Business Model Canvas
Core Strategy
Business Mission
Facebook's mission is to give people the power to share and make the
world more open and connected.
|
Strategic Resource
Core Competencies
Platform Development Data Center Operations Management |
Partnership
Network
Supplies
|
Customer Interface
Target Customer
Internet Users
Advertisers and Marketers
Developers |
Product Scope
Connect with friends
Reach Relevant Social Context Engagement Personalized social experiences, Social Distribution, Payments |
Strategic Assets
Facebook Platform
Technology Infrastructure Social Graph |
Partners
Content Partners (TV-Shows, Movies ,Music, News Article) Developers (Game, Apps) |
Fulfillment Support
Internets |
Basis for differentiation
Social Traction Facebook Apps |
Other key Relationships
Microsoft |
Pricing Structure
Cost per click (CPC) Cost per thousand impression (CPM) |
Facebook Core Strategy
Business Mission
Facebook is the leading Social Networking Site (SNS) of the World. Facebook mission is to make the world more open and connected. Facebook has built a Multi-sided Platform (MSP) that serves different customer segments with different value propositions.
Product Scope
Connect with Friends
Facebook helps Internet users stay connected with their friends, families, and colleagues. It helps them discover and learn more about what is going on in the world around them. It helps them express themselves by sharing their opinions, ideas, photos, and activities. Facebook provides a number of products, free of charge, to its users. These include: Timeline, News Feed, Photos and Videos, Messages (Email, Chat, and Text Messaging), Groups, Lists, Events, Places, Subscribe, Ticker, Notifications, and Facebook Pages.
Social Context Engagement
Facebook offers a unique combination of reach, relevance, social context, and engagement to the advertisers. Advertisers can engage with users based upon the information shared by users such as Age, Gender, Location, Education, Work history or specific Interests. Facebook offers advertisers an ability to include social context in their Ads. Social context highlights a user’s connections with a brand or business. Businesses can also create Facebook Pages to engage with interested customers and simulate an ongoing dialog with them.
Personalized Social experiences, Social Distribution, Payment.
Developers can use Facebook platform to build apps and websites that are more personalized, social, and engaging. Facebook offers developers an online payment infrastructure that enables developers to receive payments from the users in an easy-to-use and secure environment. Payment revenues increased from nearly 2% in 2009 to 15% in 2011. Ad revenues contributed 85% to the total revenues in 2011.
Connect with Friends
Facebook helps Internet users stay connected with their friends, families, and colleagues. It helps them discover and learn more about what is going on in the world around them. It helps them express themselves by sharing their opinions, ideas, photos, and activities. Facebook provides a number of products, free of charge, to its users. These include: Timeline, News Feed, Photos and Videos, Messages (Email, Chat, and Text Messaging), Groups, Lists, Events, Places, Subscribe, Ticker, Notifications, and Facebook Pages.
Social Context Engagement
Facebook offers a unique combination of reach, relevance, social context, and engagement to the advertisers. Advertisers can engage with users based upon the information shared by users such as Age, Gender, Location, Education, Work history or specific Interests. Facebook offers advertisers an ability to include social context in their Ads. Social context highlights a user’s connections with a brand or business. Businesses can also create Facebook Pages to engage with interested customers and simulate an ongoing dialog with them.
Personalized Social experiences, Social Distribution, Payment.
Developers can use Facebook platform to build apps and websites that are more personalized, social, and engaging. Facebook offers developers an online payment infrastructure that enables developers to receive payments from the users in an easy-to-use and secure environment. Payment revenues increased from nearly 2% in 2009 to 15% in 2011. Ad revenues contributed 85% to the total revenues in 2011.
Basis for Differentiation
Social TractionFacebook had 845 Million Monthly Active Users (MAU) by the end of 2011. The following statistics are further illustrative of Facebook size and scale: 100 Billion friendships; 250 Million photos uploaded every day; 2.7 Billion Likes and Comments per day. More than 425 Million MAUs, nearly half of Total MAUs, used Facebook products on Mobile. It’s safe to say that Facebook has achieved social traction where most of people that had access to the internets will have at least a Facebook account.
