Global Strategic Management: Analysis of Facebook's Business and Corporate Strategy

This article explores the global strategic management of Facebook, including the business and corporate strategy used by CEO Mark Zuckerberg. It covers external and internal environment analysis, Michael Porter's generic strategies, blue ocean strategy, and contemporary strategic issues in strategy.

Global Strategic
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
The business and corporate strategy used by CEO in an organisation...................................3
External and internal environment analysis (PESTEL)..........................................................4
Michael porter's generic strategies.........................................................................................6
Blue ocean strategy.................................................................................................................6
How the Mark Zuckerberg created, developed and designed strategic planning for
FACEBOOK ..........................................................................................................................7
Evaluate the different contemporary strategic issues in strategy..........................................8
corporate examples and literature .........................................................................................9
Recommendation..................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
when a company expands it's business in the other market or at other regions in globally
then it is called as global strategy management. This is used to increase the sales around the
world. This includes world-wide, multinational and international. The company design a
strategy that helps the organisation to achieve their expansion objective. Mark Zuckerberg was
born on 14 may , 1984 and he is the co-founder & CEO of Facebook. He launched
thefacebook.com on 4 February, 2004 with the help of his room-mates in Harvard university. An
online social media platform – Facebook is the most downloaded app in 2010's. In world it is
ranked at fourth internet usage. It is owned by meta platform an American company. A Facebook
is a social site which allows users to contact with one another. This includes the several
features:- chat with your friends, upload a stories which is available for 24 hours, post a pictures
or anything you want to share with your friends. In this you can create you profile for free and
share the videos, pictures, music and many more. With this app you can connect with your
friends, colleagues, relatives who are far from you(Marino, Gini, Vienoand and et. Al, 2018).
This has an option to send a “friend request”, the people you may know or don't know, you can
send the request to be a friend or you can receive the request also. It has the features of privacy
also, where they don't share your personal details with anyone. You can post or share anything
on your timeline with your friends. If you like any post, video you can share that with your
friends or you can tag them in your post. The Facebook can also be use for promotion or
marketing, if you are engaged in a business you can make a page on Facebook where you can
update your daily information regarding your business and can promote your business.
Nowadays, teenagers and even most of the people are there on social site Facebook. They feel
that they can connect and share their views online with everyone. It is a most trending app which
is used by every age of people and it is easy top access.
MAIN BODY
The business and corporate strategy used by CEO in an organisation.
The strategies used by the CEO of Facebook to bring a positive impact on the
organisation. He has faced a lot of challenges during launching the app and also the post
challenges as the people does not easily accept this innovation. The strategy used by Marks to
build a global community is explained below:

 Supportive Community: To build a world wide community which will work for
everyone, first have to create the smaller groups and structure. The goal of the company
is to make the strong existing communities online as well as offline. Basically, in this a
leader makes a community group at physical location and also exceed it to online where
they can share their information. A society needs support in personal, emotional and
spiritual through this communities. It helps to strengthen the community and bring all
together.
 Safe community: To build a global community, it doesn't mean to getting pictures and
videos and share with your friends. It also about building a safe community, that helps
you during the crisis, vent-hole your from the harm and afterwards re-build. The
Facebook creates a community which helps in contributing donation and provide any
kind of help to the other peoples. It has add a feature of safety check, if there is any
problem like disaster or crisis you can let know your friends that you are safe and check
if anyone get harm due to crisis or disaster(Eichstaedt, Smith, Merchant and et. Al,
2018).
 Informed community: The objective to form a community is to take people together.
The aim of a company is to enhance the feature so that people can share their experience.
The idea and strength from various people increases the understanding between people
and have a positive impact n organisation. A community were people get the information
regarding every thing such as news group and religions group made on Facebook.
 Civic-ally engaged community: It includes the engaging in existing parties of politics
to support the system of votings. A community is made where all the information is
provided globally related to the politics. This involves the local representatives, voting
rights and systems, elected leaders and many more.
Facebook is not a technology or just a social media platform but it is to bring member together.
It makes the community groups where people join from different areas and share their
experiences, news and other related information. The CEO uses this strategy to attract the people
towards this platform and engaged people in this. As this will raise the profit of the company.

