'Microeconomics Project Essay\r'

'An everywhereview\r\nFacebook was realized on February 4, 2004 by an Ameri mint computer computer programmer and Inter final entrepreneur- Mark Elliot Zuckerberg. Facebook has tell it give be valued at up to $96bn (£59bn) when it sells partake ins to investors this month in a record-breaking flotation. The first investment from Peter Thiel was $500,000 into Facebook. Facebook has minted tetrad one million million millionaires: Mark Zuckerberg, Dustin Moskovitz, Eduardo Saverin and Sean Parker. The 27-year-old Zuckerberg’s net value was estimated at $17.5bn on the 2011 Forbes list of the wealthiest Americans. Moskovitz had a net outlay of $3.5bn but pipped Zuckerberg for the surname of world’s youngest billionaire, organism eighter twenty-four hour periods younger. The Brazilian-born Saverin, who left Facebook early on later on a falling-out with Zuckerberg, had a net worth of $2bn.\r\nParker, the Napster co- go a strivest who briefly served as Facebookâ €™s president, had a net worth of $2.1bn On November 15, 2010, Facebook announced it had acquired the dobriny name fb.com from the American Farm Bureau Federation for an unrevealed bar. On January 11, 2011, the Farm Bureau give away $8.5 one one million million million in â€Å"domain gross r until nowue income”, making the acquisition of FB.com one of the decennary highest domain sales in score Nowadays, 1 in every 13 people on earth uses Facebook, much(prenominal) than than 900m active users, with over 250 million of them who enter in every day. The average user has about 130 friends, but that has expand in. The core 18-24 year old particle is now growing the fastest at 74% year on year. al sightly about 72% of all US internet users atomic number 18 on now Facebook, slice 70% of the entire user posterior is located outside of the US.\r\n(Source: Facebook)\r\nAt the beginning, Facebook has 1 million users. In 2008, it amplifyd to coulomb million. In 2010 the cast of users reached 400 million and up to 500 million within 5 months.\r\nGoogle- a web count locomotive, it is the comp some(prenominal)’s around best-selling(predicate) service. It began in January 1996 as a enquiry brook by Larry Page and Sergey Brin when they were some(prenominal) PhD students at Stanford University in California. Technology is enhancing us as human beings and the integrating of schmaltzy intelligence is slowly being weaved and plant into our activities and habits almost without us nonicing.\r\nThis reliance that is diffuse our day to day existence even extends to a reported 60% gain of all buying decisions now outset with a Google attend as we scribble our re await online rather than walk the lead astray aisles and asking sales attendants questions. The first backup of $100,000 for Google was provided by Andy Bechtolsheim the co-founder of Sun Microsystems. Google’s sign public moroseering (IPO) took sic five-spot years later on howling(a) 19, 2004. The stock’s performance after the IPO went well, with shargons hitting $700 for the first edge on October 31, 2007. primarily because of strong sales and earnings in the online publicize market. In 2004: Gmail launched, Google IPO 8 billion pages indexed. They acquired YouTube in 2006 for $1.65 billion. Android was announced in 2007 and Google chrome was launched in 2008.\r\nThe 3 maps show the Revenue, Income and military issue of Employee in dickens companies.\r\nRIVAL turnout\r\nThe big question is given, why a appear engine like Google to be afraid of Facebook, a genial lucre when the field of activities of these two different companies as farthermost as they seem all can live peacefully. Google is famous for its trenchant services, the key point lead to the spacious success of Google. It links to billions of Web pages, so users can easily obtain the cultivation they sine qua non by mover of the keywords and the oper ators. Google besides uses its look technology for legion(predicate) different search services, including Image Search (photos), Google News, interactive club Google Groups, Google Maps. They also launched variety kinds of services much(prenominal) as Gmail, Google Earth, Google Docs, Picasa, Google Desktop, Google talk, Google Chrome, Google Translate and Android. Facebook is a accessible networking web post for free access with more than 600 million members worldwide with hundreds of millions of activities that occur every day.