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Facebook’s Strategic Volatility
Isn’t it strange that Facebook can do something so smart (releasing a JavaScript client so you can host a FB application on other Web sites) yet stumble so badly with a key strategic initiative (Beacon).
I can understand all the excitement (Mr. Blodget describes it as “another brilliant move”) about the Javascript announcement but, frankly, Beacon is/was far more important because it was/is going to be a cornerstone of how Facebook makes revenue and, in the process, help justify its $15-billion valuation.
You really have to wonder how Facebook screwed up so badly with Beacon.
It may be that Facebook is still a technology-driven company trying to become a business. Or it could be that Facebook is still trying to find its way strategically as the social networking market evolves so strategic stumbles will happen along the way.
The big question is whether it can find a business model that works for users and advertisers. Clearly, the first iteration of Beacon missed the mark. Facebook CEO Mark Zuckerberg has admitted mistakes were made, so we’ll see if the company has learned its lessons and can reload successfully.
Technorati Tags: Facebook, Web 2.0