Microeconomics Essay

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MICROECONOMICS Project

Summer 2012

An overview
Facebook was realized on February 4, 2004 by an American computer programmer and Internet entrepreneur- Mark Elliot Zuckerberg. Facebook has said it will be valued at up to $96bn (£59bn) when it sells shares to investors this month in a record-breaking flotation. The first investment from Peter Thiel was $500,000 into Facebook. Facebook has minted four billionaires: Mark Zuckerberg, Dustin Moskovitz, Eduardo Saverin and Sean Parker. The 27-year-old Zuckerberg's net worth was estimated at $17.5bn on the 2011 Forbes list of the wealthiest Americans. Moskovitz had a net worth of $3.5bn but pipped Zuckerberg for the title of world's youngest billionaire, being eight days younger. The Brazilian-born Saverin, who left Facebook early on after a falling-out with Zuckerberg, had a net worth of $2bn. Parker, the Napster co-founder who briefly served as Facebook's president, had a net worth of $2.1bn On November 15, 2010, Facebook announced it had acquired the domain name fb.com from the American Farm Bureau Federation for an undisclosed amount. On January 11, 2011, the Farm Bureau disclosed $8.5 million in "domain sales income", making the acquisition of FB.com one of the ten highest domain sales in history Nowadays, 1 in every 13 people on earth uses Facebook, more than 900m active users, with over 250 million of them who log in every day. The average user has about 130 friends, but that has expanded in. The core 18-24 year old segment is now growing the fastest at 74% year on year. Almost 72% of all US internet users are on now Facebook, while 70% of the entire user base is located outside of the US.

(Source: Facebook)

At the beginning, Facebook has 1 million users. In 2008, it increased to 100 million. In 2010 the number of users reached 400 million and up to 500 million within 5 months.

Google- a web search engine, it is the company's most popular service. It began in January 1996 as a research project by Larry Page and Sergey Brin when they were both PhD students at Stanford University in California. Technology is enhancing us as human beings and the integrating of artificial intelligence is slowly being weaved and embedded into our activities and habits almost without us noticing. This reliance that is permeating our day to day existence even extends to a reported 60% plus of all buying decisions now starting with a Google search as we start our research online rather than walk the shop aisles and asking sales attendants questions. The first funding of $100,000 for Google was provided by Andy Bechtolsheim the co-founder of Sun Microsystems. Google's initial public offering (IPO) took place five years later on August 19, 2004. The stock's performance after the IPO went well, with shares hitting $700 for the first time on October 31, 2007. primarily because of strong sales and earnings in the online advertising market. In 2004: Gmail launched, Google IPO 8 billion pages indexed. They acquired YouTube in 2006 for $1.65 billion. Android was announced in 2007 and Google Chrome was launched in 2008.

The 3 charts show the Revenue, Income and number of Employee in two companies.

RIVAL PRODUCTION
The big question is given, why a search engine like Google to be afraid of Facebook, a social network when the field of activities of these two different companies as far as they seem completely can live peacefully. Google is famous for its searching services, the key point lead to the huge success of Google. It links to billions of Web pages, so users can easily obtain the information they want through the keywords and the operators. Google also uses its search technology for many other search services, including Image Search (photos), Google News, interactive community Google Groups, Google Maps. They also launched variety kinds of services such as Gmail, Google Earth, Google Docs, Picasa, Google Desktop, Google talk, Google Chrome, Google Translate and Android....
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