Preview

Facebook in Russia Analysis

Powerful Essays
Open Document
Open Document
15359 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Facebook in Russia Analysis
Saint Petersburg State University
Graduate School of Management

CASE STUDY
Contemporary Strategic Analysis of Facebook in Russia

Subject: Contemporary Strategic Analysis
Authors: Group Seven of all kinds (Anne-Gaëlle Le Gal, Hildegunn Nesje, Andreja Ojsteršek, Nikolay Semakov, Roman Shapurko, Elena Shatalova (Zlochevskaya), Julia Shmeleva)
Fall semester 2012
Mentor: Andrei Yu. Panibratov, Professor, Doctor in Economics, MBA

Table of Contents

Introduction 3 Social Networks Overview 5 The History of the Social Network Sites 6 Facebook overview 8 Part 1. Social Networks in Russia 9 Part 2. Facebook in Russia 13 Facebook’s Russian Story 13 Porter’s 5 Forces Analysis 17 The value chain and the value network - generic value configurations. 21 PEST analysis 25 SWOT analysis 33 Part 3. Strategy suggestion for Facebook in Russia 35 Conclusion 41 Appendix 1 43 WORKS CITED 44

Introduction

In this case study we will analyze Facebook in the Russian market with regards to contemporary strategic analysis. In the beginning we have set some goals that we want to reach as we work on the strategic questions of Facebook in Russia:

* Develop strategic opinions for business situation through analyzing Facebook in the Russian market; * Gain the ability to use the main techniques of strategic analysis and recognize their applicability and limitations with concern to Social Networks (Facebook); * Provide an informed answer to Facebook’s strategic questions in Russian market; * Improve our teamwork skills in making collective decisions in strategic analysis.

Our case study assumption is equal to Facebook’s goal in Russian market:

* Facebook will become number one Social Network web site in Russia.

Every analysis faces some limitations. Ours is connected to the fact that classical strategic analysis tools haven not been adapted to the structure of the Internet and Social Networks, but to “normal


