End Term Assessment

Of

Entrepreneurship

Submitted by

Ishita Sabharwal MFM/20/68

Rushikesh Bhattad MFM/20/106
Nikhil Prabhakar MFM/20/393
Jyoti Sharma MFM/20/658

Submitted to

Mr. Bhaskar Banerjee

(Associate Professor)

National Institute of Fashion Technology (NIFT)

(Ministry of Textiles, Govt. of India)
GH-0 Road, Behind Infocity
Gandhinagar 382007. Gujarat

http://www.nift.ac.in

December 2020
 CONTENTS
ASSIGMENT BRIEF ................................................................................................................3
BUSINESS IDEA ......................................................................................................................4
EXISTING BUSINESS - FACEBOOK ....................................................................................6
IMPLEMENTATION OF IDEA..............................................................................................6
INTRODUCTION ...................................................................................................................9
HISTORY ............................................................................................................................. 10
TIMELINE OF FACEBOOK ................................................................................................ 10
MISSION STATEMENT ...................................................................................................... 12
VISION STATEMENT ......................................................................................................... 12
COMPANY VALUES........................................................................................................... 12
SEGMENTATION TARGETING AND POSITIONING (STP) ............................................ 13
SWOT ANALYSIS OF FACEBOOK ................................................................................... 14
VALUE PROPOSITION ....................................................................................................... 20
SUCCESS FACTORS OF FACEBOOK ............................................................................... 21
FACEBOOK SUCCESS STRATEGY................................................................................... 22
GROWTH ............................................................................................................................. 32
FACEBOOK COMPETITORS.............................................................................................. 33
FACEBOOK STARTEGIES .................................................................................................. 37
SUSTAINABLE STRATEGIES............................................................................................ 37
MARKETING STRATEGIES ............................................................................................... 44
FUTURE SUGGESTIONS ..................................................................................................... 47
ENTREPRENEUR PROFILE................................................................................................ 48
MARK ZUCKERBERG- INTRODUCTION ........................................................................ 48
EARLY LIFE ........................................................................................................................ 48
EDUCATION ....................................................................................................................... 49
MARK ZUCKERBERG’S IDEOLOGIES............................................................................. 50
BIBLIOGRAPHY ................................................................................................................... 51
 ASSIGMENT BRIEF

Groups to identify a successful business/company related to the opportunity identified in

Assignment 1. The business/company should be following sustainable practices. Combine the
market study of A – 1 and A – 2 and add new research to it to justify the selection of the company.
This company should be different from the one selected in Assignment 1 & 2.

Prepare a report and presentation giving details of the business, products &amp, services, success
factors for the business and the sustainable business practices, including relevant qualities
identified in the entrepreneur. Identify the strategies followed by the company that contributes
towards its success over its competitors.

Suggest improvement of the business with respect to market and sustainable business practices.
 BUSINESS IDEA

SKILL E-MANAGEMENT SYSTEM & SERVICE PROVIDER

• Through our skill E- Management System an applicant can build his resume and verify the
skills enlisted through the wide variety of tests provided by us.
• The skills enlisted by the applicant are verified and evaluated through the different levels
of tests which in turn categorizes the applicants into different levels of expertise for their
enlisted skills
• The recruiter in turn can easily search for the right candidate for the job and can judge the
level of expertise of the applicant through the levels allotted to him.
• This system can be used for wide variety of skills and job profiles.
For Example:

If an applicant enlists himself and mentions that he/she is a Microsoft Excel expert, then he needs
to verify his skill by providing it credibility through the tests provided by the site. As the level of
the tests increases so does the level of expertise in the skill he mentioned will be shown on his
profile. Thus, when a recruiter wants an employee with say Level 4 expertise in Microsoft Excel
then he only needs to search for the candidate with the required credential without worrying about
falsified resumes and will meet the right employee for the job.

Pros:

• It is a one place destination for both skill testing and recruitment.

• It prevents applicants from falsifying their resume.
• It eases the shortlisting process.
• The process is both time and cost for the recruiter.
• Recruiters are also vetted and hence verified.
Cons:

• Time consuming for the applicant.

• Limited accessibility for people residing in remote areas.
• The applicants can cheat on their tests.
EXTENSION OF BUSINESS IDEA

• The E-Skill Management System proposed above is going to be applied to the handicraft
sector providing a platform to the artisans to connect with the potential marketeers.
• Different Artisans hailing from different fields can enlist their skill on the website and can
also display their respective works on their profile.
• Skill enhancement workshops will be conducted for the handicraft workers of different
crafts.
• These craftsmen can form an online community in the form of a forum and can exchange
their respective ideas with each other and can come up with ideas leading to the
development of the crafts and increasing awareness among the public.
• A separate marketplace can be set up for the artisans like e-trade fair connecting them to
potential buyers and exporters.
 EXISTING BUSINESS - FACEBOOK

Figure 1-Facebook (techcrunchsts, 2017)

IMPLEMENTATION OF IDEA

• Facebook will develop a portal embedded in one’s facebook profile where

user can make his/her professional profile.
• This profile would operate differently than the users existing facebook profile.
• Users would be provided a choice weather they want to show their other
informal facebook profile to the recruiters or not.
• The portal could be termed as “FACEBOOK SKILL” here people will be able
to share their professional skills and recruiters can find the right employees
for their companies.
• Users can upgrade their skill by giving predefined tests for each level by
facebook preventing falsified resumes at the portal.
• Artisans or other creative workers could showcase their works on the portal
and can also connect their informal user profile and can promote their works
through facebook along with connecting with potential collaborators and
employers.
 Figure 2-Demo Facebook skill profile

Figure 3-Demo Facebook Skill Profile Education Section

Figure 4-Demo Facebook Skill Profile Experience Section

Figure 5-Demo Facebook Skill Profile Skill Set Section

INTRODUCTION

Facebook is the well-known social media giant today, but its founder would not have thought about
coming a long way when they started developing the idea from scratch.

