Part 1: Consider any recent acquisition by Facebook. Why do you think Facebook purchased the company? Suggest ways in which the app has been monetized.
In 2014, Facebook acquired Oculus VR for $2 billion. Oculus developed virtual reality platforms and products such as Rift and Samsung Gear VR.
As per Constine (2014):
We’re going to focus on helping Oculus build out their product and develop partnerships to support more games. Oculus will continue operating independently within Facebook to achieve this.Mark Zukerberg, CEO of Facebook
After Facebook bought Oculus, there was speculation that Facebook wouldn’t be able to monetize the technology. In 2017, there was speculation that the acquisition was a rare misstep for Facebook’s CEO. Samsung was practically giving away headsets and there wasn’t much interest or a following for VR.
Recently, Facebook announced Horizon, a VR multiplayer world that will be open for beta testing in 2020.
Horizon makes perfect sense for a business obsessed with facilitating social interaction while monetized through ad views based on time-spent.Constine (2019)
In a virtual world where users spend a great deal of time world building, featured content from sponsors can be front and center. Users can also purchase merchandise to make their experience better.
Part 2: With the emergence and now certainly of online commerce, are store fronts still relevant in retail?
Even though online commerce is a dominant force, physical storefronts are still relevant and necessary to retail.
If so, what role(s) do they play?
Retail storefronts are evolving to meet market trends. They are becoming distribution hubs for their online business as well as focusing on providing an experience to interested shoppers.
It’s going to be critical for retailers to offer their customers more than just a shopping opportunity, but an experience.Turner (2017)
Constine, J. (2014, July 21). Facebook's $2 Billion Acquisition Of Oculus Closes, Now Official. Retrieved October 8, 2019, from https://techcrunch.com/2014/07/21/facebooks-acquisition-of-oculus-closes-now-official/.
Constine, J. (2019, September 25). Facebook announces Horizon, a VR massive-multiplayer world. Retrieved October 8, 2019, from https://techcrunch.com/2019/09/25/facebook-horizon/.
Turner, M. L. (2017, February 1). Is Brick-And-Mortar Obsolete? Retrieved October 8, 2019, from https://www.forbes.com/sites/marciaturner/2017/01/31/is-brick-and-mortar-obsolete/#4d57785037ce.