acebook, Inc., 2015 sebook.com, FB din Menlo Park, California, Facebook isthe largest social 4.3 billion current active users of its website. Facebook ende {of 890 million users, 745 million daily active mobile wes, and $3 i Pe revenues from advertising totaled $3.6 billion, and §257 milien iy aaa ipa (Co, fees. The company spent 29 percent of its revenue dollars on research and ope in 2014, and spent a record $1,831 billion on purchasing new propery and equipmese Inunched its audience network in 2014, which allowed advertiser (o ran their ds on third-party mobile applictions. Then in 2015, Facebook unveiled its ow | sec ng distributor, similar to rival Twitter's MoPub aimed at attracting more business -Zaikerberg spent much of early 2015 personally traveling the world, to India, Latin “Africa, Jakarta, and elsewhere, meeting with groups who petition their governments for Given that Facebook wants to grow globally, Mr. Zukerberg describes his travels ealy cook.” He wants to aggressively help phone companies build Internet connections glob- ‘half of Facebook's revenues currently come from outside the United States and nats. Rep y, more than 10 percent of Facebook accounts are fake. edla network in = 2014 with econ au * ht by Fred David Books LLC. wwv.strategyclubcom (Writen by Jason R. Willoughby, | Community College) elects tei oa rage Scanned with CamScannerScanned with CamScannerScanned with CamScannerEXHIBIT 3 Facebook's income Statements (in iii Report Date December 31, 2014 Revenves $12,466 Operating expenses 142 EBIT 4994 Imcerest “4 Other income (loss) EBT 4910 ‘ten 1,970 Income from continuing operations 2,940 Other items as) Net income 2925 Source: Based on Facebook's 2014 Annual Report Page $7: EXHIBIT ~ Facebook's Balance Sheets (in Scanned with CamScannerstrategy ncaa Roark eased tee met . gers OF dof 2014 Individuals now end of 2 viduals now waating to ms a nesta be ie ae a teresa sal busines Owner can receive high ate a sway enue puy Facebook for their product service exposure, The pe anna a sing item Face initiated is produet ree i fois ce cts Wed he spec pent wee Scho snr of ee ecaton, Facebook now also offers a work-rented produc ima in a wt, Google, and Salesforce.com. The new Facebook “professional” sents dra Mio bec) thei personal postings pctres, and identity separate from the ese er x coment. Te new service inches one cating with fessional cole Fa scales Linke the leading busines-oened socal network The es wih foo to share and store documents, taking aim at products an He, and Salesforce.com. Facebook has a significant advantage in Ge reported 1.35 billion users who are active monthly and 864 milion Fie Linkedin’s claims of 332 million registered users, but only 90 mill jibe se from July through September 2014, * on i's wide following is its main competitive advantage, because of ‘network effect in business and economics. Much of the value comes from the ty of other people with similar interests that you may want to ‘market to or interac les tt ally ot personally. Two disadvantages of Facebook, however, wiijes have banned employees from using the service at work, is that (1) scant productivity at work by spending too much time on Facebook and (2) F enc etcisms for yeas. Information lecked through employees“ book could potentially land in the hands of competitors, causing whether the new Facebook “professional” service will ee "Fora decade, digital marketers have been constrained to an wnas the cookie, which are still used to measure and target « into web browsers, cookies generate poor Scanned with CamScannerInstagram ne Facebook recently acquired Instagram, whose primary customer bose i teenagers, - ‘ 4 the Web's leading photo-sharing and video-sharing social media service aud is, ee 100 million users in the United States by 2018. Instagram surpassed Twitter in Fee