Facebook now has more than one billion people using it every month. The milestone was announced by founder Mark Zuckerberg on US television. However, sustained growth is seen as crucial if Facebook is to maintain its value – the company has seen its share price drop to about $22 (£17) from a starting price of $38. (BBC, 4th October 2012)
Investors will expect the company to look at ways to make more from the users it already has, as well as seeking to attract new users. The site, which was launched in 2004, will need to take a strategic approach towards organic and inorganic growth.
Bibby Line Group which was founded in 1807 is a clear example of this. It grew through its expertise in shipping and carrying out international operations. Over time, its business expertise was applied to new products and markets, such as financial services and asset management services, as well as logistics.
Facebook is looking towards emerging markets to build its user base further. Although it is the world’s biggest social network, there are key parts of the world, such as China and Russia, where local competitors still remain the online networking tool of choice.
In developed markets, new features that make use of Facebook’s vast quantities of personal data about each of its members could support better engagement with users and stimulate growth.
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