Six Facebook Problems Need Fixing
- Submitted by: disneyfan7
- Views: 355
- Category: Other
- Date Submitted: 12/07/2012 09:42 AM
- Pages: 5
- Report this Essay
Matthew Gregus
Eng 15
Craig Coppola
2 December 2012
6 Facebook Problems Need Fixing
After the IPO hoopla, there's work to do. Facebook might have 845 million users, but that does not mean building a business out of user attention will be easy.When Facebook goes public in the next few days, the company could end up being valued at over $100 billion.Facebook expects investor interest will be high: Two days ago, the company increased the total number of shares it will offer and increased the share price range from $28 to $35 per share to $34 to $38 per share. According to its most recent SEC filing, Facebook will offer over 421 million shares. The company certainly has a lot going for it: 845 million users, high user engagement compared to competitors, rapidly growing revenue, and a strong developer community. But it faces a number of problems, some of its own making.
First, there is the matter of trust. Users don't trust Facebook. According to an AP-CNBC poll conducted earlier this month, 59% of respondents "say they have little or no faith in the company to protect their privacy." Only 13% of Facebook users say they trust Facebook completely or a lot to protect their data. When Facebook settled Federal Trade Commission charges that it deceived consumers with its privacy claims last November, CEO Mark Zuckerberg accepted blame. "I'm the first to admit that we've made a bunch of mistakes," he wrote in a blog post. "In particular, I think that a small number of high profile mistakes, like Beacon four years ago and poor execution as we transitioned our privacy model two years ago, have often overshadowed much of the good work we've done." Facebook will have to keep working to convince users that it can be trusted.
Second, Facebook needs to work on regulation. Having managed to convince users that sharing could somehow co-exist with privacy, Facebook still has to worry about government regulators. The European Union is presently considering revised data rules...
Eng 15
Craig Coppola
2 December 2012
6 Facebook Problems Need Fixing
After the IPO hoopla, there's work to do. Facebook might have 845 million users, but that does not mean building a business out of user attention will be easy.When Facebook goes public in the next few days, the company could end up being valued at over $100 billion.Facebook expects investor interest will be high: Two days ago, the company increased the total number of shares it will offer and increased the share price range from $28 to $35 per share to $34 to $38 per share. According to its most recent SEC filing, Facebook will offer over 421 million shares. The company certainly has a lot going for it: 845 million users, high user engagement compared to competitors, rapidly growing revenue, and a strong developer community. But it faces a number of problems, some of its own making.
First, there is the matter of trust. Users don't trust Facebook. According to an AP-CNBC poll conducted earlier this month, 59% of respondents "say they have little or no faith in the company to protect their privacy." Only 13% of Facebook users say they trust Facebook completely or a lot to protect their data. When Facebook settled Federal Trade Commission charges that it deceived consumers with its privacy claims last November, CEO Mark Zuckerberg accepted blame. "I'm the first to admit that we've made a bunch of mistakes," he wrote in a blog post. "In particular, I think that a small number of high profile mistakes, like Beacon four years ago and poor execution as we transitioned our privacy model two years ago, have often overshadowed much of the good work we've done." Facebook will have to keep working to convince users that it can be trusted.
Second, Facebook needs to work on regulation. Having managed to convince users that sharing could somehow co-exist with privacy, Facebook still has to worry about government regulators. The European Union is presently considering revised data rules...