Facebook Case Analysis
Unit Three Facebook Case Study Analysis
Kaplan University
School of Business and Management
MT 460-01 Management Policy and Strategy
Dr. Carrie A. O’Hare
May 10, 2012
Unit Three Facebook Case Study Analysis
Introduction
By conducting an in-depth case analysis of Facebook, the key issues will become the determination factors. in identifying why Twitter is their biggest threat, or if there really is a threat for Facebook to recognize. The issues at hand to be discussed will follow an exploratory process with details thoroughly examined. The best possible solution will be presented as well as an implementation plan. By providing the implementation steps needed to resolve the threat possibility, we can establish the plan needed to eliminate any future threats.
Synopsis (Background) of the Situation
Facebook is a social networking service and website that was launched in February 2004. It is operated and privately owned by Facebook Inc. There are currently over 900 million active users and was founded by Mark Zuckerberg while studying psy chology at Harvard University. This is a free service to all registered users and profits are made through advertising revenues. Users can give gifts to friends, post free classified advertisements and develop their own applications. Both Yahoo and Google are among companies that have expressed interest in a buy-out of around $2 billion, of which Mr. Zucerberg has declined.
Key Issues
Several key issues are at hand beginning with boycotts forming by religious groups regarding the availability of sites linked to pornography and human trafficking connections involving children. Sources confirmed by Consumer Report state children under the age of 13 have active profiles surpassing 5 million memberships. This could involve future federal regulation and continual participation of “big brother’s” watchful eye. Currently, membership is free and advertisers pay which provides revenue for Facebook but,
Kaplan University
School of Business and Management
MT 460-01 Management Policy and Strategy
Dr. Carrie A. O’Hare
May 10, 2012
Unit Three Facebook Case Study Analysis
Introduction
By conducting an in-depth case analysis of Facebook, the key issues will become the determination factors. in identifying why Twitter is their biggest threat, or if there really is a threat for Facebook to recognize. The issues at hand to be discussed will follow an exploratory process with details thoroughly examined. The best possible solution will be presented as well as an implementation plan. By providing the implementation steps needed to resolve the threat possibility, we can establish the plan needed to eliminate any future threats.
Synopsis (Background) of the Situation
Facebook is a social networking service and website that was launched in February 2004. It is operated and privately owned by Facebook Inc. There are currently over 900 million active users and was founded by Mark Zuckerberg while studying psy chology at Harvard University. This is a free service to all registered users and profits are made through advertising revenues. Users can give gifts to friends, post free classified advertisements and develop their own applications. Both Yahoo and Google are among companies that have expressed interest in a buy-out of around $2 billion, of which Mr. Zucerberg has declined.
Key Issues
Several key issues are at hand beginning with boycotts forming by religious groups regarding the availability of sites linked to pornography and human trafficking connections involving children. Sources confirmed by Consumer Report state children under the age of 13 have active profiles surpassing 5 million memberships. This could involve future federal regulation and continual participation of “big brother’s” watchful eye. Currently, membership is free and advertisers pay which provides revenue for Facebook but,
References: Pearce, J. A., & Robinson, R. B. (2011). Strategic management: Formulation, implementation, and control (12th ed.). New York, NY: McGraw-Hill/Irwin. Phillips, S. (2007). A brief history of Facebook. The Guardian. Retrieved from http://www.guardian.co.uk/technology/2007/jul/25/media.newmedia Phillips, S. The Guardian, A brief history of Facebook, July 24, 2007 Retrieved from: http://www.guardian.co.uk/technology/2007/jul/25/media.newmedia Appendix A SWOT Analysis Template for Facebook criteria examples Advantages of proposition? Capabilities? Competitive advantages? USP 's (unique selling points)? Resources, Assets, People? Experience, knowledge, data? Financial reserves, likely returns? Marketing - reach, distribution, awareness? Innovative aspects? Location and geographical? Price, value, quality? Accreditations, qualifications, certifications? Processes, systems, IT, communications? Cultural, attitudinal, behavioural? Management cover, succession?Philosophy and values? Strengths· 900 million + users· Reputation· Financial security/IPO· Most popular· Strong growth· Globally popular· Free· Readily available· Self sufficient· Profitable· Globally popular· Free networking provider· Free for users· Easy access for users· Worldwide acceptance Weaknesses· Aging technology· Slight decline in membership· None· N/a· Well known· Self sufficient· Not real time news feed· Critics say he’s immature criteria examplesDisadvantages of proposition? Gaps in capabilities? Lack of competitive strength? Reputation, presence and reach? Financials? Own known vulnerabilities? Timescales, deadlines and pressures? Cashflow, start-up cash-drain? Continuity, supply chain robustness? Effects on core activities, distraction? Reliability of data, plan predictability? Morale, commitment, leadership? Accreditations, etc? Processes and systems, etc? Management cover, succession? criteria examplesMarket developments? Competitors ' vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences? New markets, vertical, horizontal? Niche target markets? Geographical, export, import? New USP 's? Tactics: eg, surprise, major contracts? Business and product development? Information and research? Partnerships, agencies, distribution? Volumes, production, economies? Seasonal, weather, fashion influences? Opportunities· Global expansion· Strategic alliances· · Acquisitions· Financial Powerhouse· Publicly accepted· Key Innovator· No link out for applications· Widely accepted· Popularity· Possible buyout with Linked In Threats· Competition· Economy· Government regulations· · Boycotts by political/ religious groups· Taxation for services· Competition· Dwindle toward competition· Turned down buy out· Stagnant market· Seeking better Opportunity criteria examplesPolitical effects? Legislative effects? Environmental effects? IT developments? Competitor intentions - various? Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining internal capabilities? Obstacles faced? Insurmountable weaknesses? Loss of key staff? Sustainable financial backing? Economy - home, abroad? Seasonality, weather effects?