FACEBOOK ISM Group Assignment Prof: Madhukar Dayal SEC H GROUP 10

A BRIEF Started in Feb, 2004 by Harvard undergrad, Mark Zuckerberg Social networking site to hare photos, videos etc with friends Initially for restricted networks of schools, colleges & workplaces 60% logged daily; reached 5.5mn users by 2005 end Got multiple funding of $0.5mn, $0.1mn, $27.5mn & then had IPO Used various algorithms to keep users engaged Came up with new methods for stakeholders to profit Received flak for privacy issues, but handled it well Quickly adapted to new technologies of competitors and hence could have a continued stay in the business Has over a billion users by Feb, 2014 and current valuation of $375bn Paypal coounder peter thiel, accel partners, greylock partners, Meitech capital,

FACEBOOK’S STAKEHOLDERS User base App developers Website owners that partnered Advertisers Investors Employees Stock Shareholders Government and regulatory authorities Society

THE BUSINESS MODEL Has a user-driven platform that makes money if people spend more time on it 85% revenue for advertising sales (Display Ads & FB Pages Ads) 15% share/commission on virtual goods’ sale Facebook takes up to 30% cut from such transactions Self-serve ads, Sponsored things & promoted pages Commission from subscription fees of apps Data driven marketing – Facebook Exchange (240% more clicks) Custom audiences i.e. Matching FB contacts with advertisers’ Social Ads to target friends of fans of that page Used mobiles for App install ads, mobile sponsored stories & mobile page post ads

HOW FB BECAME POPULAR Introduced features like messaging, groups, events, discussion boards, video sharing, and mobile access Enhanced privacy controls (50 settings and 170 privacy options) Understood consumer need and adapted time to time Saw competitors and integrated their best practices FB also became popular among the advertisers & app developers Facebook kept on integrating innovative technologies like Facebook Ads Social gaming Facebook Exchange Facebook for websites Open graph etc.

FACEBOOK FOR WEB & APPS It launched “Facebook for Websites”, similar to Facebook Platform Could integrate features of the existing platform to third-party websites Facebook for websites worked in the following way:- Helped visit third-party sites by FB A/c, helped sites know of the users User could interact with FB friends in third-party website’s context These sites could send about user’s activities on the it FB friends FB provided third-party websites with user’s friends’ FB ID & numbers FB followed a stringent policy of protecting user’s privacy Third-party websites were expected to adhere to it

ADOPTION OF MOBILE APPS Open graph helped many apps increase the traffic rapidly. Eg. Flixster FB partnered with Apple, made it easier for users to discover & share apps This new initiative allowed users to log in to their accounts once and then be able to seamlessly sign-in to third party mobile apps This initiative also helped to share content from Apple’s core apps like Maps, Safari, and Photos. In 2014, FB released an app called Paper which combined both social and news reader features. FB released an App center with a collection of 600 websites

OPEN GRAPH Launched in 2009, it allowed the developers to incorporate FB’ s activity stream of user’s updates, photos, links and comments inside third party apps and websites. By 2012, FB further extended its API which included other actions on third-party apps It automatically shared user experiences with the friends when a user engaged with a website 1 billion stories were shared from Open Graph apps every day “Spotify” used open graph to reach 15 million users quickly

GRAPH SEARCH Introduced in 2013 Helped the users to discover people, photos, places & interests on FB The search results were scrollable on a single page They were prioritised based on the amount of likes and comments It could be used to find recommended products and services, identify local businesses, and recruit new employees It was suitable for precise requests If it couldn’t find the search, FB used Bing by Microsoft

THINGS TAKEN FROM COMPETITORS One of the biggest competitors of Facebook was Twitter Twitter had grown to 6 million users by march 2009 Facebook launched a major redesign with features similar to those offered by Twitter Major redesign features included:- Highlights sidebar Follow Facebook publisher & real time updating Tagging feature Trending feature Use of Hash Tag symbols Sharing updates with Everyone

ROLE TOWARDS COMMUNITY Positives Posts, Comments, Likes and Shares help improve relationship. In a short time, people may get updates of all their friends and family. It helps socialize and make new friends Video calling is a way for oral and visual communication Provides recognition to some people in the community Users can discuss various topics (like social and political events), get wide range of opinions and in the flow get connected to each other.

ROLE TOWARDS COMMUNITY Negatives Wrong posts/joke about another person may hamper relationship. In the craze of likes, comments, shares, people camouflage themselves. Non-verbal communication. Digital living may occur.

KRISHNA SURENDRASINH GOHIL THANK YOU GROUP 10 ISHAAN AJAY 2013IPM044 KRISHNA SURENDRASINH GOHIL 2016PGP178 LADE VIVEK SATYAWAN 2016PGP187 MADHUR SAWHNEY 2016PGP199 PALARAPU PAVAN KUMAR 2016PGP252 PRASHANT PATWA 2016PGP280 SANJANA SEN 2016PGP335 SHRUTI SHARMA 2016PGP367