group paper topic whats wrong with meta

Meta''''s products and services include Facebook, Instagram, WhatsApp,Messenger, and Meta Quest.Meta offers other products and services.. In 2022, thecompany generated 96,9% of its revenue

NATIONAL ECONOMICS UNIVERSITY

BUSSINESS SCHOOL

CRITICAL THINKING IN BUSSINESS

_

GROUP PAPER

TOPIC: What’s wrong with Meta?

Group 10:

Doan Thi Hanh Nguyen ID: 12116666

Du Thi My Tam ID: 11219126

Phan Khanh Ly ID: 11219086

Phan Thuy Trang ID: 112191

Ha Noi, 02/23

Table of Contents

1 Introduction:

a Meta Platforms, Inc 3

a.1 History: 3

a.2 Products and services 3

b Facebook app 4

b.1 Overview 4

b.2 How Facebook make money 5

b.3 Revenue: 5

2 What’s wrong with this company ?

a Tik Tok 8

b Meta Server 9

b.1 Facebook 10

b.2 Metaverse services provided by Facebook 11

c The security function of Apple reduces the revenue of Facebook 13

3 What did Meta Company do to solve their problem ?

a What did they do ? 14

a.1 Solve problems coming from TikTok competitors 14

a.2 Solve problems coming from Metaverse 16

a.3 Solve problems coming from Apple 17

b The effect 17

4 How to fix them?

1 Introduction:

a Meta Platforms, Inc.

a.1 History:

Meta Platforms, Inc., doing business as Meta and formerly named Facebook, Inc., and TheFacebook, Inc., is an American multinational technology conglomerate based in Menlo Park, California It was founded on February 4th,

2004 by Mark Zuckerberg, along with Harvard University students and roommates, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes, initially as TheFacebook.com on Facebook, the global social networking site popular It is considered one of the Big Four technology companies along with Amazon, Apple and Google Meta is one of the most valuable companies in the world Meta's products and services include Facebook, Instagram, WhatsApp, Messenger, and Meta Quest

Meta offers other products and services It acquired Instagram, WhatsApp, and Oculus and independently developed the Facebook Messenger, Facebook Watch, and Facebook Portal apps It also has a 9.99% stake in Jio Platforms In 2022, the company generated 96,9% of its revenue from the sale of advertising

On 28 October 2021, the parent company of Facebook changed its name from Facebook, Inc., to Meta Platforms, Inc., to "reflect its focus on building the metaverse" According to Meta, the "metaverse" refers to the integrated environment that links all of the company's products and services Based on Facebook's PR campaign, this name change reflects a shift in the company's long-term focus to building the metaverse, a digital extension of the physical world using social media features , virtual reality and augmented reality

a.2 Products and services

- Facebook, a social networking site with about 2.8 billion users worldwide

- Facebook Messenger, a messaging software application

- Facebook Watch, video on demand service

- Facebook Portal a smart display and videophone brand developed in 2018 by Meta

- Instagram, a popular social networking site

- Onavo, an Israeli mobile web analytics company

- Mobile messaging company WhatsApp

- Oculus VR, a pioneer in the virtual reality industry

In the process of existence and development, Meta has always aimed to connect people closer together, creating a globalized community

Meta = Facebook + Instagram + Messenger + Whatsapp + Reality Labs

1

b Facebook app

b.1 Overview

Facebook is one of the leading social networks in the world today, a place to

connect people all over the world Similar to the Internet, Facebook creates a flat world - where there is no longer a geographical distance that allows all users to post and share status, personal information and interact with others

Currently, Facebook provides some key features as follows:

- Chat and interact with friends anytime, anywhere, as long as you have an Internet-connected device

- Update, share photos, videos, information, story (story)

- Find friends by email address, phone number, username or even through mutual friends

- Take advantage as a place to sell online such as: Create Fanpage to sell, sell on personal page

- Diverse games for users to wear entertainment and experience

- Ability to tag (tag) images, intelligent face recognition

- Allows creating surveys/polls right on your personal wall

2

The predominant way Facebook makes money is through advertising revenue While the company offers other products besides its social media platform, its remaining revenue sources are insignificant compared to that of advertising According to its 2021 Annual Report, the company generates virtually all of its revenue from selling advertising placements to marketers On its 2021 third quarter

1 Meta platforms | FB stock price, company Overview & News (no date) Forbes Forbes

Magazine Available at: https://www.forbes.com/companies/meta- platforms/?sh=71ae87bd4a5c (Accessed: February 28, 2023).

