Facebook Future Strategy - 7618 Words

Executive Summary Facebook’s growth in user base and web integration has created a massive platform that reaches over a billion people. Facebook has been successful driving revenue by developing algorithms and application programming interfaces. These revenue drivers turned their social networking platform into an advertising tool, connecting third-party businesses to quality consumers. Although Facebook’s user base and revenue are growing at very rapid rate, there is concern with their future strategy. This paper addresses that concern and the doubt that the revenue streams the company has developed will be sustainable in the long-term. Examining Facebook’s history, competition, financials and target markets will reveal a direction for†¦show more content†¦FB entered the mobile advertising space through its popular mobile application, developed several years prior proving very profitable. By the end of 2013, FB had jumped to more than double their failed IPO price. In 20 14 they acquired the growing in popularity messaging app, WhatsApp, for $19 billion total in cash and stock options (Eisenmann et al., 2014). With approximately 1.4 billion MAUs in the beginning of 2015, FB is by far the largest social network in the world (Kemp, 2014). The technology and advertising industry is at a critical point where the companies that disruptively respond to tech trends, with innovation, will shape the industries’ future and secure the limited revenue streams for long-term sustainability. A full list of data supplied by the case study has been extracted and organized for reference in the Appendix. Issues/Problems Eisenmann et al. (2014)’s case study poses this question: Would new mobile advertising products continue to drive revenue in the long-term or should FB concentrate on developing their platform and assisting developers, possibly tapping into several historically elusive markets for the company? Extensive research on these two revenue drivers and their profit sustainability has allowed for the development of a future strategy and the uncovering of additional growth potential for the organization. Further defining each issue will be aShow MoreRelatedFacebook s Strategies For Future Growth Essay905 Words   |  4 PagesWithin the social media industry, Facebook quickly rose and surpassed its competitors through a series of innovative strategies. However, Facebook is plagued by privacy concerns in sharing of user personal data. Consequently, Facebook must takes steps to regain and maintain confidence of its stakeholders. Moreover, various strategies must be employed for Facebook t o remain a leader in this industry. Accordingly, the following annexures detail Facebook’s strategies for initial growth, it’s privacyRead MoreBusiness Strategy Analysis Paper : Facebook1338 Words   |  6 PagesBusiness Strategy Analysis Paper Facebook is a social networking website that was launched by Mark Zuckerberg in 2004. It was initially designed as a means for Harvard University students to communicate, but it quickly grew and now boasts over 1 billion users worldwide (Facebook 101, 2014). This paper will evaluate the business strategy of Facebook. An overview of the company will be presented, with identification of the company mission statement, financial performance and global operations; a SWOTRead MoreAnalysis of the Marketing News Story1036 Words   |  5 PagesAn article published on 18 May 2012 on Financial Time, ‘Facebook shares already a marketing incentive’, was talking about one Hong Kong-based brokerage company –‘8 Securities’ making use of the hype surrounding of Facebook’s initial public offering, to create values to customers. It also described how this promising company expanded its brand awareness with zero-sum of advertising investment by giving out US$200 of Facebook shares to customers who opened an account with them. In Innotribe Start-upRead MoreCase Study: Zynga Essay1009 Words   |  5 PagesCase Study: Zynga   Introduction Thesis: Zynga’s business strategy is successful but not sustainable. Purpose This case study highlights the success of Zynga in online games. This forms an excellent basis for assessing the relationship between durable and virtual products. The continuous over- reliance of Zynga on Facebook is also another essential aspect of consideration in paper. Finally, the case study addresses the various implications of Zynga on the existing video game business.   Overview Read MoreAnalysis of the Marketing News Story1025 Words   |  5 PagesAn article published on 18 May 2012 on Financial Time, ‘Facebook shares already a marketing incentive’, was talking about one Hong Kong-based brokerage company –‘8 Securities’ making use of the hype surrounding of Facebook’s initial public offering, to create values to customers. It also described how this promising company expanded its brand awareness with zero-sum of advertising investment by giving out US$200 of Facebook shares to customers who opened an account with them. In Innotribe Start-upRead MoreBenefits Of A Strong Strategic Plan1240 Words   |  5 Pages 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 inRead MoreFacebook : Networking And Societal Impact1475 Words   |  6 PagesFacebook: Networking and Societal Impact Past Communication habits have been changed by the proliferation of social networking sites. While people would wait for days to receive news, the rise of social media has changed the phenomenon. Furthermore, Interactions such as friend-friend communication, teacher-student communication, and company-client communication have changed with respect to time and level of interaction. Facebook, for instance, represents a site, which has gained worldwide fame. TheRead MorePersonal Branding1567 Words   |  7 Pagesconflicting with Company Branding outside the work place. A middle school teacher was suspended with pay for making remarks about her students on Face Book (Norwalk, 2010). A woman was fired after criticizing her boss on face book (â€Å"Fired over Facebook,† 2011). A young man was rejected for a position at Cisco because he tweeted that he had to weigh the fat paycheck against the drive and work (Popkin, 2009). These examples go on and on. Entire sites have been ded icated to helping employees buildRead MoreBusiness Strategy : Porter s Five Forces1378 Words   |  6 Pagesthe way that the businesses reacts to them is known as business strategy. In order to compete in businesses environment, large or small companies must have a good understanding of appropriate business strategy. One of the business strategies that company can use is Porter’s Five Force strategy (Porter, 2008). Porter’s five forces model is a framework that aims to analyse the level of competition within an industry and business strategy development. The main principle of the model is that either oneRead MoreOrganizational Background. The Company That I Am Evaluating1146 Words   |  5 PagesOrganizational Background The company that I am evaluating is Facebook; it is a for-profit corporation and online social media and social networking service based in Menlo Park, California. The Facebook website was launched in 2004, by Mark Zuckerberg, along with fellow Harvard College students. The network was promptly extended to other Boston universities, the Ivy League and eventually all US universities. In June 2004, Facebook received first private investment from Peter Theil, the founder of