Michael M Chevalier
MT460: Management Policy and Strategy
August 29, 2010
Case analysis of Facebook
Facebook (originally "The facebook") is a social networking website launched in February 2004 by Mark Zuckerberg, then 23, while studying psychology at Harvard University. Membership was initially limited to students of Harvard College, but soon the social site was subsequently extended to other Boston universities, the Ivy League and eventually all US universities. It became Facebook.com in August 2005 after the site's address was obtained for a relatively meager $200,000. By the end of the following year it was also open to high schools. As of September 2006, Facebook was extended beyond educational associations to anybody with a registered email address. They have over 175 million active users worldwide currently and are growing every day.
Review/Analysis of the Case
Facebook is a way to meet friends and keep up on what they are doing. The friends that you can make on Facebook are just one of the many benefits. A member of Facebook can join groups to meet people, or browse the profiles and discover new friends. Another one of those added values includes diversity. This means that although you are in the United States, you could develop an online friendship with someone in the U.K. or Japan. On the occasion you add a friend to your Facebook "friend list" you will log in to keep abreast of when they have added updates to their blog or new elements like adding photos and photo albums to their profile. Facebook's has a "classmate" finder and also a co-worker search is excellent for finding friends as well. You are given the opportunity to make new friends, and learning is always a good thing, you might educate yourself about new ways of life or new languages. Facebook revenues are primarily made from advertising. That is why there are banner ads on Facebook. Facebook has backers including...