Facebook is an American company founded in the year 2004 that offers online social networking
services across the world. The founding members of Facebook includes Mark Zuckerberg,
Dustin Moskovitz, and Chris Hughes. The company has its headquarter in Menlo Park,
California. In the year 2012, Facebook became the largest social networking platform with more
than one billion users. (Hall, n.d.)

Making an account on Facebook is free of cost and the company earns its revenue from the
advertisements on websites. The website has many components, including Timeline, a space where
the user can post status and photos and tag their friends. Facebook provides various privacy
features to its users, as to enable them to have a control over who can see their posts, send them
friend request, and know about their location.

Figure 6-Logo (shoppingcartproductfeed, 2015)

HISTORY

Facebook began in the year 2003 at Harvard University as Facemash and its early years were quite
complicated. Initially, it was developed as an online portal that provided services for students to
judge the attractiveness of their fellow students.

Mark Zuckerberg violated the policies of the University, so it was shut down for two days but 450
people who actually voted 22,000 times flocked to Facemash. This prompted Zuckerberg to
register his website in January 2004. (Hall, n.d.)

The site marked remarkable entry with around 1200 sign ups within 24 hours. Within a month,
half of Harvard undergraduates created their account on Facebook.

TIMELINE OF FACEBOOK

• FEBRUARY 2004- Mark Zuckerberg, Moskovitz, Saverin and Hughes founded

Facebook known as “The Facebook” then.
• MARCH 2004- Facebook spreads to other college campuses of Yale, Columbia, and
Stanford.
• JUNE 2004- Facebook moved its headquarter to Palo Alto, California.
• SEPTEMBER 2004- The website launched its “wall” where the user can post their
pictures and messages.
• DECEMBER 2004- Facebook gained one million users.
• MAY 2005- Facebook expands to 800 college campuses.
• SEPTEMBER 2005- The company changed its name from “THE FACEBOOK” TO
“FACEBOOK”
• OCTOBER 2005- Facebook adds the feature of “photos”.
• DECEMBER 2005- Facebook hits the mark of 6 million users.
• APRIL 2006- Facebook goes mobile
• SEPTEMBER 2006- Facebook becomes accessible for everyone
• DECEMBER 2006- Facebook membership increases to 12 million.
• JUNE 2007- Video launches
• DECEMBER 2007 - Membership increases to 58 million.
• JULY 2008 - Launch of Facebook for iPhone.
• FEBRUARY 2009 – Introduction of “like” button
• JULY 2010 - Over 500 million active users on Facebook.
• AUGUST 2010 – Opening of engineering center in Seattle.
• OCTOBER 2010 – Introduction of Groups on Facebook.
• APRIL 2011 - Data center opened in Prineville, Oregon.
• JULY 2011 - Video calling is introduced
• APRIL 2012 – Announcement of acquisition of Instagram
• MAY 2012 - Facebook released their IPO – that raised $16 billion and gave the company
$102.4 billion market value.
• OCTOBER2012 – Facebook hits the mark of one billion membership
• FEBRUARY 2013 – Facebook Acquires Atlas
• JUNE 2013 - Facebook's acquisition of Instagram launches video.
• FEBRUARY 2014 – WhatsApp is acquired by Facebook
• MARCH 2014 – Facebook acquires Oculus
• NOVEMBER 2014 – Announcement of Groups App
• APRIL 2015 - Facebook has over 40 million small business pages on its website
• JUNE 2015 - Artificial Intelligence Research of Facebook opens in Paris.
• FEBRUARY 2016 – Facebook launches reactions
• JULY 2016 - Facebook Messenger notifies over 1 billion users in a month
• OCTOBER 2016 – Facebook marketplace is launched enabling the users to buy and sell
their products.
• APRIL 2017 - Conference of F8 Developer is held in San Jose by Facebook.
• MARCH 2018 - Facebook sued by their shareholders following stock plummet.
• APRIL 2018 - Zuckerberg testifies before Congress regarding concerns over data and
privacy breaches.
• SEPTEMBER 2018 - Facebook COO Sheryl Sandberg testifies before Congress
alongside Twitter (TWTR) - Get Report executives.

Figure 7- (ctvnews.ca, 2019)

MISSION STATEMENT

“To give people the power to share and make the world more open and connected”

VISION STATEMENT

“People use Facebook to stay connected to friends and family, to discover what’s going on in the
world and to share and express what matters to them”

COMPANY VALUES

Every company has some set values that company adhere to and it plays an important part in the
development of the company as a whole. Facebook has five core values that company focuses on.

• BE BOLD- Facebook believes in taking risks that is essential for accomplishing goals in
changing environment. The founder of Facebook encourages everyone in his company to
take risks and make bold decisions even if it turns out to be wrong at times. Mark
Zuckerberg believes that “The riskiest thing is to take no risk”
• FOCUS ON IMPACT- Facebook wants from its employee to have personal drive towards
the mission of the company. Global Head of Recruiting Miranda Kalinowski says, "People
who thrive here at Facebook are always creating new things and figuring out ways to
improve".
• MOVE FAST- One of the founding mantras of Mark Zuckerberg is to “Move Fast and
Break things”. The company values enunciate that they are less afraid of making mistakes
than losing opportunities by moving slow. They consider themselves as builders.
• BE OPEN- Facebook values transparency and collaboration and wants his employees to
maintain that. "Openness and transparency, building community, collaborating - it's all part
of the way we work together".
• SOCIAL VALUE- Facebook is the strength-based company, the term, borrowed from
management consultant refers to a company that builds upon individuals' talents rather than
trying to strengthen their weaknesses. This enables the employees to do things that they
find meaningful.
SEGMENTATION TARGETING AND POSITIONING (STP)

Figure 8-STP Invalid source specified.

