebook
4. Risk of losingyoung, hip image
limit clutter. ruining design
Marketing Mix (4Ps)
PRODUCT
The first P is the product, social network has products like friendster, myspace, twitter,
linkedln, facebook etc which satisfies many social need because it enable friends and
relatives as well as loved ones to interact electronically without physical meeting
PROMOTIONS
Many organizations, groups, and individuals use social network to inform, persuade and
remind consumers about the organizations product or services. It has to do with
communicating about the product to the final consumer. It is made up of activities such
as advertising, sales promotions, personal selling, public relations and publicity.
PLACE
Social network can also be used as the gate way for individuals, organizations and group
to sell their offerings to the general public. It also directs users to a website where goods
and services have been posted for sale. Production is said not to have been completed
until the goods and services have gotten to the final consumer.
PRICE
Price is very important and sensitive in the mix because, when price is high, all things
been equal consumers will shift their demand from the product in question to the
competitors product and the product will fail.