Facebook in Russia Evaluation

Saint Petersburg State College or university

Graduate Institution of Supervision


Contemporary Strategic Analysis of Facebook . com in The ussr

Subject: Modern day Strategic Research

Authors: Group Seven of all kinds (Anne-GaГ«lle Votre Gal, Hildegunn Nesje, Andreja OjsterЕЎek, Nikolay Semakov, Roman Shapurko, Elena Shatalova (Zlochevskaya), Julia Shmeleva) Fall term 2012

Advisor: Andrei Yu. Panibratov, Mentor, Doctor in Economics, MBA

Table of Contents


Social Networks Overview5

The History from the Social Network Sites6

Facebook overview8

Part 1 . Social Networks in Russia9

Component 2 . Fb in Russia13

Facebook's Russian Story13

Porter's 5 Forces Analysis17

The worthiness chain plus the value network - common value constructions. 21


SWOT analysis33

Portion 3. Strategy suggestion to get Facebook in Russia35


Appendix 143



In cases like this study we all will evaluate Facebook inside the Russian industry with regards to modern-day strategic evaluation. In the beginning we certainly have set a few goals we want to get to as we work on the tactical questions of Facebook in Russia:

* Develop strategic opinions for business scenario through analyzing Facebook in the Russian marketplace; * Gain the ability to use the main tactics of tactical analysis and recognize all their applicability and limitations with concern to Social Networks (Facebook); * Offer an informed solution to Facebook's strategic questions in Russian industry; * Improve our team-work skills to make collective decisions in tactical analysis.

The case study assumption is corresponding to Facebook's target in Russian market:

2. Facebook can be number one Social Network web site in Russia.

Just about every analysis looks some restrictions. Ours is usually connected to the fact that classical proper analysis equipment haven not really been designed to the composition of the Internet and Great example of such, but to " normal businesses”. This makes the analysis more challenging, but also more interesting and challenging.

We certainly have divided the case study in to several thematic parts. Initially part may be the presentation of Social networks generally speaking, containing definition and the expansion history. The 2nd part looks at the subject of each of our analysis, Fb, within the framework of the Russian Social Networks industry. It also offers the chief marketplace characteristics and an overview from the main rivals of Facebook or myspace in Russian federation. In our even more analysis we have paid even more attention to the VKontakte Online social network, because it is the Social Networking innovator in Spain and therefore the biggest competitor of Facebook in Russia. The two of these companies not merely compete for the similar customer base, nevertheless also have, in some respects, progressively similar organization structures and sources of profit, especially because of the continual moves by the two Facebook and Vkontakte to imitate some features of one another (e. g. Facebook credit the idea of network credits and Vkontakte duplicating the Facebook layout). For this reason, this kind of study will most likely compare Fb against the standard of Vkontakte as the most effective and well-known social network in Russia. Even though we could took into account one more popular online social network, Odnoklassniki, which in turn currently holds the second placement in Spain, for several causes we do not think that is it a competitor we can use to evaluate Facebook. Initial, it belongs to a different proper segment, as its primary purpose is to reconnect former classmates. Facebook (and Vkontakte) in contrast are wider and do not focus on such a distinct segment. It therefore follows that the strategy of Odnoklassniki probably would not work for Fb due to their diverse strategic visions, goals and market positioning. Also, due to the high amount of si and its unique paid-for membership rights, Odnoklassniki is much less competitive in the Russian environment due to the comparatively low purchasing power...

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Barnett, E

Bullas, J. " 20 Interesting Facts, Characters and Statistics Revealed By simply Facebook. ” Jeff Bullas. com. twenty April, 2012. Accessed Sept. 2010 24, 2012. http://www.jeffbullas.com/2012/04/30/20-interesting-facts-figures-and-statistics-revealed-by-facebook

Calderon, S

Ellison, N. N., Boyd, G. M. " Social Network Sites: Definition, History, and Scholarship. ” Journal of Computer-Mediated Connection 13(1), Document 11. 2007, http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html

Epstein, Z

" Exercise of Option. ” Mail. ru Group Limited. July fourteenth, 2011. Seen 19 Sept. 2010, 2012. http://corp.mail.ru/en/IR/news/1125

" Facebook Help Center. ” Seen September 21, 2012

" Facebook Statistics 2012. ” Uberly. Seen September twenty one, 2012. http://uberly.com/facebook-statistics-2012/


Glaser, M. " Your Guide to Social Networking On the web. ” PBS. August up to 29, 2007. Accessed September twenty three, 2012. http://www.pbs.org/mediashift/2007/08/your-guide-to-social-networking-online241.html.

