E-406 DATE: 05/12/11 FACEBOOK IN 2011 FACEBOOK IN 2004 The original Facebook website went live on February 4, 2004 as a digital directory of…

1. How was Facebook able to stay ahead of competitors like Twitter, Instagram and LinkedIn over the last 5 years? What strategies did they implement to give them that competitive advantage?
2. Describe the weaknesses of Facebook’s privacy policies and features. What factors contributed to those weaknesses? Did Facebook overcome this issue? If so, how? If not, what recommendations would you propose?
3. What steps should Facebook take to increase the confidence of users, analysts and investors in its innovation strategies?
4. As the social media industry continues to expand, what measures should Facebook take to fend off new and innovative companies from entering the market?
Case Study is attached.

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