SEGMENTATION- Facebook segments its customer base into demographic, geographic and
psychographic variables in order to understand the preferences of the customers.

TARGETING- Facebook has huge target market. Facebook makes ensures that it provides
algorithmically individualized advertisements meant for specific person based on the way he/she
operates their accounts.

POSITIONING- Facebook uses value-based positioning strategy and tries to engage people so
that they can share more and more and stay connected with others.
SWOT ANALYSIS OF FACEBOOK

Figure 9-SWOT Analysis Invalid source specified.

STRENGTHS

• Well-established brand- Facebook is the top ranked social media platform. According to
an estimate by Forbes in 2019, Facebook is ranked 5thwith a total worth of 88.9 billion US
dollars. It has huge number of daily active users, to be precise 169 million that marks its
presence as a stable and sustainable brand.
• Offers diverse products and services- One of the main reasons behind the success of
Facebook is, it has evolved according to the needs of dynamic environment. It comes up
with new features that enhances their customer experience. Some of the examples are the
360-degree photos, Facebook live and Facebook Stories.
• Loyal Customer Base- Nothing communicates a company’s strength, stability, and
success more than a large and ever-growing number of extremely loyal
customers. About 40% of the world population uses Facebook and its family products
(Instagram, WhatsApp, Messenger), putting Facebook in an irreplaceable position.
• Strong Market position- As per an estimate by Statista as on December 31, 2019,
Facebook has approximately 2.6 billion active users. These estimates portray a strong
market dimension of Facebook as it can easily attract other marketers and advertisers.
 Companies that dominate the market can leverage their elevated positions to their
advantage. The leading social network of the world, Facebook, and its family products
(Instagram, WhatsApp, Messenger) have Monthly Active People (MAP) value of 2.89
billion (Dec 31, 2019).

Figure 10-Facebook dominating the Media LandscapeInvalid source specified.

• World’s Best Employer- Facebook’s excellent HR policies are regarded as one of the best
not only in the social media industry but also globally across all other industries. It is known
to attract and retain top talent in the industry. Forbes ranked Facebook in the following
categories:
 o #147 Best Employers for Diversity 2020,

o #144 World’s Best Employers 2019, and

o #71 America’s Best Employers 2019

• Strong Leadership- Facebook has achieved a great position in a short period because of
its continuous efforts towards innovation and creativity. The dynamic and user-friendly
approach has helped them to gain the position of global leader.

Figure 11-Social Media StatisticsInvalid source specified.

• Engagement- Facebook is one of the social media platforms with highest engagement. It
has recently acquired Instagram and WhatsApp that very well establishes their position as
a brand with better engagement and versatility.
• Research and Development- We are living in an era of technological advancements, and
Facebook has well understood this fact. It maintains consistency with innovating new
technologies time-to-time.
• Strong Advertising Business- Even though Facebook is synonymous with social media
networks, the major source of its revenue is from the advertisement. In 2019, $69.66
billion (98.5% of its $70.70 billion annual revenue) came from advertising.
• Effective Marketing Strategy- Facebook’s marketing is simple. The fact that over 2
billion people use their applications every day makes it an immensely powerful and
effective marketing tool.
WEAKNESS

• Privacy Issues- One of the biggest problems with social media platforms is the data
breaching. It is figured out that the data shared on Facebook is not safe. The company has
lost popularity among users in some parts of the world. According to a study by Edison
Research Data, Facebook has lost approximately 15 million users.

Figure 12-Privacy ConcernsInvalid source specified.

• Fake News- Facebook has become a platform where people spread misleading
information, and fake news. It has not been able to tackle and control such problems. This
has caused the customers lose trust in the brand.
• Relying on ads- Facebook relies on user’s traffic and advertisement. If the user traffic gets
affected due to some events, the company would lose its customer base and its source of
income.
 • Friction in Management- Consecutive scandals have been disintegrating the harmony that
existed between top-level management since the company was founded. The need for
accountability is turning into a weakness as top executives point fingers and seek to
distance themselves from major scandals such as the Russia meddling scandal

OPPORTUNITIES

• Paid Services- Diverse products and services is the main reason behind the success of the
company. But the source of income is through advertisements and the company offers paid
services like Facebook dating or business tools.
• Platform Expansion- Facebook has a large customer base and it is involved in other
business. The management has an opportunity of competing with other brands like
Amazon, eBay, Tinder etc.
• Integrate with other Applications- Facebook has acquired Instagram and WhatsApp.
Integration is great way to use the information of one platform to connect with others.
• Diverse Audience- The users of Facebook belong to demographic of Tech-savvy and
young audience. There is huge opportunity for the brand if it adds on features for its senior
business minded people.
• Expansion of Existing Platforms- With billions of users, Facebook can expand its
existing services such as marketplace, online video streaming, online dating, business tools,
e-wallet, etc. to compete with giants such
as Amazon, eBay, YouTube, Netflix, Apple, Tinder, PayPal, etc.
• Target Different Audience- Although Facebook is popular, the drivers of its popularity is
mainly tech-savvy and younger demographic. By introducing new features, Facebook can
attract other target segments such as older generations or high-end business platforms such
as LinkedIn.
• Expansion through New Acquisitions- Facebook has financial resources to expand its
portfolio by acquiring established entities. Also, it can acquire promising technology start-
ups with the potential to revolutionize the world, just like Facebook did.
 For example, In Oct 2019, Facebook acquired a brain computing start-up “CTRL – Labs”
that specializes in sending brain signals to a computer and use these signals to perform
various tasks.
• Exploit Changes in Advertising Trends- A majority of Facebook users access their
accounts via mobile app. Facebook has an invaluable opportunity to improve its mobile-
based advertising to take advantage of a 26% increase in mobile in-app ads.

