Facebook, Disruptive Innovationfacebook, Disruptive Innovation Essay Example

a case that it disabled an account of a person in 2007, through consistent monitoring, who were active with the name of Jon Swift instead of his real name. Such a policy could be said as reflecting Facebook’s willingness to protect users from people who use false names or fake personal information. ?Establishment of smart business models Facebook chose a wise method such like establishing suitable profit models gradually after recruting enough users first.

First of all, they made efforts to build up credibility from users by inviting prestigious university students, right after its foundation in 2004. However, after starting its real business in 2006, Facebook raised profits through advertisement based on SNS users’ characteristics, which was differentiated with the existing search engine service. Besides, Facebook tried to maximize profits related to application programs from 2009. For example, they attracted popular social games, including Zynga and Play Fish, to Facebook so that users could enjoy them through their networks.

In addition to advertising, Facebook also excavated new business models called social shopping services by making an alliance with Amazon. ? Important Factors for Internet Business Three successful elements of Facebook mentioned above suggest Internet companies’ directions on how to plan and proceed businesses. The most important thing in Internet-based businesses are : first, to develop products corresponded to current trends and changing business environment, second, to suggest solutions or alternatives to the problems in existing models, and finally, to set up profitable business models and develop it gradually.