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Facebook in Russia Analysis

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Facebook in Russia Analysis
Saint Petersburg State University
Graduate School of Management

CASE STUDY
Contemporary Strategic Analysis of Facebook in Russia

Subject: Contemporary Strategic Analysis
Authors: Group Seven of all kinds (Anne-Gaëlle Le Gal, Hildegunn Nesje, Andreja Ojsteršek, Nikolay Semakov, Roman Shapurko, Elena Shatalova (Zlochevskaya), Julia Shmeleva)
Fall semester 2012
Mentor: Andrei Yu. Panibratov, Professor, Doctor in Economics, MBA

Table of Contents

Introduction 3 Social Networks Overview 5 The History of the Social Network Sites 6 Facebook overview 8 Part 1. Social Networks in Russia 9 Part 2. Facebook in Russia 13 Facebook’s Russian Story 13 Porter’s 5 Forces Analysis 17 The value chain and the value network - generic value configurations. 21 PEST analysis 25 SWOT analysis 33 Part 3. Strategy suggestion for Facebook in Russia 35 Conclusion 41 Appendix 1 43 WORKS CITED 44

Introduction

In this case study we will analyze Facebook in the Russian market with regards to contemporary strategic analysis. In the beginning we have set some goals that we want to reach as we work on the strategic questions of Facebook in Russia:

* Develop strategic opinions for business situation through analyzing Facebook in the Russian market; * Gain the ability to use the main techniques of strategic analysis and recognize their applicability and limitations with concern to Social Networks (Facebook); * Provide an informed answer to Facebook’s strategic questions in Russian market; * Improve our teamwork skills in making collective decisions in strategic analysis.

Our case study assumption is equal to Facebook’s goal in Russian market:

* Facebook will become number one Social Network web site in Russia.

Every analysis faces some limitations. Ours is connected to the fact that classical strategic analysis tools haven not been adapted to the structure of the Internet and Social Networks, but to “normal



Cited: Baltaga, I. „История возникновения социальных сетей: кто был первым?“ [History of the Appearance of the Social networks: who was first?] Vsetke. 13 July, 2012. Accessed September 20, 2012. http://vsetke.ru/post/20447276 Barnett, E Bullas, J. “20 Interesting Facts, Figures and Statistics Revealed By Facebook.” Jeff Bullas.com. 20 April, 2012. Accessed September 24, 2012. http://www.jeffbullas.com/2012/04/30/20-interesting-facts-figures-and-statistics-revealed-by-facebook Calderon, S Ellison, N.B., Boyd, D.M. “Social Network Sites: Definition, History, and Scholarship.” Journal of Computer-Mediated Communication 13(1), Article 11. 2007, http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html Epstein, Z “Exercise of Option.” Mail.ru Group Limited. July 14th, 2011. Accessed 19 September, 2012. http://corp.mail.ru/en/IR/news/1125 “ Facebook Help Centre.” Accessed September 21, 2012 “Facebook Statistics 2012.” Uberly. Accessed September 21, 2012. http://uberly.com/facebook-statistics-2012/ FOM Glaser, M. “Your Guide to Social Networking Online.” PBS. August 29, 2007. Accessed September 23, 2012. http://www.pbs.org/mediashift/2007/08/your-guide-to-social-networking-online241.html. Gustin, S. “Facebook’s Blame-Game: Who’s at Fault for IPO Debacle?” Time Business. September 6, 2012. Accessed September 22, 2012. http://business.time.com/2012/09/06/facebook-blame-game-whos-at-fault-for-ipo-debacle/#ixzz26u3jfUXk Hockenson, L Ioffe, J. “In Russia, Facebook is More than a Network”. Bloomsberg Businessweek, Issue 4211. December 29, 2010. Accessed September 17, 2012. http://www.businessweek.com/magazine/content/11_02/b4210032487137.htm “Inside Facebook’s Money Machine.” MSN Money Knight, S. “Zuckerberg says Facebook wasted two years betting on HTML5”. TechSpot. September 12th, 2012. Accessed September 22, 2012. http://www.techspot.com/news/50121-zuckerberg-says-facebook-wasted-two-years-betting-on-html5.html MacMillina, D Oweis, K. Y. “Syria blocks Facebook in Internet crackdown”. Reuters. November 23rd, 2007. Accessed September 22, 2012. http://www.reuters.com/article/2007/11/23/us-syria-facebook-idUSOWE37285020071123 Rahman, S Richardson, J. “Social Media: an Overview of Facebook”. Success Begins Today. Accessed September 23, 2012. http://successbeginstoday.org/wordpress/social-media-an-overview-of-facebook/ Rodin, S Stabell, Charles B. and Fjeldstad, Øystein D. “Configuring Value for Competitive Advantage: on Chains, Shops, and Networks”.Strategic Management Journal, Vol. 19, 413–437 (1998). Steel, E. “Facebook in privacy breach”. Wall Street Journal.  October 17th, 2010. Accessed September 22, 2012. Top 20 Countries with the Highest Number of Internet Users. Internet World Stats. 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Ellison, N.B., Boyd, D.M. “Social Network Sites: Definition, History, and Scholarship.” Journal of Computer-Mediated Communication 13(1), Article 11. 2007, http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html [ 4 ] [ 6 ]. Glaser, M. “Your Guide to Social Networking Online.” August 29, 2007. PBS. http://www.pbs.org/mediashift/2007/08/your-guide-to-social-networking-online241.html. [ 7 ]. Ellison, N.B., Boyd, D.M. “Social Network Sites: Definition, History, and Scholarship.” Journal of Computer-Mediated Communication 13(1), Article 11. 2007, http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html [ 8 ] [ 9 ]. Bullas, J. “20 Interesting Facts, Figures and Statistics Revealed By Facebook.” Jeff Bullas.com. 20 April, 2012. http://www.jeffbullas.com/2012/04/30/20-interesting-facts-figures-and-statistics-revealed-by-facebook [ 10 ] [ 11 ]. “Inside Facebook’s Money Machine.” MSN Money. 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