SWOT Analysis for Facebook Inc - Case Study Example

Facebook Inc. Student’s Name Institutional Affiliation Facebook Inc. Facebook is a social network corporation operating online services with headquarters at Menlo Park, California. On February 4, 2004, the company launched its website by its founder Mark Zuckerberg together with college mates at Harvard College namely Eduardo Serverin, Andrew McCollum. The other founders were Dustin Moskovitz and Chris Hughes. At first, the founders initiated limited website that was only focused on the Harvard students, but latter was expanded to other colleges in Boston area that is Stanford University and Ivy League. The Facebook services got support from the students at various colleges and high school students. Two years later after launching Facebook services, the company allowed at least 13 years old students to have a chance to register and to use the website. The required age of registering on the website varied from different states and countries depending on the local laws applicability. According to the process of registering to the site, the users were provided with a platform for creating the user profile, posting and updating posts and photos, sharing videos and adding other users to other services. The website provided more avenues for registering and joining user groups that are organized according to their functions and categories. Finally, users are provided with a chance of complaining and blocking unpleasant users depending on your relationship. By August 2015, the company had monthly active users amounting to 1.59 billion around the globe. This concern of a high number of the active users, the company, has been regularly scrutinizing their privacy policies. The company induced IPO, Initial Public Offering, on February 2012 through selling the stock where it raised 104 billion dollars within a period of three months. Due to increased technology, there are major competitors of Facebook in social network services such as Tweeter, WhatsApp, and Instagram among other services. These social media provides similar services such as Facebook and hence providing competition (Kelsey, 2010). The major market targets are people from 12 years and above. The number of the possible users is the youth who uses the online services in interacting and gathering new information. These services tend to use attractive features and applications that are easy to use. SWOT Analysis Strength of Facebook Inc The company has employed different approaches and strategies for ensuring they are leading in the social networks connection. The major strength is on offering friendly services and targeting appropriate students. From the foundation of the company, the directors aimed in bring together students from colleges and high schools before venturing into the entire market. It helped the company in having great grounds that enabled it to come out strongly with a purpose of providing attractive services. Apart from communication, the company ensures other services such as updating posts, sharing photos, instant charting and messaging were made simpler (Funk, 2013). Apart from having a social life, the company indulged in business through introducing its first initial public offering by the year 2012. This made the company penetrate business and made higher returns within the first three months. In the social market competition, the company has emerged stronger through having higher number of the registered users. The company enjoys having entered into the international market and being used from every corner of the world (Al-Deen & Hendricks, 2013). This has helped the company in improving on its services and working extra harder in ensuring users privacy is maintained. Therefore, the company has enjoyed high returns from the high number of the website visitors that gets a platform for the association. Opportunities The company has higher chances of engaging in different activities that are associated with humanitarian and social approach. Having a higher number of the uses, the marketing department has chances of using the chance to connect products or services to higher viewers. This process gives the company higher returns through advertising and promoting their services and goods. The company initiates different services that attract more users (Silverman, 2015). These services include marketplaces for ads and other features concerns in advertising, voice call, video call, Messaging, charting and other services. They attract the users and hence maintain them for their effectiveness and reliability. The company initiates a higher good relationship with the users through the provision of simple survey questionnaires where the users contribute through responding. The company works according to the users’ recommendation and hence improving the site working condition (Funk, 2013). Therefore, the Facebook Company rely on the customers in improving its features and hence maintaining a high number of the user and competing effectively with other companies offering similar services. Weakness The Facebook application uses simple steps for registering new users in the system. This provides a platform for the criminals to use the chance in undertaking harmful activities. The company has no control of the issues posted by the people whom imposters themselves as a genuine user. The company is supposed to have a mechanism that would help in controlling people from using different accounts in undertaking their activities (Fuchs & Sandoval, 2014). Authentications applied by the Facebook Company are connected to only the email address. This makes the company not to identify the original culprit of the message being used in the social media that are harmful to social integration. Another concern is directed to the achievement of the identification where fake accounts are opened and dumped after accomplishing the services. Therefore, like any other social media platform, it contributes to helping the criminal in posting their activities and sharing them with the people. Threats The company is facing the threat of increasing popularity of other advanced companies offering higher services on social media. The level of competition is higher as different companies entering the market have differentiated services that attract more customers. In most situations, the users of the Facebook Company are having, at least, one different account from another company that is founded on the platform of communication and socializing. This shows the company has to improve on some of the services that are found elsewhere and retaining the user to use fully the company’s products. Another approach is directed to the privacy measures of the users’ information (Mansfield, 2012). The company has been facing a threat of the hacking whereby some accounts are hacked and hence used in criminal activities. The management of the Facebook Company, especially in the privacy department, is supposed to ensure all the devices being used on their website application are compatible with their setting to reduce the chances of private information. Another threat that is connected to the Facebook is the achievement of their services in the region that does not have technology development. The use is supposed to have a computer or mobile phone that has the capability of internet connection (Fuchs & Sandoval, 2014). In various countries and regions, the company has experienced the threat of communication and lacking possible customers. The approach is enhancing the higher number of the users to get connected to their friends and relatives. Risks and issues There are different issues that are connected with the social media especially Facebook on political aspects. The company provides a platform for the people or users with a similar mindset in joining groups that have different purposes. The Facebook gives equal opportunities to the political groups that help people with the same interest to discuss issues affecting their lives. The major consideration is ensuring people provide their views irrespective in the region and where they are operating on Facebook. The company enjoys diverse culture and social integration that happens from different language platforms provided. The setting of the Facebook application provides an option of choosing languages to use as the company operates on an international standard (Mansfield, 2012). Therefore, people provide or protests on different aspects through their views and shares of what are happening in their social surroundings. The Facebook Company supports culture through providing notification of the different cultures and activities. Diverse culture helps people in celebrating their origin and hence understanding their background. Other options are during birthday notifications that help people in realizing their friends’ user birthday. Therefore, the company provides a social approach that connects people with similar interests. The company is facing some risks issues regarding copyright and concerned with the development of the management policy. The company distances itself with the posts from the customers whom should consider copyright regulation. The company has employed all the measures in ensuring all its services are unique and original. Therefore, copyright risks are minimized as the company seeks in improving their working condition with the users (Al-Deen & Hendricks, 2013). The environmental challenges revolve all the factors surrounding the services being delivered. The company induces different aspects and policies that seek to ensure the market environment factors are controlled to provide fair competition for social media. Facebook Company has employed appropriate strategies that seek in controlling the risks and adverse issues that relate to the competition. Political risks, socio-culture life, and environmental factors have enabled the company to remain strong. Provision of the appropriate measures has helped the company to withstand all the effects and hence working toward achieving its goals and objective. Bing the giant company in the socio-media, the company has simplified its operation and hence allowing all people irrespective of their class and lifestyle to enjoy using the Facebook platform. Conclusion Facebook Inc. is one of the major social companies with the largest number of the users. The company has taken the advantage in entering into the stock market to invest. According to the achievements of the company, the services and products being offered are essential in competitive advantage provision of high-quality services. Engaging the customers through using simple questionnaire, the company has been able to develop an attractive package that helps in maintaining a higher number of the users. The process of registering is simple and hence accommodating people from different dynamics, social class, and lifestyle. Therefore, the company has employed a strategic approach to achieving their goals and objectives. The concern is on the users privacy, and the company has developed an appropriate approach to ensuring privacy matters are solved to improve customers loyalty. References Read More