Strengths And Weakness Of Facebook: SWOT Analysis: Facebook

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.

In this day and age, social media has become an integral part of our lives. It has created a platform for people to share information instantly and communicate with people all around the world. Facebook is the most outstanding example of successful social media network. According to the first quarter 2015 earnings announcement by Facebook, the site has achieved 1.44 billion active users per month, and 65% of which are daily active users. Other social networking sites such as Twitter, Instagram and LinkedIn are also a powerful means of communication. With such a large audience, social networking sites provide ample opportunities to acquire information, network, and connect with friends.

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.

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

3) Facebook has matured in US market but is expanding in global market. Facebook should put in strategy to attract new user in US market.Slow growth rate of online advertising. Although online advertising still grows in double digits (14% in 2012, down from 23% in 2011) that growth is slowing down, thereby threatening growth of Facebook’s advertising income.

Social media has made communication a lot more easier than ever before. Now, with a touch of a button people could communicate with anybody any where in the world. Websites such as Facebook makes communication with others an easy task. Facebook improved commucnication and even made communication a better experience. Facebook allow peole to share photos, post comments, and view people’s personal information. With almost 500 million users accounts, facebook is considered to be one of the most popular social media websites,most of the people use it as a substitute for real life human interaction.

Facebook is a social networking website that users can use a mobile device app, or the online website. Facebook is one of the most widely known social networking sites that are still growing. Facebook has a wide range of users when it comes to age.

This report gives an examination and assessment of the current issue(s) confronting Facebook, Inc. The major area of weakness require further investigation and remedial action by management. The analysis conducted does have some limitations. Some of the limitations include: cost figures and absolute profit margin were not provided due data limitations as not enough information was not available. Facebook has a controlled framework in place to ensure that website access is effective, efficient, and provide value for its stakeholders. A significant deficiency in the organization business model, though still strong, is susceptible to its future probability: the single source revenue. This issue will pose a major problem for

Facebook earns their majority profits from commercials. Lots of companies like to promote themselves through commercials in Facebook because the core users in Facebook are college students, white-collar. These are the people who like spending money on pursuing the latest trends in the world. In contrast, most users in MySpace, which is the major competitors of Facebook, earns low-income. Thus, more companies willing to invest in Facebook to earn high return. In return, it enables Facebook to development rapidly. One of the biggest advantages is how to keep users’ privacy. There are many times where the company who leaked the customers’ information went bankruptcy in the end. Moreover, Facebook does not have a well-developed operation system which can results in higher risk and pressure.

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.

In analyzing its most recent quarterly report, Facebook generates a significant amount, approximately 85%, of its revenue from online advertising; a major portion of that come an increasing mobile device usage. Additional revenues comes from fees associated with its payments infrastructure that enable users to purchase virtual and digital goods from its platform developers and that amount per the company own annual report has becoming immaterial in recent periods. The overwhelming dependence on a single source of revenue unsustainable and will eventually reduce the company’s

It is the twenty first century, the age of technology. Today’s society would not be the same without computers, cell phones, iPods, GPS navigators, and multiple other technological devices. A very useful one is the Internet along with its many websites like the vastly growing social network, Facebook. There are nearly over 1 billion users on Facebook worldwide and the amount is growing every day.

Facebook Inc. was founded on July 29, 2004 as a social networking company by Mark Zuckerberg. Before Facebook, Zuckerberg attended Harvard University as a psychology major. Facebook was originally called The Facebook and was created for the purpose of social networking for students that attended Harvard, it didn’t take long for Facebook to gain popularity (Reuters, 2015). Now, almost 11 years later Facebook is a $234 billion company with 1.19 billion active users. Facebook’s market cap is just under that of Walmart; which is the world’s largest retailer (Lange, 2015). Facebook incorporated has gained popularity for the ease of use for users to network all over the world. Even though many people only know of Facebook’s social networking aspects, Facebook owns a few applications and products, and has a huge project in the works called Internet.org; in which they have collaborated with big name companies to complete. Facebook’s success is thriving from the ability to make great investment that will benefit them later, along with engaging users in different aspects of social networking and always “Biggering and Bettering” their brand. The company’s goals, user interactions, the satisfaction of its users and overall business practices are what makes them so great,

staying on top of traits and preserving a relevancy together with your target market is important in advertising. facebook is used by many human beings and must be taken advantage of. study via the following article and also you have to be able to build a advertising plan that works nicely.

Facebook was created in 2004 and within three years, it was reported to have more than 21 million registered members generating 1.6 billion page views each day (Needham & Company, 2007). The site has become an integral part of its users social life. How many of us check Facebook more than once a day? According to a study done in 2006, the average participant spends an average of 20 minutes a day on the site, and two-thirds of users log in at least once a day (Cassidy, 2006). Facebook, allows its users to showcase themselves in an online profile, accept or request friends, (other users) who can post comments on each other’s profile pages, and have access to each other’s displayed information. Facebook members can also join virtual groups based on common interests, see what classes they have in common, and learn each other 's’ hobbies, interests, musical tastes, and romantic relationship status through the profiles (Ellison et al. 2007).