Case Study Facebook Business Model Rutgers Case Study

714 words - 3 pages

Case Questions
Describe Sheryl Sandberg’s strategic leadership. Which qualities stand out to you and why? Is she an effective strategy leader? Why or why not?
When Sheryl was hired as a COO of Facebook in 2008, she began to find ways to make Facebook profitable. She felt that Facebook should advertise on its platform, later, in 2010 this idea became a highly profitable one. She supports team effort and is very much attached with every team she members. She also encourages the female professionals to achieve their dreams. I feel that she is an effective strategy leader because she not only comes up with a plan but also works together with her employees to implement her ideas.
She expands what she does and really makes everything better
She’s a visionary
Inspirational – ted talk, lean in “she made it a real business” She countered Mark’s ideas to make the company better and really ran the company
What “industry” is Facebook competing in and how is this industry changing? Who are Facebook’s most important competitors?
Facebook is competing in the social media industry. In the digital age, social media is constantly growing and developing.
Facebook’s most important competitors include Snapchat, LinkedIn, and Twitter. Facebook’s most important competitor is Google. Both websites try to maximize advertising space as well as gather user data to show then advertisements that best suit their interests/needs.
What is Facebook’s business model? How is Facebook making money? Concisely evaluate Facebook’s current financial health using metrics. Do you see this changing in the near future?
Facebook's business model is "user-driven" because the website users do most of the work. Facebook gets about 85% of its revenue from advertising. The other 15% comes from commission from virtual goods sale like that of paid credits (coins) for FarmVille. It creates a place for people to “hang out”, upload photos, videos, status updates, etc. as well as posts advertising along the side of that status update/uploads. Facebook sells ads targeted to either the person or the content. Self-serve advertisements are displayed in the sidebar of most pages of the site
Entire revenue line of Facebook depends on self-serve ads being circulated within the...

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