FACEBOOK, INC.PRESENTED BY: HEATHER HARDIN

ABOUT FACEBOOK, INC.

Founded in 2004

Mark Zuckerberg, 23 year old psychology student at Harvard.

Within 24 hours of launch, Facebook had over 1,200 Harvard Students sign up for an account.

MISSION STATEMENT

“To give people the power to share & make

the world more open & connected.

PEOPLE-TARGET CUSTOMER PROFILE

Originally intended for students & faculty at Harvard

University.

Shortly after, invitations were extended to students at Boston

U. & other Ivy League schools.

Today, 1 of every 7 people on Earth have a Facebook

account.

PRODUCT-SERVICE OFFERED

Facebook makes their profit from advertisements, so

essentially, their product is advertising space.

Facebook offers the service of social media networking.

Additionally, Facebook is a great platform for marketing.

PRODUCT-COMPETITORS

Myspace•Was considered the biggest competitor at the start of

Facebook.

•Has since tried to remodel & gain back previous users.

Twitter•Has grown in the social media world.

•However, lacks the profitability that Facebook has seen over the years.

Instagram •Would be a strong competitor, however, Facebook has recently purchased this App.

PLACE-DISTRIBUTION SYSTEM

Facebook is an internet-based

social media networking

website.

It is known globally, with the

more conservative and

censoring countries of China &

India joining the trend.

PROMOTION-COMMUNICATION STRATEGY

Facebook’s initial promotion was through word of mouth.

Today, it is considered a phenomenon.

Facebook is something we keep up with and maintain, just as our

homes or bills.

PROMOTION-COMMUNICATION STRATEGY

Facebook has heard many complaints from its users. However,

retention has not decreased, but rather slowed.

PROMOTION-COMMUNICATION STRATEGY

As word of mouth increased, companies began including

Facebook in their marketing strategies.

Likes, comments, contests & various content allow for companies,

icons, & groups to promote themselves, as well as the site.

PRICING

Facebook is free for users to join.

Pages allows you to promote posts, however, this option is not free,

it comes at a fee that varies based on your preference.

PROFIT/FINANCIALS-THE BEGINNING

2004

•Sean Parker, co-founder of Napster, became president of Facebook.

June 2004

•Facebook received it’s first private investment from founder of Paypal, Peter Theil, for $500k

•This was in exchange for 10.2% of the company.

2005

•Facebook became Facebook.com after the web address was purchased for $200k.

PROFIT/FINANCIALS-2012

Facebook filed for an IPO in February

Seeking to raise $5 Billion in investment capital.

Zuckerberg would retain 22%ownership stake in Facebook

with 57% voting shares

Shares valued at $38 each, pricing Facebook at $104

Billion.

This would make Facebook the largest valuation ever to date

for a new company going public.

845 Million active users.

2.7 Billion likes & commentson the website daily.

PROFIT/FINANCIALS-BUY-OUT

Yahoo & Google are just two of many companies to express

interest in a buy-out of a rumored $2 Billion.

All offers have been refused.

PROFIT/FINANCIALS-STOCK

5/14/14 •FB (NASDAQ) $59.23

6/15/14 •FB (NASDAQ) $64.50

PROFIT/FINANCIALS-CURRENT

2011

Gross Profit: $2,851,000

Operating Income:

$1,756,000

Net Income: $668,000

2012

Gross Profit: $3,725,000

Operating Income: $538,000

Net Income: $32,000

2013

Gross Profit: $5,997,000

Operating Income:

$2,804,000

Net Income: $1,491,000

Values in 000’s.Source: NASDAQ

SWOT-STRENGTHS

Profits• Facebook’s net income is rapidly

increasing as user base expands and advertising space becomes available.

User Base• With such a high user base,

Facebook has great advantage (as far as numbers go) over their competitors.

Values in 000’s.Source: NASDAQ

SWOT-WEAKNESSES

Privacy• Issues such as activating the

computer/phones microphone while using Facebook messenger is becoming quite an issue for the social media site.

“Creepy”• FB has gained information about

users by “hacking” into their browsers history and apps to provide the most appealing advertising for that user.

Values in 000’s.Source: NASDAQ

SWOT-OPPORTUNITIES

Pay for FB• I believe if Facebook charged users to not have advertisements, they could

increase their revenue and keep retention.

• While most will not pay, I believe a great deal will pay for this service, as they do for Pandora or any other streaming website.

Values in 000’s.Source: NASDAQ

SWOT-THREATS

Lawsuits

•As Facebook gets closer to the border of what is “creepy” or against their user’s privacy, lawsuits have been an issue. While FB has been lucky with recent cases, updates to the site may bring along more lawsuits that might not have as fortunate of an outcome.

Slowed Retention

•Toying with privacy and increased advertising has made Facebook more of a billboard then a way to connect with friends. This has slowed retention for the site, and may even be the site’s downfall.

Values in 000’s.Source: NASDAQ

WOULD I WORK AT FACEBOOK?

Yes. Here’s why:

1. You’re encouraged to be yourself.

2. They have tunnels, just like Disney, connecting their buildings. I currently have to drive and walk between buildings while working….in the summertime, I love it. However, in the winter it’s brutal!

3. They provide your meals. I’d probably be more consistent with my arrival time at work if I didn’t have to worry about getting my lunch together.

4. FREE computer accessory vending machines.

5. You can actually write on the walls.

6. Stand-up desks.

7. & they have an arcade…

WOULD I WORK AT FACEBOOK?

But for real, I love the comfortable culture in a work place. Work

can be stressful enough. To be encouraged to be yourself, to be

given an arcade where you can easily meet someone who works

on another floor or in another department, is truly great.

Work doesn’t have to lack the fun and games. Facebook is a

unique market that requires their employees to be on their toes and

to be innovative.

WOULD I INVEST IN FACEBOOK?

Currently, I would.

THANK YOU!