Figure 13-StatisticsInvalid source specified.

THREATS

• New Competitors- In this dynamic environment, there are various platforms famous
among the young audience. The popularity of such platforms is a threat to Facebook
because each day, competitors are coming up with new ways of attracting more users.
• Increased Regulations- The number of unfavorable regulations to Facebook is being
passed and adopted at an alarming rate, fueled by recent scandals such as Cambridge
Analytica.
VALUE PROPOSITION

Facebook divided its customers and have different value propositions for each segment like Users,
Influencers, Advertisers /Business-

• FOR USERS- Users can post their stories, photos, interact with people via messages.
People have a chance to express themselves and their life events. Facebook is a great pass
time and it is the key value proposition for the users as people can get entertainment content
on the website. It helps people to keep themselves updated with current news.
• FOR INFLUENCERS- An individual can build their own brand and advertise their
products, services and influencers can interact with their followers at anytime and
anywhere.
• FOR ADVERTISERS- Ad formats of Facebook are integrated natively. Facebook has
rules for what Ad creative can do or cannot do. Recently, the company has cut down the
number of Ad formats to reduce the confusion faced by advertisers.

Figure 14-Value Proposition (rap.ventures, 2020)

SUCCESS FACTORS OF FACEBOOK

• FACEBOOK IS EASY TO USE- Unlike other social networking websites, Facebook is

easy to use which enables people of all age groups to build their profile and avail the benefit
on this platform in order to stay connected with their friends and family.

• CONSTANT UPGRADES- Facebook emphasizes on change/upgradation in order to

cope up with dynamic environment. The user interface of Facebook has changed repeatedly
with time in order to enable its users to avail the benefits of new features.

• ENGAGING FEATURES- Because of its engaging features, Facebook makes a person

addictive. The website offers bunch of features like news feed, chats, voice call, video calls
and many more. Their website rolls out various new features time to time, which keeps
their user base intact for long.

• MOBILE MOVERS- When people started moving from old keypad mobile to
smartphones, Facebook took no time to make their app available in the smartphones and
above all, it has a standalone app for messaging, reading news, poking, and uploading
photos.

• BUYING SUCCESSFULLY- Facebook has successfully acquired many companies. The

main acquisition among all were Instagram worth $19 billion and Oculus worth $2 billion
and WhatsApp.

• WORLDWIDE USERS- Facebook has wide user base across the world. It has around 2.3
billion users, 85%v of whom are outside US and Canada. Facebook has diverse users with
respect to age and sex.

• FORCING PEOPLE TO IDENTIFY THEMSELVES- Facebook forces its users to

authenticate themselves by the use of email address. It implemented one person, one
identity token practice and allows any user with a verified email address.

• FACEBOOK CONNECT- Facebook announced its extended platform called “Facebook

Connect” that made it easier for its users to take their online identity with them across the
web. Additionally, it enabled them to share what they and their friends do online and keep
themselves updated.
FACEBOOK SUCCESS STRATEGY

Facebook is undoubtedly a huge success. With a huge number of new features and interface
tweaks, lifting registration restrictions, launching some of the world's most successful mobile apps,
and acquiring other hugely successful apps. and so on, and it has seen a big change in management.

• Culture- Although it has multiple offices around the world, the company maintains a hacker
culture that was deeply rooted in its formation. Speed is also important. Fast decisions are
made, and the function is developed in a sure, short time.
• One of the earliest players in the market- Facebook was designed for students by the
students. However, there were some features that Facebook has incorporated that made the
service appealing.

o Originally called facebook, Facebook was founded by Mark Zuckerberg, a Harvard

alumnus), who ran it as one of his hobby projects with some financial help from
Eduardo Saverin. Over the course of several months, Facebook and its core idea
spread throughout Harvard dorm rooms, where it was well received. Before he
knew it, Mark Zuckerberg joined two other Harvard students - Dustin Moskovitz
and Chris Hughes - to join two other Harvard students - Dustin Moskovitz and Chris
Hughes - to help him develop the website to the next level. new. Officially
becoming a network phenomenon for national students, Zuckerberg and Moskovitz
dropped out of Harvard to pursue his dream and run Facebook full time. In August
2005, facebook was officially known as Facebook and the domain facebook.com
was purchased for a reported $ 200,000.
o Until that time, Social Networking Services (SNS) was largely targeted. targeted
and accepted by an older demographic.
o Focusing primarily on high school students to college students, Facebook has
gained market share and, more significantly, its user base.

• Engaging features - Facebook is addictive. Facebook has some really attractive features.
The website alone offers features such as news feeds, messaging / chat, voice calls, video
calls, likes, follow, subscribe, and marketplaces. With tweaks, Facebook is repeatedly
 rolling out new features, some of Facebook's messaging platforms are extremely popular,
and there are no other features like Facebook Beacon, but the company is still working
hard.
• Building and Product Development- Part of Facebook's innovative strategy to make its
products sustainable in its area of decision, the goal is to find a product design that fits
business objectives through strategic performance management of the company in the
future. The Facebook or 4P marketing mix is partly based on the output that include this
OM site.
• Privacy- Another great Selling sure is the privacy controls they have set. Automatically,
only people who verify that they are in your same network (school, company, or region)
can see your profile. blocked only allowing friends to see your profile. Myspace also
provides the same privacy controls, but Facebook's use of networks creates a growing sense
of privacy. In Myspace, your profile may be public or special to your friends, while on
Facebook, it may still be Not only for your friends, but also for open-minded people. This
has caused many college kids to flock to Facebook, looking for a closed network than
Myspace.

