The IPO We've All Been Waiting For

           We all know Mark Zuckerberg as that modest entrepreneur who always wanted to keep Facebook, as well as his personal life, out of the public eye. People thought that he was selfish for not accepting an IPO offering of $100 million back in 2005, or even $15 billion in 2007. Zuckerberg must be having a nice ‘LOL’ moment as he potentially cashes in 7 times the amount he was offered just 5 years ago. With a valuation of $100 BILLION, this will be the largest IPO in U.S history! This my friends is not selfish, it is pure genius, and Mr. Zuckerberg would agree and take this to the bank (literally). 

            Facebook is currently not a massive e-commerce platform, but as it continues to expand, firms are seeing great potential to use it as one. I mean, it is the only social media site with 800 million active users; therefore, it is evident that much of its value stems from the fact that 1 out of every 8 people worldwide have a Facebook profile! Not to mention, the average user has 130 friends. It is with the click of a button that information can be easily shared across a network of people, or even across seas, and this is a priceless resource for companies to take advantage of.

            We all know that Facebook drives an immense amount of traffic related to its advertising and marketing power. But the question is, are users ready to click “buy” instead of “share”? Facebook tends to refer its users to third party websites by clicking on those hard-to-miss ads practically cluttering our home page. Now, imagine the convenience of being able to purchase directly on Facebook. Research shows that “people are 18 times more likely to buy directly in their News Feed than when clicking off to a separate website”. I think it’s time, as a tech-company valued at hundreds of billions, to capitalize on such an opportunity. Why wait around to see if consumers take to the idea of Facebook being a peer-to-peer marketplace (such as Craigslist) when they can easily make it happen themselves?

            Facebook showed us how to “like” and “poke”. I think that with its strong influence over many of us (and billions of $$$), it can perform market research and show us the expediency of making direct purchases via its webpage. Facebook is our present but it is also our future, and companies will get left behind if they don’t keep up with the growing e-commerce trend so many are taking part in today. 

Source: http://www.huffingtonpost.com/2012/01/27/facebook-file-ipo-february-1_n_1237010.html

Radioheadlines

            Last week was a sad one for all of us. Our beloved file sharing website, MegaVideo, was shut down. I’d say on average I spend approximately 5 hrs/week on this website catching up on my weekly shows. As a university student, it is extremely rare that I’m able to be in front of my TV at the designated time, and now I’m being penalized for this? OK maybe I’m being too dramatic since this is a piracy issue. I’ll dedicate my next blog to this subject, as it is too sensitive to discuss at the moment.

           

            Unfortunately streaming shows isn’t the only piracy that I take part in (don’t judge). I’ll admit that I download music off of torrents, but there are certain artists that I do support by purchasing their music off of iTunes. I have no problem paying a few bucks for certain artists that I like. Apparently there are others who feel the same way as me.

            Back in 2007, Radiohead made headlines once they released a statement saying that they were releasing their latest album, “In Rainbows”, as a pay-what-you-wish (PWYW) pricing strategy. They bypassed the traditional mode of distribution, which is normally through a production company, and offered direct downloads off of their website. Fans could literally pay whatever they wish. Some of you may be thinking that this could be wishful thinking for Radiohead; however, the group made more money with the PWYW strategy than any other album! Think about it. E-commerce allowed them to eliminate production, inventory, and shipping costs right off the bat. Not to mention, there must be a subconscious willingness to pay for something we aren’t actually being forced to pay for.

            Loyal fans on average paid $2.26 for the album. So even with the anonymity of purchasing online, people still willingly paid for music they could receive absolutely free. I don’t believe that the PWYW pricing approach can be profitable for everyone. There is a growing trend to capitalize on e-commerce as a way to conduct transactions, and Radiohead is certainly one party who took advantage of this.

Source:http://www.getelastic.com/name-your-own-price/

The Fysio Forum

          I am not the best ‘morning’ person, and I truly believe that every last minute of sleep counts. When my friend Pauline asked to meet for coffee before our 10am class, I wasn’t exactly keen on the plan, but figured I needed my daily dose of caffeine regardless. Our talk happened to be my inspiration for this blog, so I must give her some credit #thanksPauline.

          It’s that time of year where us U2/U3’s are concerned with our future and summer plans, so naturally I asked Pauline what she will be up to this summer. She told me she has an internship lined up at Pendragron, a London-based digital marketing firm. One of the projects they are currently working on is for a physiotherapy clinic, Pure Sports Medicine (PSM). They are at the forefront of injury treatment and prevention, with over 300 easy-to-follow exercises posted on their website. How innovative! This allows customers to not only have customized treatments, but can work on them from the comfort of their own home and as often (or as little) as they would like. The strategic online business model of PSM, in my opinion, is what will set them apart from industry competitors. Physiotherapists still offer their time at the clinic for more personal workouts; however, the company is working on bringing majority of their services online.

          We define e-Commerce as the ability to acquire goods and services through an electronic medium, and this is a prime example of such. Contrary to what you may think, this online B-2-C model does not act just like YouTube. It is a professional platform that shows stretches specifically tailored with the client in mind. Who would have thought that such a one-on-one service, like stretching a tight hamstring, could be primarily web-based? But I guess with Facebook reaching 1 billion users and the 3D camera entering the market in 2012, anything is possible!

Source: http://www.pendragonproductions.com/work/pure-sports-medicine

This is an i, i, iWorld.

           Some of those that I follow on twitter are TechCrunch, HuffPostBiz, and TED, so when asked to write a weekly blog post on the relevance of e-Business I thought it would be a no-brainer. However, after scanning my Twitter homepage, I realized how seldom I really choose to click and bookmark those articles, let alone those specifically related to e-Business. The beauty of this weekly task is that I am now more inclined to read about something that is tremendously relevant, especially as a Management student entering the workforce in a short few months.

            The idea for this blog post happened to be right at my fingertip. My paper cut fingertip to be exact. While starting a new chapter of my holiday read I happened to slice my finger and thought to myself “how easily could this have been avoided if I was reading an e-book”. Ironically, the book I was reading is Steve Jobs, so I couldn’t help but think of the iPad. I believe it is inarguable when I say that the iPad has completely changed the way business is done. I know I may sound passé considering the latest talks about digital wallets and apps such as Siri, but portable tablets are allowing us to stay productive, whenever and wherever. One example of an extraordinary app is ‘Fuze Meeting’, which allows for you to attend/host online meetings or share documents. One can even go as far as completing invoices, managing customers and databases – all of this while on the go. It’s functionality, portability, and usability makes it one of the hottest products on the market for today’s businesses. The innovative nature of the iPad has and will continue to change the way that we conduct business by incorporating e-commerce into the mix, making transactions more rapid, simple, and seamless.