Facebook- Failure Or Success

Introduction

Facebook is a social networking service and website launched in february 2004, operated and privately owned by Facebook Inc. It was founded by Facebook was founded by Mark Zuckerberg with his college roommates and fellow students Eduardo Saverin, Dustin Moskovitz and Chris Hughes. Facebook has more than 845 million active users as report in february 2012. Facebook is a very successful business indeed; a site which we can express our opinions, post our photographs, share our view and jokes etc.  

[IPO is an initial public offering (IPO) or stock market launch, is the first sale of stock by a company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises. Many companies that undertake an IPO also request the assistance of an investment banking firm acting in the capacity of an underwriter to help them correctly assess the value of their shares, that is, the share price (IPO Initial Public Offerings, 2011]


Chances of Failure

Everything that decides a company is the rise or fall in its stock market. Facebook earnings  were not close to $100 billion. If the majority of the members stop using facebook for a long time, stocks plummet. There are a million ways in which the stock can fall or rise. Even rumours can affect the stock prices.

IPO told that facebook had earnt only $3.7 billion in 2011 which was over 25% and that was the net profits. There is athing we must know that facebook earns a lot of money by advertising. As an average, it earns $4 millions an year. The thing is that if you have $100 billion in your hand, you can buy the facebook and can earn a lot if it runs successfully. Simply, facebook is just a serious business.

An IPO raises money for the company itself and for those who run the company. With these, you can make things better at your company. Facebook will also hire more people now, and will probably open up new offices across the globe, giving a select few chance at a career with the company. Another huge advantage of making money is not just about hiring people, it gives facebook the ability to buy out companies and enhance features with the product they buy.

People had started realising that how much money is being made from their data. According to facebook revenue in 2011 it had earned 85% from advertising and 12% from Zynga. Advertising is the way for increasing the profits of a site, as in facebook it had earned most of its revenues from advertising. Many companies like Apple and Microsoft use advertising a way for introducing their product to people’s and to create more desire for said products. For service based companies like Facebook and Google, you are the product. This is what comlplicates matters. Google success mantra was not aimed at providing best service, and also making it an unavoidable thing for everyone. 

Google is nothing more than an advertising company. Search is the service that it had hooked us by the time that the company went public. It had also purchased purchased, which was a popular video-sharing site and it was an ad-friendly site as the standard television.

In facebook, hooked is other people, friends, apps users, gaming, e-socialising etc. But most of you use facebook for contacting with friends all over the world. And you were not looking for ads in facebook. You will also hate when your friends had posted a spam on your wall or feed with sounds.

If you have a tablet, you will go for advertisers like google or bing. Otherwise you may go to facebook for seeking others’s opinions and to get reviews about the tablet. But most of didn’t click on the ads that are appearing on the facebook. 

One of the major things the facebook has to worry is the fact that a lot of its people are going to get rich. Its good problem for the people who have; but not for the company. Beacuse with these money, they can start something of their own. The biggest threat faced by the facebook is the unknown competition. If we look at twitter, linkedin and groupon who went the IPO way, and currently sit on share  prices that are below the opening day.

If the facebook fails, to you and me, its nothing. We may move to other social networking sites like Google+, twitter, Tumblr etc. But you must backup your data. If the facebook fails, billion will be lost or earned off the stock market.

Making backups of your facebook data is already posted by me. Because its servers has been crashed.



Challengers of  facebook


Its major challengers are:
• Google+
• Tumblr
• LinkedIn
• Flickr
• Twitter


GOOGLE+


Google+ makes connecting on the web more like connecting in the real world. It has many features like Circles, Hangout, Games, Search. Circles make it easy to put your friends from Saturday night in one circle, your parents in another, and your boss in a circle by himself, just like real life. Hangouts let you bring up to 9 people into your world. It’s the next best thing to everyone being there. Google+ has a game room. Play poker, build a new civilization, humiliate a pig, or just click wildly at anything that moves. Search brings you updates from your circles, news from around the web and public Google+ posts.


Tumblr


Tumblr is a microblogging and social networking site. Its interface is easy to use and accessible, with apps for iPhone and Blackberry devices. As compared to facebook, but tumblr is the easiest way to use micro-blogging site around for those less interested in Likes and Pokes.


LinkedIn


LinkedIn is the professional choice for business for networking. On LinkedIn, Friends are “Connections” and how well you know someone depends on how short the connection is. Tha major advantage of LinkedIn is that you will meet professionals from all over the world. And its all work related networking nomore stupid baby pictures and dumb wallpost to sort through.


Flickr


Flickr is another social networking micro-blogging site, throw in some amateur photography/videography for flavour and garnish with the creativity that users display on sites such as deviantArt  Flickr is almost certainly the best online photo management and uploading. 


Twitter


Twitter is a social networking microblogging site, which enables the users to send and read text upto 140 characters known as “tweets”. In fact for quick updates, breaking news, and for the twitterati, it is still the only place to be. With over 300 million users tweeting everyday, including perhaps every celebrity you will want to follow, it is easy to see what the fuss is all about.




Chances Of Success


Many people are spending a long time in the facebook. It has 800+ milion users. Most of the people are addicted to it. Even Google+ is not a good challenger for Facebook, becuase it is far behind. Facebook is more user-friendly than Google+.
IPOs bring money, money buys more employees, more employees means slicker code, more innovative ideas and all of that together makes that for better service and that will addict us even more. Google and Myspace hadn’t reach upto facebook’s progress. 


During old times, the way of advertising was through radios, televisions, prints and many more. But now the best way is through online. Ads are also passes through Facebook. Google has a big advantage on its android platform. But facebook can run much better on slower indian networks through its facebook app. While searching through a mobile, we are less likely to click on the ads. But Facebook app running all day on their handheld devices, and check it several times to wall posts, share videos, upload photos etc. 


One of the major reason for the success of facebook is basic human nature. In general, facebook has you by the err, ears, when it comes to keeping you hooked. It is not a focussed us every other popular site out there, and that is its biggest strength- giving it the opportunity to diversify and attempt to find new ways to make money of your addiction to fun.


Source:- netinfoz.blogspot.com