BY: Toren Miller
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Many people recognize Mark Zuckerberg for his fervent effort to innovate social networking, his success at it, then leave it at that. What people fail to realize is the simple business genius of Zuckerberg. The innovations we take for granted as colloquial web surfers and Facebook users are marks of pure genius! Think about it, every social network including many non-social networks are linked to Facebook. You can sign in to your twitter, instragram, collegeboard, online clothing accounts, just about every website that has a login is linked to Facebook.
What does this all mean? If it is not already clear, Zuckerberg is sticking his hand in every profitable pot across the globe as each company looks to be generationally relevant. Facebook has over a billion users including a myriad of companies who provide promotions through Facebook. He is lierally profiting without any direct contact with any other entity! How genius is that? Between signing in to your email through Facebook to users all over the globe, Zuckerberg wins the entrepreneur of the decade in my book.
Mark Zuckerberg is also cultivating an affluent business through acquisitions. In his words, "We have not once bought a company for the company. We buy companies to get excellent people... In order to have a really entrepreneurial culture one of the key things is to make sure we're recruiting the best people. One of the ways to do this is to focus on acquiring great companies with great founders.” Thus Zuckerberg buys out potential competition and allots for exponential expansion. One of the most recent major acquisitions was Instagram on April 9th, 2012. The application has 90 millions users who log on at least once a day through Facebook. Zuckerberg is literally behind the scenes witnessing his pockets flourish due to his savvy business techniques.
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In accord with the previous statement of companies who use Facebook reveal promotions, Facebook has 21,655 companies on it around the globe. What this does is allow these companies to niche market when a user “Likes” their page. This gives the companies the opportunity to provide ads to every user who likes their page all through Zuckerberg releasing and selling the emails of the users. Imagine having 5,000 emails of people who like Starbucks, now Starbucks is willing to purchase said information with the purpose of providing these people with promotions that may potentially lead to higher sales. Now multiply that 5,000 by 100. Imagine the amount a company such as Starbucks is willing to pay for the information to gain access to those 500,000 emails. Zuckerberg is the largest third party advertising agent in the world through his systematic approach to gaining access to people’s emails and thus access to their personal preferences. Companies such as ESPN, Coca-Cola, Oreo, and Disney, put in a significant amount of work and effort into becoming one of the most popular companies on Facebook because they know popularity breeds consumption.
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Mark Zuckerberg’s initial, internet changing invention of Facebook made him the youngest billionaire ever but his illustrious business savvy is cultivating him into one of the most powerful men in the world. I ask that we all take notes of how social media can make us all at least millionaires.
Great write up and I agree that Mark has done a tremendous job of finding different profit avenues for himself. My only concern is that this could potentially overreach what Facebook set out to do. Nonetheless, it is still a great way to expand the brand.
ReplyDeleteThis was an interesting article on Mark Zuckerburg and his different achievements through Facebook. These new innovations and goals that the company has my prove to be very interesting and intriguing. Excited to see where this goes.
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ReplyDeleteMark Zuckerberg is making Facebook into an oligopoly, in which they have majority, if not all of the market share in the social media industry. It's great to be the best in your industry but when you start to tap into some of the larger industries, such as: medical, and automotive there will inevitably be an issue. I can see Facebook having much influence over some of those demanding industries.
ReplyDeleteI think another person that is similar to this is Elon Musk. He has diversified his interest into multiple different ventures that can provide benefit for society as a whole and display his genius.
ReplyDeleteSmart move on Zuckerberg's part. Its crazy that after reading this, all you do see on Facebook is advertising. From Chick-Fil-A to Chase etc.... Its smart because, now people who like the companies page on Facebook are now exclusive to promotions and discounts. Meaning more money in the companies pocket and more people starting to use Facebook again.
ReplyDeleteThis article was very interesting. As Facebook user, I never realized how connected social media is. It is also interesting to see how this concept is used by Google, as they are even more interconnected than Facebook.
ReplyDeleteGreat read! I've seen a lot of ads that seem to be catered towards me. This is a result of everything that I've liked on Facebook and even the things that I have googled. Sometimes I see the item that I just googled on the right side of my homepage. Facebook's creator is smart by buying out smaller companies.
ReplyDeleteThis was a great post, it points back to the fact that nowadays information is the biggest driver of profits. Facebook and other large internet companies like Google are making huge profits because they collect vast amounts of information about their users and then sell that information to their clients. Essentially, whichever company can collect the most information about the largest group of people will profit most, and Zuckerberg is definitely doing just that. Facebook has the potential to surpass Google in certain areas if management keeps of the good work.
ReplyDeleteIn the wake of Facebook's waning popularity in the younger demographics, Zuckerberg has adopted the business savvy of a much more seasoned businessman. In the rapidly changing climate of social media sites, Facebook has found that the most efficient way to stay relevant is to acquire the new social media sites, a luxury that the previous wealth has brought the company.
ReplyDeleteFacebook is an excellent example of how to stay relevant in the social media world. They continue to find new and innovative ways to ensure this.
ReplyDeleteI agree, Mark has done a great job at finding new ways to expand his portfolio without hindering profitability or cohesiveness. Sure he can just purchase another company, but the reason behind it and to do so only with companies that already have a good foundation, is a stroke of genius.
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