With the holidays around the corner, we decided to do a mini series about a few of the tech stocks that we follow all year long. We are the first ones to judge and critic how these companies are run but as they say, it’s always much easier to critic it then actually run a company. So we decided to go ahead and write a series about what we would do with these companies. Hoping you will enjoy the series:
Dec 20 If I were Google CEO Eric Schmidt for one year…
Dec 21 If I were Yahoo CEO Carol Bartz for one year…
Dec 22 If I were AOL CEO Tim Armstrong for one year…
Dec 23 If I were Facebook founder Mark Zuckerberg for one year…
Dec 24 If I were Apple CEO Steve Jobs for one year…
Dec 27 If I were Ebay CEO John Donahoe for one year…
Dec 28 If I were Amazon CEO … for one year…
Management in the past few years
It’s no secret on this blog, I am a big fan of Facebook. Yes of the website.. But more so of the company, how it is being run, and even its current valuation. Some consider it outrageous to see a company with fairly small revenues now trading at a $50 billion valuation. I consider it a major bargain. I’ve said that Facebook is currently the best buying opportunity in the market and still believe it although it’s not easy to get actual exposure to the company since Facebook is not listed yet.
So yes, I consider Facebook to be very well run at the moment, mostly because of these reasons:
-Focused on user experience: While companies like MySpace made critical errors by focusing on revenues too early, Facebook’s attitude towards its product and its business has been nothing short of extraordinary as it tries to build the “new internet”
-Mark Zuckerberg: He’s not perfect, far from it, but as I wrote about recently, he remains focused on taking his company to the next level rather than cashing out
-Talent: In a world where talent is a very rare resource, Facebook’s innovation and focus on improvement have been key in attracting talent
There is no doubt in my opinion that Facebook is one of the best run companies in the tech space which will make it a bigger challenge to assume the CEO position!
General Vision
-Make the web a more social and friendly place
Initiatives/Priorities I would get started on
-Twitter : Facebook’s only credible competition comes from Twitter which is the 2nd social player on the internet. Twitter is huge because it fills needs that Facebook is not currently filling. I think that by separating status updates (similar to Twitter functions) from everything else, the need and usefullness of Twitter would be greatly diminished. It would then become importantto offer mobile apps that have one basic function: “Status Update Screens”. Finally, give the possibility to add someone either as a “friend” or simply follow their status updates. The strategy could be tweeked over time but I think it would bring some of Twitter’s flow back to Facebook without hurting Facebook’s nature.
-Privacy Policy: One of the only problems with Facebook or issues that have complicated life for Facebook is privacy. I would make the policy very transparent about the non-sharing of private information. By default, users would only be sharing their photos and information with friends although they can change that. Also, I would segregate information so that users that use applications would only give out the information that they want to give out to those applications. It is critical for users to trust Facebook.
-Security: Facebook needs to do everything in its power to ensure the security of the users information. A breach similar to what Gawker is going through would be a major blow for the rest of the big plan. I would thus hire security experts and challengethese firms to get around the security setup giving out rewards if they can. Security needs to be the top priority. Users could even get authentication software if they use Facebook credits (see below).
-Facebook credits: Thanks to Facebook connect, users are getting increasingly comfortable with using one login around the web. That should be expanded. Users could make purchases to major websites by simply logging in and clicking buy. Entering the address and billing info would be a thing of the past as Facebook would be processing the transaction. That means minimal risk because only Facebook would have access to the credit card information. It would then send the money (after fees of course) to the merchant as well as shipping information. A 1 click buy on almost any website.
-Display advertising: Facebook has more eyeballs than anyone else on the internet and I think it’s quickly becoming the best place for brands to advertise themselves. There are many different ways to do it but I think there are ways to do it that will please both users and advertisers such as special offers. I would work closely with advertising agencies to find the best ways to get these big companies to start using Facebook as one of their main advertising mediums.
-Create Locak Yellow Pages (with charged listings and comments): Facebook knows where you live. So the next time you are looking for a dentist, wouldn’t it be convenient to simply take a look at the listings and see which one your friends are using? Listing would be free and users could give out comments, ratings or anything else. The money would come from special promotions that merchants could run or when they pay money to get additional visibility.
