Facebook business model for convincing valuation in stock market

Facebook is the most commonly visited social media site. It has tremendous customer base who actively participate to keep this platform alive. Despite this fact, Facebook has not yet found convincing business model. At least they do not have any convincing reason to boost up their lofty valuation. In order to give economic boost to the valuation of Facebook stocks, Zuckerberg has decided to unlock the job business. Well have a look at the decision from various aspects and analyze that whether this move will become reason for power housing the growth or blow up the act.

In any business, competition is the biggest threat. Thus, Facebook must not forget about LinkedIn before coming in to the job business. No doubt, LinkedIn is the most promising job market and they work socially to introduce the profiles of many businesses and professionals. LinkedIn is providing opportunity to its users to present themselves and demonstrate their skills for any purpose, rather than job search. They have strategically planned their move and are earning 50% of revenue from job business. In such scenario, Facebook have to carefully evaluate their potential in the job market.

The biggest advantage of Facebook to penetrate in the growing business of job is their huge customer base. They are much bigger and thus they have huge potential to grow in this domain. According to the Dow Jones, the step taken to introduce the job board by Facebook can turn into biggest success and boost economic values of share if they become able to beat competition.

On the other hand, LinkedIn has biggest lead that it does not share too much personal information of its users. Alternatively, Facebook has worked on social alley. On Facebook users share crazy pictures, post crazy feeds and do many unprofessional things which they never want to share on professional platform. Thus, it is quite necessary for Facebook to think about personal and professional privacy of the users. Their success lies in drawing the fine line between professional and personal profiles.

Now question is what steps Facebook should take to differentiate both profiles. Facebook should take sense of inspiration from Google. Google has performed tremendous job in case of Google Plus. They have given anatomy to the users to share only limited information with the group of users they want. Although, Facebook has also offered this option in their privacy setting area but they have not created enough awareness on how to use this option. The need is to create awareness because it has become the massive disadvantage for the Facebook.

If Facebook feels it difficult to implement the privacy functionality, they can go for finding other solutions. One of the smarter solutions in this regards can be, Facebook can build their job board inside the existing social network. There they can allow the users to share only particular piece of information in the professional profiles. In this case, users are not required to mingle with tough functionality of privacy setting and separating each piece of information from other. If Facebook successfully meet this expectation of users, they will surely fly in the open sky.

Zuckerberg and his Facebook team can leverage out the customer base by simply allowing the users not to mix their professional and personal profiles. Everyone is looking forward that what they will going to avail from the new upcoming job board of Facebook. On the other hand, Facebook management is more concern that their move will be able to create convincing reasoning to enhance its share value in the stock market or not.