The idea behind Facebook is very simple; enable the world to connect.
Since Mark Zuckerberg established Facebook in February 2004, it has grown to an astonishing 955 million users (as of June 2012), with almost all the countries in the world using Facebook to some degree. Fascinatingly, Mark describes it as a utility; it has become an integral part of many of our lives.
It has grown consistently over the last 8 years, and I expect it to reach the 1 billion user mark by the turn of the year. So surely the question is why has it been so successful? and how can it continue to be successful?
It has had unmatched success in the social networking sector due to its simple yet very useful functions, which I’m sure you’re all aware of. Myspace, bebo and the others were what Facebook put into one, and improved. Improvement is very difficult to sustain, so it will be hard for Facebook to continue to enhance their status, but if anyone can think up new innovate new ideas, its Mr Zuckerberg. However, it is not all perfect for Facebook. Since their flotation on the Stock Market, shares have fallen dramatically from the debut in may of $38 to $21 (as of 28th September). They valued themselves at $104 billion (£66 billion), which is not even remotely close to their profit levels. The reason for the high stock valuation is due to the concept of Market Capitalisation. The brand “Facebook” is worth $104 billion, not the company itself.
The high Market Capitalisation Facebook possess shows the real genius of Mark Zuckerberg.