Swot Analysis of Facebook's Current Situation

Topics: Facebook, Google, Social network service Pages: 4 (1392 words) Published: November 13, 2012
Strengths1) Facebook's head count was just under 4,000 employees, which is up 50% from last year.2) Facebook’s monthly active users grew 29% from last year to 955 million users.| Weaknesses1) Net loss $157 million overall.2) FB’s IPO fizzled on a combination of technical glitches and overhyped expectations.3) Costs and expenses nearly tripled from a year ago to $1.93 billion due to $1.3 billion of stock-based compensation and related payroll expenses.4) Facebook is struggling to meet investors’ expectations. | Opportunities1) Facebook is going to continue an aggressive pace of investment.2) They’re building up efforts to promote its “sponsored stories” ad product, which allows advertisers to pay to broadcast when a user's friends "like" a brand.3) "We believe one of the biggest opportunities we have is to create the social layer,"| Threats1) The mobile shift is eating into growth in its payments business, which makes up about 16% of Facebook's total revenue.2) Users prefer to play mobile games with fewer payment options rather than games on Facebook's website. 3) More users are accessing the social site on their phones instead of their personal computers and users are viewing fewer ads.4) “The social network has been hit by questions over whether ads on its site work.”|

Today, one of the most effective ways to analyze an organization’s wellbeing is to examine its strengths, weaknesses, opportunities and threats. By using the SWOT approach, I was able to focus my attention on the realities of the Facebook organization, and analyze the internal and external factors that the company is currently facing. The SWOT approach essentially lays the groundwork to developing a strategy for the firm, and by capitalizing on its strengths and opportunities, it allows one to determine a path forward for the company.

The first strength present in this article states that Facebook's head count was just under 4,000 employees, which...
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