Figure 15- (completebusinesstransformation, 2020)

MARKET SIZE
Facebook user Statistics:
Facebook is the world’s largest social media platform. in the third quarter of 2019, total monthly
active users of facebook numbered 2.45 billion which is actually 1 billion more people than
currently living in China. In the Q3 of 2018 this number was 2.27 billion and a year before it was
2.07 billion.

The graph below shows the raising users of facebook form the year 2008 to 2019.

Figure 16-User Statistics (www.statista.com, 2020)

Facebook reveals daily active user figures in its quarterly statements. In Q3 2019, this figure came
to 1.62 billion, up from 1.50 billion a year prior, and from 1.59 billion the quarter before. In
percentage terms, this means that a rather stunning 66% of Facebook users around the world use
the app every single day.
Below, we can see that DAU have been growing at what can fairly be described as an even rate
since 2011.
 Figure 17- No. of users (statista.com, 2020)

Facebook users by geography

Facebook’s status as a global app is evident in the spread of users across geographies. Over 100
languages are used on the platform. The largest concentration of users can be found in Asia, in
which over 1 billion Facebook users are located. This is followed by the rest of the world (Latin
America presumably accounting for the greatest share of Facebook users), at 802 million, with
Europe (387 million) and the US & Canada (247 million), accounting for a relatively small share
of Facebook users in comparison. In percentage terms, that is 10% in the US & Canada, 16% in
Europe, 41% in Asia, and 33% in the rest of the world.
 Figure 18-Monthly Active Users (statista.com, 2020)

The largest concentration of Facebook users can be found India. It holds this position by some
distance, with 86 million more users (in Q2 2019) than the US. India manages this substantial lead
despite the fact it has lowest Facebook user penetration in the top-10 (26%). As of January
2019, Facebook was the fifth-most popular website in the country.

Facebook users Demography:

In terms of age, it can be found that the highest proportion of Facebook users are in the age groups
of 18-24 and 25-34 years. This is pretty typical for social media – though certainly runs somewhat
contrary to widely held sentiments that Facebook is primarily the preserve of older generations in
the age of Instagram and Snapchat.
Among the oldest demographics of Facebook users, we begin to see slightly more female than
male users. 43% of the Facebook user base are female.
 Figure 19-Advertising Audience Profile (statista.com, 2020)

In India, home of the world’s largest population of Facebook users, demographics skew strongly
male. Over three quarters of the Facebook user base in the country are men, according to Facebook
stats published on NapoleonCat.

Figure 20-Facebook India demographics: age and gender, December 2019

(Napoleancat.com, 2020)
Facebook Revenue Statistics:

Facebook revenue for Q3 2020 came to a stately $21.47 billion. This compares to $17.65 billion
in Q3 2019 (22% increase), and $13,727 in Q3 2018 (a 56% increase).

In the earlier days, naturally, growth was explosive. 2013’s figure of $7.87 billion represents a
tenfold increase over 2009’s $777 million. Five years on from that, in 2018, the figure had
increased sevenfold once more.

Figure 21-Global Revenue (statista.com, 2020)

Facebook Profit:

For Q4 2020, net revenue for facebook was $80.4 Billion. Net revenue stood at $6.09 billion in
Q3 2019. This represents a healthy year-on-year increase on Q3 2018’s $5.14 billion – 18% to be
precise. At the time of writing, the highest profit figure reported is Q4 2018’s $6.88 billion.
 Figure 22-Net Income (facebook, 2019)

Figure 23-Facebook Annual Profit Loss 2007-2018 (statista.com, 2020)

Facebook Costs:

In Q3 2019, R&D costs account for the greatest share of Facebook expenses, equal to 20% of
revenue, with cost of revenue close behind on 18%, marketing & sales on 14%, and general &
administrative expenses on 8%.
This is most commonly the order in which these expenses have fallen in the trailing two-year
period covered here. Previous quarters in 2019, however, have seen higher than average cost of
revenue and general & administrative expenses.

Figure 24-Facebook costs as percentage of Revenue Q3 2017-Q3 2019 (facebook, 2019)

Facebook Public trading and Market cap:

Facebook went public in May 2012. At the point of the Facebook IPO, shares were priced at $38,
giving it a valuation of $104 billion. This propelled it instantly into the ranks of the top-25 US
public companies, as well as being the third-largest US IPO of all time at the time, raising $16
billion. In the all-time, global chart, this puts Facebook in tenth position.
In early January 2020, Facebook’s market cap was at $607 billion – it is highest-ever level. Prior
to this, it had reached $606 billion as of July 2019.

Figure 25-Facebook’s Market Cap 2012-2020 (Marcotrends, 2020)

GROWTH

On February 4, 2004, Mark Zuckerberg, along with some of his classmates launched a small
website called The Facebook. Initially, it was developed with an idea connecting people through
social networks at colleges.

The service quickly gained popularity and rolled out to other colleges. In the year 2004, The
Facebook gained more than 1 million users and secured an investment of $ 5000,000 from PayPal
co-founder Peter Thiel. Later, it changes its name to Facebook in the year 2005. Now the platform
was opened for public that marked the start of one of the most remarkable growth of corporate
history.

In three years, Facebook gained 350 million users and it became the first online service platform
to reach 1 billion monthly active users. In the third quarter of 2019, Facebook reached to 2.45
billion users.

Figure 26-User Growth since 2004 (statista, 2019)

FACEBOOK COMPETITORS

As estimated in July 2019, Facebook is still leading the game with 2.38B monthly active users,
while Twitter was ranked 12th with 330 million users.

Even though user difference is huge, but Facebook faces tough competition because Twitter is
gaining popularity for transmitting messages in live events among the millennials.

Facebook connects people where one can write a post of unlimited characters. Users can make
“friends”, like and share the post of their choice which remains evergreen. Even they can message
instantly and play games on Facebook.

