has come a long way since it first officially launched in 2004 by Mark Zuckerberg. Only wanting Facebook to be used as a
directory for Harvard students, he found that the site had a greater potential
and widening to surrounding universities brought more of that potential. By May
2005, the website was in use at more than 800 colleges and universities and received
$12.7 million in investment from venture capital firm Accel Partners. (Rothaermel
and McKay) By the end of September 2006, Facebook had
over 12 million monthly active users and earned $48 million in revenues and had
secured $27.5 million in investments from top companies. Facebook reaches over 1.3 billion users
worldwide and in 2014 revenues reached $12.46 billion.
Inc. SWOT analysis
Facebooks strong brand name has
made it one the most popular social networking websites and has registered
itself as a dependable social media provider.
The larger consumer base has advanced more newer users, advertisers to
advertise, and makes other social media outlets compete. With higher revenues, Facebook is more financially
sound to invest for more research and development. With the data that is collected from users on
Facebook, it can tell what advertisements to show, likes and dislikes, and how
to improve the users experience.
Products and services can easily be copied
for their basic functions and features for other social media outlets. With advertising on Facebook makes up a big
portion of their revenue, many users can see this as an annoyance and could
stray away from their site. Lack of limited
protection, can lead to hackers stealing personal information and passwords. The collection of Facebook user’s private
information is stored and sometimes sold or used for Facebook own purpose. Treatment of this information makes a
negative impact and can lower the popularity of Facebook.
and developing newer products that are complementary to Facebook and its mobile
application. With their mobile
application, Facebook can design a platform that can showcase ads, which can
increase their revenue. However, advertising
is greatly relied on as a source of income and Facebook could explore other
sources to make money.
In the world of technology, identity theft
has become a common occurrence. With the
increasing number of users on Facebook, it is becoming harder to protect them
and with this, could damage their reputation.
The increase of the market capacity could lead to business growth due to
the popularity of Facebook. Products and
services can easily be copied for their basic functions and features for other
social media outlets.
Analysis of Facebook, Inc.
political factors that affect Facebook is reaching everyone worldwide, while
diversifying its business to countries with opportunities in the market for
advertising and expanding social media. How
Facebook is reached, is determined on that countries governmental support of
globalization. It is noted that in most
of North America, South America, Asia, and Europe, Facebook reaches anywhere
from 40 to 60 percent of Internet users, while Germany, South Korea, and Japan
where penetration rates are less than 35 percent. (Rothaermel
and McKay) The Chinese government has blocked Facebook
and leaves a gap in the company’s social network. (Rothaermel
factors play a part in the growth of Facebooks business. They can increase their market opportunities
in developing countries with growing economic steadiness. This can lead to an increase in a countries
telecommunication system. Countries have
the opportunity to raise disposable incomes to allow users to purchase other
devices to access Facebook.
increase of on-line buying worldwide, has given Facebook the opportunity to
develop services to profit that is gained through their website and mobile
applications. There is also a
contributing way of improving service standards and keep clients that pay for
advertising services. These a just a couple of the social factors for Facebook.
Technological factors have become more
advanced for Facebook throughout the years.
Since it was started on-line, Facebook has had the opportunity to branch
out in the mobile world. There has been
a steady growth in mobile device use and they can develop and improve a more
fast, reliable experience for the user by means of their mobile
applications. However, there is an
increase in competition with other social media outlets, Google+, Twitter, and
Microsoft, that try to attract users from Facebook.
factors for Facebook would be implementing better waste disposal polices for
the corporate offices. In the years to
come, they could have to relocate servers and equipment to a different location
due to climate change. They can help improve
their stance on environment issues through their own social media outlet. The legal factors would consist of laws that enforce
restrictions and requirements for Facebook.
New products that are introduced should have legal protection.