Mark Zuckerberg is building WeChat for the West

20321 2019-05-09 21:50

Facebook is a very profitable company. Its operating margins = 42%

operating margin = operating income / net sales
operating income = gross income − (operating expenses + depreciation and amortization)

When it is transiting into a privacy-centric super app, there are three challenges.

  1. Technical. How to bridge apps like WhatsApp and Instagram when turning them into a uniform platform?
  2. Economic.
    • China has no dominant app stores so that WeChat grows to the platform of choice. However, in the US, there are Apple and Google.
    • WeChat is no cash cow. It’s hard to micro-target ads against privacy-preserved users.
  3. Privacy and competition.
    • No country wants one firm to monopolize the Internet.
    • Social network + private messaging = Windows OS + IE
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