Due to upcoming challenges, now Facebook might urge to get their paws on users for revenue. Analyzing the users in the Facebook and their habits, Facebook now introduced a strategy, according to which the users in New Zealand were proposed that their important post can be highlighted for a price of US$ 2. It is a trial test with different set of prices. Now this stands a contradiction to the triple ‘FFF’ offer (Facebook For Free) announced earlier by Zuck. Mia Garlick, spokeswoman of Facebook said:
“We’re constantly testing new features across the site. This particular test is simply to gauge people’s interest in this method of sharing with their friends.”
After reading the content there might rise a doubt as for the possibilities for Zuck to forcefully charge the users, or rather, make users to cough up the amount for Facebook addiction. pay close attention to Facebook’s above update which actually says “If you are paying us, we will ensure that your update will reach to maximum number of people or else………”. So, if you are one of the Facebook addict and wants your activity should get attention, then you will have to loose your pocket.
The other factors which are quite significant to raise here in this context:
The lawsuit filed by Yahoo (ex business partner) on Facebook brought a stir to Zuker. Yahoo claims that Facebook had infringed 10 of its patents and is willing to start a litigation on Facebook. Yahoo wants Facebook to licence those patents before the Initial Public Offering. For which Facebook responded:
“We’re disappointed that Yahoo, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation.”
This might be a quicksand for Facebook at the time of verdict this year. So the Facebook has to come up with new strategies to grow its revenue.
The biggest social networking giant announced to go for a public road show for their IPO filing, with its initial raise of $5 billion in initial funding and it seeks to raise $10 billion when it goes public. Details shown in the infography. Now what if the predicted share value falls down in the years to come or what if they do not reach the marked profit range? Moreover Zuck had faced many hurdles for the IPO launch. So Facebook needs to gather more backup revenue in order to maintain the stability of the website.
Announcing the acquisition on his Facebook Timeline Mark Zuckerberg admitted that Instagram is an important acquisition for Facebook because it’s the first time ever that Facebook acquired a product and a company with so many users. With $1 billion acquisition of Instagram, Facebook may eye on any stable company to expand its wings in the competitive roads of social networking once again. For which a large sum of cash is required.
Unwanted Growth Of Mobile Users:
This is quite interesting. Everybody wants to add new stream to its business and surely will be happy to see that growing – but not Facebook. The constant growth in the number of mobile users has made Facebook worrisome. Users are turning towards mobile devices to stay connected with as much as possible and ditching Desktops and laptops. But then why Facebook is anxious – Ads are the the prime source of revenue Facebook is securing and ,unfortunately, company don’t have any Ad policy or Ad service for mobile devices till date. That means, users are slowly turning their back towards Facebook main stream of revenue.
So in order to be the survival of the fittest in global social networking race, Facebook might be in a position that could charge its users in a gradual manner keeping in view of Facebook’s popularity, addiction among users and huge requirement from the advertisement industry. Having said that the company might have to make sure of the probable pitfalls due to wrong decisions and predictions and should be in a position to back up accordingly. I wonder what Zuck’s next Strategy would be.