Face Book Dilemma - Essay Example

Facebook’s Dilemma: Case Study The essay aims to address the specific questions identified after reading the case study entitled Facebook’s Dilemma. The following questions would be answered, as required: (1) what concepts in this chapter are illustrated in this case? (2) What is the role of e-commerce and Web 2.0 technologies in Facebook’s widespread popularity? (3) Describe the weaknesses of Facebook’s privacy policies and features. What management, organization, and technology factors have contributed to those weaknesses? (4) Does Facebook have a viable business model? Explain your answer. (5) If you were responsible for coordinating Facebook’s advertising, how would you balance the desire to become increasingly profitable with the need to protect the privacy of your users? Facebook’s Dilemma: Case Study Case Background The case proffers crucial developments that have spurred the international acclaim of Facebook, regarded as one of the world’s largest social networking sites (Laudon & Laudon, 2010, 406). Despite the accolades and fame, Facebook has been encountering one controversy to another ranging from privacy and confidentiality of the users, as well as finding ways and means of sustaining profitable ventures. In this regard, the following issues would be addressed: (1) What concepts in this chapter are illustrated in this case? The chapter focuses on the unique features of e-commerce, the digital markets and digital goods. Authors Laudon and Laudon (2010) discussed how the internet has transformed the way consumers value products and services accessed through the web and its effect on business models. The case, Facebook’s dilemma exemplified an application of e-commerce, as it has been defined as “a social networking website that was originally designed for college students, but is now open to anyone 13 years of age or older. Facebook users can create and customize their own profiles with photos, videos, and information about themselves. Friends can browse the profiles of other friends and write messages on their pages” (Tech Terms, 2011, par. 1). The term e-commerce is revealed to include “business activities that are business-to-business (B2B), business-to-consumer (B2C), extended enterprise computing (also known as "newly emerging value chains"), d-commerce, and m-commerce. E-commerce is a major factor in the U.S. economy because it assists companies with many levels of current business transactions, as well as creating new online business opportunities that are global in nature” (Define e-commerce, n.d., par. 1). The opportunities for interface and the ability to generate interconnections through friends, colleagues, users, organizations and commercial enterprises make Facebook conducive to enhance e-commerce applications, including solicitation of advertisements, promotions and investments at various fields of endeavors. (2) What is the role of e-commerce and Web 2.0 technologies in Facebook’s widespread popularity? One qualified the elements included in e-commerce transactions, as noted above. On the other hand, Web 2.0 technologies “provide a level user interaction that was not available before. Websites have become much more dynamic and interconnected, producing "online communities" and making it even easier to share information on the Web” (Tech Terms, 2011, par. 6). The more intricate but user-friendly features accorded by both Web 2.0 technologies and e-commerce applications provided increased opportunities for users of Facebook to design and customize personal accounts and profiles according to their needs. Having gained extensive and comprehensive details of users in terms of easily categorized information: geographical and demographical details, professional classifications, interests, hobbies, among others, vast array of organizations tap users of Facebook to market their products and services. (3) Describe the weaknesses of Facebook’s privacy policies and features. What management, organization, and technology factors have contributed to those weaknesses? Facebook’s weakness in the issue of addressing privacy and confidentiality of its users is seen in terms of “incorrectly anticipating its users’ stance on the privacy of their personal information” (Laudon & Laudon, 2010, 407). Management of Facebook failed to look at privacy issues from the points of views of diverse preferences and values of their users. There have been two major incidents that have proven that Facebook made errors in oversight regarding assuming that users information could be voluntarily divulged through the Beacon advertising service and the News Feed features. Both features inform users of friends’ purchases, activities, or updates in one’s personal profiles. Various users have resisted the bold move of voluntarily providing other people information on personal details or activities, not previously sought any approval for. Likewise, there were problems that have been reported by users who decide to be deleted from the site. The retention of personal information in the site’s database had been contested and has only been recently appropriately addressed. The failure of management and the whole organization to correctly ensure protection of personal details and assuring confidentiality is a form of negligence as they summarily assumed that innovative features would responsibly address these issues. Further, the functions provided by the Web 2.0 interface generating repercussive automatic applications among users and their registered contacts caused this dilemma to happen. (4) Does Facebook have a viable business model? Explain your answer. Facebook was initially designed to encompass only a small group of clientele but expanded to include everyone who wants to register and be part of this social networking site. In this regard, from the single business model of business-to-consumer (B2C), the intricacies of interrelated opportunities for e commerce through Facebook becomes possibly extended to other business models: business to business or even extended enterprise models. In this regard, the strategies to be designed and implemented through their site is more difficult to create given the wide range of clientele Facebook aims to cater to. (5) If you were responsible for coordinating Facebook’s advertising, how would you balance the desire to become increasingly profitable with the need to protect the privacy of your users? In any endeavor, the privacy and confidentiality of consumers are of crucial importance. Therefore, any advertisements that solicit personal information or details need to seek prior approval before they should be imposed on the users. The Facebook management and technical developers of web interfaces must include options for seeking approval from their users before any application is provided. By respecting one’s privacy and confidentiality, Facebook would enhance its corporate image as adhering to ethical standards and would thereby be perceived as an organization committed to corporate responsibility. Organizations that gained commitment to these ideals have been known to be financial profitable in the long run. References Define e-commerce. (n.d.). Retrieved 26 April 2011. < http://www.umsl.edu/~siegelj/Course5890/definitions.html> Laudon, K. and Laudon, J. (2010). “Facebook Dilemma” Management Information Systems: Managing the Digital Firm. Upper Sadle River, New Jersey: Pearson Education Inc. Tech Terms. (2011). Facebook. Retrieved 26 April 2011. < http://www.techterms.com/definition/facebook> Read More