Cited: Baltaga, I. „История возникновения социальных сетей: кто был первым?“ [History of the Appearance of the Social networks: who was first?] Vsetke. 13 July, 2012. Accessed September 20, 2012. http://vsetke.ru/post/20447276 Barnett, E Bullas, J. “20 Interesting Facts, Figures and Statistics Revealed By Facebook.” Jeff Bullas.com. 20 April, 2012. Accessed September 24, 2012. http://www.jeffbullas.com/2012/04/30/20-interesting-facts-figures-and-statistics-revealed-by-facebook Calderon, S Ellison, N.B., Boyd, D.M. “Social Network Sites: Definition, History, and Scholarship.” Journal of Computer-Mediated Communication 13(1), Article 11. 2007, http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html Epstein, Z “Exercise of Option.” Mail.ru Group Limited. July 14th, 2011. Accessed 19 September, 2012. http://corp.mail.ru/en/IR/news/1125 “ Facebook Help Centre.” Accessed September 21, 2012 “Facebook Statistics 2012.” Uberly. Accessed September 21, 2012. http://uberly.com/facebook-statistics-2012/ FOM Glaser, M. “Your Guide to Social Networking Online.” PBS. August 29, 2007. Accessed September 23, 2012. http://www.pbs.org/mediashift/2007/08/your-guide-to-social-networking-online241.html. Gustin, S. “Facebook’s Blame-Game: Who’s at Fault for IPO Debacle?” Time Business. September 6, 2012. Accessed September 22, 2012. http://business.time.com/2012/09/06/facebook-blame-game-whos-at-fault-for-ipo-debacle/#ixzz26u3jfUXk Hockenson, L Ioffe, J. “In Russia, Facebook is More than a Network”. Bloomsberg Businessweek, Issue 4211. December 29, 2010. Accessed September 17, 2012. http://www.businessweek.com/magazine/content/11_02/b4210032487137.htm “Inside Facebook’s Money Machine.” MSN Money Knight, S. “Zuckerberg says Facebook wasted two years betting on HTML5”. TechSpot. September 12th, 2012. Accessed September 22, 2012. http://www.techspot.com/news/50121-zuckerberg-says-facebook-wasted-two-years-betting-on-html5.html MacMillina, D Oweis, K. Y. “Syria blocks Facebook in Internet crackdown”. Reuters. November 23rd, 2007. Accessed September 22, 2012. http://www.reuters.com/article/2007/11/23/us-syria-facebook-idUSOWE37285020071123 Rahman, S Richardson, J. “Social Media: an Overview of Facebook”. Success Begins Today. Accessed September 23, 2012. http://successbeginstoday.org/wordpress/social-media-an-overview-of-facebook/ Rodin, S Stabell, Charles B. and Fjeldstad, Øystein D. “Configuring Value for Competitive Advantage: on Chains, Shops, and Networks”.Strategic Management Journal, Vol. 19, 413–437 (1998). Steel, E. “Facebook in privacy breach”. Wall Street Journal.  October 17th, 2010. Accessed September 22, 2012. Top 20 Countries with the Highest Number of Internet Users. Internet World Stats. Accessed September 23th, 2012. http://www.internetworldstats.com/top20.htm “The top 500 sites on the web” Washington, R. A. “The Facebook economy”. The Economist. May 28th, 2012. Accessed September 21, 2012. http://www.economist.com/blogs/freeexchange/2012/05/american-growth “Work in Progress” “Статистика по профилям пользователей Вконтакте.” [Statistics of Vkontakte user profiles]. Habrahabr. 11 July, 2011. Accessed September 19, 2012. http://habrahabr.ru/post/123856/ -------------------------------------------- [ 1 ]. “Mediefakta, sosiale medier - et overblikk” [Facts about media, social media - an overview]. Medienorge: Institutt for informasjons- og medievitenskap. February, 2010. http://medienorge.uib.no/files/nyhetsbrev/2010/Sosiale_Medier_2010-2.pdf [ 2 ] [ 3 ]. Ellison, N.B., Boyd, D.M. “Social Network Sites: Definition, History, and Scholarship.” Journal of Computer-Mediated Communication 13(1), Article 11. 2007, http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html [ 4 ] [ 6 ]. Glaser, M. “Your Guide to Social Networking Online.” August 29, 2007. PBS. http://www.pbs.org/mediashift/2007/08/your-guide-to-social-networking-online241.html. [ 7 ]. Ellison, N.B., Boyd, D.M. “Social Network Sites: Definition, History, and Scholarship.” Journal of Computer-Mediated Communication 13(1), Article 11. 2007, http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html [ 8 ] [ 9 ]. Bullas, J. “20 Interesting Facts, Figures and Statistics Revealed By Facebook.” Jeff Bullas.com. 20 April, 2012. http://www.jeffbullas.com/2012/04/30/20-interesting-facts-figures-and-statistics-revealed-by-facebook [ 10 ] [ 11 ]. “Inside Facebook’s Money Machine.” MSN Money. May 17, 2012. http://money.msn.com/technology-investment/post.aspx?post=869a1b6c-0bb7-47b3-ac0a-25d10f6a5404 [ 12 ] [ 13 ]. Gustin, S. “Facebook’s Blame-Game: Who’s at Fault for IPO Debacle?” Time Business. September 6, 2012. http://business.time.com/2012/09/06/facebook-blame-game-whos-at-fault-for-ipo-debacle/#ixzz26u3jfUXk [ 14 ] [ 19 ]. Baltaga, I. „История возникновения социальных сетей: кто был первым?“ [History of the Appearance of the Social networks: who was first?] Vsetke. 13 July, 2012. http://vsetke.ru/post/20447276 [ 20 ] [ 21 ]. “Статистика по профилям пользователей Вконтакте.” [Statistics of Vkontakte user profiles]. Habrahabr. 11 July, 2011. http://habrahabr.ru/post/123856/ [ 22 ] [ 23 ]. Ioffe, J. “In Russia, Facebook is More than a Network”. Bloomsberg Businessweek, Issue 4211. December 29, 2010. http://www.businessweek.com/magazine/content/11_02/b4210032487137.htm [ 24 ] [ 25 ]. Rodin, S. “Facebook Tries To Blaze a Path in Russia. New York Times Blog. June 20, 2008. http://thelede.blogs.nytimes.com/2008/06/20/facebook-tries-to-blaze-a-path-in-russia/ [ 26 ] [ 27 ]. Loffe, J. “In Russia, Facebook is More than a Network”. Bloomsberg Businessweek, Issue 4211. December 29, 2010. http://www.businessweek.com/magazine/content/11_02/b4210032487137.htm [ 28 ] [ 29 ]. Loffe, J. “In Russia, Facebook is More than a Network”. Bloomsberg Businessweek, Issue 4211. December 29, 2010. http://www.businessweek.com/magazine/content/11_02/b4210032487137.htm [ 30 ]
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    mgt 409 case analysis
    • 719 Words
    • 2 Pages

