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Facebook IPO: An interesting perspective


Today 11:00 AM US timing, Mark Zuckerberg will rung the bell From Facebook HQ and Facebook IPO  will start trading on Wall Street. Facebook IPO has the highest valuation in the history of tech IPO. A social networking site having more than 900 million users through out world is biggest strength of Facebook. It is a staggering number and it is growing.

It started from Harvard in 2004  and few hours later’s from now Facebook will start trading on Wall Street. Journey of Facebook till IPO has been under lots of scrutinized observation.How Mark Zuckerberg has been able to bring Facebook so strongly till IPO even in the presence of a mighty competitor like Google.

I am convinced that Mark Zuckerberg’s comprehension of Internet was exact to the point and futuristic. In February 2004 Facebook was launched exclusively for the students of Harvard and then it grew rapidly in all the universities of US.

1. Facebook as a Product: Mark Zuckerberg allowed Facebook to evolve as a product and allowed Facebook users to evolve. Facebook has achieved a status as a social networking site where it is impossible to ignore them.

If you are on Social Media then you need to be on Facebook because this is platform where your friends, family and colleagues are. Once having a Facebook account was cool just like having an E-mail account. Now Facebook account has become a commodity. Having a Facebook account has just become like a mobile number through which you can connect and communicate with every one in your community and it is free. The status which Facebook has achieved has made it just like a product with universal relevance. This is the importance of Facebook which people, advertisers and users can’t refuse.

2. Advertisment: Since starting Facebook has been user centric instead of being an advertiser centered platform. Facebook is being criticized for this focus.

Few days back GM has suspended their $10 million paid ads spending on Facebook because they don’t think that it is producing result. They said that they will continue spending $30 million on content for their Brand Pages. Don’t you think it is amazing that a company is ready to invest three times more than paid ads on Facebook page contents creation because it is producing result.

Facebook advertisement doesn’t work for a brand but Facebook brand page is creating lots of result for these Brands. The problem is brand page on Facebook is free. No problem if It is like that then Facebook will do some transformation in their business model but it is literally not fair for any brand or agency that Facebook ads don’t work. What is a brand page? It is also a free platform which Facebook has provided to different brands to interact, share and engage with their customer. What kind of result a Brand Page produced in terms of Sale’s  and branding  for a company no one’s share it. Facebook produced great result for brands but they are not charging fees for it. This is the problem Facebook is facing.

Facebook Brand page produces results just because of the immense focus of Facebook users. If Facebook will start charging a fees for every brand page then I don’t think that any one will refuse.

3. Investment: It appears as Mark Zuckerberg was very cautious and always chose  right investors for Facebook. Facebook went through each phase of investment successfully. After eight years Facebook went for IPO. It is not easy for any person, company and investors to sit on one of the hottest property of internet for so many years. I think that the focus of Mark Zuckerberg and patience of all the investors has allowed Facebook to become so powerful.

4.After IPO: It will be interesting to see that how Facebook will transform after their IPO in the coming years because Facebook as a company has to focus on two point. How to be a user centered product as well as Financially feasible. How Facebook will execute this level of focus is an interesting point of discussion.

We think that Financial analyst and Wall Street specialist will scrutinize and analyze Facebook on following points:

1. How Facebook will be able to proof itself as feasible platform of advertisement?

2. Mark Zuckerberg has been a phenomenal CEO till IPO. The major question which every one is asking that is it possible for him to blend in to an Avatar where he has to answer the investors or wall street. Basically will Mark Zuckerberg carry his Hoodie character or blend in to the Ties culture of Wall Street.

My personal assumption is: He will continue with his Hoddie avatar.

3. How Facebook will transform itself in to the world of Smartphone and Tablets. Facebook ecosystem belongs to the era of internet when PC was dominant and it was text based conversation. Three transformation which Facebook needs strategically and urgently.

1. Facebook design for these new Gadgets which is Smartphone and Tablets.

2. How Facebook will be a feasible platform for mobile ads? More than 400 million users use Facebook from gadgets like mobile and Smartphone.

3. How Facebook will compete with the new form of Social media like Pinterest. Facebook has bought Instagram in $1 billion which has no business model.

So in the coming month and years we will be see many transformation in Facebook and it is good. If you are not constantly looking in to Future and transforming yourself for the Future then Your business will be obsolete suddenly. We hope and think that Mark Zuckerberg will keep Facebook on right track.

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