Case study : Facebook : Managing Your Privacy For Their Profit Introduction
Originally facebook was known as thefacebook. It was create by four friend which is Mark Zuckerberg, Andrew McCollum, Chris Hughes and Dustin Moskovitz. It was originally. Originallys facebook was open to small handful of colleagues. But the site Ha grown explosively since its open its door to the general public. For advertisers Facebook represents a gold mine of opportunity because of the information the site has gathered and because of the richness of the social networking environment. Despite these advantages, Facebook has high maintenance costs such as servers and networking. Facebook attempts to sell online ads on Facebook and other networking sites but it not been successful. Privacy issues versus profit
Facebook’s problem is it had very expensive to maintain since user upload more than 2 billion photos and 14 million videos each month. In 2008, Facebook sales were about $265 million but were still on deficit. 70% of Facebook’s users are out of the US and are unlikely to make purchases. Privacy is the biggest concern that users have on Facebook.Advertisers want this information to be revealed. Possible way for Facebook to increase its revenue by sharing this information. Facebook’s dilemma is finding a way to turn profit and increase revenue using its users voluntarily provide without violating privacy. Facebook CEO Mark Zuckerberg announced the Beacon Program, that tracks down facebook members that have purchased on their corporate sites and send this information to facebook’s friends involuntarily. This advertising service tracks down customers’ business behavior and updates it automatically on FaceBook without any user consent-The change or retention of information, deactivation ext. News Feed features on the website which makes user actions public by posting actions on their wall, such as profile updates, adding new friends, and adding new applications. In order to increase...
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