Facebook: A Business Model Under Attack

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Publication Date:
June 02, 2020

Industry:
Media

Industry:
Technology

Source:
Ivey Publishing

By 2019, Facebook Inc.’s (Facebook’s), popular social media and social networking service (known as Facebook) that launched in 2004, had emerged as one of the world’s largest market capitalizations. Over its 15 years, the company had experienced public relation incidents that led to controversies regarding its social media business model. Most criticism related to the unethical ways the company had handled its users’ personal data. By 2019, the level of mistrust from users had skyrocketed alarmingly. Many analysts questioned the company’s willingness to deal with data privacy concerns, with some alleging that its business model was fundamentally unethical by design. Clearly Facebook’s chief executive officer and his team needed to step back and reflect on the company’s next steps.

Evguenia Iskra is affiliated with MacEwan University. Ali Taleb is affiliated with MacEwan University.

Copyright © 2021 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

Facebook: A Business Model Under Attack

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