While Twitter connects ideas and interest. Users can “follow” others, can find the latest trending
news. They can tweet and retweet their response, but it is limited to 280 characters only. But due
to constant real-time interaction, the contents have a short lifespan.

But Facebook’s revenue model is a lot similar to Twitter’s and both compete for getting as much
user attention and as many ads as they can.

Pinterest:

Figure 27- (pinterest, 2020)

Facebook and Pinterest are different in terms of their operating model. While Facebook’s focus is
to become a one-stop social networking platform where people connect and chat, Pinterest focuses
on making it easy to discover, save, and share information using photos, videos, and links.

Facebook users can create small groups of friends with a common interest, can chat and share
information with them. But Pinterest does not allow groups. Only a user can follow other users
and see their pins in own News Feed.

Pinterest is considered the fastest growing platform in history which reached 10 million new
visitors in a month. In August 2019, Pinterest reached 291M monthly active users and there is no
looking back considering that no one is able to tackle it with its disruptive business model.

Snapchat:

Figure 28-Snapchat (moneycontrol, 2020)

Snapchat is a big competitor to Facebook and its subsidiaries like Messenger and Instagram when
it comes to instant messaging and photo and video sharing. It is considered as one of the fastest-
growing social platforms with over 203 million daily active users (2019). This application, just
like Tik Tok, is more popular among Generation Z (current teenagers).
The estimated number of videos viewed and shared daily on the platform is 10 billion.

The Snapchat vs Facebook debate has been going on ever since Snapchat said no to being acquired
by FB. Facebook, since then, has successfully been able to copy most of the features from the
original application and added the feature of stories, instant photo messages, etc., to Instagram,
Messenger, and WhatsApp, making their business models similar to Snapchat’s business model.

LinkedIn:

Figure 29-LinkedIn Logo (kinsta, 2020)

LinkedIn has a huge user base of more than 645M users from all over the world making it one of
the most popular platforms for hiring employers or finding jobs. It competes with Facebook’s in
terms of popularity among the professional crowd.

LinkedIn and Facebook are very much different from each other. The former is a business platform
that offers profiles and networks to create engagement among professionals, while the latter helps
to connect with “friends”. But both compete with each other when it comes to getting the most
attention of the users and getting most ads from advertisers.

Moreover, with the launch of Jobs on Facebook, Facebook has made LinkedIn its direct
competitor.
YouTube.

Figure 30- (youtube, 2020)

Facebook is not limited to the usual social networking websites. The company, with its offering
– Facebook Watch, is a known contender when it comes to video hosting and video sharing and is
actively competing with giants like YouTube, Prime, etc.

YouTube competes with Facebook for video-sharing. It is considered as the second largest search
engine after Google and the present number of active user vs is 2 billion making the app one of
the toughest competitors of Facebook.

To compete with YouTube, Facebook launched Facebook Watch in 2017 which presently
witnesses 720M users per month.

YouTube offers a longer shelf-life to the videos than Watch. Google’s platform uses Google-like
ranking features which involves uploaders to employ search engine optimization of their videos.
Moreover, videos on YouTube range from varied categories.

Facebook, however, uses its own social-media like algorithm to present videos to its users and
hence the shelf-life of such videos are not much compared to that on YouTube. The platform also
focuses on community-focused ‘shows’ rather than one or two videos from independent publishers

Moreover, the way the company defines “view” is also different. To count as “view”, the YouTube
videos need to get actual click on them (auto-played videos do not get views). Even for the
YouTube ads, they need to be played for 30 secs to get a “view”. While Facebook considers a
video to get “view” even if the video is auto played and being played for 3 seconds. Invalid source
specified.
 FACEBOOK STARTEGIES

Facebook, the leading social network of the planet has quite two billion members. It is the foremost
social networking website and an innovative company based by Mark Zuckerberg; besides his
talent and leadership, Zuckerberg is additionally notable for his charitable activities. He and his
spouse Priscilla Chan based the Chan Zuckerberg Initiative in 2015. the main focus of the initiative
is upon science, education, justice, and economic chance. Mark Zuckerberg and his spouse
Priscilla Chan have pledged to give around ninety-nine of their Facebook shares throughout their
time period. In 2017, the couple given $1.9 billion to the initiative.

SUSTAINABLE STRATEGIES

Facebook additionally excels within the area of sustainability. Environment is additionally a

particularly important concern and Facebook is financing in research and technological resources
to unravel the environmental challenges. The whole partners alternative organizations additionally
as a neighborhood of its CSR and property strategy. On the one hand, it increases efficiency and
helps to better manage the environmental impact of an organization, while on the other hand, it
has greater long-term benefits, including a better social image. Providing tools and resources that
can help you reach your sustainability goals is beneficial to the broad community. The most
important areas of focus in Facebook's sustainability field are climate change, renewable energy,
water, and sustainable workplaces.

Facebook's strategy is based on two broad goals and one science-based goal to drive change in the
many communities in which we operate:

Minimize their environmental footprint through operational excellence and innovation

Work with others to develop innovation solutions and catalyze climate action

Climate change

Facebook actively supports the "We Are Still In" coalition, which supports the Paris Agreement.
The company reduced GHG emissions from 2017 to 2018 by 44%, achieving more than half of its
75% target.
Facebook's CO2 emissions have declined annually since 2017 - and the company is likely to emit
more greenhouse gas emissions like gadget or hardware companies. 616,000 in 2017, according
to its sustainability report, and has less carbon footprint than Google, which released 4.4 million
tons of greenhouse gases by 2018 in its operations.

The worldwide operation of Facebook would achieve zero emissions and is 100% supported with
renewable energy in 2020 But getting the house in order is just the beginning, connecting people
with science-based information, as well as the new goal of zero value for the company’s value
chain.

