This case focuses on business opportunities that may arise from the social networking Web site, Facebook. In particular, the case explores two group buying business opportunities that could develop out of ‘data mining’ of the wealth of information in Facebook users’ profiles and about their usage of Facebook applications. These two business opportunities are: (1) the use of text-analytic software to identify users’ interests in specific products or services which then might be purchased through social network-based buying groups; and (2) analyzing Facebook profiles and postings to identify opinion leaders that might recruit new members to a group buying service. The potential success of these business opportunities will be significantly influenced by how Facebook users react in terms of concerns about the privacy of their personal information and the purpose(s) for which that information might be used by businesses based on or affiliated with the Facebook platform.

A key element of Chapter 1 is the notion that change creates opportunities. Change occurs in many ways¾within the organization itself and within the organization’s environment, in small ways and large ways, in incremental ways and in transformational ways, and so forth. All of these changes can create opportunities, some of which could lead to completely new businesses. It is in the context of changes fostered by the growth of social networking Web sites that this case is primarily related to Chapter 1.

QUESTIONS 

1. 
   
2. 1. From your perspective, is the use of the Facebook platform to host more and different applications an appropriate and viable way for contemporary businesses to capitalize on social networking? Explain the reasoning behind your answer.
3. 2. How has change created opportunities for entrepreneurs to develop businesses that utilize the Facebook platform?
4. 3. Would you participate in a group buying experience on Facebook if one were available? Why or why not?
5. 4. Do you think the two group buying business opportunities are genuine given Facebook’s previous experience with Beacon? Explain your answer.