Facebook Smartphones - A Financial Analysis

Dossier / Travail , 2011 , 7 Pages

Gestion d'entreprise - Investissement et Financement

The smart phone industry is growing by the day and we are at the threshold of unpacking it’s true worth by integrating it deeply with the social network. Our company, Facebook, has derived the opportunity to invest in the project that will enable us to incarcerate market share in the smart phone industry. The perseverance and hard work of our employees has made sure that we advance in this new venture. There are several alternatives that facilitate us to enter this market, which have been discussed in this report. To best estimate the possibility of our investment, the risk and profit factors have been estimated against a spectrum of parameters. These factors include manufacturing cost, revenues, market equity, marketing time, risk and profit evaluations. Some of the traditional industrial tools such as The NPV model and the Weighted Factor Scoring (WFS) Model have helped us with the strategic analysis. Using these tools, we were able to catalog the investments into the best fit, the most likely and the pessimistic cases. Eventually, based upon an in depth research and analysis, the most likely case was: collaborating with an OEM for joint development of the smart-phone.

Inhaltsverzeichnis

• INTRODUCTION
• WEIGHTED FACTOR SCORING
• BEST CASE
• MOST LIKELY CASE:
• PESSIMISTIC CASE:
• CONCLUSION
• BIBLIOGRAPHY

Zielsetzung und Themenschwerpunkte

This report analyzes the potential for Facebook to enter the smartphone market. It examines three investment options: developing a smartphone from scratch, forming a joint venture with an established manufacturer, and brand labeling an existing smartphone. The report uses the Weighted Factor Scoring (WFS) model and Net Present Value (NPV) analysis to evaluate the risks and potential returns of each option.

• Evaluating the potential for Facebook to enter the smartphone market.
• Analyzing the risks and potential returns of three investment options.
• Utilizing the Weighted Factor Scoring (WFS) model and Net Present Value (NPV) analysis.
• Assessing the impact of each option on Facebook's brand, market share, and financial performance.
• Providing recommendations for the most viable investment strategy.

Zusammenfassung der Kapitel

The report begins by introducing the growing smartphone industry and Facebook's opportunity to invest in this market. It then outlines the Weighted Factor Scoring (WFS) model, which is used to evaluate the three investment options based on factors such as initial investments, operating costs, revenue stream, market equity, and time to market.

The best case scenario involves Facebook developing a smartphone from scratch, which offers the highest return on investment but also carries the highest risk. The most likely case involves a joint venture with an established manufacturer, which offers a balance between risk and return. The pessimistic case involves brand labeling an existing smartphone, which carries the lowest risk but also offers the lowest potential return.

The report then presents detailed NPV analyses for each case, highlighting the time taken to reach the break-even point, the recurring costs, and the net profit. The analysis shows that the best case scenario has the shortest break-even period and the highest net profit, while the pessimistic case has the longest break-even period and the lowest net profit.

Schlüsselwörter

The key terms and focus themes of the text include Facebook, smartphones, investment analysis, Weighted Factor Scoring (WFS), Net Present Value (NPV), joint venture, brand labeling, market equity, risk assessment, return on investment, and financial performance.

• Université: University of Southern California
• Auteur: Rohan Handa (Auteur)
• Année de publication: 2011
• Pages: 7
• N° de catalogue: V182278
• ISBN (ebook): 9783656056423
• Langue: anglais
• mots-clé: facebook, smartphones, financial, analysis