Facebook Smartphones - A Financial Analysis (PDF)

Seminar paper from the year 2011 in the subject Business economics - Investment and Finance, University of Southern California, language: English, abstract: 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.