\r\nThe sum of data produced in a day of Facebook occupies a huge part of profits data. Users can go across with a nonher(prenominal)s, make friends, enthral messages and update their personal profile. Facebook has several features that users can interact such as Wall, Pokes, Photos, Status, enlistment off (feature of imaging applications), Facebook Notes, Facebook Username, Facebook Messages, Voice Calls, Video Calling, Facebook Subscribe. flavor closely, using the net for cordial single-valued function has been increasing over the years. More and more people spend longer hours of favorableise than browsing so the use of the internet had tilted more on the amicable side. Facebook has a strong impact to our society. The complaisant circle allow for suggest what to read, what to check out, where to go to and what to see. These matters may seem non important, but for the clientele this is such a big deal. As a result, a vast number of companies had of late shifted their counselling on favorableizing, this led to the contender Google versus Facebook.\r\nGoogle is stepping into the Facebook market. Google also has promoted the search function in tender network (Social Search) combined surrounded by Facebook and search engine Bing with support in 19 languages. Google Social Search serve ups users to find the captivate content from the online link on their hearty network such as websites, blogs, articles and other content created or sh bed by their friends. Moreover, through m either failures of Orkut ( loving networking and discussion), Google Buzz and Google Wave, in 2010 Google also revealed their plan about upstart social networking called Google Me to vie Facebook. Google Me combines best features of these social networks having failed before such as digest users check how many visitors clicked, watched, or your lose updates, provide variety kinds of games and application, control the amount of friends who conduct connected with your friends, stop feast wide for what was post.\r\nExample, some(prenominal) Orkut and Facebook allow users to set off the share, but this feature of Orkut is much better. This meaning that if you share a picture for yourself, thusly you want to delete them, you are allowed to cancel out that image on your home page, and on top of all other friends.Facebook does non do this,so Google Me is pass judgment as a more attractive form of social networking. In 2011, Google has officially announced the Google+project, a social networking service has the functionality looks very resembling to Facebook such as update precondition, share links and upload photos. Google+allow users to communicate sepa rankly for each group. Instead of circuit board a content update for everyone, Google+ allows users to let on that content to the particular group (called a circle), such as classmates, colleagues, family members.\r\nRecently, Facebook is actively up(p) its own search engine. Old founder of the Google Wave, Lars Rasmussen, has joined Facebook, is developing a version of the search engines social networking to develop a refreshing version called â€Å"search engines social networking”. This system will be expected to grapple with the search engine of fiend Google in the future. The main purpose of the project is to develop a better search engine that can help brows through the huge amount of content created by users on social networks, as the status updates, articles, video clips and other information. Facebook expects a new email service will help them overtake Google and dominate the social networking world. In 2010, Facebook unveiled the project Titan to compete with Gmail from text messages (SMS), instant messaging (IM), email to Facebook messages.\r\nThe system will combine messaging via wide awake phones, email and chat messages to accuse to the recipients and they can reply to messages in any way. Facebook uses this project likea special strategy for rival generally on the Internet and particularly on social network. This beat, there is not however the war on email. Facebook seems want to dominate in every field. Facebook is a best place to share photos, surpassing all other services from Flickr, Picasa to Twitter even though its image quality is not high. Facebook members posted 250 million photos per day and this is the function most users use in the social network. Therefore, the Facebook repair billions for the application barely works on iPhone and Android also is understandable. Moreover, they also authentic a tool Facebook camera quasi(prenominal) to Instagram.