Facebook

Mikolaj Jan Piskorski; Thomas R. Eisenmann; Aaron   Smith; David  Chen; Brian  Feinstein

Case | HBS Case Collection | March 2008 (Revised March 2014)

Facebook

by Mikolaj Jan Piskorski, Thomas R. Eisenmann, Aaron Smith, David Chen and Brian Feinstein

Abstract

As Facebook topped one billion monthly users in October 2012, the online social network continued to face questions about how best to monetize its surging traffic. The company could invest further in new advertising products, which represented the majority of the revenue thus far, or concentrate on the Facebook Platform and help third-party developers create and distribute their own applications. After a highly anticipated yet largely disappointing initial public offering (IPO), Facebook's stock price steadily declined. It became critical for the Facebook team to identify sustainable growth opportunities, particularly as more of its user base accessed the site via mobile devices.

Keywords: Entrepreneurship; Profit; Open Source Distribution; Social and Collaborative Networks; Competition; Competitive Strategy; Online Technology; Technology Platform; Information Technology Industry;

Language: English

Format: Print

41 pages

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Citation:

Piskorski, Mikolaj Jan, Thomas R. Eisenmann, Aaron Smith, David Chen, and Brian Feinstein. "Facebook." Harvard Business School Case 808-128, March 2008. (Revised March 2014.) (More Info.)

Related Work

Teaching Note | HBS Case Collection | October 2011 (Revised March 2013)

Facebook (TN)

Mikolaj Jan Piskorski

Keywords: Strategy;

Citation:
Piskorski, Mikolaj Jan. "Facebook (TN)." Harvard Business School Teaching Note 712-439, October 2011. (Revised March 2013.) View Details

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Case | HBS Case Collection | March 2008 (Revised March 2014)

Facebook

Mikolaj Jan Piskorski, Thomas R. Eisenmann, Aaron Smith, David Chen, Brian Feinstein, Mikolaj Jan Piskorski, Thomas R. Eisenmann, Aaron Smith, David Chen and Brian Feinstein

As Facebook topped one billion monthly users in October 2012, the online social network continued to face questions about how best to monetize its surging traffic. The company could invest further in new advertising products, which represented the majority of the revenue thus far, or concentrate on the Facebook Platform and help third-party developers create and distribute their own applications. After a highly anticipated yet largely disappointing initial public offering (IPO), Facebook's stock price steadily declined. It became critical for the Facebook team to identify sustainable growth opportunities, particularly as more of its user base accessed the site via mobile devices.

Keywords: Entrepreneurship; Profit; Open Source Distribution; Social and Collaborative Networks; Competition; Competitive Strategy; Online Technology; Technology Platform; Information Technology Industry;

Citation:
Piskorski, Mikolaj Jan, Thomas R. Eisenmann, Aaron Smith, David Chen, and Brian Feinstein. "Facebook." Harvard Business School Case 808-128, March 2008. (Revised March 2014.) (More Info.) View Details

Cite View Details Educators Purchase Related
Case | HBS Case Collection | March 2008 (Revised March 2014)

Facebook

Mikolaj Jan Piskorski, Thomas R. Eisenmann, Aaron Smith, David Chen, Brian Feinstein, Mikolaj Jan Piskorski, Thomas R. Eisenmann, Aaron Smith, David Chen and Brian Feinstein

As Facebook topped one billion monthly users in October 2012, the online social network continued to face questions about how best to monetize its surging traffic. The company could invest further in new advertising products, which represented the majority of the revenue thus far, or concentrate on the Facebook Platform and help third-party developers create and distribute their own applications. After a highly anticipated yet largely disappointing initial public offering (IPO), Facebook's stock price steadily declined. It became critical for the Facebook team to identify sustainable growth opportunities, particularly as more of its user base accessed the site via mobile devices.

Keywords: Entrepreneurship; Profit; Open Source Distribution; Social and Collaborative Networks; Competition; Competitive Strategy; Online Technology; Technology Platform; Information Technology Industry;

Citation:
Piskorski, Mikolaj Jan, Thomas R. Eisenmann, Aaron Smith, David Chen, and Brian Feinstein. "Facebook." Harvard Business School Case 808-128, March 2008. (Revised March 2014.) (More Info.) View Details

Cite View Details Educators Purchase Related
Case | HBS Case Collection | October 2015

Facebook: The First Ten Years

Shane Greenstein, Marco Iansiti and Christine Snively

Facebook celebrated its ten year anniversary in February 2014. Over the past decade it has grown into the largest social network in the world with one billion users. After filing an IPO in 2012 at a $104 billion valuation (the third largest IPO in U.S. history), the stock price steadily declined, but recovered after the company implemented an effective advertising strategy. Facebook worked to maintain its "hacker ethos" and remain nimble as it matured. The company was worth close to $200 billion. Could this kind of value sustain itself for years to come?

Keywords: social networks; technology; Facebook; Entrepreneurship; Profit; Open Source Distribution; Social and Collaborative Networks; Competition; Competitive Strategy; Online Technology; Technology Platform; Information Technology Industry;

Citation:
Greenstein, Shane, Marco Iansiti, and Christine Snively. "Facebook: The First Ten Years." Harvard Business School Case 616-012, October 2015. (More Info.) View Details

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Catalant, founded in 2013 as an online marketplace where MBAs could bid on consulting projects posted by small- to medium-sized businesses, had expanded by 2016 to provide Fortune 1000 companies with access to over 35,000 independent experts. The founders envisioned extending their matching solutions to help enterprises staff projects with a mix of current employees and external experts, hypothesizing that the “future of work” would involve more flexible employment arrangements. They debated how much to invest in new functionality versus improving their existing marketplace and how to pitch their evolving strategic vision to investors.

IguanaFix is a rapidly scaling Latin American startup that provides an online platform connecting consumers with home improvement contractors. The founders have acquired customers through both B2C and B2B methods. But in seeking to grow and scale the business, they now must make decisions about the relative emphasis on building their consumer brand or its B2B partnerships as well as the implications for product offerings and marketing methods ranging from search engine marketing and Facebook ads to sales and account management.

Teaching Note for HBS No. 817-056. IguanaFix, based in Argentina, is a platform business that connects consumers with home improvement contractors. The founders are evaluating growth options and an investment offer. The case focuses on scaling issues for a venture engaged in both B2C and B2B initiatives in a business model where there are important links, but also trade-offs and choices, between these approaches. The teaching note discusses some core marketing tools primarily relevant to a B2C versus a B2B approach in a venture; the complementarities and resource-allocation implications of the choices facing the founders; and scaling options and requirements ranging from new products and new markets to new channel partners and acquisition. The case is suitable for use in MBA and executive courses on Entrepreneurial Management, Business Marketing, Consumer Marketing, Sales, Making Markets, and Launching Technology Ventures.

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