Showing posts with label why Facebook is loosing relevance. Show all posts
Showing posts with label why Facebook is loosing relevance. Show all posts

Man- day Post: The Last Days of Facebook

It's time for this week's edition of Man- day from Jensguy.

Artist Andy Warhol once stated "Everybody is famous for 15 minutes."  The same is doubly true of technology.  Every piece of important technology will get superseded eventually.  Companies that have once ruled the world will fall away like the Ottoman Empire.

Which brings us to Facebook.

It is hard to fathom the success that Facebook has had.  They currently have about 1.2 BILLION users with a healthy 61% of monthly users logging on almost daily.  That isn't going away overnight, but it is very clear that Facebook has reached its peak.  Here are a few of the warning signs:

1.  They are developing Plan B.  One of the valuable lessons learned from the failures of IBM and Xerox in the early 80's is that remaining static in your product offerings is almost certain death.  You must diversify your product base.  Think ipod and iphone with Apple and Xbox with Microsoft.  It is important to separate your eggs into multiple baskets.

Facebook is currently shifting their eggs.  Instead of rolling more functionality into their flagship product, they are breaking it into pieces.  Chat functionality will be discontinued on mobile Facebook and will be funneled into a separate, detachable application  (Much like AOL instant messenger which far outlived mainstream AOL.)  The future of picture sharing appears to be moving to Instagram, which Facebook purchased and is developing outside of their main product.  Those are some industrial strength escape hatches.

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