Preview

Swot Analysis of Facebook's Current Situation

Better Essays
Open Document
Open Document
1392 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Swot Analysis of Facebook's Current Situation
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.

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



Cited: De La Merced, Michael J. "Behind the Huge Facebook Loss at UBS." DealBook. New York Times, 31 July 2012. Web. 11 Sept. 2012. <http://dealbook.nytimes.com/2012/07/31/behind-the-huge-facebook-loss-at-ubs/>. Eldon, Eric. "Facebook 's "€œSponsored Stories"€ Ads On $1 Million Daily Run-Rate, Half From Mobile." TechCrunch. TechCrunch, 26 July 2012. Web. 10 Sept. 2012. <http://techcrunch.com/2012/07/26/facebooks-sponsored-stories-ads-on-1-million-run- rate-half-from-mobile/>. Ludwig, Sean. "Facebook Invests in Underwater Fiber Optic Cable to Fish for More Asian Users." VentureBeat. VentureBeat, 5 July 2012. Web. 10 Sept. 2012. <http://venturebeat.com/2012/07/05/facebook-asia-underwater-cable/>. Lynch, Christopher. ReadWriteWeb. Rep. Socialtext, n.d. Web. 12 Sept. 2012. <http://www.readwriteweb.com/reports/social-layer>. Yarow, Jay. "Here 's One Of The Biggest Risks To Facebook 's Business That Gets Overlooked." Business Insider. Business Insider, 27 June 2012. Web. 13 Sept. 2012. <http://www.businessinsider.com/facebooks-payments-revenue-2012-6>. Zacks Equity Research. "Decent 2Q for Facebook." Zacks Investment Research. Zacks Investment Research, 27 July 2012. Web. 9 Sept. 2012. <http://www.zacks.com/stock/news/79828/decent-2q-for-facebook>.

You May Also Find These Documents Helpful

  • Powerful Essays

    Considering that Facebook is a relatively new organization, it is still leading, building and sustaining performance excellence as it keeps ahead of its hefty competitors such as Google Inc., MySpace Inc., and Twitter Inc. tomention a few. Last year in November 2010, Facebook surpassed Google in “pageviews” and it accounted for 1 in every 4 pageviews in the US (brandchannel.com 2010). Plus as, based on its estimated value of $41 billion, it is the third largest web brand in the US behind Goolgewith$192.9 billion and Amazon at $74.4 billion, also it is important…

    • 3099 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Facebook has proven to be a successful marketing tool in allowing companies to advertise to consumer that find the related products interesting and relevant. With social media being an important part in our life, it’s no wonder that companies use Facebook to reach its target audience. “Whilst, some may argue, that adopting a ‘pay-to-play’ marketing strategy may have driven some users away, Facebook is in many ways still a valid and valuable marketing tool.” (Corbett)…

    • 476 Words
    • 2 Pages
    Good Essays
  • Better Essays

    But Facebook's people problem isn't limited to executive retention. The hot startup with over 200 million users also has a surprisingly hard time recruiting new employees -- from top executives to college grads to star Googlers.…

    • 7494 Words
    • 30 Pages
    Better Essays
  • Good Essays

    Agoda is using Facebook to advertise its services (Appendix 5). Facebook is a kind of social networking that allows people to receive information and ideas all over the world (National Association of Countries, 2015). Facebook has social-media features such as home page, groups, events, posting photos and videos that can connect with old and new friends and share the same interest in a platform. Companies can create institutional profiles via the“Facebook Pages” feature (ibid). A Facebook page allows anyone to like the page and can view and share the latest updates such as links, videos, notes and comments.…

    • 551 Words
    • 3 Pages
    Good Essays
  • Good Essays

    mgt 409 case analysis

    • 719 Words
    • 2 Pages

    II. The first strength of Facebook is its wide range of audience and higher user loyalty due to its easiest mode of communication. According to the Cousepack, there are 200 million people access Facebook via a mobile device each day. And they visit the site 40 times per month and "creates 90 pieces of content each month in average. The second strength is its strongest brand name and unique endorsement function that successfully attracts tons of merchants to put in advertisement on the homepage. The third will be its simple and clean layout which enable users at different age group easily use. The fourth will be its different language versions that allow international uses access. The fifth will be its proprietary currency “Credits” for payment processing. As a kind of virtual currency, it helps Facebook generates more revenue. The first weakness is privacy concern. Since Facebook encourage users to open themselves in a wider public, it potentially uncovers users’ privacy and their corporate security through information exchange. The second one is limited functionality of mobile app. Full-sized screens won’t be present on mobile application. And advertisements can’t place on mobile application without compromising the user experience. The third one is poor protection for users. Since there is no…

