Global Corporate Strategy: Success and Failure of Facebook

Running Head: GLOBAL CORPORATE STRATEGY
1
Global Corporate Strategy
Of Facebook
(Student Details)

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Executive Summary
The report highlights the journey of Facebook, its success and failures. The company has the
largest users from all around the world; still its path was not very smooth. The success and
failure of Facebook can be applied by other social media platforms to sustain their growth in the
future. In this report the reasons behind the success and failure of Facebook is discussed in brief.
It also states the important strategic tools that Facebook should apply in order to run smoothly in
the future. The strategic tools that have been used in this report are VRIO Analysis and Porter’s
Five Force Model. The study mentions the importance and ways of implementing the Global
Corporate Strategy for every business in the present scenario.

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Contents
Introduction......................................................................................................................................4
Question 1........................................................................................................................................5
Success of the group........................................................................................................................5
Failure of the group.........................................................................................................................8
Question 2......................................................................................................................................10
Strategic tools................................................................................................................................10
VRIO Analysis...........................................................................................................................10
Porter’s Five Force Model.........................................................................................................12
Recommendations to sustain success in the future....................................................................15
Question 3......................................................................................................................................16
Strategic lessons that Facebook case study offers.........................................................................16
Question 4......................................................................................................................................19
Global Corporate Strategy in today’s business world...................................................................19
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

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Introduction
Facebook is an American social networking and online social media company based in
Caligornia. The founders of Facebook are Mark Zuckerberg, Eduardo Saverin, Dustin
Moskovitz, Andrew McCollum and Chris Hughes (Treadaway & Smith, 2010). It is
categorized under the Big Four companies of technology along with Apple, Google, and
Amazon. Initially the website founders gave membership only to the students from Harvard,
Columbia, Yale and Stanford. But now Facebook is the fastest growing networking site
worldwide. Every user can make registration and create their account without any fee. Facebook
helps the users to fill information about them and share it with others (Vander, 2010).
Mission Statement
Facebook’s Mission Statement is “to give people the potential to bring and build the world closer
together” (Vander, 2010).
Vision Statement
Facebook’s Vision Statement is “People use Facebook to stay close with family and friends, to
discover the new things going on the world, and to express and share their concern” (Vander,
2010).
Objective
Facebook’s initial objective was to design an online place for students to share events,
announcements and personal news; but now it has become a platform for marketing and doing a
business (McKenzie, 2019).

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Policies
Facebook has developed a set of policies of Community Standards to describe the list of things
that are allowed and not allowed on Facebook (Facebook, 2019). The goal is to encourage
positive expression and to create a safe environment. It develops its standards from time to time
in order to remain stable and authentic.
Question 1
Success of the group
Initially, Facebook was just a platform, where students could share information and
communicate. Today, the entire scenario has been transformed to a broader concept as it can be
used for adverting and business as well (Wittkower, 2010).
 Facebook’s Advertising is highly effective
When Facebook was started, no one guessed that it would become what it is at present. It has
more than 2.2 billion monthly and 1.5 billion daily users. This trend is not going to change any
soon as users are becoming habituated to the waves of new information era. It is considered to be
a top advertising online platform. In US 51% of advertising is done through Facebook and this is
explained in the following figure.

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(AdEspresso, 2019)
It is clearly shown in the diagram that Facebook has increased its advertising revenue when
compared to its last decade. Companies started to advertise their products and services on
Facebook because, through Facebook their sales started to increase. It is a simple process that
delivers the results fast. Through Facebook the companies reached their ideal audience. It
provides thousands of ways to reach the target audience. Facebook Ads are highly customizable,
new features can be added every month. The recognized brands who use this platform for
advertisement are HSBC, Nestle, McDonalds and DELL.
 Billions of users
Another success story of Facebook is that it has billions of users. Other sites do not enjoy this
advantage. People are addicted to Facebook and usually tend to spend hours on it as compared to
other sites (Hoefflinger, 2017).