The company has also launched the "Climate Science Information Center" for users in the US,
Germany, UK, and France starting today. The company plans to bring the information center to
more countries in the future. Facebook launched the center in March, appearing at the top of User's
News Feed, which includes information from reputable sources such as the United Nations Council
of Climate Scientists and the National Oceanic and Atmospheric Administration (NOAA).

Climate service information center

Figure 31-Climate Service (engadget, 2020)

Facebook launched a brand-new Climate Science information Center to connect individuals to
factual and relevant climate information, they have sculptured the center and therefore the info at
intervals it on their COVID-19 info Centre that has, so far, directed over two billion individuals to
information from health authorities, with over 600 million individuals clicking through to find out
a lot of.

The Climate Science information Centre is a dedicated area on Facebook with factual resources
from the world’s leading climate organizations and applicable steps individuals could absorb in
their everyday lives to combat global climate change. The center would feature facts, figures, and
information from the Intergovernmental Panel on global climate change (IPCC) and their world
network of climate science partners, as well as the UN atmosphere Programme (UNEP), The
National Oceanic and region Administration (NOAA), World meteoric Organization (WMO).

Tackling climate misinformation

Facebook is committed to tackling incorrect weather information. It is working with 70 truth-based

non-governmental organizations around the world, covering more than 60 languages, has limited
the distribution of the post to News Feed and use the warning label at the top on Facebook and
Instagram so that people understand that content is rated as false.

Climate change is a problem that we can only address if we all work together globally. Facebook
is taking important steps to reduce its emissions and equip the global community with scientific
knowledge to make informed decisions and tools for action.

Renewable energy and water stewardship

Two years ago, Facebook aimed to run on fully renewable energy by the end of 2021.

Facebook's goal is to use 100% renewable energy to empower all institutions and their processes
till 2020. Facebook committed to renewable energy back in 2011 only and started working this
way. Facebook Data Centers are among the world's most energy efficient and Facebook is also
buying renewable energy from others to support its data centers and other processes. The company
has prioritized water management in all its areas and operations and is committed to building
circular systems that use as much water as possible.
Facebook proclaimed that in 2019 it achieved 86% renewable energy for its operations, that is up
from 35% in 2015.

The blackwater treatment system at facebook headquarters ensures no drop goes to waste.

Figure 32-blackwater treatment system at facebook (sustainability.fb, 2020)

Facebook currently has 1.3 gigawatts of wind and solar projects online. In 2019, Facebook reduced
its operational greenhouse emission emissions by 59% compared to 2017 levels, and it offset over
100,000 metric heaps of carbon emissions, the equivalent of taking twenty-two thousand
passengers cars off the road.

Facebook has signed a contract to purchase 806 MW of solar and wind power from projects in
Utah, Ohio, Illinois, Tennessee, and Ireland. All of these recent deals pursue Facebook's goal of
using 100% renewable energy by the end of 2020.

Not These projects are only geographically diverse but have spread to a wide range of developers
as Facebook has signed the aforementioned agreements with Brookfield Renewable Partners, D.
Shaw Renewable Investments and Apex Clean Energy.

To date, Facebook has traded over 5GW. Facebook's goal does not seem to be to actively utilize
100% renewable energy, as the company expects another 1.5 GW of wind and solar power to be
online by the end of the year. 2021, but to sign enough contracts to reach that goal once the project
is complete.

Besides these 806 MW, Facebook has invested in quite a few notable solar projects across t. In
New Mexico, USA, the company has distributed 100 MW across two projects to supply data to
the Los Lunas data center. Facebook has also partnered with the Tennessee Valley Authority
(TVA) to support Facebook data for a total of 377 MW. Centre in Huntsville, Alabama. This 377
MW consists of a 227 MW project in Colbert County, Alabama and a 150 MW farm in Lincoln
County, Tennessee.

In 2019, the company saved more than 3 billion gallons of water and invested in watershed
restoration projects in Oregon and New Mexico. Facebook expects its water projects to restore
about 206,000 cubic meters of water a year.

Renewable supply chain and workplaces

Facebook's strategy for sustainability also extends to its supply chain and workplace with a focus
on reducing emissions and managing the environmental impact in the most efficient ways. of the
right qualification.
Posts on Facebook are subject to strict design standards to ensure that they are a healthy and stable
workplace. Platinum Certificate and all Facebook data centers have acquired the LEED® Gold
Certificate Aim to build healthy workplaces to enhance employee health and well-being and
productivity.

Facebook is working with recycling and composting partners to achieve zero waste to landfill.

Across all Facebook offices, their waste-diversion program minimizes the amount of waste that
goes to landfills. At Facebook’s Menlo Park headquarters, they divert more than 90 percent of
waste thanks to extensive recycling and composting efforts. They make it easy to separate
recyclables and compost and they have implemented a sorting system for waste before it leaves
the site.

Figure 33- (sustainability.fb, 2020)

Biodiversity Initiatives

Facebook provides a safe home for over 4,000 birds.

Figure 34-The green roof at Facebook's Menlo Park campus, California (sustainability.fb, 2020)

Facebook is constantly seeking opportunities for our campuses to reduce their impact on nearby
habitats and, where possible, to provide a net benefit. On one of their headquarters buildings in
Menlo Park, they built a green roof that is home to hundreds of trees, including mature oaks and
elms. Its walking trails provide space for exercise, meetings, and fresh air for employees, while
serving as a vital habitat for pollinators, plants and migrating birds. They have documented over
4,000 birds representing 46 avian species using the roof for foraging, nesting, and breeding over a
recent three-year period.
MARKETING STRATEGIES

The growth of social media has contributed to the development of new forms of two-way
communication with a target audience. The main advantage of social media communication is that
the organization can receive feedback on its products and services in a short time with a relatively
low-cost campaign and in the short term may include teams. specific customers. A preview of the
important features of today's most popular social networks. Unstoppable growth, Facebook has
enormous marketing potential. different ways.