    • 719 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Facebook hit 2 billion users this year but most young people are not logging on as much now that they rather use other social media platforms like Snapchat, which is setting Facebook up for an overall decline. Even though the loss of the younger population is not good for Facebook, investors are more likely to keep…

    • 494 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Facebook began in February 2004. It was founded by Mark Zuckerberg and his collegiate comrades at Harvard University. Rapidly expanding, Facebook’s exponential growth led to its membership growing to over one billion users, as of September 2012. One would imagine that with such growth would come more opportunities for challenges to arise: one of these challenges being users and their rights to privacy. As part of Facebook’s advertising system, their primary means of generating revenue, Beacon sent data from other companies and websites to Facebook. Following a lawsuit, Beacon then changed to accommodate these requests. On December 5, 2007, Facebook declared it would allow users to choose not to participate in Beacon in which the owner of Facebook apologized for the dispute. When approaching a solution to this ethical dilemma, Facebook had a couple alternative decisions they could make. They could leave the Beacon system as it was, they could change the Beacon feature to accommodate requests, or they could delete the feature all together. Using the various ethical approaches to determine which option was best in determining how to solve their issues; one option would prove most logical. Under the utilitarian approach, choosing to keep the Beacon feature would not be the best decision to make. Changing the Beacon feature to allow users to choose to participate or opt out of using the feature. In the end, with this option, more would be satisfied, making it the best choice under this ethical approach. Facebook’s overall reasons for changing the feature spanned farther than just making users happy, it dealt with compliance with the law, so I feel that the positive outcomes from the change will outweigh any potential negative outcomes in the future.…

    • 1967 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    Globalisation and Facebook

    • 2337 Words
    • 10 Pages

    Fowler, G.A. (2012) The wall street journal E.U,(ed). Facebook: One Billion and Counting. [Online] Available: http://online.wsj.com/article/SB10000872396390443635404578036164027386112.html. [Accessed: 01/04/2013]…

    • 2337 Words
    • 10 Pages
    Best Essays
  • Good Essays

    What is the most terrible nightmare to users devoted to Facebook? Let’s think about disruptive innovation having been achieved by Facebook. Facebook subscribers of 0 person in 2004 became reached to 800 million people within 6 to 7 years. However, this is nothing more than start. It is expected that users will exceed 1,000 million people in 2012 and be nearly equal to total populations of China or India. Facebook, which has encroached on the market quickly by new mode and supplements on existing SNS, could be said as a representative example of disruptive innovation.…

    • 535 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Hachman, M. (2012, April 23). Facebook now totals 901 million users, profits slip. Retrieved July 20, 2012, from PC Magazine: http://www.pcmag.com/article2/0,2817,2403410,00.asp…

    • 2270 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Hachman, Mark (2012 April 23). Facebook Now Totals 901 Million Users, Profits Slip. PC. Retrieved July 24, 2012 from http://www.pcmag.com/article2/0,2817,2403410,00.asp…

    • 2180 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Facebook’s value driver is dependent on how well they adapt to their ever-growing pool of…

    • 1753 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Facebook is the world’s largest social networking service that helps people communicate more efficiently with their friends, family, and coworkers. In 2012, according to The New York Times, Facebook has more than 800 million active users around the world. The public favours Facebook as a way to “keep in touch with friends;” however, people, especially the younger generations, have become strongly attached to Facebook without realizing its negative effects. In fact, people who advocate the use of the social network are putting themselves in jeopardy.…

    • 1210 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Pop Culture Analysis Paper

    • 1367 Words
    • 6 Pages

    The prospectus that Facebook filed to the U.S. Securities and Exchange Commission on Wednesday Feb. 1st included a list of the company’s potential risks, inside financial details and statistics on the website’s growth. The IPO filing is optimistic but there are some issues Facebook shows concern with: the merchandising of user information. If they disclose personal information in an improper way or if hackers access their database, Facebook will face problems. They could also take a hit if its users get overly concerned about the privacy policies, an issue which was mentioned 35 times in the filing. Therefore, Facebook wrote they must avoid having policies related to sharing data which are perceived in a negative way by their users.…

    • 1367 Words
    • 6 Pages
    Good Essays
  • Best Essays

    Facebook Case Study

    • 2579 Words
    • 11 Pages

    In a nutshell, Facebook is one of the top 4 new social media platforms (the others being Youtube, Twitter and LinkedIn) that allows for users to interact, influence…

    • 2579 Words
    • 11 Pages
    Best Essays