Business Strategy Analysis Paper : Facebook

Mark Zuckerberg actually makes the world smaller and change the way people keep in touch since Facebook helps people connect and share with the others in their life. For example, the students can not only connect and find their old school friends or college friends but also connect with their relatives. Facebook aslo has billions users so people can make new friends on Facebook from different areas of world. They can connect with friends by using Facebook chat, messages, poke, group. Therefore, everyone can take advantage of Facebook to maintain relationship and communications with each other. For example, Facebook lauched new feature called “Safety Check” after Paris multiple terror attacks in order for people in Paris can let their network know they are alive on Friday after at least 128 were feared killed (Olivia, 2015). Facebook aslo help a California mother reunite with her teenage son who was kidnapped 15 years ago thanks to an old family photograph posted to Facebook (Kayleigh Dray, 2015). The second advantages of Facebook is that user can get relaxed with high number of great online games and interesting applications such as Candy Crush Saga or Clash of Clans as they are bored or unhappy . A recent research has shown that over 375 million Facebook users play games each month ( Chris Taylor, 2014). The third advantage of Facebook is that people can get the good information or useful guides which are shared everyday on Facebook. For example,RES English school `s fanpage (https://www.facebook.com/resvietnam) often posts free english lessons or tips on their timeline. Moreover, Facebook users can stay updated with latest news and information which is displayed on new feeds such as the anouncement from university or new big promotions recently launched. For example, the teachers would like to inform their students about something changed to

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.

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.

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

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.

Our generation has seen a variety of social media sites come and go during our time on this small planet. Facebook has withstood the sands of time with constant innovation that began with proper strategic implementation in having a sustainable competitive advantage among all other competitors. This case reiterates the importance of having a strong strategic plan because it can be the deciding factor of the overall health of the company. Examples were given on how Myspace had all the potential in the world by being a social web-based median where users can find hot topics regarding entertainment and music. Unfortunately, as years came and went so did Myspace users to a more appealing and clean-cut site, Facebook. Facebook became the largest social media site on the planet in the span of eight years. A remarkable task, since it was developed by a young, intelligent programmer in his Harvard University dorm room as a way to connect friends with each other. Mark Zuckerberg was the 19-year-old entrepreneur that set out to connect users through relationship management rather than taking the Myspace “portal strategy” route. By focusing on relationship management and introducing the like button, advertisers began paying for the data collection Facebook was able to gather from their enormous user base regarding particular interests. Facebook supplied advertisers with a plethora of user information, while being able to keep their social site clean and create an environment where

Social media has come a long way from connecting real world friends. Everyday day social media continues to add more users. Social media didn’t get started until the early 2000’s. Some call it the go,fern era of social media. At that time over 100 million people had access to the Internet. The first social media site was Friendster, a social gaming site released in 2002. After that, many other sites were created such as LinkdIn, MySpace, and still popular today, Facebook. It wasn’t until 2006 when social media took off. Facebook had gained 12 million active users. Facebook is a social networking website that allows people to create profiles, upload photos and video, send messages and keep in touch with family and friends. As of early 2015, Facebook had accumulated 1.44 billion users. More recent social media sites include, Twitter, Tumblr, Pinterest, Instagram, Snapchat, and Vine. Twitter, the second most used social media site, allows users to post short 140-character

locations/whereabouts, or playing Farmville – people participate in Facebook to stay connected, to relax, to be entertained, and to be kept informed (Bond, Ferraro, Luxton and Sands 2010, 4; Piskorski, Eisenmann and Smith 2012, 2). Some might even use it to spy on their partners, triggered possibly by romantic jealousy (Darvell, Walsh and White, 2011; Elphinston and Noller 2011, 631).

In this era the social networking plays vital role in everyone’s life. Everything has its pros and cons. The most common social networking site is facebook. Everyone has their own profile for free as a result billon users on facebook.

