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Question 1. Why do people use Facebook and what do they do when they are there?

Facebook users have lots of kinds of stuff to do while using Facebook, they can upload
photos, videos, have a group discussion, video calls, normal calls, and even users can play games
on their individual profiles or can add their friends who have a similar interest in playing the
game. The user can add friends who they know in real life or can add those who have similar
interest and want to know more about them from all over the World. Nowadays people are
joining Facebook for business purposes as well they are adding their business or corporate pages
to the Facebook network to spread it all over the world. This is a kind of major platform now to
advertise to grow your market. Users are nowadays even earning through Facebook, they have
created pages or profiles where they have added stuff with all information and images, not only
new stuff is being sold there are pages for every country and city where you can sell items which
have been used once and can be used by others who wanted to buy.

Question 2. What are the economics of Social Networking? What does it take to win?

 The initial investment cost was modest, but the number of users grew cost of hosting
them also grew. There were three main potential sources of revenues:
o customer subscription: Access was free but charged for extra services
o Advertising: Advertiser paid if the subscriber clicked on the advertisement
o Charges to supplier: Levying charges on suppliers in return for access to network
as platform
 Social networking applications had strong economic power because of involvement of
network effects. More the number of users, more the value of network. This value is
increased at the square of the rate of number of users.
 To win number of members should be increased to increase the value of network.
 If a much better network with advanced technology is launched. It will attract enough
users and create next generation monopoly

3.If Social Network effects are so powerful, why have social networking companies had
such mixed results ?

Since it's inception social networking has become one of the most powerful tool or concept that
brings into consideration many people from different backgrounds and cultures. A common
ground so as to say. The impacts of social media can be positive as well as negative. Some of the
positive affects of social media:-
 Spreading awareness about any issue
 Huge way to connect the businesses to the people
 Connecting people regardless of any social prejudices
 A place to make a statement or an opinion
Some of the negative impacts of social networking:-
 Misleading
 Explicit content for the kids
 Fake news
 Addiction
The mixed results of the social networking companies might be because of:-
 Faster changing people’s preferences
 People losing trust in the companies due to unwanted content and fake news
 Concern for privacy
 People’s sudden shifts from their likes to their dislikes
 The new generation people find it hard to concentrate on something for a long time
 Influencers on the rise
 Turning of the social networking sites into a market place
There are sudden uplifts a downfalls when it comes to any industry or business. It’s happening in
everywhere. That is why the use of and analysis of previous data in order to keep up with the
consumers is very necessary. There have also been cases of technological advancements which
were not present during the early stages of social networking which led to the fall of companies.

4.How has Facebook sustained success?

Facebook performed several steps to sustain their success, which are-

 They used to perform all tasks faster than other companies, in a way being the first mover
for many features online. Constant innovation on this scale and speed was bound to
create customers.
 They kept a simple user interface that the users could handle with ease.
 They focused on the product instead of company profits or shareholder’s value. This led
them to a better service offering than competing peers.
 They identified the potential problems that could arise in creation and maintenance of the
Social Media. They restricted their services accordingly to not breach the requirements
for smooth running.
 They hired employees through referrals and allowed the new employees to choose the
area they wanted to work in, creating maximum impact. This ensured they had quality
engineers and other employees on their team.
 They had “The Hacker Way” approach which motivated employees for continuous
improvement and iteration.
 They could identify the danger from rising potential competitors and they killed the
competition by launching a similar product or through an acquisition of the competing
company.
 They kept introducing new features after periodic intervals and to maintain the
excitement among the customers, which ensured that existing customers did not get bored
with the product and new customers kept coming to the platform.
 They focused on the long-term aspects for the company and accordingly took their
decisions, also done by a panel of expert advisors kept by Facebook.
 They did not react aggressively to any regulation or criticism raised against the company.
They followed the rules that were laid down and tried to present the positive face of their
firm.

5.What would you recommend to Zuckerberg in the face of fake news criticism?

Due to the 2016 controversy of fake news with Facebook, it can take the following steps in order
to cope with it.
 First, accept if the algorithms were tampered with and promoted fake news. Coming
clean to the public is way better than remaining as an alleged party.
 Next, involve fact checkers in the system who will check the news posted on Facebook
for their genuinity. These organisations should comply to some pre decided rules and
regulations.
 The news which are potentially disputable, flag them, so the audience know what to trust
and what not to.
 Create awareness on the platform against the fake news and the new added feature to spot
potentially disputable news

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