Monday, June 4, 2012

Rebalancing of Facebook?


In this week’s article “What happens next?” the author lists five crucibles of innovation that will shape the coming decade. The first crucible titled, The Great Rebalancing, I found to be the most compelling and after reading over other blog entries, one my classmates also found blog worthy.
The author talks about two virtuous cycles that are in play when looking at economic rebalancing, the first, declining dependency ratios and the second the largest urban migration in history.
Business Week online published the article “The Future of Facebook is in India”, which talks about the tilt of social networking moving away from the West and into fast-emerging markets like India. The second cycle is at play here seeing that Facebook is experiencing a similar migration of its users.  

As of right now, India has close to 46,307,580 Facebook users, according to Socialbakers, a social media analytics firm in London. This makes India the third-biggest Facebook market, behind the U.S., now at 156,830,580 users, and Brazil, with 48,041,640.”
“Indian Facebook users is growing 22 percent every six months, meaning that India will edge out the U.S. toward the end of 2014, when both countries are expected to have 170 million to 175 million members.”
Rebalancing Facebook to fast-growing markets like India or China could be a worthwhile venture. The target age demographic of 18-34 makes up 76% of India’s Facebook users. Facebook’s longevity in the market could rely heavily on these users. Maybe the answer is not Facebook, but that the future of social networking lies in these fast-growing emerging markets overseas.
How should Facebook move forward entering a market that is unfamiliar but shows growth potential? Do profits outweigh the risks especially if their strategy is to make money through advertisements? Is this truly rebalancing social networking or is it rather setting in motion where innovations are likely to occur given the rise of users? 

1 comment:

  1. What is the future of Facebook share value? Pls give some tips and advice to me......

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