Facebook Apps
Facebook offers development tools and APIs that enables developers to easily integrate with Facebook. Facebook offers developers Open Graph API and Social Plugins that developers can use build different user experiences, including Apps on Facebook, Desktop Apps, Mobile Apps, and Platform-integrated websites. At the end of 2011, more than 7 million apps and websites had been integrated with Facebook.
Facebook offers development tools and APIs that enables developers to easily integrate with Facebook. Facebook offers developers Open Graph API and Social Plugins that developers can use build different user experiences, including Apps on Facebook, Desktop Apps, Mobile Apps, and Platform-integrated websites. At the end of 2011, more than 7 million apps and websites had been integrated with Facebook.
Facebook Strategic Resource
Core Competencies
Facebook Platform Development
The Facebook Platform is a software environment provided by the social networking service Facebook for third-party developers to create their own applications and services that access data in Facebook. The platform offers a set of programming interfaces and tools which enable developers to integrate with the "open graph" of personal relations — whether through applications on Facebook.com or external websites and devices.
The Facebook Platform is a software environment provided by the social networking service Facebook for third-party developers to create their own applications and services that access data in Facebook. The platform offers a set of programming interfaces and tools which enable developers to integrate with the "open graph" of personal relations — whether through applications on Facebook.com or external websites and devices.
Data Center Operations ManagementFacebook is investing heavily into Facebook-owned data centers. This is to support user growth, increased user engagement, and delivery of new products. Facebook data centers currently store more than 100 petabytes (100 quadrillion bytes) of photos and videos. This is going to increase further in the future as users engage more on Facebook. To support these massive storage and computing needs, Facebook custom designed and built their software, servers, and data centers from the ground up.
Strategic Assets
Strategic Assets
Facebook Platform
As describe by Facebook Platform Development above.
As describe by Facebook Platform Development above.
Technology Infrastructure
With more than 900 million active users, Facebook is the busiest site on the Internet and has built an extensive infrastructure to support this rapid growth. The company’s massive armada of servers and storage must work together seamlessly to deliver each Facebook page, the company said. “Loading a user’s home page typically requires accessing hundreds of servers, processing tens of thousands of individual pieces of data, and delivering the information selected in less than one second,” the company said.
Other custom technology infrastructure are Scribe, MySQL Farm, Cassandra, Hive, Haystack, HipHop and the release management tool chain.
Social Graph
Facebook's Graph API allows websites to draw information about more objects than simply people, including photos, events, and pages, and their relationships between each other. This expands the social graph concept to more than just relationships between individuals and instead applies it to virtual non-human objects between individuals, as well.
Facebook Partnership Network
Partners
Content Partners
To increase the user engagement even further, Facebook has partnered with companies such as Netflix, Hulu, Spotify, Washington Post providing online movies, TV shows, music, and news. Their apps help users share what they are watching, listening, or reading with their friends and family.
Developers
Developers of Facebook Applications and social games like Zynga, Instagram, TripAdvisor and a lot more, these developers provide users of Facebook the application that they can use to engage between their friends and shares information. This help kept users from venturing outside of Facebook ecosystem and remains logged in onto Facebook most of the time.
Other Key RelationshipsMicrosoft
Facebook buying of advertising technology from Microsoft Corp that measures the effectiveness of ads on its website shows and Microsoft investment in Facebook is a key relationship where Microsoft gets to push Bing results on Facebook search.
Facebook Customer InterfaceTarget Customers
Internet Users
Facebook has made a Facebook account for all internet users a necessary since it is safe to bet that most of the internet users’ social circle may have one. This social traction will make the social pressure from their friends that had internet access and Facebook account so intense that one would create one because of that.
Advertisers and Marketers
Advertiser and marketers are content partner with Facebook that uses Facebook infrastructure to further target relevant customers’ base on the social information that Facebook users posted. This infrastructure will be able to provide more accurate target for advertisers and marketers to get their products known to the market segments.
Developers
As describe above in Facebook Partnership Network.
Fulfillment SupportInternet
Facebook reaches it customers by using the internets. Anyone that has access to the world wide web could get a Facebook account and immerse themselves in a more social environment.
Pricing StructureCost per Click (CPC)
CPC simply means that Facebook get paid when someone clicks on the ads on the Facebook advertisements.
Cost per thousand Impression (CPM)
CPM means that Facebook gets paid for each 1,000 people who have seen the advertisements.
