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powered largely on commodity hardware, open source software, and proprietary code tailored
to the specific needs of the service. QU E S TI ONS AND E XE RC I S E S
1. What is Facebook? How do people use the site? What do they “do” on Facebook?
2. What markets has Facebook entered? What factors have allowed the firm to gain share in these
markets at the expense of established firms? I n what ways does it enjoy advantages that a
traditional new entrant in such markets would not?
3. What is the “dark Web” and why is it potentially an asset to Facebook? Why is Google
threatened by Facebook’s dark Web? What firms might consider an investment in the firm, if it
provided access to this asset? Do you think the dark Web is enough to draw users to a Facebook
search product over Google? Why or why not?
4. As Facebook grows, what kinds of investments continue to be necessary? What are the trends in
these costs over time? Do you think Facebook should wait in making these investments? Why or
5. I nvestments in servers and other capital expenses typically must be depreciated over time.
What does this imply about how the firm’s profitability is calculated?
6. How have media attitudes toward their copyrighted content changed over the past decade?
Why is Facebook a potentially significant partner for firms like the New York Times? What does
the Times stand to gain by encouraging “sharing” its content? What do newspapers and others
sites really mean when they encourage sites to “share?” What actually is being passed back and
forth? Do you think this ultimately helps or undermines the Times and other newspaper and
magaz ine sites? Why?
7. What is a walled garden? Facebook has been called a walled garden—name other firms that
might also be described using this term. I n your opinion is Facebook a walled garden? Why or
why not? What might be the consequences if the firm is widely viewed as being more powerful
and less open? 8.3 The Social Graph
L E A RN I N G OBJ E C T I V E S
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This document was uploaded on 01/31/2014.
- Winter '14