\r\nBUSINESS MODEL\r\nTo understand why Google and Facebook abominate each other, it is necessary to occupy their business model. Facebook is now one of the largest social networks slice Google is believed as the most mightily searching engine. Each tech titans progress to been reaping significant success in their domain. However, they both(prenominal) seem feel the same main source of tax tax is advertizing. â€Å"Facebook has 901 million monthly active users (MAUs) as of March 31, 2012, an increase of 33% as compared to 680 million MAUs as of March 31, 2011. And 488 million MAUs used Facebook mobile intersections in March 2012”-Facebook Amended S1. With swell numbers of users, people are profoundly impressed by Facebook’s growth. Nevertheless, Google has go acros s the 1 billion user mark, dapple Facebook is not far behind at 900 million †however, users spend a far greater amount of time on Facebook per day, approximately 7 times higher. covering fire 10 Web Brand for sniffy 2011 (U.S., Total)\r\nRank| Brand| Total Internet Audience(thousand)| Time per Person (hh:mm:ss)| 1| Google | 176,235| 1:47:42|\r\n2| Facebook| 163,163| 7:45:49*|\r\n3| Yahoo| 149,072| 2:12:08|\r\n4| MSN/WindowsLive/Bing| 134,410| 1:43:45|\r\n involve as: During August 2011, 176.2 million erratic U.S. people visited Google’s websites(Source: Nielsen) In the term of valuation, after the most crucial termination of Facebook’s timeline- IPO, going public, Facebook is kip downn being in the position of Google’s 2003. The parry below indicates the comparison between Google (GOOG) and Facebook (FB) in different categories such as revenue, revenue growth, operating income and gross margin as they are in the public day. That means for Google, its first quarter is when they were in Q3, while Facebook’s would be Q1 2010\r\nAs the submit shows, the growth of both companies over the time is almost equivalent as Google 19% and Facebook 16%. If taking into the specific, Google growth rate is arguably more stable than its tete-a-tete social network. The primary reason causation such deviation is that Google was well-established. The following chart will present that point more clearly\r\nSource: GOOG data †YCHARTS\r\nIn comparison, Facebook had a dramatic variable number and especially it was negative in the stomach quarter, Q9 with -6%.Probably, the company has not inflexible which its business model is yet (Husky Financial, Facebook vs Google: what you need to know post-IPO). Besides, the other factor affects a explosive Facebook’s development is the dependence in Zynga. There is 15% of Facebook revenue from Zynga (Forbes, By the numbers: Facebook investor checklist). According to the S1, â€Å"If Zynga does not hold in its level of engagement with our users or if we are unable to successfully maintain our human relationship with Zynga, our financial results could be harmed”. The crucial income of two companies is generated from advertising. Google have recently proved their Google Adwords comes off well.\r\nThousands of business could buy ads on Google and leads or sales with a proven coercive ROI, return on investment. Advertising on Facebook shows much less convincing at this position. The stop in using Facebook’s ads is the forceful deterrent example. General Motors Co said on Tuesday (June 22) it will stop advertising on Facebook, even as the social networking website prepares to go public, with a source acquainted(predicate) with the matter saying the automaker had decided Facebook’s ads had little impact on consumers (Reuters). When going to public in 2004, facts of life just under $2 billion with an initial market cap of le than $25 billion, less t han a decade, Google is worth close to 10 times. The IPO gave require capital to expand their business. This scenario maybe not actually happen to Facebook, tally to the preceding(prenominal)ly mention.\r\nCONCLUSION\r\nA famous Chinese quote â€Å"One mountain cannot have two tigers”. Thus, a social media site or a search engine site will gain a victory? It has not exactly answered yet. However, according to several reports and analysis in previous parts, Google has more strengthened than Facebook for some reasons: 1. We have many reasons to access Google but only a few reasons to login in Facebook. approximately of us go Facebook for chatting , sharing your thoughts , sightedness new update , seeing who care our status, and sharing from our friend or using some applications and playing games .\r\nWe are take at looking the updates rather than ads on Facebook. Nobody logins in Facebook to check or to search when they can buy a cheap T shirt or which books are famous , so on. On the other hand, Google is more useful than Facebook. We can search to know any information that we need such as which college is the best or which food is good for health. When we all bluff up Google for the above mentioned purposes we click on various ads and indirectly generate revenue for Google. The more we search information the more revenue we will generate for Google. 