Facebook Dilemma Case Study Solution
John Porter
Dr. Wang
MIS 220
Case Study #2: Facebooks Dilemma 1. What concepts in this chapter are illustrated in this case?
The concepts that the case study entitled, “Facebooks Dilemma” highlights out of chapter 10 of Management information Systems: by Kenneth Laudon & Jane Laudon are based around what is identified as Electronic commerce. Electronic commerce is the use of the internet and the web to perform business transactions more specifically, to perform commercial transactions between organizations and individuals alike. Facebook is what is known as virtual community, it falls under a more specific kind of virtual community known as a social networking site. Online communities are used by individuals for expanding business or social contacts, and social shopping sites; in which users swap shopping ideas. The case study goes into a detailed analysis of how facebook has become an opportunity for electronic commerce to take place, however the process of allowing this electronic commerce to take place has been hampered due to legal issues concerning the users privacy in these interactions that private companies use to create their advertising. Currently face book is not generating the expected amounts of revenue that it is capable of based upon the beliefs of some, one of those select corporations that does believe it will someday soon be a Mecca of advertising commerce is Microsoft, who bought 1.6% of the facebook company for $246 million (Laudon pg 409). Surely if a corporation like Microsoft is willing to spend an immense amount of money to become a select share holder like that must believe that there is some truth in the predicted success of face book advertising opportunities. 2. What is the role of e-commerce and web 2.0 technologies in facebooks widespread popularity?
In terms of e-commerce facebook is such an important tool because it has so many members that share information through the site in turn making it easier or a
Dr. Wang
MIS 220
Case Study #2: Facebooks Dilemma 1. What concepts in this chapter are illustrated in this case?
The concepts that the case study entitled, “Facebooks Dilemma” highlights out of chapter 10 of Management information Systems: by Kenneth Laudon & Jane Laudon are based around what is identified as Electronic commerce. Electronic commerce is the use of the internet and the web to perform business transactions more specifically, to perform commercial transactions between organizations and individuals alike. Facebook is what is known as virtual community, it falls under a more specific kind of virtual community known as a social networking site. Online communities are used by individuals for expanding business or social contacts, and social shopping sites; in which users swap shopping ideas. The case study goes into a detailed analysis of how facebook has become an opportunity for electronic commerce to take place, however the process of allowing this electronic commerce to take place has been hampered due to legal issues concerning the users privacy in these interactions that private companies use to create their advertising. Currently face book is not generating the expected amounts of revenue that it is capable of based upon the beliefs of some, one of those select corporations that does believe it will someday soon be a Mecca of advertising commerce is Microsoft, who bought 1.6% of the facebook company for $246 million (Laudon pg 409). Surely if a corporation like Microsoft is willing to spend an immense amount of money to become a select share holder like that must believe that there is some truth in the predicted success of face book advertising opportunities. 2. What is the role of e-commerce and web 2.0 technologies in facebooks widespread popularity?
In terms of e-commerce facebook is such an important tool because it has so many members that share information through the site in turn making it easier or a