FACEBOOK, INC.

Analysis of Facebook, Inc.

Abstract

The research paper starts with a brief introduction about social networking. In this research paper, a thorough study will be done to identify and analyse the growth strategies followed by Facebook over the years. To better understand the growth strategy Marketing models like 4'P's, SWOT analysis, PEST analysis, BCG Matrix, Porter's generic strategies and 5 forces analysis would be used. Facebook main strength is its easy usability and its global presence. It should enter new markets to increase its user bank. Low click through rate is its main weakness. Facebook is ranked as one of the top ranked social networking sites is a cash cow now. Discussion about growth and challenges faced by Facebook, along with future recommendations would also be included.

Introduction1

Discussion2

SWOT2

Strength2

Weaknesses3

Opportunity3

Threats4

PEST5

Political Factor5

Economic Factor5

Social Factor6

Technological Factor7

Porters five forces analysis7

Bargaining power of Customers7

Bargaining power of suppliers8

Threat of New Entrants8

Threat of substitute products8

Competitive Rivalry within industry9

BCG Matrix9

Porter's generic strategies9

4 P's9

Product9

Price10

Place10

Promotion10

Business Challenges11

Growth strategy11

Development challenges11

Future recommendations11

Conclusion12

References13

Bibliography……………………………………………………………………………………..15

Analysis of Facebook, Inc.

Introduction

Humans are social beasts. Therefore any media, application or utility, which enhances our social experience, in the future would also be popular until something new comes up. Social media are about creating content, sharing that content and then utilizing that content to connect.

Social media has a vast potential to manipulate politics, consciousness of people and society. It contributes enormously to civic participation. Social media these days are very vital as it acts as an instrument to connect loose networks and people (for a cause). It has no boundaries. It operates in United States but has its presence throughout the world.

Facebook is a social networking site that allows users to share their information with others (Clark, n.d., pp. 2). The site was launched in the year 2004 by three Harvard students. It gives an incredible chance to users to stay in touch with old and new associates. Facebook is user friendly and simple. It offers different types of applications and games. It is a place where people from various walks of life actively engage. Apart from all these magnificent happenings, it has concerns related to privacy and security.

In the past few years, Facebook has become the number one social networking site. Facebook raises the question of sustaining growth and more expansion. To be gigantic on the internet one has to be innovative as Albert Einstein said once “We cannot solve problems by using the same kind of thinking we used when we created them." For making a solid and novel strategy, we have to think out of the box.

Discussion

SWOT

To better understand the growth strategy of Facebook, a SWOT analysis is informative.

Strengths

To improve the user experience and connect more users to the site, Facebook has started many new attributes which would agree for a close integration with other sites and apps which run on the website. Simple incorporation and employment of applications results in a competitive edge over other social networks which provide the same service. To achieve growth, a social networking site must have active users (Facebook, ...