An Evaluation Of The Current Issue ( S ) Confronting Facebook, Inc.

Facebook is one of the top social media platforms with more than 1.23 billion active users worldwide. 62% of the 1.23 billion users log in on a daily basis making it the best medium to reach for new customers. Today, businesses both big and small use Facebook as an advertising source to help their brand expand.

Facebook, which was founded by Mark Zuckerberg in February 2004, is an online social networking platform with the mission of making the world more open and connected. Within a few years, Facebook attracted millions of new users, from 1 million Monthly Active Users to 845 millions Monthly Active Users. Though competing with global and regional corporations in the industry, Facebook kept growing rapidly. With the high expectation of investors, Facebook finally decided to go public. The “Red Herring” of Facebook stated that its goal was to connect all two billion global Internet users. Basing on our analysis of Facebook’s IPO, we would like to give several recommendations on the

According to Marketline.com, Facebook Incorporated is one of the social networking which enables users to share their pictures, videos, activities and opinions. The company’s reach is a non-replicable competitive advantage that can be explored to the advertisers’ curiousness. However, significant competition may impact its user base and level of user engagement, making it less attractive to developers and marketers, so the bad thing will affect its revenue and results of operations. From there we can tell the strengths, weaknesses, opportunities and threats of Facebook’s company.

A lot of people use social media to talk to friends and family in their everyday lives. One of the most popular among these sites is Facebook. Mark Zuckerberg is the CEO of Facebook which is a social media website with over one billion users. In 2013 its revenue topped over $6 billion. Mark launched the website while he was still in college and has since exploded in popularity and it’s easy to see

First is the advertising. According to the case, we know that the major revenue of Facebook is advertising, which took up 98 percent in 2009, 95 percent in 2010 and 85 percent in 2011. Facebook uses all information uploaded by users to become the property of the firm. By analyzing database, Facebook provides advertisers target customized services and products based on users’ preferences and connections. In its view, the advertising which based on social

Facebook has a high valuation of $75-100 billion which is difficult to justify. After the first quarter, the company failed to produce financials which caused stock prices to plummet. This is not good in terms of attracting new investors. In addition, customers often complain of bugs and problems when interacting online

To figure out the future of Facebook we need to dive into the past Internet, the fast growth and even faster decline of earlier social networks like Myspace can show us what we should be looking for. It was only May of 2009 when Facebook surpassed Myspace with nearly 70 million users, a number dwarfed by current “populations”, but was newsworthy at the time. Every social network needs one thing, to be cool. The glitches or unused features can be overlooked, but if something’s cool it will gain a huge following. This reason was responsible for Myspace’s success and directly related to its demise.

In just only ten years, Facebook has gone from a dorm-room idea to a company with 500 million users. It is one of the quickest growing companies in history and is an important part of the social life worldwide. Author David Kirkpatrick provided extensive history and fascinating facts about Facebook in his book, The Facebook Effect. Kirkpatrick begins by explaining how Facebook was created, why it has been so successful, and where it will be going in the future. He discusses Facebook’s successes and mistakes, and explains CEO Mark Zuckerberg’s ideas and future plans.

Facebook’s advertising generates revenue by displaying advertisement products on their website, mobile applications, and other third-party partners websites. Then, payment is measured through the number of clicks made by the users, the number of activities taken by the users, or the number of impression delivered. Other businesses are generated through payments and other fees

Facebook’s biggest stumbling block has been its privacy practices. As the world’s largest social network, Facebook has been under intense scrutiny from consumers, courts and regulators worldwide over how it handles the data it collects from its 845 million users. But as a company preparing to go public, it is under pressure to find new ways to turn that data into profit.

Upon examining the positive and negative components of Facebook, Inc.’s SWOT Analysis, a number of issues have been highlighted which the company must address in order to remain relevant and maintain its leading market position. It is recommended that Facebook continue with its Research and Development to increase it capabilities in combatting cybercrime that victimizes its consumers. Facebook is not present in every single country around the world. So, it is recommended that Facebook continue to negotiate with various governments to open markets where it has minimal or no presence. Another recommendation is that Facebook diversify its business to reduce its market risk exposure while making full use of other sources of revenue to keep the company growing.

Threat of New Entry: Threats of new competitors or new entry is difficult is not an order for the cost to setup site or company, but on the one hand that Facebook the largest company in the social networks in the world, and claimed to be the largest share of the market in this area, and receiving a billion active user each month, that the presence of real rivals is very difficult in the social networks and access to a suitable place in this market, or access to the region where Facebook arrived or nearby, but therefore is on competition strong between Facebook and other sites, the only networks that got to the point or close to Facebook is Twitter which work hard and difficult to get to appear near Facebook position, the new networks appear eventually die after period of time because of the small number of users or lack of revenue of money to keep alive.

Facebook is a social networking website that is designed to connect people across the world. Anyone over the age of 13 with an email account could join Facebook. There are many features on Facebook such, games, groups, picture gallery, video, and much more. Facebook is a multi-billion dollar public trade company. This project will address the performance measurement perspective of Facebook, for the purpose of, evaluating and analyzing external and internal day to day operations (Forbes, 2014).

It is difficult to benchmark using a prosperous social networking site, since there are none. There are many, even dozens, of highly popular social networking sites that have large user bases and high levels of traffic. Havenstein (2007) notes that even social networking sites with massive user bases have had difficulty driving advertising revenue. There are a number of roadblocks and excuses that companies use for avoiding social networking, but ultimately the decision is economic. Social networking sites must therefore find a way to make advertising economically viable for major advertisers while at the same time controlling the costs associated with running the business. Only then can a social networking site become truly prosperous.

It is important to look at the key characteristics of these two different models in order to understand the conclusions of this report.