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Business Report for Facebook

01 /12/2011

Group members:
Ying Huang 1033113 Lupeng Tang 1123942 Qiwen Fan 1033112

Executive Summary
Facebook is the website has the largest number of users among the social media industry, which have tremendous market share. The company's aim is to make closer to each user, which is the competitive weapons of the company in the social media market.

........... Even though there are many competitors in the social media want to take the market share............................................................................................. financial resources...... In terms of resource....... Table of content 1.................... Introduction ................................................4 ........................................ facebook for globalization..The company's current strategy is the growth strategy............................... Company description .......1.....................................3 3......1 Physical resources.......... thereby creating more profits out......................................................................................1................................................... has a large number of funding and acquisitions............................3 3...... to attract more skillful and professional person into the company...... this includes physical resource.......................................................................... human resource and intellectual resources..........3 3................... and it is going to develop more functions of the website base on a large number of users....................................... and has the most competitive market share started to reputation...........1 2..1 Strategic capabilities.....................2 Financial resources................1 3..... Internal analysis..................

................................1.....................................................................................................................................................................................................................................1................5 3................7 4...........................................................................................3 Bargaining power of buyers ..............................................................2 Opportunity..............................................7 4.............5 3........................................................................................3 Threat.......1 Porter’s five forces analysis...................................8 4........................2 Threat of substitutes......................1 Threat of new entrants.......................10 4........................................................................................................6 4........................................................8 4........................................................................1......................................................4 Intellectual resources..........9 4..............4 Bargaining power of suppliers..............................................................8 ...........................................................3 Weakness.........................................3 Human resources.............................................1...................................................................................1............................ External analysis..........................2 Strength.................9 4..................................................................4 3......................................................................................................................................................................................................................7 4.................................................9 ....3..................................................1................10 Reference .1.......................................................5 Current rivalry .......11 .....

Who always wears as normal students. Introduction Media industry is to point to of all kinds of information. Company description Our group is going to analysis of a firm with the media industry. Form September of 2006 to September of 2007. At the beginning of facebook.S web site. even though facebook have faced lots of problems.it has got 600 million users. but. Also facebook is the top of the U. This website has climb up 7 to 60 in top U. Look up the future. digital. sounds. this popular company has a long climbing distance. symbols and other forms of the existing information products and provide all kinds of service for the special industry. Obviously.S photo sharing site. the internet search. Although facebook has opened to 1 . It is begun in the February the 4th of 2004. Facebook is a social networking service website which is the most used social networking website in the world now. In the march of 2010. graphics. The founder of facebook is a student of Harvard University. language. it has never stopped to achieve the better future. We can strongly believe that. Look back the years of the development in Facebook. images. spread to all sorts of text. it is the production. art. Mark Elliot Zuckerberg. In nearly one month “The facebook” has been used by half student of Harvard University.1. facebook have already climbed up the visitors than Google. For example. facebook. mark has been supported by Andrew McCollum and Eduardo Saverin. 2. The target of face book has been change to another area. As July 2010. in the September 11th of 2006. knowledge of transmission media entities made of a part of the industry group.

So many users like to leave a shot message on the wall that can help them keep more close relationship with the friends. but also the function. is the place that for the people to notice your friends the events which going to start. Be one of the famous functions. Year after years. after the visit. In 2010. 2 . Facebook video sharing is the functions for the user to sharing their videos. French and Chinese. and it can post wherever you are. face book still open for the entire email user. the content can also shows in your friends walls. and then your friends can see it on the update distraction about this status. The Wall. facebook has valuation of 50 billion U. There are a lot of interesting and useful functions in facebook. after two weeks. It is more easy for the people to use it . sell the second hand product and for rent. facebook has release different language. but the founder of facebook still hope to keep the independent. even though many big companies want to purchase facebook. During the years of 2008.S dollar. Many people like facebook is not because the reputation. Spanish. You just get on your facebook to post it. Events. Such as. Marketplace is the space for the users to left the advertising for free. if you in the place around the London eyes. It let face book quickly became popular in these countries. Status is the functions can let the users to put their status. For instance. Such as finding the jobs. But. the founder has been to visited china. it also help the people to organizing the social events. Let’s look at the other example. it caused a lot of protest by old user.the entire internet user. But it has a little bit different. It also can be choosing for if you want all the people to see your wall or just for your friends. The people can use the clients on their mobile phone to post their video. The wall is place let the people to leave a message. Germany.

