Impact of Facebook (Essay Sample)

IMPACT OF FACEBOOK
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Impact of Facebook
Facebook social media site has revolutionized the business dynamic rapidly. It is estimated that Facebook connects up to 1.35 billion people some of whom are friends and family across the globe. Additionally is has enabled the discovery of new services and products that are spread out in different parts of the world ranging from small company products to multinational products and services. As a result of its ability to accommodate new application development, Facebook has stimulated as well as changes the economic activities. Among the range of areas that Facebook has made its impact includes that its use as a marketing platform for small and big business industry players, a platform for app development and as a platform for connectivity for people around the globe. Around the globe, Facebook is credited for transactional growth estimated at $ 227 billion as well as enabled job creation for over 4.5 million people. The essay seeks to evaluate the impact of the Facebook as a business that model and that how it is applied in the context of business.
Essentially the business model that Facebook has adopted that is mainly focused on developing tools that enable businesses to reach existing as well as new business customers through its advertising within the pages of its many connected users. The ability to easily attain new clients with little marketing cost enables a business bottom line to rise which means a high turnover from sales. The turnover ultimately would lead the ability for the company to grow and thus increasing the job availability (Story, 2007). Notably, the impact of Facebook also accrues to third party business which utilizes the ability of Facebook to integrate app development. Third party applications grossed an estimated $ 29 billion from app purchases. Additionally, Facebook has facilitated the purchase of mobile phones with the aim of accessing social media sites in which it is estimated to have amounted to $ 50billion in mobile phone sales globally.
The development of Facebook was meant to create a social network within the universities. It was meant as a way to connect with friends as well as promote that sharing of ideas and openness among friends. However since then it has grown into one of the greatest proportions. The company’s connectivity has grown to global proportions. As a result of this connectivity, the companies increase their market reach, that develops new economic opportunities. Through the constant engagement with users businesses of all sizes gain the ability to that relate to their customers directly (Maurer and Wiegmann, 2011). Facebook’s impact is also felt in the newly developing industries and the traditional industries. Among the ways that Facebook has transformed these business industries includes the supply chain that changes the way people and spends their money.
Marketing effects
The marketing strategies that Facebook provide has attributed to a great awareness and popularity of products which are increasing being advertised on the social sites. Major businesses have been that forced to that to reevaluate their marketing strategies to include social media advertising to capitalize on the potential that it makes available. Some of the benefits of utilizing the social media include the higher potential and existing customer access at a cheaper price (Tsai, 2001). Additionally, the provision of free updates, as well as testimonies from a genuine person about the products and service, enhances its ability to captivate the minds of potential and that retaining that older customers in a company.
Notably, people have been in using Facebook to create new companies that and at the same time develop awareness. The feedback concerning the products is instant. Businesses are not the only beneficiaries of Facebook rather governmental organizations non-profit organizations can use Facebook to get in touch with various stakeholders that keep them up to date about their on organizational plans. These stakeholders need not be forming the same region, but the communication is instant and timely(Lin and Ranjit, 2012). Notably, the organizations have the ability to mobilize human resources as well as ideas that through open forum platforms on Facebook. Similarly business use that open platforms for market research and at relatively low costs. In some cases, a marketing campaign can go viral in which friends and family can share in exponential proportions about a particular product thus creating a wide following as well as purchasing customers on relatively short period. This dynamics can create growth of small business enterprise exponentially by reaching clients all very the globe. Facebook, therefore, has revolutionized the marketing and advertising industry in which enterprises attain sales locally and globally at low costs and it has also evened the playing field.
Impact of the platform
Facebooks platform also has value addition to the third party products and services. This mainly entails the development of user-friendly and value-adding apps that use Facebook as their launch platforms. Facebook has developed exponentially concerning accommodating such application that also that create a market area for sellers to an already existing market base emanating from the subscribers of Facebook. The Facebook app center works as a hub in which one can discover an application that are necessary for their line of business(Story, 2007).
The apps found in the Facebook app center are very diverse which range from taking medical applications, business accounting and modeling application that can be available to anyone across the globe by the click of a button. Notably, the application can be customized according to the client specification also by clicking a button in that regard it would be a great. Another impact that has been made by the Facebook platform is that event advertising and organizations. Facebook allows persons to review the event that will be taking place at a particular time including the venue and detail. Furthermore, it allows one to notify the event organizer of their attendance (Maurer and Wiegmann, 2011). Since Facebook promotes connections, the event may be shared among mutual friends that would, in turn, share with other to create a large potential for attendance and popularity. From this, we find that Facebook forms a basis of entrepreneurship activities and the market for new developments.
Connectivity impact
The impact of connectivity helps in the development of the digital economy as a result of that motivated internet use within the Facebook platforms through various devices. It promotes efficiency and that a higher level of productivity through social interaction. Facebook has encouraged more collaboration within the business community in addition to making it less formal as well as dynamic and fun to use (Lai, 2013). The high integration of populations from a different part of the world help to counter cultural and geographical barriers that making the business world more inclusive. Facebook being a popular service among mobile and desktop users that is it is estimated that most people in the United States spend at least one to five minutes to visit their Facebook web page (Chen, 2013). The Facebook market has experienced growth in emerging market such as India and Brazil where its use as market areas for mobile apps as well as a marketing tool has grown. Notably, there is a myriad of that innovations developed around the Facebook platform as well as services that encouraging sharing - For instance, sharing of high definition videos, that in turn, create a market for the Internet connectivity providers. This is also an additional market for internet providing companies who also sell large amount connectivity services to app developers all over the globe that prompt high data consumption. For developing countries the data consumptions allow for the population also to participate in the digital economy that in turn stimulates the economy opening their products to larger markets abroad.
Additionally, Facebook is also collaborating with internet providing companies locally to ensure free access to Facebook using low speeds and data packages to provide useful information that can promote development. For instance, Facebook has enabled the free access of an app known as internet.org that is usable in developing countries to access health information. The abilities of the connectivity have enhanced health awareness campaigns as well as a campaign around other social issues that can change the dynamics of a countries progress(Hanafizadeh, 2012). This is evident that the applications like Facebook are continually growing and at the same time gaining use in other institutions such as education, health, and government. It also accounts for transparency as forums are generated to evaluate the business strategies adopted by various companies and institutions. Additionally, companies are using the Facebook platform to promote their corporate social responsibilities in which effective identification of community needs is established through feedback, and appropriate communication and assistance is facilitated. Therefore, Facebook is one of the most dynamic technological advancement that has led to growth in many areas of business and institutional sectors (Hanafizadeh, 2012). This ability to connect in addition to its dynamic platforms well as business model enable the social media site to significant impact the way we do business through the digital economy and in terms of affecting growth to small and large industry players. It has allowed the development of the new business model. Since Facebook has provided a level playing field, competition among companies has become stiff, in areas where ...