final facebook
TRANSCRIPT
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OUR PEOPLE
AND US
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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.
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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.
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COMPANYS POLICIES
Recruitment and Selection.
Ruthless Meritocracy.
Its incentives, after all!
The young brigade.
Research says it all.
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THE BRAND
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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.
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)
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.
PORTERS FIVE FORCES
OVERALL
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MEDIUM
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Design Organized, simple to use interface
Trust When approving a friend request, FB shows you the
number of friends you have in common
Broad TargetMarket Isnt 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 GOOD AT?
STRENGTHS
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WHAT IS FACEBOOK NOT GOOD AT?
THREATS AND WEAKNESSES
Applications Clutter
Keeping the user base intact
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WHAT FACEBOOK CAN BE GOOD AT?
OPPORTUNITIES
Business Partners
Pages leading Company
Cultural Expansion
Varied Services
P2P
Pace ofinnovation is important!
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KING OFTHE
JUNGLE
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STATISTICS ABOUT FACEBOOK
People on Facebook
Activity on Facebook
Global reach
Platform
Mobile
USE S
male
female
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FACEBOOK AGE GAP HAS CHANGED
JAN 2010
13-17
18-24
25-34
35-54
55+
JAN 2011
13-17
18-24
25-34
35-54
55+
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COMPETITIVE ANALYSIS OF FACEBOOK
FACEBOOK vs MYSPACE
Application
InterfaceSpam/Viruses
Social Media
Integration
Mobile Apps Alerts
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COMPETITIVE ANALYSIS OF FACEBOOK
FACEBOOK vs ORKUT
Lets Play
L
ike Us Tag me
Security
Glamour Quotient
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FACEBOOK VS TWITTER VS GOOGLE+
Facebook Twitter Google+
Relationship Friends Followers and
Following
People
Sharing with
specific groups
Lists No Circles
Shared Contents
Visibility
Contents can be
shared with
specific people
Open profile
Private Profile
Contents can be
Visible to specific
people
Contents I publish Can be seen by my
friends
Can be visible to
my followers
Visible only to my
circleI see What my friends
are publishing
What people I
follow are
publishing
Who are publishing
for the circle
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THE SMALL BIG PICTURE
FACEBOOK
OTHER NETWORKING SITES
2x
x
BUDGET LINE INDIFFERENCE CURVE
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UNLOCKING
THE VALUE
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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 $10 billion.
Cash flow positive by September 2009.
Revenues(estimated, in
millions US$)
YearReven
ueGrowth
2006 $52
2007 $150 188%
2008 $280 87%
2009 $775 177%
2010 $2000 158%
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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.
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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 IPO-
land.
Lucky recipients can get biggest chunk of 7% IPO
underwriting fee.
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BLUETHINKS
GREEN
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INITIATIVES
Green on Facebook
Alliances
GreenBiz.com
Digital Energy Solutions
Campaign (DESC)
Alliance to save Energy
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ACTIVITIES
HipHop for PHP
Haystack
In houseprograms
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PLATFORM
44 Companies
Sectors
Microsoft, Wal-Mart, GeneralElectric, Nestle, Citi Group and
many others
Examples
LG
Standard Chartered
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