The paper "Entrepreneurial Journey Made by Two Huge Giants Facebook and Amazon" is a good example of a business case study. This report focuses on the entrepreneurial journey of two global enterprises Facebook and Amazon. Both these enterprises have been able to set up benchmarks at a global level in their respective industry the credit of which goes to two renowned gentlemen Mark Zuckerberg founder of Facebook which today is regarded as the world’ s largest social networking site and Jeffrey Preston Bezos the founder of Amazon. com which is regarded as one of the world’ s largest electronic commerce company.
The report highlights to show the journey made by these two remarkable entrepreneurs and growth of their company from inception to today’ s status. The report further focuses on the major similarities shared between these two great business tycoons through a comparative study of both success and failures. 2.0 ENTREPRENEURIAL JOURNEY OF FACEBOOK Facebook is a social networking site which was launched in 2004 and was a great success and completely changed the communication system in today’ s modern world. Mark Zuckerberg with his fellow mates incorporated Facebook as a private company.
However, in 2006 the company went public and as of 2013 has a user base of over 870 million which is growing at a rapid pace and is today regarded as the world’ s largest social networking site. Initially, Facebook was developed to be used by students of Harvard University which in October 2005, was expanded to be used by a total of twenty-one universities in the United Kingdom. Later the company expanded its eligibility to be used by other employees of several renowned companies which included Apple. Inc and Microsoft.
Later in 2005 Facebook was opened to various universities in Australia and New Zealand and its size grew to include over 2000 colleges and over 25000 high schools. Finally, Mark Zuckerberg owing to gaining popularity and market demand decided to make Facebook open to any user who is above 13 years of age and possessed a valid email address of its own. Facebook gained huge popularity in all age groups and business was attracted as well. The company managed to have over 100000 business pages allowing companies to attract potential customers by providing them valuable information about their products and service and becoming a means of advertising.
Facebook further enjoyed huge returns from these online advertisements and grew up sharply among both customers and business companies. On February 2012 Facebook filed for its initial public offering, where underwriters valued the share as $38 each making a market cap of $104 billion, which is regarded as the largest valuation to date for a newly public company. The IPO of Facebook was a grand success as anticipated by all and gathered over $16 billion making it the thirds largest in United States history.
However, trading in the Facebook stock was delayed due to technical problems in NASDAQ exchange and the stock show the first-week decline of 16.5% and traded at $31.91. Facebook in its small phase of gaining high success has been characterized by many acquisitions which include acquiring FriendFeed, created by Gmail, Divvyshot a photo-sharing service, Instagram among others. Facebook gained huge profits through its online advertisements. The company announced in 2012 that its profits had shown a sharp rise of 65%and its revenue from advertisements had made a sharp rise of 90% from previous year figures.
Research shows that 56% of its advertising revenue comes from the U. S alone whereas 12% of its revenue comes from Zyanga, a social network gaming company.
REFERENCESLevinson, M. & Reilly, E. 2010. From Fear to Facebook: One School's Journey. International Society for Technology in Education (ISTE). Amazon Digital Services