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Social Network – FacebookTeam Members: Ashok Hegde, Archana Bamanale,

Shirish Telsang & Arun Khedwal

Under Guidance: Prof. Vikram Parekh

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Agenda Executive Summary of Global Market – Social Network About Facebook Facebook - Mission Current Core –Team Facebook – Timelines Facts & Figures Facebook Users Worldwide Competition Acquisition SWOT - Analysis Financials IPO Case I – Indian Case Case II – International Case Conclusion Video – 7 Minutes

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Executive Summary- Social Network In 2013 around 1.61 billion people log in to social networking sites at least monthly,

from any electronic device That’s a 14.2% gain on social networker numbers from 2012 Market will grow at the rate of 10 % CAGR By 2017, 2.33 billion people will use social networks. Social media advertising market is expected to grow 52% to 58% YOY

Drivers Increasing popularity of social media sites Emerging countries like India and China large potential internet users in future Increasing sale of smart phones is a key driver for this market Most of the social networks are free for the users

Challenge Increasing abuse of social media and security concerns The risk of confidential information leakage example: - Personal information

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About Facebook

Facebook® is a “social networking website” that allows you to create an online page to connect with friends, family, or make new friends with anyone anywhere.

On your Facebook® page you can share pictures, personal information , messages, videos , join groups and add applications.

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Mission

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thefacebook

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Facebook Current Core TeamMark Zuckerberg (Chairman and CEO – 28.2% Stake) Age-29• Personal wealth, as of April 2014, is estimated to be $25.3 billion• Mark Zuckerberg receives a one-dollar salary as CEO of Facebook

Sheryl Sandberg (COO) Age-44 • American businesswoman, activist, and writer• Worth over US$1 billion -17.2 million Facebook shares, 0.5% stake

David Ebersman (CFO) Age - 45• He was hired as he had "public company experience"• Facebook issued an IPO of its stock on May 18, 2012

Mike Schroepfer (Chief Technology Officer) Age -39• Mike Schroepfer is an entrepreneur & technical architect• Schroepfer holds 2.1 million shares of Facebook

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Facebook Users Worldwide

Source: Facebook

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Facts About Facebook Facebook employed only 6,337 people directly Facebook has more than 1.23 billion users globally Mobile monthly active users were 945 million as of December 31, 2013, an

increase of 39% year-over-year. Facebook Deals with Everyday: 2.7 Billion Likes, 300 Million Photos

Uploaded and 500 Terabytes of Data in real time Facebook Handles 300 Petabytes of Daily Data, it stores for its active users Users are exposed to 1500 pieces of potential content every day. There are 70 different languages available for users on Facebook The average person spends between 18 and 20 minutes viewing their

Facebook account Originally, engineers wanted to call the “Like” button the “Awesome” button By 2010, Facebook became profitable

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2005

Oct 2005: Facebook begins to add international school networks, Launch of Facebook Photos & reached 6 million users

Sept. 26, 2006: Facebook expands registration so anyone can join- reached 12 million users

Feb 4, 2004: Mark Zuckerberg and co-founders Dustin Moskovitz, Chris Hughesand Eduardo Saverin launch Facebook

Source: Wikipedia, Facebook & Google

Facebook - Timelines

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2007

Nov. 26, 2007: Launch of self-service Ads platform + Facebook Pages – reached 58 million users

2008

2008: Launch of Facebook Chat, Facebook iPhone app & New Facebook launches

2009

2009: Introduction of the Like button, New Facebook home page launches &

reached 356 million users

2011: Launch of video calling, Timelines -reached 845 million users

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2012

2012: Facebook announces acquisition of Instagram, IPO & More than 1 billion people are active on Facebook

2014

2014: Facebook is 10 Year Old, Acquired WhatsApp & Oculus-1.23 Billion users

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Competition

Connecting

1.23 Billion

$152.58bn

Passive

Friends

Information

232 Million

$33.05bn

Active

Followers

Business Oriented

260 Millions

$ 21.4 Billions

Passive

Connection

Type of Social Media

Active users

Market Cap

Communication Form

Difference

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Major- Acquisitions by Facebook

WhatsApp Messenger ( $ 19 Billion) 55 Employee• WhatsApp has 450million users with 70% active daily, which is

already 60% the size of Facebook’s daily user community (550million.)

• 50bn- Number of messages WhatsApp processes a day

Oculus VR ( $ 2 Billion) 75 Employee• Oculus VR is a virtual reality technology company• Oculus Facebook's answer to Google Glass?

Instagram ( $ 1 Billion) 13 Employee• 13 employees created a billion dollar app• The average Facebook user has 26 profile photos

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SWOT- Analysis Strengths Integration with websites and applications More than a billion active monthly users Excellent users experience Understanding of user’s needs and

behavior

Opportunities Increasing number of people using

Facebook through mobile devices Expansion to China Diversify sources of revenue Open Facebook marketplace

Weaknesses Weak CTR of advertisements Social network lacks of some features One source of revenues – advertisements

on Facebook Attitude towards users’ privacy Lack of website customization Weak protection of users’ information

Threats Increasing number of mobile internet

users Users using ad-block extensions Slow growth rate of online advertising Identity thefts Weak business model

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IPO & Share Price History

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Financials- Last 5 Years

Years/ Particulars 2009 2010 2011 2012 2013Revenue 777$ 1,970$ 3,711$ 5,089$ 7,872$ Revenue Growth % 154% 88% 37% 55%Net Income 122$ 372$ 668$ 32$ 1,490$ Net Income Growth % 205% 80% -95% 4556%

Years/ Particulars 2009 2010 2011 2012 2013Total Assets 1,110$ 2,990$ 13,790$ 15,100$ 17,900$ Total Assets Growth % 169% 361% 9% 19%Total Liabilities 241$ 828$ 1,430$ 3,350$ 2,430$ Total Liabilities / Total Assets 22% 28% 10% 22% 14%Debt Ratio 0.22 0.28 0.10 0.22 0.14All figures are in Million

$777 $1,970

$3,711

$5,089 $7,872

$122

$372

$668

$32

$1,490

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2009 2010 2011 2012 2013

Facebook Revenue & Net Income

Revenue

Net Income

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Indian Case Study – Election Campaign

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Global Case Study- ZyngaSocial game services company founded in July 2007Zynga states its mission as "connecting the world

through games."Social gaming pioneer Zynga, creator of the Facebook

games Farmville, CastleVille, and Mafia Wars, among others, is one of tech’s big success stories

FarmVille became the most popular game on Facebook

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ConclusionMobile Monetization:– Facebook still has yet

to find the right formula for monetizing on mobile.

Compete with Google:- Focus on evolving its search engine & compete directly

Growth from Subsidiaries :- The Subsidiaries companies like Instagram, WhatsApp & Oculus VR is diversifying the business & can fuel the growth any time in near future

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