Comments on: Facebook’s Strategic Volatility http://www.markevanstech.com/2008/01/27/facebooks-strategic-volatility/ Insight and Analysis from North of the Border Fri, 19 Mar 2010 10:23:37 +0000 hourly 1 By: Mark Evans http://www.markevanstech.com/2008/01/27/facebooks-strategic-volatility/comment-page-1/#comment-41089 Mark Evans Sun, 27 Jan 2008 22:20:33 +0000 http://www.markevanstech.com/2008/01/27/facebooks-strategic-volatility/#comment-41089 Beacon wasn't a risk-taking proposition; it was a concept that clearly wasn't thought out well. To be forced to retreat (and apologize publicly in the process) was embarrassing. It was like they got together and rolled it out with any market testing. In hindsight, they should have played it safe with Beacon as opposed to what they tried to do. Beacon wasn’t a risk-taking proposition; it was a concept that clearly wasn’t thought out well. To be forced to retreat (and apologize publicly in the process) was embarrassing. It was like they got together and rolled it out with any market testing. In hindsight, they should have played it safe with Beacon as opposed to what they tried to do.

]]> By: Slava http://www.markevanstech.com/2008/01/27/facebooks-strategic-volatility/comment-page-1/#comment-41071 Slava Sun, 27 Jan 2008 20:52:26 +0000 http://www.markevanstech.com/2008/01/27/facebooks-strategic-volatility/#comment-41071 >> "Isn’t it strange that Facebook can do something so smart yet stumble so badly with a key strategic initiative" Meh, doesn't seem that strange at all, since Facebook is probably one of the most risk-taking (both UX and business wise) companies on the web right now. Sure they can play it safe and avoid faux pas like Beacon, but then by definition, they wouldn't be taking risks necessary to create hits like News Feeds, FB Apps, Profile tagging in Photos, etc. >> “Isn’t it strange that Facebook can do something so smart yet stumble so badly with a key strategic initiative”

Meh, doesn’t seem that strange at all, since Facebook is probably one of the most risk-taking (both UX and business wise) companies on the web right now.

Sure they can play it safe and avoid faux pas like Beacon, but then by definition, they wouldn’t be taking risks necessary to create hits like News Feeds, FB Apps, Profile tagging in Photos, etc.

]]> By: Daniel Gibbons http://www.markevanstech.com/2008/01/27/facebooks-strategic-volatility/comment-page-1/#comment-41059 Daniel Gibbons Sun, 27 Jan 2008 20:26:52 +0000 http://www.markevanstech.com/2008/01/27/facebooks-strategic-volatility/#comment-41059 This will sound horribly reactionary, but the only business model that actually could have made sense for Facebook is some kind of monthly paid subscription. The interesting analogy for me is Club Penguin, where the (correct) assumption was that parents would pay for the value of the walled garden. But by "could have" I mean 10 years ago it could have worked. It simply doesn't work any more for a general audience, and there's no evidence that an ad-supported model will give them the kind of revenue growth they need either. Where next? This will sound horribly reactionary, but the only business model that actually could have made sense for Facebook is some kind of monthly paid subscription. The interesting analogy for me is Club Penguin, where the (correct) assumption was that parents would pay for the value of the walled garden.

But by “could have” I mean 10 years ago it could have worked. It simply doesn’t work any more for a general audience, and there’s no evidence that an ad-supported model will give them the kind of revenue growth they need either. Where next?

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