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-Why are network effects important for Facebook? Would you switch to another social network if it had better features even if it was considerably smaller? 2 What other social media networks and apps do you use that you think could beat Facebook? Why?

-Why are network effects important for Facebook? Would you switch to another social network if it had better features even if it was considerably smaller? 2 What other social media networks and apps do you use that you think could beat Facebook? Why?

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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4:10 leet01-xythos.content.blackboardcdn.com Ĉ 1 of 1 CHAPTER 3 INDUSTRY AND SECTOR ANALYSIS ILLUSTRATION 3.2 Facebook's network fears Considering Facebook's dominance they'should have nothing to fear, but internet history is littered with fast rising and fast falling social networks. A Statista survey found that with 1.5 billion users Face- they have launched 'Facebook at Work'. Not even book is not only the largest social network globally, but Google has managed to remove Facebook from the they control the second, third and seventh largest net- social networking throne. Google's first social net- works: WhatsApp (900m users), Facebook Messenger working effort was Buzz, based on its Gmail service, (800m) and Instagram (400m). It seems they are well but it never managed to attract enough users. Many ahead of everyone else in network effects and have cre- Facebook users tried Google's next and even big- ated high switching costs for users to move to another ger bet, but soon discovered that not many of their social network. When users have built up a set-up of friends followed so they returned and Google Plus, perhaps hundreds of friends and have archives of their although still existing in another format, also flopped. whole life including photos they don't easily switch to another company and network just because it's some- perhaps learnt from social networking history. With their thing fresh. Nevertheless, despite Facebook's clear lead, his- tory shows it's far from obvious that any social network peting platforms, content and media, like Snapchat. incumbent Friendster pioneered the online community in 2002, staying power and claim it's quite possible they will be three years before Facebook, and gained over three overtaken. However, as reported by Forbes, Mark Zuck- million users within a year; attracting tens of millions erberg, however, only sees this as inspiration to build of users at its height. It was, however, soon overtaken Facebook even stronger: by MySpace that appealed to even more and younger users with their more hip feature-filled environment including music and music videos. By 2008, it was the leading US social networking site with over 75 million users and consistently ahead of Facebook in traffic. However, soon Facebook started to attract teenagers Sources Statista 2016, R. Waters, Financial Times, 29 January 2016. with their new features with corresponding losses for As of 2016, Facebook remains unbeaten and has current valuation they can possibly continue to make defensive acquisitions as users are attracted to com- But how long will it last? Some question Facebook's t can stay relevant and dominate long term. "This is a perverse thing. personally, but I would rather be in the cycle where people are underesti- mating us. It gives us latitude to go out and make big bets that excite and amaze people. 1. Gapper, Financial Times, 12 April 2015, J. Bercoviei, Forbes, 11 MySpace. This overview illustrates that networks can September 2012: A. Lu, digtaltrends.com, 5 August 2014; R. Waters, quickly gain millions of users and huge valuations, but ancal Times, 21 February 2014; and J. Gapper, Financial Times, 3 can just as quickly face slowing growth, users leaving in millions and final implosion. Further back in internet history, there are several other implosions of those with social network ambitions: BBS, CompuServe, AOL, etc. Founder and CEO Mark Zuckerberg has, however, seen the threats and taken action. Instagram was acquired in 2012 when they were becoming the biggest mobile photo-sharing service with many younger users posting content there rather than on Facebook's own web-based photo service. Next was October 2013. Questions 1 Why are network effects important for Facebook? Would you switch to another social network if it had better features even if it was considerably smaller? 2 What other social media networks and WhatsApp, the biggest messaging service globally; it was bought in 2014 as users started to move their activities to mobile platforms. To fence off Linkedin apps do you use that you think could beat Facebook? Why?
Transcribed Image Text:4:10 leet01-xythos.content.blackboardcdn.com Ĉ 1 of 1 CHAPTER 3 INDUSTRY AND SECTOR ANALYSIS ILLUSTRATION 3.2 Facebook's network fears Considering Facebook's dominance they'should have nothing to fear, but internet history is littered with fast rising and fast falling social networks. A Statista survey found that with 1.5 billion users Face- they have launched 'Facebook at Work'. Not even book is not only the largest social network globally, but Google has managed to remove Facebook from the they control the second, third and seventh largest net- social networking throne. Google's first social net- works: WhatsApp (900m users), Facebook Messenger working effort was Buzz, based on its Gmail service, (800m) and Instagram (400m). It seems they are well but it never managed to attract enough users. Many ahead of everyone else in network effects and have cre- Facebook users tried Google's next and even big- ated high switching costs for users to move to another ger bet, but soon discovered that not many of their social network. When users have built up a set-up of friends followed so they returned and Google Plus, perhaps hundreds of friends and have archives of their although still existing in another format, also flopped. whole life including photos they don't easily switch to another company and network just because it's some- perhaps learnt from social networking history. With their thing fresh. Nevertheless, despite Facebook's clear lead, his- tory shows it's far from obvious that any social network peting platforms, content and media, like Snapchat. incumbent Friendster pioneered the online community in 2002, staying power and claim it's quite possible they will be three years before Facebook, and gained over three overtaken. However, as reported by Forbes, Mark Zuck- million users within a year; attracting tens of millions erberg, however, only sees this as inspiration to build of users at its height. It was, however, soon overtaken Facebook even stronger: by MySpace that appealed to even more and younger users with their more hip feature-filled environment including music and music videos. By 2008, it was the leading US social networking site with over 75 million users and consistently ahead of Facebook in traffic. However, soon Facebook started to attract teenagers Sources Statista 2016, R. Waters, Financial Times, 29 January 2016. with their new features with corresponding losses for As of 2016, Facebook remains unbeaten and has current valuation they can possibly continue to make defensive acquisitions as users are attracted to com- But how long will it last? Some question Facebook's t can stay relevant and dominate long term. "This is a perverse thing. personally, but I would rather be in the cycle where people are underesti- mating us. It gives us latitude to go out and make big bets that excite and amaze people. 1. Gapper, Financial Times, 12 April 2015, J. Bercoviei, Forbes, 11 MySpace. This overview illustrates that networks can September 2012: A. Lu, digtaltrends.com, 5 August 2014; R. Waters, quickly gain millions of users and huge valuations, but ancal Times, 21 February 2014; and J. Gapper, Financial Times, 3 can just as quickly face slowing growth, users leaving in millions and final implosion. Further back in internet history, there are several other implosions of those with social network ambitions: BBS, CompuServe, AOL, etc. Founder and CEO Mark Zuckerberg has, however, seen the threats and taken action. Instagram was acquired in 2012 when they were becoming the biggest mobile photo-sharing service with many younger users posting content there rather than on Facebook's own web-based photo service. Next was October 2013. Questions 1 Why are network effects important for Facebook? Would you switch to another social network if it had better features even if it was considerably smaller? 2 What other social media networks and WhatsApp, the biggest messaging service globally; it was bought in 2014 as users started to move their activities to mobile platforms. To fence off Linkedin apps do you use that you think could beat Facebook? Why?
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