To bubble or not to bubble…It has been written a few times (even on this blog). Recent data on stock value of social media companies like Facebook show that these companies were highly over valued (by investors and themselves). Only a decade ago we would have said this was a true bubble ready to explode (with all the economic and social consequences). But one way or the other nobody really wants to talk about a true bubble. Why? The stock value of Facebook is already less than the introduction value. Even Facebook board members are selling their shares….A sign on the wall?
I don’t think so! A fairytale gone bad? Yes, the financial markets just don’t buy the business model of Facebook. Facebook worked well in the connected PC era, but in the wireless mobile era Facebook its model just doesn’t work. Generate income through ads on the side or on your timeline just doesn’t work on mobile, because people use a mobile device in a different way then they use their desk top or lap top (Yes, an ordinary laptop is not a true mobile device). On a mobile device you don’t tend to click-through on an ad….you want to connect and get in touch with your (friend) community (to the point), while on a PC you have time to browse around…. (click an ad or two….)
So time for Facebook to really rethink the business model to avoid a real bubble scenario. Although Facebook keeps adding users every day, stock price decreases day by day but Facebook doesn’t seem to be interested in changing the business model in search of new revenue models (and keep the focus on the primary user – the individual consumer)
So Facebook here is my shot on your business model 2.0 …
Focus on the social enterprise as a new way of commercial revenue model for the social platform.
Since most of the employes worldwide are already on the Facebook network, business could use the platform to connect and intreat-ct with their employes. So Facebook could develop a package/platform for enterprises to connect with their employes true a secure Facebook enterprise platform on which all work related stuff can be shared. And no not just a closed group for employes, but a true platform to share documents, project plans, …. which stimulates co-creation and collaboration (and once you get this in the right set-up an easy connection with your customers can be made!). Off course I don’t have to show you were the money is in this platform!
This way Facebook would be used even more on every kind of device (even mobile) and Facebook would be 360 in everyday life.
Off course privacy and confidentiality are main topics of discussion in this business model (and Facebook doesn’t have a good history regarding these topics). In combination with the ads and big data mining this could mean a breakthrough in the revenue model, since B2B market is a big market to explore….and social enterprise is a hot topic. So why doesn’t Facebook focus on this opportunity….the service cost? the individual service or tailor made platform a each company wants?
Well Mark Zuckerberg you forced a standard platform on to a millions of individuals, so I guess you can develop a business platform as well which you can force upon a million or two companies!