Facebook Strategic Management

FACEBOOK STRATEGIC MANAGEMENT 1
Facebook Strategic Management
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FACEBOOK STRATEGIC MANAGEMENT 2
Introduction
The primary objective of this assignment is to generate Facebook's strategic analysis.
At first this social networks giant was developed only for Harvard students; however, today
the site has been translated to over 70 languages and is now open for everyone. The mission
of the organisation is to empower its users to share as well as connect and open the world.
With this mission, Facebook works to make the world a global village by enhancing
globalization through increased connectivity. Facebook lacks a clear vision statement, but
the founder explained that the company aims at ensuring that people are always connected to
the rest of the world, offer a platform for free expression and enable individuals to understand
what is happening in around the world. Nonetheless, Mark Zuckerberg, the founder of
Facebook and own the majority of the shares at the organization. The founder, his former
roommate, Dustin Moskovitz and other Facebook employees own more than half the shares
of the company.
SWOT Matrix
External Opportunities External Threats
1. There are market potentials for mobile
payments transactions
2. Brings the internet to all the developing
and third world nations
3. Stabilize the cost of energy with clean
energy through research and development
4. Increased advertisement to increase the
cash flow
5. The lower power of the consumers
6. All Chinese Citizens blocked from
Facebook.
7. Increased diversity of the sources of
revenue
1. The privacy rules in European nations
2. Reduced revenue growth
3. Blockage of Chinese Citizens from
Facebook
4. The development of Ad-block
extensions for all the websites browsers
5. Lack of monetizing the business model
of the company
6. The decrease in of growth of revenue
from 2011
7. Revenue generation overly dependent on
ads
Internal Strength Internal Weakness
1. Facebook has a monthly user based on
close to 1.35 billion
2. The culture of the company is leaned
towards innovation
1. General believes that social media has
to be free
2. The organization sells user information
to advertisers