Facebook – Friend or Foe to Business

Posted: February 14, 2011 by jbianchi23 in Uncategorized

Facebook Incorporated is one of the most well known and actively used websites on the planet. However, companies like Google, Yahoo and Microsoft also each have a substantial market share in terms of internet advertising. Recently, Facebook has been taking advertisers away from the other companies for the simple reason that it is more widely used and more frequently visited. Similarly, the Chief Operating Officer of Facebook stated that she believes that all industries will be rebuilt regarding social engagement (a.k.a. Facebook). The more Facebook grows, the smaller other media sources like newspapers and TV will become due to the decrease in available advertising revenue.

As Facebook acquires more and more users everyday, companies like Google and Microsoft suffer.  They suffer from from advertisers becoming less willing to place ads on their websites as well as having to compete to obtain the best and most talented software developers.  Could Facebook be considered to be a monopolistic regime? Is Facebook hindering competition? Or is Facebook so popular that just by operating, it is going to dominate the market due to its amazing popularity.

 

More on this topic:

Wall Street Journal – “Facebook’s Web of Frenemies” by Geoffrey A. Fowler.

 

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