    mgt 409 case analysis

    I. Facebook is an online social network company founded in 2004 by Mark Zuckerberg. As one of the most widely used social platform, it allows people from different areas get connected through information exchange. Based on the research, Facebook has 154,828,140 users as of May 2011. Although, Facebook’s big audience has been good enough to keep companies move forward, it does suffer bottleneck in technology development and market occupancy. The strategic issue in this case is how Facebook continues to explore the intersection of technology to meet users’ needs, protect their interests and jump over international market barriers.…

    • 719 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    FACEBOOK case study
    • 11499 Words
    • 85 Pages

    FACEBOOK case study

    Facebook (in 2013): Will Wall Street Hit the “Like” Button?: Strategic Management, Second Edition 1…

    • 11499 Words
    • 85 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Social Media in Healthcare
    • 423 Words
    • 2 Pages

    Social Media in Healthcare

    growing at an astounding rate. Facebook reports that over 10% of the world’s population has a Facebook…

    • 423 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    The Future of Facebook
    • 338 Words
    • 2 Pages

    The Future of Facebook

    Social networking has played a prominent role in allowing users to connect with each other around the world over the past decades. Social network sites are used in order to improve intimate communication and build better relationships with family, old and new friends. Facebook in particular is one of the most popular social networking sites. It provides a wide range of connection methods for users to interact with those people that they care about and to update status or photos on the website. The website was established by Mark Zuckerberg and his college friends in February 2004. It is owned and operated by Facebook Inc. The company has continued to develop and increase potentiality over the last eight years (PrivCo, 2011). As of March, 2012, there were more than 900 million Facebook users, more than 125 billion friend connections and there were an average of 300 million photos uploaded each day on the website (Facebook’s S-1 Filing, 2012). In this sense, Facebook has become the largest social networking sites in the world. Additionally, when the company started trading stock to public on 18 May, 2012, it was also recorded as the third largest IPO in the history of the United States (Hammond, 2012). However, the stock price has been significantly falling since selling the stock to public. Although social networking is a growing market and the company plans to continue developing its productions and services, investors remain worried about the ability of the company and they have doubted that the stock will not be able to turn profit margins in both short-term and long-term period. Therefore, the stock of Facebook should not be invested in because it is overvalued and overpriced and the company might struggle with commercial revenue and be restricted in many areas. This paper will describe the stock market and Facebook’s situation before and after trading to the public and will also discuss the question of investment in the stock of the company. It will then…

    • 338 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    12 Angry Men
    • 934 Words
    • 4 Pages

    12 Angry Men

    • Critical examination of conventional strategic management models to explain the success Facebook (25 marks)…

    • 934 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    media
    • 2248 Words
    • 7 Pages

    media

    "Facebook 10 years on: how has the social networking site changed your life?." theguardian.com. Guardian News and Media, 4 Feb. 2014. Web. 29 July 2014. .…

