An Organization's Future Success

In order for the strategy to be successful it should realistically assess the company’s internal resources. An internal analysis is used to identify the strengths of the company and identifies the weakness to overcome in the strategy. The internal analysis will help with understanding the internal issues that exist at StilSim by evaluating a value chain analysis, a resource analysis, core competencies and a stakeholder analysis.

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 is a social networking website that was launched by Mark Zuckerberg in 2004. It was initially designed as a means for Harvard University students to communicate, but it quickly grew and now boasts over 1 billion users worldwide (Facebook 101, 2014). This paper will evaluate the business strategy of Facebook. An overview of the company will be presented, with identification of the company mission statement, financial performance and global operations; a SWOT analysis will be completed, and the strategic objectives will be identified with discussion of specific strategies and contingency plans that will need to be in place to recognize those goals. Lastly, the strategy will be critiqued, with suggested changes presented, if any.

Facebook’s strengths are part of what makes their personal marketing unique. Facebook has been one of the most successful social media platforms because it allows people to connect from across the world. Thus, because the website has no restriction in terms of size (except for those in China), marketers are able to reach a wide variety of consumers, no matter their location, language, or other barriers. Moreover, Facebook has allowed marketers to not only target a mass, but it has enabled more direct and efficient niche marketing, which is due to consumer profiles. Today, marketers are able to obtain highly personal information, such as an extensive demographic information and interests. As a result of this, companies can create highly personalized ads and connect with their consumers on a deeper more meaningful level. In turn, this improves brand loyalty. Likewise, companies can humanize themselves through Facebook. Often times marketers have a hard time getting through to their consumers because 1) they know they are being targeted and 2) because their organization may to forward/ brash in their messages. Thus, with Facebook marketers can build an actual relationship with their consumers, appeal to their specific interest, and reach out in a more gentler way. Personally, I think this is why so many companies have been so successful with social media; because consumers believe they are interacting with people and not a necessarily a brand. Take Magnolia for example.

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

The weakness of Facebook is revenue depends on advertisiments. Up to 80% of Facebook’s revenue is derived from mobile advertising. Facebook experts large companies like Ford, HSBC, McDonald’s and Visa to continue

When Facebook launched their advertising platform, early marketers saw incredible ROI. But over time, more marketers flocked to the platform, quickly driving up the CPMs.

1 . How does Facebook make money? What are the value drivers of its business? What is its

To be able to figure out the underlying reasons of the high market value of Facebook, we have to understand how the market value works. Generally, the market values of the stocks are perceived by us-stakeholders. There are numerous indicators to determine the value of the stock. First is because of mobile. Facebook could thrive in a world based around the smartphone. Zuckerberg manage the transition to mobile, Facebook was getting 53% of its revenue from its 945,000,000 mobile users, Facebook has monetized mobile better than any other website in the world, and its in-stream native ad units are impressively powerful.( Felix Salmon 2014) Secondly, The macro economies, since we are living in the computerized world, this can be strength for the company to capitalize the opportunities in order to capture a sizeable market share, Facebook has huge amount of users and highly concentration, with 901 million active monthly users, Facebook offers advertisers unprecedented access to consumers. It's this scale that makes the site so valuable. Advertisers can reach massive audiences in a single platform.(m)

The Competitive Rivalry: “Facebook’s massive user base cannot be taken for granted; the company continuously needs to innovate and to adapt to changing customer trends Any failure to do so could potentially cause its user base to migrate to other social media networks” (Anon. 2014)

Computers, laptops, smartphones and numerous handheld devices allow people instant access to the Internet. With the widespread use of the various technological devices, millions of people log and create new social media accounts around the world on a daily basis. Due to the ease of use, Facebook is now a leading social media platform with the opportunity for companies to advertise.

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 imitate

The goal of an internal analysis is to identify the strength and weaknesses of an organization. An internal analysis also focuses on reviewing the resources, capabilities, and competencies of a company. It gives managers a very specific look on what

Facebook is a free, widely used social networking tool that allows anyone to craft an online profile and use it to connect with others (Rouse, 2014). On Facebook, businesses currently have many options to choose from to promote their business. One example is by using external ads that send users to the domain of your choosing for a fee—considered the “classic” ad (Marrs, 2013) but users can also create an online identity for their business that they can then use to interact with customers on a closer, more human level—especially when users hit that precious “like” button (Marrs, 2013). When choosing the classic route, users have access to a great deal of valuable tools and information such as targeted advertisement, the ability to set budgets for their ads as well as performance tools that let the company how the ads are working for them (Marrs, 2013). A similar tool is Facebook’s “sponsored posts” which allows companies to pay a fee in exchange for Facebook showing their post to a chosen audience (Marrs, 2013).

3. Diversify sources of revenue. Facebook heavily relies on advertising on its social network as a source of income, but with being the number 2 website in the world and more than 1 billion active monthly users, Facebook could exploit other opportunities to attract the money.