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Mark Zuckerberg is Building a Western Version of WeChat

· One min read

As a highly profitable company, Facebook's operating profit margin reaches 42%.

Operating profit margin = Operating income / Net sales
Operating income = Total revenue - (Operating expenses + Depreciation and amortization)

As it transitions to a privacy-centric super app, it will face three challenges.

  1. Technology. How to bridge the gap between apps like WhatsApp and Instagram, turning them into a unified platform?
  2. Economics.
    • In China, there is no dominant app store, allowing WeChat to grow as the preferred platform. However, in the U.S., there are already Apple and Google.
    • ==WeChat is not a cash cow.== Targeting privacy-conscious users for segmented advertising is challenging.
  3. Privacy and competition.
    • No country wants a single company to monopolize the internet.
    • Social networks + private messaging = Windows OS + IE
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