An Organization's Future Success

1764 Words Jul 7th, 2015 8 Pages
An organization’s future success depends on its own internal conditions as well as external conditions. Companies need to identify its strength to remain profitable and its weaknesses for a competitive advantage. An internal analysis focuses on the factors that give an organization certain advantages and disadvantages in meeting the needs and creating value through competitive advantage and core competence, value chain and financial analysis.

Facebook generates a significant amount of its revenue from advertising and from fees associated with their payments infrastructure that enables users of Facebook to purchase virtual and digital content from developers. Facebook’s has a Market Capital of $240 billion and an Enterprise Value of $234 billion. Key financial statistics from the company’s 2014 annual 10-K report shows recorded revenue of $12.47 billion, income from operations of $4.99 billion, and net income of $2.94 billion. Facebook operates in a world of innovative competition, global political focus, shifts towards smaller screen devices, growth in global markets for online advertising, virtual goods, social commerce, and a wealth of opportunities. As the industry continued to grow and develop, U.S. social games players had all eyes on Asia where companies had innovated in terms of monetization models, new platforms like mobile and game content. Strategic analyses of Facebook’s resources and capabilities are performed, finding that it is in lock-in and ability to…
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