Facebook’s Dilemma


Facebook’s Dilemma
18th of June 2012 around 11:30 p.m. (Central Africa Time) I began to analyze and closely scrutinize the future of Facebook as a social network, an investment for Facebooks’ investors and also for current and potential advertisers. The more I looked at the prospect of the company and also on their ability to dominate the social network, the more I realize the social media company might actually fade out unless strategic and drastic measures were actually taken out by the management team. The fact is most Facebook social networkers now spend less time on the site as compared to about three to four years ago when users were practically addicted to the social network site.
The world is evolving rapidly and new technologies are erupting out of US, Europe, Israel and Asia at a fast pace. What will actually decrease the number of users of Facebook and the time they spend ‘facebooking’ is actually the invention of new mobile devices with distinct and innovative social network software and also the emerging of new and dynamic entrepreneurs. An example of this occurred some years ago when Blackberry broke out from just supporting and providing services for mobile phone companies into actually coming up with their own brand phone which comprised of features such as blackberry messenger, chat and other tech applications. The public welcomed the idea of this social networking as that period was what I called ‘The Blackberry Craze’. Not only did they support the public socially but was also a business boost as it made business communication and contacts much easier and efficient. This was so evident that almost everywhere that one happens to, you would see people just pinging (as that was the popular slang then). I can remember being in the bank at a time and I was on the queue waiting to make some deposit only to see that one of the bankers in front of me was so engrossed with his blackberry and he rarely concentrated on what was going on around him. Lecture rooms, buses, taxis and parks were not left out as people got so attached with this mobile device due to its social network functions.
People want the idea of having their friends and practically the ‘whole world’ (I use this literally) at their fingertip. Good enough, Facebook team recognized and understood this as they also came up with Facebook mobile software for phone users and this helped to avert the crash of the use of Facebook to some extent. The problem with the Facebook mobile application is that it was a setback for potential advertisers and consequently Facebook investors as they could not advertise on the mobile device. They failed to realize that people no longer have to carry their laptops or even tablets everywhere they go just so as to keep up with the social trend, people prefer to use their mobile devices to do this and in such way it makes more sense, it’s more practical and virtually far easier.
I agree that there are currently about 901 million Facebook users, but if you check the stats on the exact active users and the time they now spend ‘facebooking’, you will know there has been a decline. Not to my surprise, about a month or so later I was watching Bloomberg when there were reports about the skepticism of Facebook investors and also advertisers on how effective the adverts they place on their social network site is. The stock value compared to their IPO value was even more devastating as it had almost halved (and currently it’s about $18 or $19) and analysts including myself are expecting it to drop even further. Andy Borowitz (not a business analyst) an hilarious speaker who also writes for the Newyorker made one statement on his twitter account which sounded funny but actually that was the ugly truth. He commented ‘ facebook investors are not happy about the drop of the stock to $19, they should be rather happy/satisfied for something that is actually worthless. Another observer commented; Facebook is like the boyfriend you no longer like, but are scared to dump because you’ve invested so much time in the relationship. All these are pointers to where Facebook is headed unless the management team starts coming up with new ideas, innovations and strategies as new and emerging tech geniuses and IT entrepreneurs with mind dazzling and innovative ideas will take them and the social network world by suprise.
Balogun Femi


Branding Yourself

Just Business
In everything you do whether it be a skilled job or an enterprise, you must apply the right business principles if you want to have high returns for all your efforts. When you know that you have a skill in doing something and you know the best you can reach, you don’t have to come out fully at that best for everyone to see during the period that you emerge from obscurity. You just come out a little above the former way things have been done before and keep people at suspense on what you intend to bring in next or what you want to achieve next.
The simple illustration I can use to clarify this is Usain Bolt. I read that he’s the only track and field athlete to make ten million dollars a year. Do you think that he made these ten million dollars last year because he was better than other athletes who broke world records before him? Definitely Not. The reason as I see it is mainly because he has agents with good business IQ and acumen who didn’t follow the paths of other agents in this line of sports. When he ran (i.e. USAIN BOLT) 9.78secs or so, and then ran 9.69 and 9.58 seconds later, did you think that he accidentally ran this far record beating records period after he just broke one with the 9.69secs? Definitely not. My guess, he and his agents(PACE Sports Management) and trainer knew all along his capability to run that 9.58 sec but coming out with your best truly at first is not the best business strategy.
I have to tell you that sports and business go together. If you happen to just say that you are a good sports man without also combining the attributes of a good business man or not consulting a business expert to help foster and package yourself well to your fans and to the public, then you will only achieve great trophies in your line of sports with little or nothing to show for it when it comes to your bank account. When Usain first came during that record breaking time, did you notice that during the 100m dash, when he was about ending the race and he noticed he was leading that he slowed down to finish the race? Of course he could have ran faster to even achieve a far greater world recording time, but that would mean not being able to keep his would-be fans in suspense and in the long run not maximizing the amount he could earn as a sport professional. This made him to break the record three times (including breaking his own record two times) and also breaking the 200m record.
This was all systematically and strategically planned by his sports trainer and agents to fully maximize his returns in terms of his earnings from breaking world records, being an advertiser for sports companies such as Puma, Rocklive, Virgin Media and doing adverts for various companies. He became the most talked about athlete not because he is the only person to break a former world record but because he used a business approach to it. The same way in anything you do that you are skilled and professionally good at, try and consult a business expert on how you can package and market yourself to your audience or target market so that you won’t only be good at what you are but your bank account would also testify to it too.
Balogun Femi

Hello world!

Welcome to my blog where you are enlightened about business, leadership, education, ideas & innovations, concepts and modern trends. I’m a writer and an infopreneur with passion for enlightening the public about ongoing and future trends. You can also follow me on twitter: Balogs5