Facebook is going to where?

Before I come to Madrid, I was aware of Facebook, which is one of the biggest web-based SNS(social network service), but didn’t use this. Frankly speaking, I didn’t feel the necessity of usage since there is ‘Cyworld’ in Korea, which is similar with Facebook, but more user-friendly system (at least from my point of view at that time...) – e.g : function to edit pictures, to show my pictures only to designated groups, to play my selected music on-line, and to purchase on-line money (called ‘Dotori’) so that I can buy music, decorate my webpage with skins and accessories. However, now I am spending a huge amount of time on Facebook and actually only visiting my Cyworld webpage periodically. Guess why I suddenly change my mind? I think my responses to this question are related with ‘where Facebook will be in near future’.

To think of ‘where Facebook will be in near future’, I would like to touch upon strengths of Facebook.

First, Facebook unites individuals. Each individual is able to communicate with great efficiency. It's nothing new but put Facebook in prominent position. Users can create events and invite people without any cost and check this in real time. Just think of ourselves in IE. It’s amazing that a lot of students gather upon the invitation through Facebook. This is a great interaction tool. Also, I strongly believe that people will not change their networking tool easily since they already have all contact there, which means that Facebook won’t lose its customers easily. Moreover, since users want to connect with their friends who haven’t started to use Facebook, they will recommend to use this. We can’t ignore the effect of attracting new customers by word-of-mouth.

Secondly, Facebook is a innovative marketing tool for companies or schools cause they can reach to their target customers with non-traditional way so that it enables companies or schools to lead a great ripple effect into their markets.

I was thinking to suggest to adapt some of ‘Cyworld’ model since it contains various factors in its business and has been shown as profitable model – such as providing digital goods (background music & skin for individual’s mini homepage, personalized avatars, gifts for friends and casual games). On-line currency (buying Dotori) is supported by a variety of payment systems (mobile, credit, bank transfer, etc.) and it has helped lower the payment and monetization barriers dramatically. However, I found out the information though one website that Facebook earns revenue through advertising business, virtual goods & gift shop, and Facebook credits as well. Here, we confirmed that Facebook is on the right track.

Considering above two issues (can call them as strengths -unite individual users and provide marketing tool to business) of Facebook in addition with its profitable business model, Facebook will continue its business. On the other hand, Facebook should continuously watch out its privacy issue, and competitors who are chasing with similar platform. Other than that, I have a positive forecast for the sustainable growth of Facebook in near future.