External and internal environment analysis (PESTEL)
The external and internal factor are responsible for the problems faced by Facebook. The
PESTEL analysis will help the Facebook to evaluate the factors which are responsible for the
hurdles. The PESTEL analysis is explained below:
 Political Factor : This element considers the matter which is concerned with government
authorities . This includes the policy-making rules and regulations involvement such as
tax rates, tariffs, foreign trade policy, labour law and many more. In the context of
Facebook, the company is restricted for the expansion because there are many countries
and states which are not in the favour of this online sharing of information, as a result in
failure of individuals privacy.
 Economical Factor: This is concerned with the economy's condition of country's. It also
includes all the business cycles. With the reference of Facebook, to make a profit
business invest in the advertising if an economy of country is booming. And vice versa
also. The firm tries to target the developing country at the time of booming economy in
order to generate a revenue.
 Social Factor : This is related to the society and social culture. With the relation of
Facebook, it aims to provide a platform to society where an user can connect with their
friends and relatives. This has also involve in the marketing and promotion of products
and services. From past few years it has been observed that people has started to create
their firm pages and introduced their product on the page which helps them to promote
their product(Palmieri and Musi,2019).
 Technological factor : This is related to launching a new product or adding a new
features which can be beneficial for the users. According to Facebook, this company is
based on online technology and it is growing rapidly. The new entrants are the threats to
the company such as twitter. The person who uses smartphones, the technology is
growing at speedy rate.
 Environmental Factor : The natural calamities, climate change and many more factors
related to environment affect the industry. In the consideration of Facebook, change in
climate affect this company because they have to relocate the servers. Legal Factor : It includes all the policies and legal framer work. With the context of
Facebook, the different countries have different laws, rules and regulations. As in the

world wide there is emphasis on patent law and copyright, so the firms have chance to
launch anew products(Oyedemi, 2019).
Michael porter's generic strategies
The porter's generic strategy includes the cost leadership - theory, differentiation, cost
focus and differentiation focus.
 Cost Leadership Theory: The emphasis is on a cost in this market. The company low
down the cost of a product and serve the quality product in a market.
 Differentiation Theory: it includes the unique product. Company tries to deliver a
product which is unique in nature to capture the market and to lead in the market.
 Differentiation Focus: In the niche market, the company's aim is to supply a product
with different attributes.
 Cost Focus: In the niche market, the firm's aim is to provide a product and services at
low price in small market.
In the context of Facebook, the company opt. The cost leadership theory. It means the company
is minimizing their cost in order to gain profit. In the market of competition an organisation
decrease their price comparatively. Instead of raising the cost the company supply their online
media service across the world to generate revenue. This leads to the expansion of social network
of Facebook online. The company is satisfied with this strategy as they have to raise their
membership, at currently they have over 2 billions of active user's monthly(Debnath, Bardhan,
Reiner, and et. Al, 2021).
Blue ocean strategy
The blue ocean states that it has the deep learning and the unlimited scope which
provides the opportunity to grow the business and expand it globally. This strategy is to opted
the differentiation or low cost to expand a market. The face book company uses differentiation in
an organisation and adopt this strategy in different framework. This helps to create the demand
among customers and create awareness, also enter into new market. Under this strategy, the
structure of firm should be flexible and re-create their structure through strategies. This strategy
gives the opportunity to the firm to explore the new markets where the competition is not there
or the existing firms are present there. This will help the firm to create new demand instead of
playing in the same market. This can help the firms to reach to the different markets and attract
the customers. The firms can expand their business globally instead of fighting over in the same

existing markets. By adopting this market strategy the Facebook has rise in their growth and
have increased their profit also. When the Facebook uses this strategy, it eradicates the
competition and modified the rules and furnish them as it is not important and not the relevant
element for the firm(Xu,Vail, Kohli, and et. Al, 2021).
How the Mark Zuckerberg created, developed and designed strategic planning for
FACEBOOK
The idea was developed in the mind of Zuckerberg when he was writing his website. He thought
the music , pictures everything can be share but how to connect with the friends. Then he made a
website which is Facebook where, the friends and fellow mates can be connected and share
everything.
Facebook mission statement is “to give people the power to share and make the world more open
and connected.”
Facebook vision statement is “People use Facebook to stay connected with friends and family, to
discover what’s going on in the world, and to share and express what matters to them.”
 Face-mash( 28 October, 2003)- A second year student of Harvard university, made a
website called face-mash. It was introduced on October 28, 2003.To populate his new
website he used to hack the college's security network and then traced the student's ID
image . Afterwards he faced many challenges of security, violating copyrights and
individual's privacy.
 Facebook (4 February, 2004)- A website Facebook was launched on 4 February, 2004.
initially, this website was only restricted to the Harvard university students. Then he
asked his fellow mates to help him to grow the website. Together they make a team and
then expanded their website to other areas, institutions and universities. For this website
the allegations were also put on the marks as he stolen the idea of networking website
called Harvard connection(MNOUER, 2021).
 Facebook ( The popular social network)- Initially the company's name was The
Facebook. Afterwards when the Napster and Sean Parker became the president of
company named the just FACEBOOK company. In 2005, they purchased the domain
Facebook for $200000. for high school students created a version of network for which
the Accel partners invested 12.7 million in the company. The announcement was made
by Facebook in September 2006, that if anyone who is at-least 13 years old and has a

