Facebook Takes Credits Where Credits Are Due

Topics: Facebook, Social network service, MySpace Pages: 7 (2183 words) Published: September 25, 2013


Facebook Takes Credits Where Credits Are Due
Chapter 10

Management 5000

Abstract
Facebook is a social networking service launched in February 2004, owned and operated by Facebook, Inc. As of September 2012, Facebook has over one billion active users, more than half of them using Facebook on a mobile device. Users must register before using the site, after which they may create a personal profile, add other users as friends, and exchange messages, including automatic notifications when they update their profile. Additionally, users may join common-interest user groups, organized by workplace, school or college, or other characteristics, and categorize their friends into lists such as "People from Work" or "Close Friends". Facebook was founded by Mark Zuckerberg with his college roommates and fellow Harvard University students Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. The website's membership was initially limited by the founders to Harvard students, but was expanded to other colleges in the Boston area, the Ivy League, and Stanford University. It gradually added support for students at various other universities before opening to high school students, and eventually to anyone aged 13 and over.

“Facebook Takes Credits Where Credits Are Due”, discusses Facebook’s growth since its early launch in 2004. Facebook currently has over 600 million users worldwide. Where users spend over 700 ,million ,minutes a month on Facebook, uploading 3 billion photos and 2 billions videos and sharing 30 billion pieces of content including news stories, blog posts, photo albums, etc. (Griffin, 289) By any measure, Facebook’s growth is a great accomplishment. The crew of Mark Zuckerberg, the company’s 24-year-old co-founder and chief executive, is signing up nearly a million new members a day, and now more than 70 percent of the service’s members live overseas, in countries like Italy, the Czech Republic and Indonesia. Facebook’s ranks in those countries swelled last year after the company offered its site in their languages. Facebook’s growth over the years is as follows:

The big question that everyone is asking is how does Facebook make its money? 98% of the company’s total revenue came from advertising- $625 million out of $635 million. Facebook advertising was categorized into Performance Advertising, Brand Advertising, and Microsoft Advertising. (Griffin, 289) Facebook also makes money through virtual goods and direct credits – from the sale of virtual gifts and games played on Facebook where users purchase “Facebook Credits” to purchase goods and services on apps they use. Facebook is currently the number-two U.S. internet company, right behind Google and ironically, Google is Facebook’s fifth-largest advertiser.

Case Question 1: If you use Facebook (or any other social networking site), which of its features are most attractive to you? If you don’t use any social networking site, what features are most likely to cause you to try one?

Facebook can be thought of as your home on the Internet. It's a place people can go to leave you a message, browse through your photo collections, or even chat with you while you are online. It can be a great way to keep in contact with friends and family, and even find long lost friends that you haven't spoken to in years. A lot of features that Facebook has are very appealing to me. I joined Facebook for the mare reason to keep in touch with friends and family living far away and because it was the “next big thing”. As Facebook started evolving so did the features and my interest in Facebook’s capabilities also started to grow. I now use Facebook to follow my favorite shows and movie pages along with favorite companies and brands.

In addition to keeping up with friends and family, Facebook is a great place to upload all of those family photos. Ordinarily, you'd have to whip out the photo album when people...

References: Facebook Inc. Profile: How a social network became a multi-billion dollar Business. (2012). Facebook: How a Start-up Became the World 's Largest Social Network, 1-19
Sullivan, B. (2006, October 19). Privacy Lost: EU, U.S. laws differ greatly - Technology & science - Privacy Lost | NBC News. Breaking News & Top Stories - World News, US & Local | NBC News. Retrieved February 3, 2013, from http://www.nbcnews.com/id/15221111/#.UQ
What Are Distinctive Competencies?. (n.d.). wiseGEEK: clear answers for common questions. Retrieved February 10, 2013, from http://www.wisegeek.com/what-are-distinctive-competencies.htm
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