    • 2248 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Best Essays

    Social Networking
    • 1186 Words
    • 5 Pages

    Social Networking

    References: Boyd, D. M., & Ellison, N. B. (2007). Social Network Sites: Definition, History, and…

    • 1186 Words
    • 5 Pages
    Best Essays
    Read More
  • Powerful Essays

    Increase and Decrease in Social Capital
    • 2101 Words
    • 9 Pages

    Increase and Decrease in Social Capital

    The emergence of Facebook is exemplary of how online interaction has grown into a social institute. ‘Created in 2004, by 2007 Facebook was reported to have more than 21 million registered member generating 1.6 billion page views each day‘ (Needham & Company, 2007). It is clear from Facebook’s purpose that the avenues of social capital are fortified and strengthened by…

    • 2101 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Good Essays

    Communication Improved Through the Use of Texting and Facebook
    • 1314 Words
    • 6 Pages

    Communication Improved Through the Use of Texting and Facebook

    Facebook is a form of communication medium that encourages universalism as it breaks down barriers across all ages, continents, gender, race, religion and thus helps to eliminate discrimination. Facebook is a worldwide network, it brings together families as they are able to remain friends and often communicate with others. “One of the ideas of communication is to spread information, and Facebook helps to achieve this, “states Professor Sethi, who teaches at MIT about business communication. The social network’s ability to be accessed through the internet, by mobile handsets as well as through computers, has increased its usage. Facebook, provides better access to information, this is because it…

    • 1314 Words
    • 6 Pages
    Good Essays
    Read More
  • Best Essays

    Social Network
    • 3123 Words
    • 13 Pages

    Social Network

    Huffington Post 2011 ‘Egypt 's Facebook Revolution: Wael Ghonim Thanks the Social Network’, viewed 29 August 2011, . Lenhart, A. & Madden M 2007, ‘Social Networking Websites and Teens: An Overview’ Pew Internet & American Life Project, viewed on 1 September 2011, Patchin, J 2008, Cyberbullying: ‘An Exploratory Analysis of Factors Related to Offending and Victimization’. Deviant Behavior, 29 (2), pp. 129–156. Pempek, T, Yermolayeva, Y, & Calvert S 2009, ‘College students ' social networking experiences on Facebook’, Journal of Applied Developmental Psychology 30: pp. 227–238 Preece, J & Maloney-Krichmar, D 2005, Online communities: Design, theory, and practice. Journal of Computer-Mediated Communication, 10(4), article 1. Ridings, C & Gefen D 2004, ‘Virtual Community Attraction: Why People Hang Out Online’ Journal of Computer-Mediated Communication, 10 (1). Rosen, C 2007, ‘Virtual Friendship and the New Narcissism’, The New Atlantis, Number 17, Summer 2007, pp. 15-31. Shirky, C 2008, Here Comes Everybody: The Power of Organizing Without Organizations. Penguin Press, New York. Turkle, S 2011, Alone Together: Why We Expect More from Technology and Less from Each Other. Basic Books, New York.…

    • 3123 Words
    • 13 Pages
    Best Essays
    Read More
  • Powerful Essays

    Mark Zuckerberg- Facebook
    • 2966 Words
    • 12 Pages

    Mark Zuckerberg- Facebook

    The past two decades, marked by the advent of the age of the Internet, have led to a huge rise in the number of successful and influential technological companies. These companies have defied age-old business models, which would require a lifetime to build up a brand. Mark Zuckerberg's company, Facebook, is one of the world's biggest technological sites with almost a billion users. Its enormous and wide reaching user base lends it a unique place in the Internet, and this in turn makes any controversy surrounding it consequential. An Academy Award-winning movie, The Social Network, brought to the public spotlight one of the major controversies about Facebook and its founder; by exploring the events leading up to creation of Facebook in a narrative drama, it cast doubt on the originality of Mark's ideas. The movie explores the theory that Zuckerberg stole the idea form his…

