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CASE STUDY – FACEBOOK’S DILEMMA

CASE STUDY – FACEBOOK’S DILEMMA

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Published by Utsav Basu

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Published by: Utsav Basu on Mar 18, 2012
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05/13/2014

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CASE STUDY – FACEBOOK’S DILEMMA

amassing a large audience • It is a goldmine of opportunity for advertisers because of the huge user info base .SUMMARY OF THE CASE – FACEBOOK’S DILEMMA • Facebook is the largest social networking site in the world after MySpace – 750 million users (Jul 2011) • Founded in 2004 by Mark Zuckerberg • Has benefited from its status as a first mover in the social networking marketplace.

• Has encountered more than its fair share of controversy – mainly concerning the handling of info it collects from its users • Beacon Advertising Service – informed users about friend activity outside facebook • News Feed – provides updates to friends about actions performed in facebook • Was criticised for retaining information about users even after account deactivation .

• Companies get exposure by attracting users to applications • Application owners earn revenue by ads . opened up to serve as a “platform” for applications that are independently developed by third parties.Looking forward to profitability • Facebook Platform.

• In 2008 – launched a new series of privacy controls to sort people into groups and selectively grant access to parts of profile • However. flaws were uncovered in Facebook’s privacy controls .

SO WHAT IS FACEBOOK’S DILEMMA? To increase revenue using the information from its users without invading their privacy .

I. WHAT CONCEPTS IN THIS CHAPTER ARE ILLUSTRATED IN THIS CASE? Ubiquity Global Reach Universal Standards Richness Interactivity Information Density Personalization/customization Social Technology .

WHAT IS THE ROLE OF E-COMMERCE AND WEB 2.0 TECHNOLOGIES IN FACEBOOK’S WIDESPREAD POPULARITY? .II.

and technology factors have contributed to those weaknesses? • The Beacon Program – shared information that users had not explicitly intended to share. What management.III. organization. Describe the weaknesses of Facebook’s privacy policies and features. • Handling of the News Feed feature – updates on all friend activities – overly invasive • Information retention on account deactivation – users had a hard time deleting their accounts .

.MANAGEMENT FACTORS • Management assumed that it had the consent of the users to share their personal information with advertisers • Management utterly failed to grasp the extent to which the service violated its users’ privacy as well as the uproar such a service was likely to cause.

ORGANISATIONAL FACTORS • Social networking is a powerful medium and it must be used carefully to share information • At the end of the day. the users are responsible for giving their personal information .

continued to send info to facebook • Flaws in privacy controls – as exposed by a Canadian technician .TECHNOLOGY FACTORS • Biggest concern .Privacy and user controls over the information granted to facebook • Beacon – even after selecting ‘opt-out’.

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