Contemporary Management Issues: Facebook - Essay Example

Download file to see previous pages Facebook and Instagram are two corporations that have engaged in a skimming relationship whereby the former has resulted to extravagant spending with the intention of neutralizing competition from the latter. Facebook as a company wants to acquire ways of improving its managerial functions. This has prompted it to acquire the services of Instagram for a one billion dollar deal, which based on the latter’s revenue is literally too high. Instagramis one of the competitors in business in terms of photo shopping and uploads. It offers a range of advertisements in photo and pictorial applications especially in social networking, hence attracting large pool of global fans especially youths. The intent of Facebook to purchase its competitor’s services is a central way in which the company would gain efficient managerial grounds besides dominating the market. This paper will focus on the contemporary management issues arising from the contractual concurrence amid Facebook Corporation and Instagram. egram. The contemporary management issues concerning the situation between Facebook and Instegram One of the outstanding business practices in the world today is competitive advantage strategy. This is the fundamental way of winning the trust of a customer besides large pool of global fans especially in social networking. Managerial departments of companies in the present world regard quality management as one of the primary issues of gaining competitive advantage in the market (Mabry, 2012, pp.66). Under this, the management regards meeting customers’ needs as the essential way of gaining efficient managerial practices and competitive advantage. For example, the scenario that prompted Facebook to engage in the one billion-dollar deal was due to Instegram’s better photo applications. During that period, most of the photo users preferred using services of Instagram rather than Facebook, hence bringing in competition whereby the latter can only neutralize via purchasing it all together. Since, this will grant it adequate and strong base to dominate the market besides enhancing its applications. Starting up a business is not always an easy event in the life cycle of an existing institution. The management departments always look onto ways of improving their services at lowest costs possible (Montana, 2008). Businesses in the present world improve their services by adopting different supplementary services. This is because management always wants to have the most outstanding services compared to those of one’s competitors within their industries of operation. For example, in the case of Facebook and Instegram, the former wants to acquire enhanced services with the intention of being at higher position than its competitors are. This is a modern strategy of skimming against actions of lesser and emerging players. This applies in order to gain an upper hand in business operations. Additionally, Facebook intended to beat its competitors like Google, which is an emerging threat in terms of picture applications. Customers asserted that Facebook pictures were becoming boring, which yielded to the corporation’s move of intending to purchase a lesser player’s services. Another primary strategy that arises in the present management world also involves an increase in customer awareness in the business field. The increasing knowledge of customers in the market implies businesses are ...Download file to see next pagesRead More