The way in which internet has become a part in the everyday life switched the social networks from just websites to a global phenomenon. Social networking enables people to create their own profile and to keep in touch with their friends, family or just random people.
One of the most famous social networks is Facebook. It was created in Harvard, USA in2004 and at the beginning the access was granted only for the students. Since 2006, everyone has been able to join by just giving an email address. Now, it is the 2nd more visited website just after Google.com.
Facebook gathers more than 300 million members all around the world. This is why it is the biggest social network with, in sequence, competitors as MySpace, Windows Live Space,Friendster, hi5, Vkontakte and Orkut.
Put some figures
1) Analysis of the Environment.
- PEST Analysis (Far environment)
The PEST Analysis is a test of the Far Environment (external), which allows us to know better our own threats and which include the society factors that may affect the organization we're working with and over which we have no influence. The way to study those factors is throughfour main pressures, which are:
Political Factors: In this part, as it is says in the chart the Governments are developing laws to fight against the lost of personal privacy this implicates that it'll get harder for networks to deal with future privacy conditions, and they'll may be need more restrictions and regulations on the site.
There is a high pressure to crack down Child predators,who can use the social networks to hunt their victims; this means that the Government can have an interest to shut down the networks alive.
Economic factors: we can say that everyday there’s more and more people joining, and also the network service is now a days a free service the economical crises don’t have a huge impact on our market. We also can add that related to the unemployment, socialnetworks can be a source for companies for professional prospection.
− In the demographic implications, nowadays, social network hasn’t got a specific target. Everybody can join, no matter your age, sex, nationality…and the industry has succeed in getting a large number of people to join them, this means that our prospects are the worldwide internet users.
− Inlifestyle: Internet has become an essential part of our lives and our everyday routine. It’s a new need (two thirds of the world’s population visit a social network or blog in the internet, and almost 10% of the general use of internet is dedicated to this field) so we can take advantage of this to generate new businesses and dependences.
− In attitudes: People need more and more connectivity withfriends, workmates, family, and it’s a necessity of communication.
− Consumerism: The growth of social network’s as a need comes to the point of addiction.
Technological factors of the Industry are focuses on its innovations: Internet is developing continuously, its services, its velocity, its accessibility so it’s becoming better and easier to use, this allows social networks to give a betterservice and to maintain their members. And about R&D: It’s essential to develop the network to keep and attract users. Due to the investment in this field there’s a decrease in costs (bandwidth and data center costs)
- Five Forces of Porter
Michael Porter's Five Forces Model is a test that allows to know better our industry and to understand in what type of market we’re situated. It becomes morethan simply looking for trends and general industry information.
To do that we analysed the existing companies, potential new companies or threat of entry, possible substitutes for products offered, the suppliers and their power towards our products, and the customers (buyer power).
The study of these five forces let us analyse the business environment and understand our competitive...