The Austin International offices including the located at Dublin.3. Such as the U. There is one headquartered of facebook in Palo Alto. ( http://www. the strategic capability can be determined as competitive weapons of a company needed to develop and to gain the profits. United State.com/press/info. California. is made up of core site functions and applications. and Chicago and so on. offices and Austin International offices in different countries and cities. And there are also two offices which called U. (Kjell and Trond. The advantage of having one headquartered and some offices in different places is that the offices are able to deal with the different problems of facebook quickly base on the diversity culture of the country due to the increasing number of users over the world. 3.1 Strategic capabilities This part aims to analyze the strategic capability of facebook as the internal analysis. Overview. Birmingham. Facebook has Over 800 million active users.S. The function of headquartered is to control the operation of facebook and make the main decision of company.1 Physical resources Facebook. Hong Kong and so on.1. there are more than 20 offices around the world. offices have a distributed in Atlanta. human resources and intellectual resources. For example the problem of facebook from the users in Taiwan and HongKong can be solved by the office in Hong Kong.facebook. Hamburg. financial resources. 2010) The strategic capability is inclusive physical resources. In the social media industry. the product.php?factsheet) 3 . which is became the top 3 website and the social media networking services over the world.S. Internal analysis 3.

and also affect the development of facebook in a positive way. Facebook and Microsoft these two companies established their partnership of advertising and that Microsoft took a $240 million equity stake in Facebook’s round of financing at a $15 billion valuation. the most acquisition of facebook is for the person who with the 4 . This activity makes the companies of industry to pay more attention to facebook. It has been carried a number of investment and acquisition. April 2005. Round three: $27.7 million from Accel Partners.mspx) 3.000 from Peter Thiel. The following is the 3 rounds of funding which can be checked in facebook website.3. Meritech Capital Partners participating. Microsoft became the exclusive third-party advertising platform partner for Facebook.2 Financial resources In the financial part of the company is named facebook. Summer 2004. Round one: $500. Round two: $12. there is several investment can be researched. From the news.1. those of them are with high education background and having the professional skill in the social media industry.com/Presspass/press/2007/oct07/10-24FacebookPR.3 Human resources There is over 3000 employees work in facebook. These actions will help facebook to develop the technology and the company then achieves the purpose which gaining profits. and started to sell advertising for Facebook internationally in addition to the United States. (http://www.1. In addition to these funding. For example in 24th October in 2007.microsoft. Under the expanded strategic alliance. and Accel Partners and Peter Thiel increasing their investment in the company.5 million from Greylock Partners leading the round.

4 Intellectual resources There is one main point will be mentioned at the intellectual resources part.co. The huge market share is the main point. To be a famous social networking 5 . The board member of facebook is Members: Mark Zuckerberg. That's more time to see and respond to ads. such as the forthcoming personal Timelines. is designed to get people even more hooked.facebook. Erskine Bowles and Peter Thiel. Facebook was found by Mark Zuckerberg during his studying in University of Harvard.” this is what facebook post on their facebook wall.uk/news/business-15962476) 3. Jim Breyer. with users spending much longer on it per session .com/press/info. And the number of user has been a sharp increasing number in the social media industry.than people do on Google.about 30 minutes on average .professional ability. Reed Hastings.php?factsheet) 3. graduated from the University of Harvard.1. Over the world. So Facebook's current 800 million users are an extraordinarily valuable asset. The strong team of employee will be a positive aspect for facebook. Especially. Mark Zuckerberg who is the CEO of facebook.2 Strength “Giving people the power to share and make the world more open and connected. Observer: Paul Madera. facebook has Over 800 million active users. (http://www. Marc Andreessen. Observer: David Sze.It's the ultimate "sticky" site. It built a global audience before working out how to make money.Everything Facebook is doing to develop as a business. ( http://www. Ad revenue per user can be tiny and still add up to huge figures.bbc. proving that if you can attract a big enough audience. there will always be ways to "monetise". Don Graham.And Facebook has a couple of trump cards over Google.

The most important things is that the fancebook has been provide what he said and done what he said. email. if it is not . wherever you are. easy to go. p213) We can say that strength is a special resource. facebook can go to the users email to get their information or contacts. Also the functions are the biggest strength of facebook. 2009. but people don’t know that what facebook will do when they using their password .University students and white-collar is their core users. it can let facebook to get a lot of money and be famous. Easy to use.It can removes the isolation of the users form different place. facebook will freeze users account. facebook has got much strength to let it successes. How to save users the security and privacy is facebook’s constraints. it is very important for a company who want to successes. p213) the security and privacy of facebook let people have many questions. new password. sex and birthday foe the registration. 2009. The target of the user in facebook . So how can the users trust facebook . 3. User’s confidence is low in facebook. 6 .3 Weakness “Weakness are activities the organization doesn’t do well resources it needs but doesn’t posses.service website.” (Robbins. and Coulter. the user of facebook is one of the big strength. “Any activities the organization does well or any unique resource is called strength “ (Robbins and Coulter.also if your are facebook users you should write your real name . You just need to go to facebook’s website sign up your name. that is a functions to let the users know if they have friends are using facebook too . when people registration .

