Social Network Service and Facebook Essay

Facebook is a very greedy company. The initial public offering or IPO for Facebook was a joke to them because they use it to gain money their personal use, pocketing it. The greed shown is a whole new way of running a company. They made the

Facebook is one of the top social media platforms with more than 1.23 billion active users worldwide. 62% of the 1.23 billion users log in on a daily basis making it the best medium to reach for new customers. Today, businesses both big and small use Facebook as an advertising source to help their brand expand.

The downturn of the economy was only able to affect negatively the stock. It went below its 50-day moving average for a little period before bulls rushed in. Facebook has showed since in entrance in the stock market an increasing of its stock price in general. Whatever the state of the market, Facebook can lose a little bit of its value but rapidly it will return to its pace. “Despite its giant footprint in the social media business, the company is growing like a startup” (Pan Jing, 2016). Facebook has also taken a step further in the future. It could be one of the first company to enter a multibillion-dollar industry. In effect, they are investing in the virtual reality (VR), one of the hottest field of tech today. According to Goldman Sachs, “Virtual Reality Could Become an $80 Billion Industry” (CNBC, 2016). In effect, their research predicts that in less than 10 years, the VR/AR industry could pull in $45.0 billion in hardware revenue and $35.0 billion in software revenue. Facebook has well anticipated this event by acquiring in the past Oculus, a firm specialized in virtual reality. It positioned itself among other big names in the market such Alphabet, Microsoft and Samsung that have already launched some products. For

Facebook relies on ad advertisements in their business model. Facebook platform empowers developers to build applications and web sites that integrate with Facebook to reach its global network of users and to build personalized and social products.

Poor’s index and single digits for VC.3 Accordingly, LPs flocked to invest in LBOs, which raised $344

First is the advertising. According to the case, we know that the major revenue of Facebook is advertising, which took up 98 percent in 2009, 95 percent in 2010 and 85 percent in 2011. Facebook uses all information uploaded by users to become the property of the firm. By analyzing database, Facebook provides advertisers target customized services and products based on users’ preferences and connections. In its view, the advertising which based on social

According to Facebook: 1) over 800 million active users and more than 50 percent log onto Facebook on a daily basis; 2) average user has 130 friends; 3) average user is connected to 80 community pages, groups and events; 4) nearly 900 million objects (pages, groups, etc,) that people interact with; 5) around 75 percent of Facebook users are outside of North America (Facebook, 2011). With these staggering statistics in regards to social network usage, it makes sense for companies to try and capitalize on the social media wave through social media optimization.

(Attention Getter) What kind of company would Facebook, one of the most successful companies in recent history, spend one billion dollars to buy (Stern)? What company with fewer than twenty employees could warrant such a huge investment by one of the world's most visible companies?

The share of PJSC «Sistema» (because of the IPO) decreased from 72.57% to 50% plus 1 share. The share of the RCIF fell from 23.1% to 13.1%. Individual shareholders, including the top management of Detsky Mir and PJSC «Sistema», sold 7.2 million shares; they left following the placement of 3.35% of the retailer's capital.

First, one of the most significant puzzles of IPO – underpricing – is at an unimaginably high level in Chinese IPO market. Although the degree of underpricing varies enormously across countries, the unusual IPO underpricing phenomena in Chinese IPO market are shocking and become a hot issue all over the world. Loughran, Ritter,

The Power Of The Supplier: Facebook users are its supplier in a same time. Facebook has millions of users but for now supplier power is low users have low bargain power.

Facebook has to be constantly on their toes with innovating and brainstorming ideas for their features sets in order to maintain their reputation, which has set them apart from earlier websites like MySpace, since 2004. By opening the possibilities to app developer for building apps, Facebook was able to gain an edge over MySpace, where they followed a closed environment in regards to their app development. But the current landscape conditions won’t suffice to ask the loyalty of its customers. There exists a moderate competitive force between Facebook and its rivals.

But Facebook's people problem isn't limited to executive retention. The hot startup with over 200 million users also has a surprisingly hard time recruiting new employees -- from top executives to college grads to star Googlers.

Instead, four factors are combining to drag the number of IPOs lower: startups staying private for a longer time, overinvestment in startups, changes in the law allowing more shareholders before a startup must disclose financial statements, and weak performances by 2015 IPOs.

Currently Facebook has more than 600 million users who use Facebook through mobile devices. Despite that this group makes 60% of all Facebook users, the mobile advertising only accounts for only 14% income for the company. Facebook has an opportunity to create a platform that could be used to display ads for mobile users and increase firm’s income.