4:10leet01-xythos.content.blackboardcdn.com Ĉ1 of 1CHAPTER 3 INDUSTRY AND SECTOR ANALYSISILLUSTRATION 3.2Facebook's network fearsConsidering Facebook's dominance they'should have nothing to fear, but internet history islittered 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 evenbook is not only the largest social network globally, but Google has managed to remove Facebook from thethey 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. Manyahead 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 theirsocial 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 toanother company and network just because it's some- perhaps learnt from social networking history. With theirthing 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.incumbentFriendster pioneered the online community in 2002, staying power and claim it's quite possible they will bethree 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 buildof users at its height. It was, however, soon overtaken Facebook even stronger:by MySpace that appealed to even more and youngerusers with their more hip feature-filled environmentincluding music and music videos. By 2008, it was theleading US social networking site with over 75 millionusers 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 forAs of 2016, Facebook remains unbeaten and hascurrent valuation they can possibly continue to makedefensive acquisitions as users are attracted to com-But how long will it last? Some question Facebook'st can stay relevant and dominate long term."This is a perverse thing. personally, but I wouldrather be in the cycle where people are underesti-mating us. It gives us latitude to go out and makebig bets that excite and amaze people.1. Gapper, Financial Times, 12 April 2015, J. Bercoviei, Forbes, 11MySpace. 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, 3can just as quickly face slowing growth, users leavingin millions and final implosion. Further back in internethistory, there are several other implosions of those withsocial network ambitions: BBS, CompuServe, AOL, etc.Founder and CEO Mark Zuckerberg has, however,seen the threats and taken action. Instagram wasacquired in 2012 when they were becoming thebiggest mobile photo-sharing service with manyyounger users posting content there rather than onFacebook's own web-based photo service. Next wasOctober 2013.Questions1 Why are network effects important forFacebook? Would you switch to another socialnetwork if it had better features even if it wasconsiderably smaller?2 What other social media networks andWhatsApp, the biggest messaging service globally;it was bought in 2014 as users started to move theiractivities to mobile platforms. To fence off Linkedinapps do you use that you think could beatFacebook? Why?

Question

4:10leet01-xythos.content.blackboardcdn.com Ĉ1 of 1CHAPTER 3 INDUSTRY AND SECTOR ANALYSISILLUSTRATION 3.2Facebook's network fearsConsidering Facebook's dominance they'should have nothing to fear, but internet history islittered 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 evenbook is not only the largest social network globally, but Google has managed to remove Facebook from thethey 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. Manyahead 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 theirsocial 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 toanother company and network just because it's some- perhaps learnt from social networking history. With theirthing 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.incumbentFriendster pioneered the online community in 2002, staying power and claim it's quite possible they will bethree 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 buildof users at its height. It was, however, soon overtaken Facebook even stronger:by MySpace that appealed to even more and youngerusers with their more hip feature-filled environmentincluding music and music videos. By 2008, it was theleading US social networking site with over 75 millionusers 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 forAs of 2016, Facebook remains unbeaten and hascurrent valuation they can possibly continue to makedefensive acquisitions as users are attracted to com-But how long will it last? Some question Facebook'st can stay relevant and dominate long term.&#34;This is a perverse thing. personally, but I wouldrather be in the cycle where people are underesti-mating us. It gives us latitude to go out and makebig bets that excite and amaze people.1. Gapper, Financial Times, 12 April 2015, J. Bercoviei, Forbes, 11MySpace. 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, 3can just as quickly face slowing growth, users leavingin millions and final implosion. Further back in internethistory, there are several other implosions of those withsocial network ambitions: BBS, CompuServe, AOL, etc.Founder and CEO Mark Zuckerberg has, however,seen the threats and taken action. Instagram wasacquired in 2012 when they were becoming thebiggest mobile photo-sharing service with manyyounger users posting content there rather than onFacebook's own web-based photo service. Next wasOctober 2013.Questions1 Why are network effects important forFacebook? Would you switch to another socialnetwork if it had better features even if it wasconsiderably smaller?2 What other social media networks andWhatsApp, the biggest messaging service globally;it was bought in 2014 as users started to move theiractivities to mobile platforms. To fence off Linkedinapps do you use that you think could beatFacebook? Why?

Accepted Answer

1. Network effect states if there's an increase in customer or people then the good or service value…

-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?