Facebook: The First Ten Year Harvard Case Solution & Analysis

Facebook: The First Ten Year Case Solution

Beginning of Facebook:

             Facebook is made by three young undergraduate students through innovation ideas and knowledge information technology they provides a networking site for the university students. Facebook starts its operation in America and providing a platform for internet users for their social activities. The websites attracts large internet users for their social relationships as the website provides user friendly interface for the customers. Facebook enters in the social networking industry when the competition is very high. Through the innovative design and better customer satisfaction provides Facebook advantage over its competitors.  Due to huge growth in visitors rating the Facebook becomes fastest growing website in the world almost all demographics of the world users prefers to use Facebook.


            In 2007 Facebook Announced the advertising scheme to facilitate the Advertisers in their marketing and promotional activities. Through this initiative the advertiser can easily execute target marketing strategies as the Facebook provides users into range of segments. Facebook provides the corporate and intellectual to make their pages on the website so that user like their favorite pages and get information specifically.

Games and Application:

            Facebook provides online games for its users. These online games attract 250 million monthly users and generate 15% of the total revenue of the Facebook as the game involves real money to increase the level in the game. These games and different application enhances confidence of the users of the Facebook and create Long term relationships with the Users.

Challenges for Facebook:

            Facebook faces difficulties from the internet hackers because the hackers hacks the users accounts and these issue lead to a deterioration of reputation of Facebook. To deal with these issues Facebook create more security programs and with the collaboration of different internet security companies Facebook get success in reducing the rate of hacking accounts.

            Facebook also faces threats from the Google+ as the site is popularity is increasing and the Google provide better privacy support for its users. Google+ has an option of video chatting which is not in Facebook leads to a switch of social users from Facebook to Google. Facebook has to take innovative steps to sustain their position in the market. If the company fails to provide better services than it will be loss of customer base as well revenue for the company.

Facebook succeed while MySpace, SixDegrees, and Friendster failed

There are numerous factors made the Facebook better than other social networking sites. Some of these factors are given below:

Technical Support:

            The Facebook Company has advantage over its competitor as it has large technical competencies in the company as well as intends to join the company. Facebook consistently providing additional benefits to its competent staff so that there innovative ideas will leads to the better social networking website while others social site does not provide above average benefits.


            The success of any company is not depends on its internal generated fund but it is very essential funding should be gathered from external sources for growth in the company. Although the MySpace has largest customer base on internet site but it faces challenges to raise finance externally. Therefore the company can’t invest fund in new and innovative creation and development in the website to sustain the customer base as well as increase the customer base..................

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