-Social Search (friends, etc): Facebook is already making inroads with search thanks to its “Like” button. I think the company could expand greatly the concept in order to help us share content that we like more easily. Storing information and displaying it in an optimized way would make searching the web a much easier experience.
-Delay IPO: As much as investors like myself are excited about a future IPO, I would delay it as much as possible. I had written about the subject and basically I believe that Facebook as a private company is keeping its eyes on the long term which is critical.
Any thoughts or ideas?
I would love to hear your thoughts or ideas regarding all of these initiatives!
If I were Apple CEO Steve Jobs for one year… (AAPL)
Dec 20 If I were Google CEO Eric Schmidt for one year…
Dec 21 If I were Yahoo CEO Carol Bartz for one year…
Dec 22 If I were AOL CEO Tim Armstrong for one year…
Dec 23 If I were Facebook founder Mark Zuckerberg for one year…
Dec 24 If I were Apple CEO Steve Jobs for one year…
Dec 27 If I were Ebay CEO John Donahoe for one year…
Dec 28 If I were Amazon CEO … for one year…
Management in the past few years
Taking over Apple would be a very big challenge. No CEO is seen as more instrumental to his company’s success than Steve Jobs is to Apple. Since his return to the company, Steve Jobs has led countless product launches that have helped Apple take over what seemed unthinkable just 5 years ago, the top technology company in the world in terms of market cap. Apple is dominant in all kinds of products from the Ipod to the Ipad but it’s future now seems tied to the Iphone as Apple battles both Research in Motion (RIMM) and Google (GOOG). As mobile devices gain importance, being the dominant player has allowed Apple to be a major force to be reckoned with.
-Make Apple products the leading edge in terms of design, technology and overall experience.
Initiatives/Priorities I would get started on
-Offer the Iphone & Ipad on other carriers : As good as Steve Jobs has been about delivering a solid product, this is a MAJOR flaw that needs to be fixed quickly. I would be curious to know what kind of market share Android would have had the Iphone been available on other carriers from the start. Google might need to give up some of its control but right now, having it only on AT&T, a carrier that is very unpopular seems like a big mistake. From my first day in, getting it on Verizon and at least one or two others would be my top priority. This would give me access to more users and also hurt Android powered handsets.
-Buy Netflix: Some rumors were discussed a few weeks ago and I even wrote about it. Buying Netflix is certainly a bit of a gamble because of its high valuation but it makes sense in so many ways for Apple. First off, one of the battles that Apple has been waging for its Ipod/Ipad/Iphone line in Itunes has been buying content. Netflix has an incredible number of deals for content which could instantly help Apple. Another priority for Apple has been gaining access to the living room through Apple TV. What better way to do that than get access to the #1 movie/tv streaming and rental service? It makes sense in many ways.
-Live Satellite radio & tv: Sirius might not be for everyone but I’m convinced that adding it to the Iphone would be a major improvement for many users. Apple could get a cut of the profits and revenues generated by Apple users and Sirius would instantly get access to millions of new users. A win win for everyone involved in my opinion. I’m shocked this has not happened already. To be fair, users can get Sirius radio through an App but I think a deeper alliance between the two companies (such as pre-installing Sirius on all devices with a trial period) would make a lot more sense.
-Create a messaging system: This could be used by all Apple device users, would be a “chat system” that could also support sending files such as photos & videos but also include video chat and other features.
-Flash Support: I understand that the reason why flash is not supported is because its a challenge to not crash devices and keep the user experience solid. But making enemies is not a good idea, take your ego out of the way. Also, apart from the carriers issue, lack of Flash support is the big reason why users are not buying an Iphone. There’s no sense in doing it. Instead, work with Adobe to make it more stable and let users know when Flash creates issues/crashes on their device.
Any thoughts or ideas?
I would love to hear your thoughts or ideas regarding all of these initiatives!
Disclosure: I am long Apple (AAPL)