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Unformatted text preview: irms, but expensive bandwidth costs and low prospects for
ad revenue create challenges akin to the free rider problem. QU E S TI ONS AND E XE RC I S E S
1. Cite effective examples you’ve seen of Facebook features on other Web sites (or if you haven’t
seen any, do some background research to uncover such efforts). Why do the efforts you’ve
highlighted “work”? How do they benefit various parties? Does everyone benefit? I s anyone at
risk? I f so, explain the risks.
2. Should Facebook be as open as it is? I n what ways might this benefit the firm? I n what ways is it
3. How can Facebook limit criticism of its data‐sharing features? Do you think it made mistakes
4. What is TweetDeck? Why is a product like this a potential threat to Facebook?
5. Research OpenSocial online. What is this effort? What challenges does it face in attempting to
become a dominant standard?
6. Facebook has global competitors. What determines the success of a social network within a
given country? Why do network effects for social networks often fail to translate across national
7. How did Facebook localiz e its site so quickly for various different regions of the world?
8. What factors encourage firms to grow an international user base as quickly as possible? Why is
this a risk, and what is the so‐called “I nternational Paradox”? What sorts of firms are at more
risk than others?
9. List the pros, cons, and unknowns if Facebook were to seek a way for the Chinese government to
allow its expansion into China. What are the risks if the firm remains out of the country? What do
you think the firm should do? 8.9 Is Facebook Worth It?
L E A RN I N G OBJ E C T I V E S 1. Discuss the factors related to Facebook’s valuation.
2. Compare Facebook’s performance at I PO to that of Google, and offer insightful commentary on
Facebook’s future prospects.
3. Highlight areas of concern regarding Facebook’s future prospects and areas where Facebook
may be able to increase revenues and pro...
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- Winter '14