2 Be connected: Free online courses for seniors (no date) Be Connected | Free online courses for seniors Available at:

https://beconnected.esafety.gov.au/topic-library/social-media-apps/introduction-to-facebook (Accessed: February 26, 2023).

report, advertising consists of 97% of its revenue source, with only 3% of revenue coming from other sources Its ads enable marketers to reach specific groups of people based on different factors including age, gender, location, interests, and behaviors Marketers purchase ads that can appear in multiple Meta platforms including Facebook, Instagram, Messenger, and third-party applications and websites

While advertising remains the dominant revenue source, its other revenue sources are gaining momentum, increasing at a pace of 195% year-to-year at the end of third quarter 2021 Advertising revenue only increased by 33% in the same time period

3

b.3 Revenue:

Revenue

(million $)

Meta Facebook Messenger Whatsapp Reality

Labs

Instagram

2019 70697 57284.99 4.01 507 501 12400

2020 85965 66147.22 14.78 632 1139 17400

2022 116609 80291.25 2.75 906 2159 33250

Data table of Meta revenue and Meta-owned apps

3 Guo, J (2022) How facebook (meta platforms) makes money Seeking Alpha, Seeking Alpha Available at: https://seekingalpha.com/article/4471770-how-does-facebook-make-money (Accessed: February 26, 2023)

2019 2020 2021 202 2

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

57285

66147

88401

80291

Revenue of Facebook

2019 2020 2021 2022

0

10

20

30

40

50

60

70

80

90

100

81

77

75

69

The Percentage of Facebook's Revenue in Meta

From the table above, we see that: the revenue of the facebook app accounts for over 65% and is declining from 2021 to 2022, so facebook is the main representative of the meta company that we want to analyze

2 What’s wrong with this company ?

It is clear that the major revenue of the FB platform comes from advertising sales

In the third quarter of 2022, social networking giant Facebook cut 11,000 employees, saw revenue decline year-over-year and daily users also fell Now, it's the third consecutive quarter that the Facebook-owned group's revenue has decreased compared to the same period last year

They brings money to invest into Meta server, as the result this company's stock loss

10 billion dollars in 2021, by 22% or 200 billion dollars in company value, by 3rd quarter of 2022, this number reduce 9 billion dollars

4

4 Siu, A (2022) Facebook parent meta lost $230 billion today, biggest One-day market wipeout in history TheWrap, Available at: https://www.thewrap.com/facebook-meta-stock-230-billion-loss-market-cap/ (Accessed: February 25, 2023)

There are 3 reason that explain why the stock of this company reduce dramatically:

a Tik Tok

So, What is TikTok?

TikTok is a video-sharing app that allows users to create and share short-form videos

on any topic It’s mainly mobile-based, although you can still watch TikTok videos using the web app The platform allows users to get creative with their content using filters, stickers, voiceovers, sound effects, and background music

In the Chinese market, TikTok works as a separate app called Douyin, which is one

people who use the app on a daily basis TikTok maintains a separate user count from the Chinese version of the app

Why Is TikTok So Popular?

Now that TikTok has surpassed 1 billion monthly active users, it’s quickly catching

up with Instagram as one of the leading social media platforms Moreover, it became the most downloaded photo and video app on the App Store at the year of its launch

So what’s the secret behind the platform’s massive success? Why is it catching on so fast and reaching billions of users worldwide? Let’s explore some of the key reasons why TikTok is so popular

 Celebrity Endorsements

 Viral Trends and Challenges

 Easy Content Creation, Sharing, and Viewing

 Key Features of TikTok

According to data from market research agency Apptopia, in 2022, TikTok topped the list of the top 10 most downloaded apps globally with 672 million downloads

Meta and Mark Zuckerberg are competing with a TikTok heavyweight

TikTok, the short-form video app that has attracted more than a billion users and has become a hit in the tech industry, is in fierce competition with Zuckerberg and the social networks he runs He repeatedly acknowledged on a call with Wall Street analysts earlier this week about quarterly revenue, a summary in which he sought to explain the sustained growth of apps The number of daily Facebook users is currently declining, the first decline in its 18-year history

5

b Meta Server

The metaverse is a vision of what many in the computer industry believe is the next iteration of the internet: a single, shared, immersive, persistent, 3D virtual space where humans experience life in ways they could not in the physical world

At the moment, the metaverse is assessed as a potential market that can grow and is valued at up to $800 billion In addition, about 30% of organizations around the world think that they are willing to participate in the metaverse to promote products and services before 2026 The global metaverse market is predicted to grow from

$107.1 billion in 2020 to $758.6 billion by 2026

5 Geyser, W (2022) What is TikTok? – everything you need to know in 2023 Influencer Marketing ,

Hub Available at: https://influencermarketinghub.com/what-is-tiktok/ (Accessed: February 26, 2023).