As depicted on Figure II, FB has strength points that include: its long history and its access to global markets over a short period of time, that enabled it to lock in a wide base of users that find it too costly to switch to other networks that don’t provide a strong motivation for switching especially that FB has a strong ability for imitation and integration that led to a growing advertising revenue from different advertisers that find FB to be a great source of data that they can use for segmentation and targeting. FB weakness points are: its high dependency on advertising revenue, its high dependency on games applications revenue and concentration of ownership in the hands of its founder, Mr. Zuckerberg, that seems to be so innovative and successful. However, it is a reason why long term investors may worry because there is no guarantee of the continuous of the long-term success given a single control over a public company. On the external trend, FB has an opportunity to increase its base of mobile users due to the increase of people logging in on-the-go in comparison to computer users. FB has an opportunity to expand using social commerce by

In 2004, Harvard University was graced by the presences of Facebook, which began as a startup directory service specifically for students. Mark Zuckerberg envisioned a business plan that would provide networking services to college, then later, high school student, which grew extremely rapidly. As he continued to build on his business strategy, other groups of people were added that evolved into this massive internet technology (IT) business of today. Facebook sparked the interest of sites, investors as the pool of stakeholders increased phenomenally. As a business grows, so does increased risks in which Facebook was no exception. Risks such as competitors, privacy and security issues, user’s denial,

Facebook, the world’s most popular social networking site, states to have 829 million daily active users (www.facebook.com) with a geographical spread of approximately 81.7% of all Facebook users located outside of the United States and Canada. Facebook has been called a “rapidly expanding phenomenon” (Muise, Christofides & Desmarais, 2009) that is changing the paradigm of social interaction between young adults. Pew Internet and American Life Project data showed that in the United States, approximately 71% of all adults that utilize any form social networking are Facebook users (Duggan and Smith, 2013). With such prevalence in the lives of its users, it can be said Facebook has changed the way that people communicate in everyday life.

In today’s world it is very uncommon for someone not to have Facebook or some other type of social media outlet. People check their Facebook, Twitter, and Instagram multiple times a day to stay up to date with the latest news, gossip, and lives of our friends and family. Social media is a huge part of our day to day lives and is often criticized for creating and amplifying issues such as cyber bullying, loss of privacy, distracting young children causing a decline in grades, and even social isolation. Although these arguments are valid and important to address, they become less daunting when compared to the positive effects social media has on our modern culture. Facebook has made it easier for society to become more connected with our friends, family and the world around us. It has brought us closer to long distant relatives, provides emotional support to people in need, keeps us updated on the latest news and political issues, provides new knowledge, and raises awareness on issues around the world. Facebook makes life convenient, entertaining and even more manageable.

Could you imagine a world without the ability to constantly update your status, download pictures, and “check in” to the places you visited while being virtually connected to your thousands of “friends?” Well thanks to Mark Zuckerberg’s creation of Facebook we will never have to. Mark Zuckerberg a CEO, technology innovator, internet mogul, and philanthropist created a virtual world unlike no other which single handily changed the world of social media. He has come to represent the new face of social media and he has Facebook’s five hundred and fifty million users to support this claim. The establishment of Facebook has made entrepreneur Mark Zuckerberg a symbol of social media innovation and communication for the 21st century.

By signing up for a free account users get to list: age, sex, race, faith, occupation, ethnicity, nationality, sexual orientation, geographical location, ideological viewpoint, political position and place a photo of themselves. Before the development of these amazing social networking platforms many spent a typical day by simply waking up, grabbing breakfast, attending work or school and repeating the same process the very next day only slowing down for some face to face time with family and friend on weekends. Now, with advancement of Facebook people are able to keep in constant correspondence with their network of friends. A person can easily construct a post announcing a great morning, relay the most recent news on a favorite sports team, share the location of a new found eatery for a tasty low calorie high protein lunch, even promote the half price buy one get one free deal scored inside Macy at the local Fashion Island. Features like: “Sharing what’s on your mind” is not limited to text alone. According to Thomas J. Billitteri a CQ Research writer with over 30 years’ of experience covering business share a report from the Pew Research Center that ‘14 percent of online youths 12-17 have posted videos online’ (Billitteri). The power of video capture allows for popular culture to be celebration and broadcasted daily. Networking sites are brilliant gateways for monitoring such updates of friends -