Connecting people over relationships or over shared interests

• Willingness to share
We live in a time when everything seems to be in public. Everyone has a camera at all
times (smartphone) and that device is always connected to the internet, self-portrait photos
not only Spawns a phrase but a piece of hardware to take those photos and videos. And all
this time Facebook has been an established speaker for this - full of your family, friends,
and contacts.

Figure 35- (facebook-sharing-motivation-study, 2020)

• Social campaigns
Facebook has become a hotbed for social campaigns in recent years. The ALS Ice Bucket
Challenge is a perfect example of this, with videos of people taking on the challenge in the
summer of 2014 dominated Facebook. Millions have been gathered for charity. The
connection provided by Facebook meant that the challenges would spread rapidly around
the world. Detailed analysis of community posts with specific feedback.

Figure 36- (facebook-campaign, 2018)

• Setting up pages and displaying ads

Facebook's minimal identification features allow one to reach the audience directly through
ads. That means Facebook ads can get your message out to people who may be looking for
your products or services.

• Small business marketing on Facebook

The profile you create to represent your business on Facebook is different from your own.
Business profiles are called “pages. From powerful advertising options to Facebook
groups, Facebook has a variety of tools that small businesses can and should use.
• Tagging and comments come to the wall
If one tags a friend in their status update, anyone who sees the update can click on the
friend's name and access their profile. The status update can also show up on their friend's
timeline. When one tags someone, it will be notified to users.

Figure 37- (Facebook mentions & tags, 2017)

• Sharing albums with friends

There were Myspace, Bebo and MSN Messenger, but each was limited in its own way.
Facebook came up with and changed this - it gives users a chance to not only meet and
send messages to friends but share photo albums.
 FUTURE SUGGESTIONS
Facebook should benefit from its market position in the communications business. It is
recommended that Facebook separate their business model to reduce any market risk while using
other sources of revenue to keep the organization growing.

Facebook should have Invest more in cybercrime. They can use machine learning to detect any
inconsistencies in user behavior and strongly prevent any malicious actions such as extracting
millions of user data or obtaining any unusual authentication behavior.

Facebook should also consider signing a long-term commitment agreement or an agreement with
advertisers in order to grow this side of their business and overcome the challenge of short-term
commitment by advertisers.

Figure 38-Facebook Page (sproutsocial, 2020)

 ENTREPRENEUR PROFILE

MARK ZUCKERBERG- INTRODUCTION

Mark Elliot Zuckerberg (born May 14, 1984, White Plains, New York, U.S.) is an American
Computer Programmer, who is the Co-founder of largest social networking website “Facebook”.
He founded facebook.com on February 4. 2004 (renamed in 2005) which was developed as a
directory for the fellow students at Harvard University that later became a platform for connecting
with people across the world.

Figure 39-Mark Zuckerberg (wikipedia, 2020)

EARLY LIFE

Mark Elliot Zuckerberg was born and brought up in to a comfortable and well-educated family in
the nearby village of Dobbs Ferry. Zuckerberg’s father, Edward Zuckerberg is a dental practitioner
and his mother worked as psychiatrist before his birth and his siblings.
At the age of 12 years, Zuckerberg developed an interest in computers, and he used Atari BASIC
to create a messaging program called “Zucknet”. His father and family members used Zucknet at
clinic and home in order to communicate with each other.

EDUCATION

In order to keep up the interest of Mark Zuckerberg in computer, his parents hired a private
computer teacher David Newman who visited him once a week. Later, Mark studied at Phillips
Exeter Academy, a preparatory school in New Hampshire. There, he excelled in literature and
earned a diploma in Classics. Simultaneously, he worked on developing new programs like music
software Pandora which he named “Synapse”.

Figure 40-Harvard (studyinternational, 2017)

Later, Mark Zuckerberg enrolled himself In Harvard University and by his sophomore year, he
developed a program called Course Match that helped students to choose their classes based on
the course selections of other students and built “Facemash” but dropped in his sophomore year
so as, to devote his time to his new company, Facebook.
MARK ZUCKERBERG’S IDEOLOGIES

• MOVE FAST- Mark Zuckerberg believes in moving fast, when he developed the idea of
Facebook he did not go for approvals and legalities rather he built an interesting new idea
and launched it.

• KEEP IT SIMPLE (DON’T OVERBUILD) - Many companies get so entranced with

building amazing products into their product that in turn makes it complicated for the user
to figure out how to use such features. Mark Zuckerberg focuses on keeping things simple,
user friendly and made further developments in for same direction to provide unique
features to its users with the ease of use.

• FIGURE OUT WHAT WILL KILL YOU AND MAKE SURE IT DOES NOT- Many
college networks were in existence while Facebook was launched in the year 2004. All
those networks faced lack of proper infrastructure in order to control its user base. Mark
identified this problem and tried to keep a check on its user-handling infrastructure. In
short, Mark Zuckerberg figured out the thing that can kill Facebook and worked on it.

• MAKE YOUR PRIMARY FOCUS THE PRODUCT, NOT THE BUSINESS OR

THE SHAREHOLDER VALUE- In his early of Facebook, Mark Zuckerberg was not
interested about the business of Facebook rather he was focused on the products and service
that Facebook provided

• GET REALLY GOOD AT HIRING AND REALLY REALLY GOOD AT FIRING-

Apart from technology the most important factor responsible for the development of the
company is its People. For building a great company, you need to build a great team and it
includes, hiring well and Firing well. Understanding what hiring well means is easy but we
need to focus on firing well concept. Making mistakes while hiring is quite common but
the company needs to fix it really quick.
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