Facebook Dilemma

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Executive Summary
The following report is based on the case study ‘facebook dilemma’. Facebook offers various ways for its users to interact. Facebook is a social network service that allows its users to create a profile and join various types of self-contained networks such as colleges and universities. Facebook is an internet born company that uses web 2.0 technologies. This report outlines the communication concept used by facebook. It also states how e-commerce and web 2.0 technologies made facebook popular by allowing advertisers to target their audiences through facebook. In facebook businesses can place advertisements that are fully integrated into primary features of the site, such as news feed which is a continually updating list of news stories, about member’s friend’s activities on facebook. The report also covers the weaknesses of facebook’s privacy policies and features and what management, organisation, and technology factors contributed to those weaknesses. It states how the launch of beacon services, effected facebook. The report also explains briefly the communication model of facebook. Introduction

Facebook is king of the social networking sites. Prior to its inception in 2004, Myspace had ruled the internet as the premier place for people to meet and interact on the World Wide Web. However, in 2004 Facebook completely changed how social network is to operate, and they have become the most popular social destination on the Web. Popularity is great, but a company still has to be able to pay their bills and have some profit left over. Despite their success, Facebook has had a difficult time becoming profitable. Over the years they have tried many times to get over the hump in profitability. The purpose of this paper is to answer specific questions pertaining to Facebook and their attempts to build their profit.

Q1.What communication concepts are illustrated in this case?

The communication concept that is illustrated in the case study ‘Facebook Dilemma’ is that facebook is a internet born company (i.e. E-commerce). Facebook offers various ways for its users to interact. It has got over 118 million worldwide users. Facebook is a social network service that allows its users to create a profile and join various types of self-contained networks such as colleges (Riva, R 2008). E-commerce is the use of the internet and the Web to conduct business. A social network such as facebook is an online site that focuses on building and reflecting of social networks or social relations among people. Facebook, not just only uses e-commerce to conduct business but goes a little deeper because it involves the concepts that are part of the basic construct of e-commerce. Communications in a social network service is mainly done through discussion groups, messaging, chat rooms, email videos, blogging and file sharing (Joseph, V 2010). “Facebook site includes a wide variety of array tools that allow users to connect and interact with other users including messaging, groups, photo sharing and user created applications” (Riva, R 2008). Facebook involves richness, interactivity, information density, & personalization/customization Richness is the complexity and content of a message. Interactivity is how e-commerce allows for two-way communication. Information density is the total amount and quality of the information available to all market participants, consumers, and merchants. Finally, personalization/customization is how merchants can target their messages to specific individuals to promote their products. Facebook represents opportunities for the advertisers to reach highly targeted audiences based on the user’s selection for the criteria’s such as hobbies, preference, regions and many more criteria and all this is done in the comfort of the user’s home. Business has the opportunity to advertise on facebook, the website is fully integrated with the advertisement, some examples of this, is Newsfeed which tells...
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