SOCIAL MEDIA

INDUSTRY evolution ANALYSIS

Aaron Loyal | vlvlan Le | !almle Llm | Anna 1ran | norman 1ran
INDUSTRY HISTORY
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ulscovery of 6 uegrees of Separauon
8ulleun 8oard SysLem
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uemlse of 8ulleun 8oard SysLem
World Wlde Web
Amerlca Cnllne (ACL)
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Soclal Medla ClanLs
Calnlng revenue from users
BIG THREE
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~1 bllllon acuve users
$3 bllllon revenue ln 2012
8uslness model: lncremenLal revenues, ads
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300 mllllon acuve users
$9 bllllon esumaLed value
8uslness model: sponsored LweeLs
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343 mllllon acuve users
$40 bllllon revenue ln 2012
8uslness model: hlghly personallzed ads
COMPETITIVE LANDSCAPE: 5 forces
lnLra-
lndusLry
8lvalry
1hreaL of
new
LnLranLs
Suppller
8argalnlng
ower
1hreaL of
SubsuLuLes
8uyer
8argalnlng
ower
COMPETITIVE LANDSCAPE: 5 forces
Bargaining power of consumers
8rand equlLy
Many subsuLuLes avallable
Low/moderaLe swlLchlng cosLs
- HIGH -
COMPETITIVE LANDSCAPE: 5 forces
Threat of new entrants
SaLuraLed markeL
ModeraLe cusLomer loyalLy
Low lnlual lnvesLmenL cosLs
ulmculL user accumulauon and reLenuon
- MODERATE -
COMPETITIVE LANDSCAPE: 5 forces
Bargaining power of suppliers
Plgh avallablllLy of hardware & sLorage provlders
Lqual suppller concenLrauon Lo rm concenLrauon
rauo
Mlnlmal suppller dlerenuauon
- LOW -
COMPETITIVE LANDSCAPE: 5 forces
Threat of substitute products
Large number of subsuLuLes
uecreaslng percepuon of dlerenuauon
8rand repuLauon.
- HIGH -
COMPETITIVE LANDSCAPE: 5 forces
THREAT OF industry RIVALRY
Many subsuLuLes avallable
ConsLanL need for lnnovauon and dlerenuauon
- HIGH -
INDUSTRY trends
CrowLh of Moblle uevlces
Shl ln Markeung SLraLegles
lncrease of Cnllne resence and AcuvlLy
INDUSTRY CHALLENGES
uaLa rlvacy
Moneuzauon of Moblle ConLenL
lnLernauonal Censorshlp
MeasuremenL of 8Cl and value
ulsLrlbuuon of roL
INDUSTRY CHANGES
8evenue Caln SLraLegles
Connecung 8uslnesses wlLh Consumers
1ransluon from rlvaLe Lo ubllc
IMPACT ON STRATEGY | BUSINESS MODEL | PROFITABILITY
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1
r
e
n
d
s

Moblle uevlce CrowLh
- CpporLunlues for moblle moneuzauon ^
- More buslnesses uslng lacebook ads and greaLer daLa volume
from users - roLablllLy ^
- More moblle phone apps
- More adverusemenLs
Markeung SLraLegles Shl
Cnllne resence & AcuvlLy
CrowLh
C
h
a
l
l
e
n
g
e
s

uaLa rlvacy
- 8ad repuLauon for lack of daLa prlvacy-decrease of users
- ulmculLy moneuzlng moblle - roLablllLy j
- ulmculLy expandlng overseas (Chlna)- roLablllLy j
- 1he Lop soclal neLworks wlll conunue Lo grow buL sLruggle wlLh
compeung wlLh each oLher because Lhey are hard Lo compare
Moblle Moneuzauon
lnLernauonal Censorshlp
8Cl & value MeasuremenL
roL ulsLrlbuuon
C
h
a
n
g
e
s

8evenue Caln SLraLegles
- CpporLunlues for revenue from users (ln addluon Lo
buslnesses) ^
- Seamless ad lnLegrauon ! lncreased buyer lnLenL !
roLablllLy ^
- ulmculLy meeung shareholder and Wall SLreeL demands
Connecung 8uslnesses wlLh
Consumers
1ransluon from rlvaLe Lo
ubllc
FACEBOOK FUTURE STRATEGIES
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#1 popular app ln uS buL underwhelmlng moblle ad revenues
Large amounL of moblle apps
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Soclal !obs
Craph Search
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Craph Search
twitter FUTURE STRATEGIES
!!8reaklng lnLo L-Commerce ! arLnershlp
wlLh AMLx
lnLernauonal Lxpanslon lnLo 8razll!!!
Google+ FUTURE STRATEGIES
Adveruslng 8evenue
Sync Coogle+ wlLh all Coogle-relaLed
Servlces
CommunlLy locus
Coogle PangouL!!!
ADDITIONAL QUESTIONS