3. List and describe some of the options that Facebook managers have in balancing privacy and profitability. How can Facebook better safeguard user privacy? What would be the impact on it’s profitability and business model?
Facebook’s most valuable property is also the thing it can’t afford to sell: personal information. In terms of advertising, Facebook knows the advantages at the negotiating table because they have a large treasure of potential customers. The only reason why they have a large about is because customers are trusting them to protect their privacy so they can interact at their own discretion. Consequently, Facebook users give them power position, and so their privacy will never be breached. However, it will allow the vendors to present their goods and services by selling ad space on the site. The site has over 118 million people who can see their advertisement and click the link to get more information, or make a purchase. To be the number one site on the internet, Facebook have to protect the users who built the name, reputation, and business.