Gustin, S. " Facebook's Blame-Game: Who is at Fault intended for IPO Derrota? ” Period Business. Sept. 2010 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 somewhat more than a Network”. Bloomsberg Businessweek, Issue 4211. December up to 29, 2010. Utilized September seventeen, 2012. http://www.businessweek.com/magazine/content/11_02/b4210032487137.htm

" Inside Facebook's Money Machine. ” MSN Money

Knight, S i9000. " Zuckerberg says Facebook . com wasted couple of years betting in HTML5”. TechSpot. September twelfth, 2012. Seen September twenty two, 2012. http://www.techspot.com/news/50121-zuckerberg-says-facebook-wasted-two-years-betting-on-html5.html

MacMillina, G

Oweis, T. Y. " Syria prevents Facebook in Internet crackdown”. Reuters. November twenty third, 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 Commences Today. Accessed September twenty-three, 2012. http://successbeginstoday.org/wordpress/social-media-an-overview-of-facebook/

Rodin, S

Stabell, Charles B. and Fjeldstad, Øystein D. " Configuring Benefit for Competitive Advantage: on Chains, Shops, and Networks”. Strategic Managing Journal, Vol. 19, 413–437 (1998).

Stainlesss steel, E. " Facebook in privacy breach”. Wall Street Journal.  October 17th, 2010. Accessed Sept. 2010 22, 2012.

Top 20 Countries with the Greatest Number of Online users. Internet World Stats. Reached September 23th, 2012. http://www.internetworldstats.com/top20.htm

" The top 500 sites around the web”

Wa, R. A. " The Facebook economy”. The Economist. Might 28th, 2012. Accessed September 21, 2012. http://www.economist.com/blogs/freeexchange/2012/05/american-growth

" Work in Progress”

" Статистика по профилям пользователей Вконтакте. ” [Statistics of Vkontakte end user profiles]. Habrahabr. 11 July, 2011. Seen September 19, 2012. http://habrahabr.ru/post/123856/


[ one particular ]. " Mediefakta, sosiale medier - et overblikk” [Facts about press, social media -- an overview]. Medienorge: Institutt for informasjons- og medievitenskap. February, 2010. http://medienorge.uib.no/files/nyhetsbrev/2010/Sosiale_Medier_2010-2.pdf

[ two ]

[ 3 ]. Ellison, In. B., Boyd, D. M. " Social networks: Definition, History, and Scholarship or grant. ” Diary of Computer-Mediated Communication 13(1), Article 11. 2007, http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html

[ 4 ]

[ 6th ]. Glaser, M. " Your Guide to Social Networking On the net. ” Aug 29, 3 years ago. PBS. http://www.pbs.org/mediashift/2007/08/your-guide-to-social-networking-online241.html.

[ 7 ]. Ellison, And. B., Boyd, D. M. " Social Network Sites: Definition, Background, and Grant. ” Diary of Computer-Mediated Communication 13(1), Article eleven. 2007, http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html

[ 8 ]

[ 9 ]. Bullas, J. " 20 Interesting Facts, Statistics and Stats Revealed By simply Facebook. ” Jeff Bullas. com. twenty April, 2012. http://www.jeffbullas.com/2012/04/30/20-interesting-facts-figures-and-statistics-revealed-by-facebook

[ 10 ]

[ 11 ]. " Inside Facebook's Cash Machine. ” MSN Cash. May 18, 2012. http://money.msn.com/technology-investment/post.aspx?post=869a1b6c-0bb7-47b3-ac0a-25d10f6a5404

[ 12 ]

[ 13 ]. Gustin, S. " Facebook's Blame-Game: Who's at Fault for IPO Debacle? ” Time Organization. September 6th, 2012. http://business.time.com/2012/09/06/facebook-blame-game-whos-at-fault-for-ipo-debacle/#ixzz26u3jfUXk

[ 14 ]

[ 19 ]. Baltaga, I. „История возникновения социальных сетей: кто был первым? " [History from the Appearance of the Social networks: who had been first? ] Vsetke. 13 This summer, 2012. http://vsetke.ru/post/20447276

[ 20 ]

[ twenty-one ]. " Статистика по профилям пользователей Вконтакте. ” [Statistics of Vkontakte user profiles]. Habrahabr. 14 July, 2011. http://habrahabr.ru/post/123856/

[ twenty two ]

[ 23 ]. Ioffe, L. " In Russia, Facebook or myspace is More when compared to a Network”. Bloomsberg Businessweek, Concern 4211. December 29, 2010. http://www.businessweek.com/magazine/content/11_02/b4210032487137.htm

[ twenty four ]

[ 25 ]. Rodin, H. " Facebook . com Tries To Fire a Way in Spain. New York Moments Blog. June 20, 2008. http://thelede.blogs.nytimes.com/2008/06/20/facebook-tries-to-blaze-a-path-in-russia/

[ dua puluh enam ]

[ 27 ]. Loffe, M. " In Russia, Facebook or myspace is More compared to a Network”. Bloomsberg Businessweek, Issue 4211. 12 , 29, 2010. http://www.businessweek.com/magazine/content/11_02/b4210032487137.htm

[ 28 ]

[ 29 ]. Loffe, L. " In Russia, Fb is More when compared to a Network”. Bloomsberg Businessweek, Concern 4211. December 29, 2010. http://www.businessweek.com/magazine/content/11_02/b4210032487137.htm

[ 31 ]

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