Facebook SuccessStory

Much like what Apple has done in the smartphone industry, Amazon to e-commerce, and Netflix to video streaming, Facebook has done the same thing in the realm of social media. Despite still being in the industry for less than 20 years, Facebook has already left a legacy as a company that has changed how people communicate. Whether it's reconnecting with a family member or a friend that has moved to another country, Facebook makes the connection easy, accessible, and most importantly, free.

Since it has become easier to communicate, especially with Facebook's in-house messaging app Facebook Messenger, it has also prompted people to share more about the on-goings of their personal lives. Facebook's sharing features which allow users to share photos, videos, thoughts, and hobbies, among others, doesn't only add the company's appeal but also sets itself apart from other platforms offering similar services.

Despite the many issues the company has faced since its inception, including settling numerous lawsuits, being fined $5 billion by the Federal Trade Commission, and being barraged by constant privacy violation issues, users have not stopped using the app. In fact, Facebook has averaged 2.7 billion active users in the third quarter of 2020 alone.

Facebook headquarters is located in Menlo Park in the heart of Silicon Valley, California . The company also operates in 85 locations across the globe, including the UK, Ireland, Japan, and in India, employing over 45,000 full-time workers.

History

The massive success of David Fincher-directed "The Social Network" may have retold some of Facebook's most important and controversial moments, but it didn't tell the whole story. The film was released in 2010, and a lot has happened to the company since then.

Facebook began as Facemash in 2003 when Zuckerberg created a site similar to Hot or Not, a rating and dating site that rates the attractiveness of a person while also offering matchmaking features. Facemash was shut down and Zuckerberg was nearly expelled from Harvard University after violating numerous copyright and individual privacy policies.

Zuckerberg continued to create a social networking platform, eventually finding inspiration in Harvard's face book, a directory that contained students' personal information. By early 2004, Zuckerberg launched “TheFacebook” with the help of a fellow Harvard student he met a few months earlier, Eduardo Saverin.

The company grew significantly in the next three years, raising around $300 million in investments including $240 million from Microsoft who acquired a 1.6% stake of the company in 2007. “The” was also officially dropped from the company name. Saverin was then booted after Zuckerberg felt that he was slow in getting funding. As also presented in the movie, Saverin filed a lawsuit, resulting in Saverin getting around 4% to 5% stake in Facebook (worth $5 billion today).

Between 2008 and 2010, Facebook started to earn income through advertising revenues. It also opened its international headquarters in Dublin, Ireland, and announced that it had gained 500 million users. In 2010, the company acquired the domain name "fb.com" from the American Bureau Federation for $8.5 million.

The company went public in February 2012, offering an IPO of $38 per share. Announcing that it had earned $1 billion in 2011 tremendously helped Facebook with its IPO offering, raising $16 billion in one of the biggest IPOs in US history.

In 2014, Facebook celebrated its 10th anniversary while reporting it has accumulated over 1 million users around the world. It also acquired WhatsApp and Oculus VR for a total of $24 billion. Two years earlier, it had acquired popular photo-sharing app Instagram for $1 billion.

From 2015 onwards, Facebook continued to improve its app to cater to both individual users and enterprises. Facebook Lite was launched for users to be able to access the app even with slow internet connectivity and limited phone storage. Facebook for Business was also recently rolled out, allowing businesses to manage their Facebook and Instagram pages in a single platform.

Founder

People often forget that Facebook was founded by a 19-year old college dropout. What's more impressive is that Mark Zuckerberg didn't only turn Facebook into a billion-dollar company before the age of 30, but he did it while being sued by former colleagues and business partners.

Born in White Plains, New York, Zuckerberg already had a passion for programming at a young age. He was taught Atari BASIC Programming by his father and also took private software development classes. While at Harvard, he gained a reputation of being a “programming prodigy” while taking up psychology and computer science courses at the same time.

After Facebook's unprecedented success, people took notice of the man behind the social media platform. Zuckerberg was named the 2010 Person of the Year and was also listed in the 2019 100 Most Influential People in the World by Time Magazine. In terms of net worth, he is also one of the richest persons on the planet, having a net worth of over $96.1 billion.

Revenue

Facebook's revenue has steadily increased since 2007, with revenues hitting an all-time high for 2019 ($70.69 billion). Although the same cannot be said for the company's profit, with earnings dipping to $18.49 billion in 2019 compared to $22.11 billion in 2018.

A decrease in net profit has not stopped Facebook from still being the 8th most valuable company in the world, with the company currently being valued at $147 billion.

Competition

Facebook acquired its biggest competitor Instagram for $1 billion back in 2012. But it still faces competition from numerous social media apps, including Twitter, Snapchat, and LinkedIn.

Based on interface and features, LinkedIn functions similarly to Facebook. Both allow direct messaging, connecting with people anywhere in the world, and post-sharing and commenting. But unlike Facebook, LinkedIn is a networking site geared towards professionals.

Twitter and Snapchat also allow users to post photos and videos. But what sets Twitter apart from Facebook is that it acts as more of a “microblogging” app, connecting people with short messages known as “tweets”. On the other hand, Snapchat is mainly focused on the exchange of highly customizable pictures and videos called “snaps”.

Connecting with someone in the far reaches of the globe is now made easier with one single Facebook search. As the company continues to grow, there may come a time when more than 90% of the world's population will now be using the app on a daily basis.