(Wheelen and Hunger. In order to share the market of mobile operators. there may endanger the survival of these enterprises. nonexistence of competition.this is just a starting point. Also look through the Places platform gradually shift its location-based services (LBS). which may occur with the existing business of raw materials and market share competition. and dedicated to this partnership. most of them think that social networking is a benign. However.1.1 Threat of new entrants New entrants to an industry often bring new capabilities to it. and its scope is far more than social network so simple. and to Facebook Deals of the 'registration' services to drive mobile advertising. and a lot of resources. the desire to seize market share. Most Facebook’s applications are sold. the service site to complete the integration of voice communication with Skype deal and to provide services to send and receive messages. Facebook has taken several actions as a new entrant.1 Porter’s five forces analysis 4. Facebook is not just a social network . the Facebook Company aims to carve up the market of existing enterprises to win a place. 2004).4. operators are currently insufficient understanding of the ambitions of Facebook. For example. the worst case. External analysis 4. which is used for smart phones. Meanwhile. leading the industry to reduce the existing level of corporate profits. 7 .

and thirdparty applications. As we all know. such as Twitter. facebook has a lot of substitutes. That’s the most important reason why the Facebook Company is still providing many services to their customers for free charge. companies need to improve on the platform to ensure the healthy operation of the site. paid surveys. Facebook is planning to acquire more companies to improve their website design.4. the facebook’s customers are mainly come from the internet users. And the Facebook Company main source of income is advertising. Google and so on.which is partly due to better deal with from Google and Twitter challenge. So. The most important functions with facebook are communication and disseminating information. because the strength of facebook’s competitors is very strong. promote and enhance the quality of services to enhance the functionality of its mobile products .1.3 Bargaining power of buyers Bargaining power of buyers means buyers mainly through their requests for lower prices and higher quality products or services. the increasingly fierce competition. 8 . Facebook’s customers have great bargaining power.1.2 Threat of substitutes Wheelen and Hunger (2004) mentioned “substitute product is those products that appear to be different but can satisfy the same need as another product”. Msn. Currently Facebook is facing Google and Twitter. 4. and thus contributing to the rapid development of the company. order to affect the enterprise.

Msn. the Mircosoft Company as a supplier who provides very advanced technology for facebook. when the supplier inputs provided by the buyer of its value constitutes a large proportion of the total cost of the product. Such as the Myspace. from 2004 to 2011 the Facebook Company has developed for 7 years. singing stars and politicians. For example. the production process is very important to buyers. Sina Weibo is providing services like the Facebook site. But nowadays. hear. has more than 200 million users includes many famous people as sports star. QQ. but also continuously develop new applications and function to compete with the Facebook Company. 4. Twitter." You can see. Sina Weibo and so on. the Sina Weibo (2009) is a new micro blog which is produced in China.5 Current rivalry As we all know. SMS / MMS messages or pictures released. the international market continued appearing new entrant to threaten the Facebook Company.1.4. or seriously affect the quality of the products the buyer. They are not only new entrants to the market. For example.1. with the development of technology. Users can upload WAP page. The Sina Weibo can be understood as a "micro blog" or "word blog. think of the 9 .4 Bargaining power of suppliers Supplier primarily through its increased investment in quality and price and reduce the unit value of the ability to influence industry profitability of existing enterprises and products competitiveness. the supplier for the buyer's bargaining power is greatly enhanced potential. order to keep facebook’s platform more stable. Supplier depends on the strength of the power they provide to the buyer what inputs.

” (Stephen P. it’s also attracting more and more people to join. see friends. Although Sina Weibo is very likely to Facebook. In Company description it is introduce that in the future target is the internet search.5 million U.S dollar. Mary Coulter. Management Ninth Edition. but it still has got many opportunities.” (Stephen P.3 Threat “Threats are negative trends. Mary Coulter. Nowadays there are many similar social networking service website appear. Management Ninth Edition. there income is more than 1. Your friends can see you the first time the information published at any time to share with you to discuss.p213) We can say that the famous of the facebook is the strength but also the threat. or send a picture. and immediately release the information. 4. Robbins. Sina Weibo who is as a competitor has shared most of the markets with Facebook in Asia.things by written word. 10 .2 Opportunity “Opportunity are positive trends in external environmental factors. also the appreciation of the service. You can be also concerned about your friends. 4. anywhere to send to your friends. so facebook can add more service of the internet.p213)Even though facebook got many successes. Advertising is the income of facebook. even though the website is free for the user. Robbins. the value of the advertising in facebook is getting bigger and bigger. by computer or cell phone anytime.

For example. in china we have renren website and weibo. If there is another new service appear. Reference About Facebook (2011) http://en. the user of facebook will be easy to lost.php?factsheet [2011,30th. November] Facebook (2007)Facebook and Microsoft Expand Strategic Alliance.China is a big market.mspx [2011. [2011,30th.30th . p736-753 Miller. 28. November] Facebook ( 2011 ) The facebooke factsheet.com/press/info. days go by weibo are been use not just in china but many different country . Vol. http://www. So many people use this two kinds of website to substitute facebook.also the service in facebook is not enough for user. T and Trond. we all know that facebook is not allow to be use of some place in china.wikipedia.org/wiki/Facebook. http://www. so how to bring more new service to let the user stay is a big threat of facebook . Marketing intelligence and planning.com/Presspass/press/2007/oct07/10-24FacebookPR.microsoft.C (2011) Can Facebook turn 800m users into a $100bn business? 11 .November] Kjell. NO.6.facebook. H (2010): Niche marketing and strategic capabilities: an exploratory study of specialized.

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