Facebook Lessons for E-Business Startups

This paper addresses the fundamental requirements for starting an online business. It covers the process of ideation, conceptualization, formulation, and implementation of new venture ideas on the Web. Using Facebook as an illustrative example, we learn how to turn an idea into a successful electronic business and to execute a business plan with IT skills, management expertise, a good entrepreneurial attitude, and an understanding of Internet culture. The personality traits and characteristics of a successful e-commerce entrepreneur are discussed with reference to Facebook-s founder, Mark Zuckerberg. Facebook is a social and e-commerce success. It provides a trusted environment of which participants can conduct business with social experience. People are able to discuss products before, during the after the sale within the Facebook environment. The paper also highlights the challenges and opportunities for e-commerce entrepreneurial startups to go public and of entering the China market.

Authors:

• Linda
• Sau-ling LAI

Keywords:

• F-Commerce
• Entrepreneur
• Startup
• E-Commerce

References:

[1] Time. "Person of the Year 2010." December 2010.
http://www.time.com/time/specials/packages/article/0,28804,2036683_2
037183_2037185,00.html (accessed November 2011).
[2] Lai, L.S.L. and E. Turban. "Group Formation and Operations in the Web
2.0 Environment and Social Networks". Group Decision and Negotiation,
17(5): 387- 402 (2008).
[3] Hinchcliffe, D. "The Social Graph: Issues and Strategies in 2008." On
Web Strategy, January 2009.
http://dionhinchcliffe.com/tag/social-graph-2 (accessed November 2011)
[4] Needle, D. "The Microsoft of Social Networks." InternetNews, May 2007.
http://www.internetnews.com/xSP/article.php/3679906 (accessed
November 2011).
[5] Hoge, P. "Facebook 2011 ad revenue said to hit $4 billion." San
Francisco Business Times, January 2011.
http://www.bizjournals.com/sanfrancisco/blog/2011/01/facebook-revenu
e-said-to-hit-4b-this.html (accessed November 2011).
[6] Shih, C. The Facebook Era: Tapping Online Social Networks to Market,
Sell, and Innovate, 2nd ed. Upper Saddle River, NJ: Prentice Hall, 2011.
[7] Sadasivan, M. "Facebook: An Online Marketing Tool." IBS Case
Development Centre, 2010.
[8] Phelps, J.E. et al. "Viral Marketing or Electronic Word-of-Mouth
Advertising: Examining Consumer Responses and Motivations to Pass
along Email." Journal of Advertising Research, 44(04): 333-348 (2005).
[9] Bazaarvoice. "Social Commerce Statistics." Bazaarvoice, February 2010.
http://www.bazaarvoice.com/resources/stats (accessed November 2011).
[10] Zarrella, D., and A. Zarrella. The Facebook Marketing Book. Sebastopol,
CA: O- Reilly Media, 2011.
[11] Moran, G. "Going Social." Entrepreneur, January 2010.
[12] Sethuraman, P., and R. S. Rathore. "Facebook: The Startup-s Strategic
Dilemmas." IBS Case Development Centre, 2008.
[13] Eaton, K. "Zuckerberg-s Taking Facebook Into China, But It-ll Be a
Baidu Beast." Fast Company, April 2011.
http://www.fastcompany.com/1746392/facebook-china-baidu-social-net
working (accessed November 2011).
[14] Chang, G. G. "China Wants to Buy Facebook." Yahoo! News, July 2011.
http://www.news.yahoo.com/china-wants-buy-facebook-215806956.htm
l (accessed November 2011).
[15] Gayathri, A. "China to buy Facebook Stake, Microsoft to Help Baidu:
Should We Worry?" International Business Times, July 2011.
http://www.ibtimes.com/articles/174343/20110705/facebook-china-micr
osoft-baidu-social-networking-search-engines-privacy-internet-regulatio
n-pro-demo.htm (accessed November 2011).
[16] Zuckerberg, M. "An Open Letter from Mark Zuckerberg." Facebook,
September 2006.
http://www.blog.facebook.com/blog.php?post=2208562130 (accessed
November 2011).
[17] Martins, A. T. "Mark Zuckerberg: Success Secrets of the Youngest
Billionaire in the World." How To Start A Small Business, March 2011.
http://www.strategicbusinessteam.com/successful-entrepreneurs/mark-zu
ckerberg-success-secrets-of-the-youngest-billionaire-in-the-world
(accessed November 2011)
[18] Sethuraman, P. "Facebook (A): The Startup's ÔÇÿSocial- Success." IBS Case
Development Centre, 2008.
[19] Forbes. "Good Technology Is Nice; A Good Idea Is Better." September,
2007.
http://www.forbes.com/2007/08/09/google-yahoo-youtube-ent-fin-cx_k
w_0809whartonvc.html (accessed November 2011).