Research Study on "Risks for Facebook" - GRM Institute

Research Study on “Risks for Facebook”


Risks for Facebook


By Ankur Sengupta and Ramandeep Singh (PGDRM Batch July’20-21 and Jan’21-22)


  • Facebook is an American online social media and social networking service founded by Mark Zuckerberg, along with fellow Harvard College friends.​
  • ​Facebook can be accessed from devices with Internet connectivity, such as personal computers, tablets, and smartphones where one can post text, photos, and multimedia, etc.​
  • Users can also use various embedded apps, join common-interest groups, buy and sell items or services on Marketplace, and receive notifications of their Facebook friends’ activities and activities of Facebook pages they follow.​
  •  Facebook said that it had 2.8 billion monthly active users as of December 2020 and Facebook was the most downloaded mobile app of the 2010s globally.



Growth Pattern




Facebook’s business model constitutes the following companies.​

  • WhatsApp: Instant Messaging Client.​
  • Instagram: Media Sharing Platform.​
  • Oculus: Virtual reality technology.​
  • Facebook Payments Inc.: Generate revenue through payment business.​
  • Atlas: Ad-serving and measurement platform, for advertisers & agencies.​
  • Onavo: Mobile utility application.​
  • Parse: Back-end infrastructure provider for mobile applications.​
  • Moves: Exercise (steps) tracking application.​
  • LiveRail: Publisher Monetization Platform.​
  • Masquerade: Visual Filters mobile application.

Business Model



Value Network






Risks Related to  Product Offerings

  • The ability to add and retain users and maintain levels of userengagement with the products.​
  • The loss of, or reduction in spending by, the marketers.​
  • Reduced availability of data signals used by the ad targeting andmeasurement tools.​
  • Ineffective operation with mobile operating systems or changes inrelationships with mobile operating system partners.​
  • Failure of new products, or changes to existing products, to attract orretain users or generate revenue.



Read the full research study here: Research study on Risks for Facebook



This report has been produced by students of Global Risk Management Institute for their own research, classroom discussions and general information purposes only. While care has been taken in gathering the data and preparing the report, the student’s or GRMI does not make any representations or warranties as to its accuracy or completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied. References to the information collected have been given where necessary.

GRMI or its students accepts no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained in this report. This report does not constitute advice of any kind.


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