Introduction:
Facebook has won the hearts of many over the years. This does not go without saying that Facebook has seen a fair share of positive as well as negative criticism on the trott. In the modern day, the ‘modern’ man would usually describe Facebook as an internet vicinity where everything and everyone you are interested in is readily available. This really takes us back in time (1990 to be exact) and reminds us of AOL. It is, therefore, no surprise that experts nowadays tend to compare Facebook with AOL a little too often (No wonder; both share quite a lot in common).
As it started to spread its wings and ascended even further towards supremacy, AOL saw success AND controversy. Facebook is no different in this regard. The only difference is, AOL now grimaces all that it had to lose. However, the million dollar question is: will Facebook overcome the odds and prevent history from repeating itself or will it share the same fate as AOL? Let us milk the moment (Let us not get too agricultural here) and ponder over what factors could cage Facebook in the same sort of trap as AOL.
1. Provision of Content and Pipes
Remember how AOL tried to be an all-rounder? Yes, it tried to be a little too many things at the same time and it cost them, dearly (Talk about multi-tasking being hazardous to health). Not only was it an ISP but it also tried its luck as a social network, a TV station AND a media empire! That pretty much explains why Time Warner did not prove to be a very successful bond and its existence came to an end in 2009, only nine years after their engagement.
Facebook has only focused and thus, excelled in pipes so far and let other firms deal with the content. Yes, Facebook is fine as long as it continues this way but in case otherwise, times of worry are about to commence for Facebook.
2. Charging for Everything
One major area where Facebook just can’t afford to be AOL is this. AOL was brilliant alright, but the bulk of AOL’s business relied upon charging users for every little service. This strategy used to worked fine and dandy for AOL, only until early 2000 though. This is when AOL ran into serious problems as people had now gained access to certain free services that AOL was charging a pretty penny for.
Yes, competition matters. AOL was too late in splitting its online services from the ISP and it really cost them, dearly. Speaking of Facebook, yes it has promised not to repeat any such errors. Of course, this comes at the cost of stalking people and their buying behaviours time and time again; however, if Facebook does make the mistake of doing what AOL did it is surely going to be a horrendous one.
3. Annoyances with Behavioural Targetting
Oh, this one can never go unnoticed, can it? Catching the attention of many, Behavioural Targetting has been a policy that Facebook had adopted ever since the very first day of launch. For those of you who really don’t know much about what the rant is about: This is a means of making use of the compiled information on a Facebook, or any other social media network, user’s browsing behaviour which may include pages liked and keywords searched.
Based on these results, the most pertinent advertisements are displayed on the page of the user so as to get maximum clicks and increase their profits, of course. Trouble is, Facebook plays a part in the (occasional?) privacy invasion and then tries to give others the impression that Facebook had no idea about what happened and how it happened. This can cost Facebook, big time.
4. Investment on the Wrong Firms
As aforementioned, AOL wanted to be everything, all at the same time. This also meant that it was heavily spending on its partner firms. It would have been an ok thing for AOL to do as long as it was spending in the right way. Nah, no sarcasm. AOL already found itself in hot waters following the purchase of Bebo, a renowned social network, in 2008 that cost them a mammoth total of 850 dollars and astonishingly, was sold out for merely 10 million dollars in 2010.
Facebook has played its cards, amazingly well in this regard. To date, Facebook has allowed only pure and polished talent to seep through the ranks and has successfully resisted the urge of buying enormous businesses that it has nearly nothing to reap from. By these standards, it is no surprise that Mark Zuckerberg rightly points out, “we buy companies to get excellent people”.
5. The Internet Hub
There is no denying the fact that AOL used to be the main internet hub in its time of dominance- a service that was hard to resist. Since AOL was achieving burgeoning success and it just couldn’t register the word, ‘loss’ in its own little dictionary, AOL would especially provide incentives to its staff for deliberately retaining even those customers who wanted to delete their accounts and had even sent cancellation requests. New Facebook changes, anyone?
Facebook hasn’t really shown similar signs so far; however, killing a Facebook account did become quite a bit of a pain in the backside at one point in time. The issue has been resolved, of course. In fact, I have personally witnessed the deletion of atleast a few dozen Facebook accounts (Sorry, Facebook but I couldn’t hold it back).
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