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Profitability will destroy Facebook. Why “corporate capitalism” kills its own creations?

Profitability will destroy Facebook. Why “corporate capitalism” kills its own creations?

I cam accross article of Sebastian Stodolak – jurnalist from weekly “Wprost” magazine predicting the end of Facebook.

How is that possible you might ask. Well it is well known that social media are not quite good way to generate direct sales, rather brand awarness and viral/gossip around some product.

All facebook incomes are from advertising. Becouse they have 500 000 000 advertising addressees, quite easily and pricisly targeted, they are today’s “place to be” for any advertisier.

What Mr Stodolak claims is those are only believes and good wishes in Facebook abilities to generate huge profits. And as it turns out investors are not happy with Facebook results. Looking on amount of money invested into the company and profits it is still not satisfying balance.

And what is happening when investors are not happy? Well money stops flowing and as in recent movie “The Comapany Man” organisation seeks downsizings (fireing people) to keep the price of shares to sell it eventualy for couple of billions dollars. Just to make rich richer, and poor poorer. The corporate capitalism of Wall Street “how to do things”.

Is this what money does to the people? Capitalism – a love story.

Will that happen? Well not in next 5 years that is for sure.  Looking from econimic angle, Mr Stodolak is right. It was proven by number of organisations. When you are not profitable, it it time to change, true everyone knows. But looking on public interest in Facebook, it is difficult to ignore 500 000 000 voices. Well maybe they will go to one of the competitiors? Maybe facebook will find a way to return investments?

Looking on other source they increasing their profits, so did our banks and developers before bailouts.

Seems like they need good fresh ideas and good strategy,  Don’t you think?

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