Facebook Case Analysis

Topics: Social network service, Facebook, MySpace Pages: 5 (1388 words) Published: June 26, 2012
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
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, this has led to possible taxation of purchase activities involving the Facebook website. Now that competition is surmounting with rival Twitter in gaining over 140 million in members, they have turned down the initial buyout offer in 2006 and every offer thereafter. A weakness that hinders the competition is that Facebook is not in real time news feed form which gives Twitter an indelible edge of up to date social occurrences. Define the Problem

In my opinion, Facebook’s greatest threat threats is having competition that refuses buyout offers of any amount, not having the current ability to provide real time news feed and no formal control or blocking procedures from underage usage. Alternative Solutions

Incentive offers could be used for non-members by way of coupon deals when dropping Twitter membership for Facebook. A good offer would be in technology offers for software devices, restaurants and especially coffee bucks. Trendy offers that capitalizes on consumer desires and usefulness in the current economic time will be very relevant. Provide new ways to increase membership, which will garner more consideration for a future buyout with Twitter. Beef up screening to reduce the number of underage users and make privacy controls easily available for parental control. This will work as great PR in the eyes of parents and legislators pushing for censorship. Selected Solution to the Problem

The best solution given of the three possibilities that will yield to greater value will be reducing the number of underage users with improved screening processes. With the current technology available, upgrading the specific blockages needed for children under the age of 13 is a priority. Not only would this help build the trust and rapport needed of more parents, it provides the assuridy that Facebook is a proactive and accountable company concerned with the safety of our youth and teens. When abusers are identified there has to be a direct connection to the FBI...

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?
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