b.1 Facebook

The Core Target that Facebook set when it started targeting the metaverse market were:

▪ Build technology that helps people connect with communities and find businesses

▪ The future of digital connectivity

▪ Ensure the safety of users and bring positive impacts

▪ Prioritize privacy and security

It is clear that technology is a key factor in the restructuring of Facebook's business model The acquisition of virtual reality headset company Oculus in 2014 is considered an important piece to help Facebook invest in the metaverse field and shows that Facebook is especially focused on user experience by developing reality devices Meta Quest

Phases Creation &

experiment

Development and Expansion

Efficiency and profitability

Creative innovation

Activities Launching

Facebook at

Harvard

Grant access to this platform for everyone Developing new features Launching Facebook for developers

Convert from website to mobile app Acquired Instagram for $1 billion (2012) Acquired WhatsApp for

$19 billion (2014) Acquired Oculus for $2 billion (2014)

rename to meta Develop a strategy to pursue metaserver Focus on hardware and software development

Acquisition •ConnectUParakey

• FriendFe -ed

• Octazen

WhatsApp

• Oculus VR

• Ascenta

• ProtoGeo Oy

• PrivateCore

Unit 2 Games

• BigBox VR

• AI Reverie

• Within

•Downpour Inter

•Friendster

• Patents

•ShareGro -ve

• Zenbe

• Nextstop

• Strobe

• Gowall

• Chai Labs

• Hot Potato

• Beluga

• LiveRail

• WaveGroup Sound

• Wit.ai

• Quickfire

• Networks

• TheFind, Inc

• Surreal Vision

• Endaga

• Pebbles

• MSQRD

• Objects etc

-active

6

b.2 Metaverse services provided by Facebook

 Meta Quest Pro

It is the most advanced virtual reality headset product line of Meta at the moment The price of Meta Quest Pro from $ 1,499, sold in October 2022 Meta Quest Pro also features face tracking, which adjusts multiple viewing angles for users when worn to match their own experience each person

In addition, the screen of Meta Quest Pro has 37% higher pixel density, so with Meta Quest also supports 1.3 times more color gamut Meta for more on image quality on Quest Pro glasses:

25% improvement in full-range image quality in the center of the frame

50% improvement in image quality in the frame part

 Meta quest 2

Meta Quest 2 is released in October 2021 The resolution of each side of the glass is

1832 x 1920 pixels

 Meta Plus Portal

6 Siu, A (2022) Facebook parent meta lost $230 billion today, biggest One-day market wipeout in history TheWrap, Available at: https://www.thewrap.com/facebook-meta-stock-230-billion-loss-market-cap/ (Accessed: February 26, 2023).

Following the failed incident and allegations involving two versions of the Meta Portal that track user data in the same way that Facebook and Messenger (two applications of the Facebook company) did Facebook continues to launch Meta Portal Plus product with similar features, which is a smart video collaboration device suitable for business activities, helping users to avoid using bulky laptops

Another Software applications.

- Meta Horizon Worlds

Meta Horizon Worlds is a free application that helps users participate in the metaverse through MetaQuest It's an ever-expanding social universe where people can socialize with friends, meet new friends, play games, attend exciting events Meta Horizon has more than 10,000 worlds and mixed experiences for users to explore In addition, Meta Horizon also merges several models such as Horizon Workrooms or Horizon Home

 Messenger with AR

Instead of sending regular messages, Messenger after integrating AR helps users enhance the real feeling when interacting with friends Messages can be displayed when the user is using a VR/AR headset, they experience vivid sounds Alternatively, the individual can display as a virtual avatar in the real world

 Sport

The trend of users leaving the file room to exercise at home through virtual reality exercises is increasing day by day Facebook took that opportunity to integrate the Active Pack including high-quality fitness exercises in Meta Quest 2 This application provides exercises for users, and monitors their current health status Some exercises are being developed like Boxing or FitXR gym

 Future working model

Facebook will begin testing Quest for Business in the future This is a new business-specific feature built into Meta Quest 2 Quest for Business allows users to log in to

a business-provided account, and with colleagues to access Horizon Workrooms or Gravity Sketch without the need for an account

 Education

In addition to the areas mentioned above, Facebook also provides intensive training

in the education industry Facebook partners with several educational institutions to implement the vision of immersive experiences into the teaching environment, such

as VictoryXR, Byju's Future School; several non-profit organizations Generation, Urban Arts, Peace Literacy; some colleges and universities

R&D is always a big fee for businesses With Meta, although Reality Lap has finished products, the revenue from these products is still not enough to offset the huge cost Meta invested in Metaverse Reality Labs' net loss in 2019 was $4.5 billion

on revenue of $501 million In 2020, this number increases to $6.62 billion on