OUR PEOPLE AND US

EVOLUTION OF FACEBOOK

A simple directory growing to become an individuals identity. Won friends in all age groups. If Facebook was a country, it would be as populated as Brazil.

MARK ZUCKERBERG-LEADING FROM THE FRONT

Evolved into being one of the best CEOs. Long term vision and Risk taking ability. Easily approachable from everywhere. Generous Leader but a Hard Taskmaster. Machiavellian Manager.

COMPANY S POLICIES

Recruitment and Selection. Ruthless Meritocracy. Its incentives, after all! The young brigade. Research says it all.

THE BRAND

PORTER S FIVE FORCES

Threat of New Entrants (Medium)
-Network effects have historically not helped retain market share (but have helped only to grow it). - Specialty networks (eg. FourSquare, Tumblr) are still entering the online space.

Supplier Power (Low) - Widgets and Application providers are usually small developers with little bargaining power.

Industry Rivalry (High)

- Intense competition between competing sites fueled by venture capital and speculative valuations.

Buyer Power (High)

- Switching costs are minimal. - Users maintain 1.6 accounts on social networking sites and check both accounts in transition periods.

Threat of Substitutes (Medium)

- Internet sites with large user bases may create a social networking component (blockbuster, amazon,ebay)

OVERALL MEDIUM

WHAT IS FACEBOOK GOOD AT?

STRENGTHS
Design Organized, simple to use interface

Trust When approving a friend request, FB shows you the

number of friends you have in common
Broad Target Market Isn t targeted to a specific demographic, but there is something for everyone (applications, musicians pages etc) Activity Focus FB focuses on connecting and not on a certain activity like music, business networking etc. FB is the largest repository of pictures on the internet (bigger than Flickr) Transactions Innovative features like applications, people you may know, pokes, comments, likes etc., serve to increase user transactions. Privacy Advanced privacy filters and controls

Localization Available in 70 languages (50 in development)

WHAT IS FACEBOOK NOT GOOD AT?

THREATS AND WEAKNESSES

Applications Clutter Keeping the user base intact

WHAT FACEBOOK CAN BE GOOD AT?

OPPORTUNITIES
Business Partners Pages leading Company Cultural Expansion Varied Services P2P

Pace of innovation is important

KING OF THE JUNGLE

STATISTICS ABOUT FACEBOOK

People on Facebook Activity on Facebook Global reach Platform Mobile

USE S

male female

FACEBOOK AGE GAP HAS CHANGED

JAN 2010

JAN 2011

13-17 18-24 25-34 35-54 55+

13-17 18-24 25-34 35-54 55+

COMPETITIVE ANALYSIS OF FACEBOOK

FACEBOOK vs MYSPACE

Application Interface Spam/Viruses Social Media Integration Mobile Apps Alerts

COMPETITIVE ANALYSIS OF FACEBOOK

FACEBOOK vs ORKUT

Let s Play Like Us Tag me Security Glamour Quotient

FACEBOOK VS TWITTER VS GOOGLE+

Facebook Relationship Sharing with specific groups Shared Contents Visibility Contents I publish I see Friends Lists Contents can be shared with specific people Can be seen by my friends What my friends are publishing

Twitter Followers and Following No Open profile Private Profile Can be visible to my followers What people I follow are publishing

Google+ People Circles Contents can be Visible to specific people Visible only to my circle Who are publishing for the circle

THE SMALL BIG PICTURE

OTHER NETWORKING SITES INDIFFERENCE CURVE

BUDGET LINE

2x

FACEBOOK

UNLOCKING THE VALUE

WHAT IF FACEBOOK CHARGES ITS USERS? 2006: Yahoo bid for FB for $1 billion, negotiable till $1.62 billion. 2007: Microsoft invested $240 million at a $15 billion evaluation. 2008: Rumours of Valuation popped up based on the prices at which ex employees were selling their stock for. 2009: Sold some preferred stock to Russian investor DST at implied valuation of $10 billion. Cash flow positive by September 2009.
Revenues(estimated, in millions US$) Year 2006 2007 2008 2009 2010 Reven Growth ue $52 $150 $280 $775 188% 87% 177%

$2000 158%

THE NEXT BIG STEP

Facebook IPO set to be unleashed in F.Y 2012. Growth fast enough to justify a $100 billion valuation. Goldman Sachs and DST invested in FB at a $50 billion valuation. Expected EBDITA 2011: $2 billion. To cross 500 private investors before April 12. Employee Stock sales in private markets such as Second Market now disallowed.

BANKER BOUQUET

No bake-offs

Frontrunners are Goldman

Sachs, Morgan Stanley and GSV Bankers proposing add-ons like convertible debt deals, credit facilities and potential acquisition targets. Only 1 Bank to land the lead left spot. Sachs already an investor, Morgan on a roll in tech IPOland. Lucky recipients can get biggest chunk of 7% IPO underwriting fee.

BLUE THINKS GREEN

INITIATIVES

Green on Facebook

Alliances GreenBiz.com Digital Energy Solutions Campaign (DESC) Alliance to save Energy

ACTIVITIES

HipHop for PHP Haystack In house programs

PLATFORM

44 Companies Sectors Microsoft, Wal-Mart, General Electric, Nestle, Citi Group and many others Examples LG Standard Chartered