Tuesday, February 07, 2012

Facebook’s Mobility Challenge
Published: February 5, 2012

Route-to-market issues—how to get to the target customer group—are one of the most critical but yet least considered strategy decisions. If affects most aspects of your Business Design: you really can’t tailor an offering to a target a customer group if you can’t get to them cost effectively with your message/offering and, as shown in this article, it can have a huge impact on profitability.

…..Amid the jaw-dropping financial figures the company revealed last week when it filed for a public offering was an interesting admission. Although more than half of its 845 million members log into Facebook on a mobile device, the company has not yet found a way to make real money from that use….
…..In a world that is rapidly moving toward an era of mobile computing, this is a troubling issue for Silicon Valley’s brightest star — particularly since much of Facebook’s growth right now is in countries like Chile, Turkey, Venezuela and Brazil, where people largely have access to the Internet using cellphones. Facebook is not the only company struggling to translate the success of its Web site to mobile devices, where screen space is at a premium and people have little patience for clutter or slow loading times. It is a problem that plagues companies as diverse as news publishers and the streaming radio service Pandora, and it is likely to loom larger….
……“It’s a huge Achilles’ heel for them,” said Susan Etlinger, a consultant at the Altimeter Group who advises companies on how to use technology. “There’s clearly a movement toward more social media consumption on mobile devices, and Facebook doesn’t have a revenue strategy for that shift. They haven’t figured it out yet.”

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