    • 2966 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Best Essays

    Facebook Case Study
    • 2579 Words
    • 11 Pages

    Facebook Case Study

    Richmond, Riva. 2010. "Stolen Facebook accounts for sale." The Associated Press, May 2. http://www.msnbc.msn.com/id/22562690/ Sengupta, Somini. 2012. "Facebook delivers an earning slowdown." The New York Times, July 26. http://www.nytimes.com/2012/07/27/technology/facebookreports-a-loss-but-its-revenue-beats-expectations.html?_r=0 Shannon, Sarah, and Olga Kharif. 2011. "Flipping Friends into Customers." Bloomberg Businessweek 4217: 22-23. Shu-Chuan, Chu. 2011. "Viral advertising in social media: participation in Facebook groups and responses among college-aged users." Journal of Interactive Advertising 12 (1): 30-43. Smith, Clara. 2009. "Facebook Is the Future of CRM." CRM Magazine 13 (11): 12. Stepanova, Ekaterina. 2011. "The Role of Information Communication Technologies in the Arab Spring." Ponars Eurasia Policy Memo, 159: 1-6. Stop Lynas Save Malaysia Facebook page, accessed 9 February 2013, https://www.facebook.com/charitieyc.chia?ref=tn_tnmn#!/pages/Stop-LynasSave-Malaysia/198611483579242?fref=ts Vega, Alan. 2011. "Tagtile: Reward your customers." R-Tools Technology Inc, February 8, http://tagtile-reward-customers.reviews.r-tt.com/ Walker, Carol M., Beth Rajan Sockman, and Steven Koehn 2011. "An exploratory study of cyberbullying with undergraduate university students." TechTrends 55 (2): 31-38. Ward, Frances. 2012. "SA Tourism 's Cash for comment." Marketing, June: 39. Weber, Harrison. 2013. "Facebook introduces Facebook Card: Yet another way for businesses to rely on the social giant." The Next Web, February 9, http://thenextweb.com/facebook/2013/01/31/introducing-the-facebook-cardyet-another-way-your-business-wont-be-able-to-live-withoutfacebook/?fromcat=facebook Widdup, Kerry. 2010. "The Social Consequences of Social Networking Sites: The Impact of Facebook on Teenage Girls." 3PM Journal of Digital Research and Publishing, 62. Zeisser, Michael. 2010. "Unlocking the elusive potential of social networks." McKinsey Quarterly, June: 1-3. https://www.mckinseyquarterly.com/Unlocking_the_elusive_potential_of_soci al_networks_2623…

    • 2579 Words
    • 11 Pages
    Best Essays
    Read More
  • Powerful Essays

    Social Networks and Relationships
    • 2760 Words
    • 12 Pages

    Social Networks and Relationships

    Hempel, J., & Kowitt, B. (2009). How Facebook is Taking Over Our Lives. (cover story). Fortune,…

    • 2760 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Facebooks Privacy Issue
    • 1092 Words
    • 5 Pages

    Facebooks Privacy Issue

    As I was browsing through the newspapers to find a social event to write my essay about, the front page of the Metro news paper grabbed my attention. The article was about the changes applied to the world’s largest social network website, with more than four hundred million users across the globe. This social network website was launched by Mark Zuckerberg in February 2004. This social network gave its users the ability to update their personal profiles, check their messages and chat with friends. As this social network evolved and became more complete, it became a great place for companies to market their products and services!…

    • 1092 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Facebook Analysis
    • 641 Words
    • 3 Pages

    Facebook Analysis

    Main problem that Facebook faces is; one they are growing too fast too quick and have grown over 118% according to Techcrunch.com. With this rapid growth Facebook experiences problems from High profile uses as they get solicited, and Mark Zuckerberg was sued by fellow college classmates for alleging stealing ideals. Facebook located in Palo Alto, California with revenues in the 716 million. Finally Facebook is the world’s largest social networking site in the world in just five years. In conclusion Facebook has many vultures on the sidelines waiting to take a punch and a stab at Facebook revenues.…

    • 641 Words
    • 3 Pages
    Satisfactory Essays
    Read More

Related Topics