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Facebook’s Dilemma

In: Computers and Technology

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Business Problem-Solving Case: Facebook’s Dilemma (p.434)

1. What concepts in this chapter are illustrated in this case?

Eight unique features of e-commerce technology are obviously illustrated in this case: ubiquity, global reach, universal standards, richness, interactivity, information density, personalization/customization, and social technology (Table 10-2) The following elements of Table 10-1, The Growth of E-commerce, also are illustrated: breadth of e-commerce offerings continue to grow; small businesses and entrepreneurs continue to flood the e-commerce marketplace; wireless Internet connections grow rapidly; powerful handheld mobile devices support a variety of Internet activities; the Internet broadband foundation becomes stronger; RSS grows; and more than half the Internet user population join an online social network.

2. What is the role of e-commerce and Web 2.0 technologies in Facebook’s widespread popularity?

Businesses use social networking sites to harvest a vast amount of information about users and their preferences for many different products and services to create carefully targeted promotions. Businesses use the site to interact with potential customers. The sites are so “sticky” that they have become very powerful marketing tools. Users are reluctant to leave for fear of leaving the rest of their friends behind.

The Facebook Platform provides third-party developers a platform for applications like games, plug-in features for user profiles, and other programs which are fully integrated with the Facebook site.

Flixter, an online community for movie fans, has a Facebook application called Movies that allows people to tell their Facebook friends about the movies they’ve seen and share reviews.

3. Describe the weaknesses of Facebook’s privacy policies and features. What management, organization, and technology…...

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