Free Powerpoint Templates Page 1 Free Powerpoint Templates Microsoft & Facebook Strategic Alliance Group6 Mathurin Eurpaiboon Jindamas Mitsattha Wanranee Sirisathaworn Samantha Lamph

Free Powerpoint Templates Page 2 Topic Company History Brief Industry Analysis Motives and Fits Alliance Structure Type of Alliance Impacts on Stakeholder Main Issues/Problem Key Failure Factor What’s learnt?? / Future Direction

Free Powerpoint Templates Page 3 Company History Industry Analysis Motives and Fits Alliance Structure Type of Alliance Impact on Stakeholders Main Issues and Problem What is learnt ??? Key Failure Factor/Future Direction FacebookMicrosoft Social network service Main Function : create own personal profile and keep connected with friends Using worldwide by over 500 million people around the world Major source of revenue comes from advertising Core business : developing, manufacturing, and licensing software products (eg. OS, server applications, business and consumer applications, and software development tools, as well as Internet software, technologies, and services 2000 : Microsoft has has been alleged for Monopoly position in software Market Company history

Free Powerpoint Templates Page 4 Company History Industry Analysis Motives and Fits Alliance Structure Type of Alliance Impact on Stakeholders Main Issues and Problem What is learnt ??? Key Failure Factor/Future Direction Industry Analysis People’s lifestyle in nowadays has been changing to be more technology and social-networking-oriented Internet sharing trends have heavily shifted toward social networking. Social networks saw a 10% increase in usage, and a 16% raise in click-through (SocialTwist)

Free Powerpoint Templates Page 5 FacebookMicrosoft Low click through rate (CTR) compared with other websites such as MySpace and Twitter Overall average CTR is 0.21 percent, while Facebook CTR was only 0.06 percent (MarketngSherpa) Bing is follower to Google in Search- engine area. Want to improve in Advertising Area. Company History Industry Analysis Motives and Fits Alliance Structure Type of Alliance Impact on Stakeholders Main Issues and Problem What is learnt ??? Key Failure Factor Directly effect the revenue of the company Provide Facebook user’s information for Microsoft Provide Technology sophistication such as Banner ads, Docs Motives Fits

Free Powerpoint Templates Page 6 YearActivities Feb,2010 April,2010 Oct,2010 Microsoft awarded right to be exclusive provider of standard banners on Facebook US website only. Facebook sold 1.6% stake in the company to Microsoft. International Facebook takes control of own display ads and Microsoft still text-based search ads. Microsoft helps Facebook to manage online Docs Link Bing and Facebook Company History Industry Analysis Motives and fits Alliance Structure Type of Alliance Impact on Stakeholders Main Issues and Problem What is learnt ??? Key Failure Factor Alliance Structure

Free Powerpoint Templates Page 7 Company History Industry Analysis Alliance Structure Motives and Fits Type of Alliance Impact on Stakeholders Main Issues and Problem What is learnt ??? Key Failure Factor/Future Direction Type of Alliance Alliance to Beat Competitors : Both parties are aiming to gain the upper hand over the competitor. (Facebook VS MySpace,and Microsoft VS Google.) Investment: Microsoft invested in Facebook so that it could be the only banner advertisement provider.

Free Powerpoint Templates Page 8 Company History Industry Analysis Motives and Fits Alliance Structure Type of Alliance Impact on Stakeholders Main Issues and Problem What is learnt ??? Key Failure Factor/Future Direction Impact on Stakeholders Customers – Customers get Convenient in using Services provided by both parties. For example : Facebook user can just simply use the service of Microsoft’s Docs right awat without having to register for new account Competitors – Competitors such as Google or Twitter are threatened by the alliance between Microsoft and Facebook Jan,2010 : Market share is 65.4%, 17.3% and 10.7%, ranking from Google, Yahoo and Bing respectively. Eventhough,Bing is ranked number 3, Bing’s popularity is growing at an impressive rate of 11 percent comparing to Google 3 percent

Free Powerpoint Templates Page 9 Company History Industry Analysis Motives and Fits Alliance Structure Type of Alliance Impact on Stakeholders Main Issues and Problem What is learnt ??? Key Failure Factor/Future Direction Main Issues / Problems Distrust Microsoft’s standard banner ineffective Facebook starting using their own advertising before the end of the contract which leads to the distrust of Microsoft. Poor Negotiated Contract Poorly manage the resources allocation and profit sharing Integrative  Distributive Not benefit alliance

Free Powerpoint Templates Page 10 Company History Industry Analysis Motives and Fits Alliance Structure Type of Alliance Impact on Stakeholders Main Issues and Problem What is learnt ??? Key Failure Factor/Future Direction What’s Learnt ??? NEGOTIATED CONTRACT is very IMPORTANT !!!! Both parties should clearly negotiate of how to allocate resources and benefit at the beginning of the alliance for mutual benefit POTENTIAL PARTNER ASSESSMENT is also IMPORTANT To ensure a fit of needs an their ability to perform duties to make the alliance successful

Free Powerpoint Templates Page 11 Company History Industry Analysis Motives and Fits Alliance Structure Type of Alliance Impact on Stakeholders Main Issues and Problem What is learnt ??? Key Failure Factor/ Future Direction Key Failure Factor of Alliance Poor negotiated Contract Blurred Scope of Alliance Future Direction FB could give info to MS to develop new program to suit with customer ‘s need MS could develop software and hardware to support the function of FB