The Strategic Management Style of Facebook

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The Strategic Management Style of Facebook
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Table of Contents
Introduction................................................................................................................................3
A. The business and corporate strategies used by Zuckerberg.......................................4
B. Internal and External Environment Analysis...........................................................5
C. The Strategic Tools or Models Used by The CEO of Facebook..........................7
D. How Zuckerberg Created, Developed, and Designed Strategic Planning.....8
E. Different Contemporary Strategic Issues in Strategy................................10
Corporate Examples and Literature............................................................11
Suggestions/ Recommendations................................................................12
List of References...................................................................................14

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The Strategic Management Style of Facebook
Introduction
Facebook is a technology company and social network based in the United States. The
firm was developed in 2004 by Chris Hughes, Dustin Moskovitz, Eduardo Saverin, and Mark
Zuckerberg (Hall, 2021). The initial idea of starting the company came from Mark
Zuckerberg. Facebook's headquarters are situated in California, Menlo Park. Initially, the
platform was launched in college, where users were allowed to post updates and create
profiles to connect with friends ("Facebook," 2022). With time the site become famous for its
capability to share photos and videos, the like button, and the messaging option. Research
indicates that in the past thirteen years, Facebook has developed into a huge advertising
platform ("Facebook," 2022). In addition, the company has taken the initiative to spearhead
the provision of internet access in underdeveloped nations. Besides, the firm is also venturing
into virtual reality and artificial intelligence. With Zuckerberg as the CEO, Facebook has
grown to include over one billion active clients, whereby most of them access the platform
through its mobile app ("Facebook," 2022). As of 2021, it was the most prominent social site
globally, with around 3 billion users, and almost half of them were utilizing the platform
daily (Hall, 2021). Notably, access to the forum is free; thus, the company primarily earns its
cash from advertisements.
Accordingly, the astronomical growth witnessed in the company is not by accident
but a result of strategic solid, and open marketing planning. Over the years, Zuckerberg has
focused the firm’s plan on the intelligent acquisition, aggressive monetization of users and
rapid development to increase its penetration into the market (Shukaev, 2019, p1). In
addition, Zuckerberg has played a pivotal role in ensuring the success and growth of
Facebook. In this regard, Facebook's CEO, Mark Zuckerberg, has employed several strategic
tools to enhance the firm's organizational performance. Thus, there is a need to describe and

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analyze the strategic management style used by Mark Zuckerberg. Notably, several models
can be applied to understand different business strategies. The paper will assess the business
strategies and strategic tools adopted by Facebook's CEO. It will also explore the external and
internal environment of the company. Lastly, it will examine the different contemporary
strategic issues, justify the stands, and offer recommendations.
A. The Business and Corporate Strategies Used by Zuckerberg
Over the years, Zuckerberg has employed several business strategies which have
brought positive contributions to the firm. One of the effective strategies that Zuckerberg has
embraced is the continuous acquisition of similar start-up companies. The first acquisition by
Facebook occurred in 2009, whereby the company bought FriendFeed for $47.5 million
(Shukaev, 2019, p2). Notably, this acquisition enabled Facebook to compete with Twitter
since FriendFeed was a real-time web. Another significant investment by Zuckerberg was
that of Instagram; this move was made to counter the competition from Snapchat. Essentially,
the main reason for using these strategy patterns is to ensure that Facebook remains relevant
in the social network industry (Shukaev, 2019, p2). In 2014, Facebook acquired the
WhatsApp application for nineteen billion dollars (Shukaev, 2019, p2). This move enabled
the firm to compete effectively with rapidly developing companies such as Google Hangouts,
Kik Messenger, and Line. Thus, the acquisition has been one of the fundamental strategies
that have contributed to the tremendous growth of Facebook as a company.
Another important strategy that Zuckerberg has utilized is the aggressive monetization
of users. According to Ray (2012), Facebook attributes a considerable percentage of its
growth to monetization (p4). According to Zuckerberg, individuals using mobile products are
engaged; thus, they hope to increase engagement while introducing new products and
enhancing their platform (Ray, 2012, p4). In addition, the CEO holds that Facebook is
determined to integrate monetization into its product teams to develop a more valuable and