Mark Zuckerberg, Chris Hughes, and Dustin Moskovitz, founders of the Facebook.comphenomenon, saw an existing product in need of improvement and expansion.
A facebook is a book that is made up of photographs of individuals along with their names. Facebooks are often published at the start of the academic year by the administrations of colleges and universities, with the intention of helping students, faculty, and staff to get to know each other better. A facebook may be contrasted with a yearbook, which is traditionally published at the end of the academic year and usually includes details about various aspects of the preceding year, along with the sort of content one would find in a facebook.
Facebook.com is on online database of everything the old paper facebooks had and more.
Facebook Business Model
Business model is the mechanism by which a business intends to generate revenue and profits. It is a summary of how a company plans to serve its customers. It involves both strategy and implementation. It is the totality of:
• How it will select its customers
• How it defines and differentiates its product offerings
• How it creates utility for its customers
• How it acquires and keeps customers
• How it goes to the market (promotion strategy and distribution strategy)
• How it defines the tasks to be performed
• How it configures its resources
• How it captures profit
There are many different types of business models as some are more complex than others depending on the service. A few examples of types of business models are as follows:
• The subscription business model
• The razor and blades business model
• The pyramid scheme business model
• The multi-level marketing business model
• The network effects business model
Facebook fits into the network effects business model, which was pretty common in the dot-com boom of the late 1990s. This type of business model is based on the network effect which causes a good or service to have a value to a potential customer dependent on the number of customers already owning that good or service. Facebook fits this model because the more registered users there are on the site, the more useful the site is. With todays total population of more than 500 million facebook is certainly the best internet business so far.
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