FACEBOOK - 01.02.15

 

Facebook made a change in 2014 compared to 2013.

Its an online social networking service located in Menlo Park, California. The website was launched on February 4, 2004, by Mark Zuckerberg - a normal collage student at that time.

Facebook’s profits are increasing rapidly of $701 million as well as an increase in shares of 34% in the same year. What a year.

Competition Whatsapp

The company used advertisement strategies, which let the revenue, grew by 53%, which was about $3.59 billion.  Most of the sales come from mobile advertisement sales, which many people really annoy because they cant continue with the things they wanted to do, which is a nice market strategy from Facebook.

Competition Snapchat

Currently the social networking giant reported that they have about 1.39 billion active users each month but it changes through that more users add an account. Which therefore gave an increase of 13% than the percentage of last year.

The profits of 2014 were about $2.9 billion, which is nearly the double than the profit that was made in 2013. However even if the company has made the double of profit their revenue decreased from 44% to 29%.  It dropped because of their current competitors as Instagram, WhatsApp and virtual-reality headset make Oculus Rift.  Even with their rising competition, does Facebook do a good job, even if Facebook mobile ads lack subtlety for sure but it somehow work and therefore does Facebook get even more users and increases their income.

As mentioned before did the Company Facebook have decreased revenue of -15% (44% to 29%) compared to 2013. This article refers to our current topic in class, by its market research and R&D (Research and Development) as well as market strategies – to get more people to use their social network, which a lot of people are already doing.