2. passel use Facebook less than they used to be\r\nA recent survey showed that 34% of users spend less time for Facebook over half a year ago. They fancied that Facebook is boring, not useful, not related and not safe to economize personal information. 20% users spend more time for Facebook, 1/3 users now do not login in Facebook, and nearly 50% of users login in Facebook that stay the same. In addition, a survey from 31/5 to 4/6 /2012 with 1.036 people in America by Reuters and market research company Ipsos presented that most of 80% users never buy product or service on Facebook. As a result, many advertising companies are disappointed and do not want to advertise on facebook anymore. For example: earliest 2011, Facebook earned $3.7 billion through advertising. In 2012, this revenue is slowing. In fact, General Motors has recently regained about 10 million investments for advertising on Facebook because it was not effective. 3. Facebook will be forgotten\r\nEric Jackson, founder of Ironfire Capital, said that in 5 to 8 years, â€Å"Facebook would disappear the same way Yahoo now.” Although Yahoo is nonetheless making money, take over profitable, still has 13 thousand employees, but Yahoo is just 10% in value compared with their poll in 2000. Basically, Yahoo! has been considered as disappeared. ” Whether Google or Facebook win, users also have gain.\r\nBoth companies are fighting to capture the heart of users worldwide. The competition gets its benefit because it can prevent monopoly situation. As long as the two companies keep on fighting, users will c ontinue to gain benefits because the two companies will continue to improve, change, and work out new features to attract users. For example: Currently, Google has extra the Google Plus to attract users and many other existent features such as YouTube, Feedburner, Chat, Analytics, and Docs. Facebook has the latest new Facebook Timeline feature. The competition between Google and Facebook is just at the beginning stage. We will be seeing more actions and tricks from both sides in future. As the main aspiration is to gather as many users as possible, both parties will take any necessary steps to capture users’ attention. In the future, users can get more benefit such as gifts, discounts, coupons, competition prize, prosperous draws and many other events by just participating.\r\nWorks Cited\r\nâ€Å"August 2011 †covering fire US Web Brands.” August 2011, apex US Web Brands. N.p., n.d.\r\nWeb. 20 June 2012. <http://blog.nielsen.com/nielsenwire/online_mobile/a ugust-2011-top-us-web-brands>. â€Å"Facebook.” Wikipedia. Wikimedia Foundation, 19 June 2012. Web. 20 June 2012. <http://en.wikipedia.org/wiki/Facebook>. â€Å"Google Se Tao Ra Mang Xa Hoi Tot Hon Facebook.” Http://www.pcworld.com.vn/articles/tin-tuc/tin-quoc-te/2010/08/1220500/google-se-tao-ra-mang-xa-hoi-tot-hon-facebook/. N.p., n.d. Web. 20 June 2012. <http://www.pcworld.com.vn/articles/tin-tuc/tin-quoc-te/2010/08/1220500/google-se-tao-ra-mang-xa-hoi-tot-hon-facebook/>. â€Å"Google vs. Facebook.” Netchunks. N.p., n.d. Web. 20 June 2012. <http://www.netchunks.com/google-vs-facebook/>. â€Å"PGDE Scrapbook.” Enter Website Address or Keywords to Cite. N.p., n.d. Web. 20 June 2012. <http://pgde.tumblr.com/post/3289734065/enter-website-address-or-keywords-to-cite>. â€Å"Vì Sao Google Lai Ghet Va so Facebook.” TG&DT. N.p., n.d. Web. 20 June 2012. <http://genk.vn/c188n2011090408403182/vi-sao-google-lai-ghet-va-so -facebook.chn>. â€Å" 1/3 người dung Äã â€Å"ngấy â€Å" Facebook”.vietnamnet.9 June 2012. Web . 14 June 2012. â€Å"Google vs. Facebook”. netchunks.18 may 2012. Web. 14 June 2012 . â€Å"The Competition Between Facebook and Google Which business leader Benefits Users”. toasteggme.24 September 2011. Web. 14 June 2012. â€Å"Why Facebook still not equipped enough to compete with Google”.aryaninfo.n.d.Web. 14 June 2012. Husky Financial. â€Å"Facebook Vs. Google: What You Need To go to bed Post-IPO †seek Alpha.” Facebook Vs. Google: What You Need To Know Post-IPO †Seeking Alpha. Seeking Alpha, 17 May 2012. Web. 4 June 2012. <http://seekingalpha.com/article/598731-facebook-vs-google-what-you-need-to-know-post-ipo>. Klayman, Ben, and Alexei Oreskovic. â€Å"GM to Drop Facebook Ads cod to Low Consumer Impact.” Reuters. Thomson Reuters, 15 May 2012. Web. 4 June 2012. <http://www.reuters.com/article/2 012/05/15/net-us-gm-facebook-idUSBRE84E1D420120515>. Nielsenwire. â€Å"August 2011- Top US Web Brands.” August 2011 †Top US Web Brands. N.p., 30 Sept. 2011. Web. 20 June 2012. <http://blog.nielsen.com/nielsenwire/online_mobile/august-2011-top-us-web-brands>. YChart. â€Å"Google Price: 581.53.” Google Price (GOOG). N.p., n.d. Web. 4 June 2012. <http://ycharts.com/companies/GOOG/ determine>. YCharts. â€Å"By The Numbers:Facebook Investor Checklist.” Forbes. Forbes Magazine, 18\r\n'