Facebook in 2011
Challenges Imminent IPO – need to identify new sources of revenues FB accounts for 30% of all online ads FB users click on 5 / 10,000 ads, advertisers won’t increase investment Competitors with Google and Twitter Google + privacy settings easier to understand Google platform doesn’t charge commission
Options Continue to develop “Social ads” Social ads create 10x more clicks than previous model – better for advertisors Could use Platform to help other businesses reduce customer acquisition costs This would require FB’s explicit involvement
5 forces analysis Threat of New entrants Supplier Buyer/customer power Supplier power Competitive rivalry Threat of substitutes
SWOT analysis Strengths Weaknesses Opportunities Threats
Privacy patterns Begin here New ads approach Invasion of Privacy! Kiss and Make up Mark Apologizes, fixes
Lotus Blossom Analysis