legal email address can join the company. In 2009, it has become the worlds most used
and popular social sites.
 Facebook Lite (2015)- This was developed for the people who are living in emerging
and developing countries, the availability of limited internet and data usage. Within nine
months it reached to the 100 million users. In 2018, it was intyroduce4d in US also.
Basically this was developed for the users who have old phone where they can access and
it consumes less megabytes and it was only accessible for android users(Kochkinaand,
Riccardi, 2021).
The strategies he used for the Facebook were:
 He was not bound to his table
 To Stay focused on the mission
 Destruct small decisions
 He acts more than he react He takes calculated risk
Evaluate the different contemporary strategic issues in strategy
In the growth and development of a company strategy is essential. There are many
contemporary issues which impacts the business strategy.
 Innovation: It is used in management and organisation for introducing or developing a
new project . In the context of Facebook, the innovation is the biggest concern. Due to
the innovation company gets the collaboration and fulfil the consumers needs.
Innovation is the adoption of changes by an organisation to survive in the existing
market. To lead in the market company has to develop an innovative ideas to attract the
customers. For example: the partnership of HTC with Facebook introduced a mobile
phone in order to increase the mobile gadgets.
 Technology: In a global area it is observed that improving the technology is necessary.
In the different businesses the capital investment on technology plays an important role.
To generate more revenue and save the time the firm has to improve their technology.
For example: as the Facebook was only the website and it expanded into a venture as a
result it is a part of technology improvement(Khoiriah, 2021).
 Information overload: It is observed by the scientist that suddenly changes does not
takes place, everything takes time. So growing or charging does not suddenly takes

place, at least not more than the information. In 2010, the global internet traffic affects
the Facebook strategies. As a result it can't be ignore that if the information get overload
it will affect the working of Facebook.
The resource based theory is a competitive advantage which is used for the long term
achievement of an organisation. It also includes the innovation but it is an internal resource. It
means the resources are helpful for the company to compete with their rivals in competition
market. To lead in a market and survive in a competition market the company uses their
resources in different ways( Balzam, and Yuran, 2022). In the financial execution of company,
innovation is also included. If the firm wants to raise their finance related functioning then the
innovation process can help them to expand their business. Hence, in the success of Facebook
the innovation plays an important role. The internal resources helps the Facebook to be capable
of being an innovative. As a result, an organisation's growth is due to development of new
content and creative individual's idea. In the industry of technology, the Facebook has observed
its ability to compete in market.
corporate examples and literature
The Facebook adopted various strategies like acquisition and monetise the new
organisation. It helps the firm to improve the strength and confront the declination. The company
has opportunity to join the contiguous regions of networking social platforms. Not only
Facebook bust also other firms have applied this strategy. The acquiring of Vodafone by
Verizon is an essential acquisition. In 2013, the acquisition of wireless concept of Vodafone by
Verizon helps the company's to maintain a relation among them in order to control the concept of
wireless. Other firm the sales-force acquired the software company slack. This helps the firm to
increase their investment and expand the businesses in order to end the competition between
organisation(Garnett, 2021). In the growth of Facebook the diversification is also important part.
Due to this the organisation has expand its venture into different grounds of business. As a result
the organisation has enter into the the industries of cellphones and extend the area of providing
the service. In the networking market this strategy provides a chance to the company to grow in
the adjoining market. For example: an Amazon company has grown in the market due to the
diversification strategy. The amazon company is the largest online store across the world. The
company has diversified their business into retail outlets of each and every goods. They sales the
grocery, electronic items, books, and the other necessary or household requirement items. Since

the company has considers the diversification strategy, the net worth of company is significantly
increasing. Hence, the essential strategy for growth is a diversification strategy which allows a
company to extend into venture and provide various products and services, which helps to
increase the base of market(Ali, Yan, Sajjad Hussain et. Al, 2021).
Recommendation
It is recommended that the company should increase its public visual aspect as a secured
platform and socially intended. They have faced many challenges which will help them to clear
the gaps and restrict such critique. Further the company should continue with the monetizing of
other platforms to generate a revenue. As this platform has more than million of users to use this
platform which is the important source of generating the revenue. To gain the support & trust of
the public, the company should pay attention towards their commitment of security and privacy
policy. For enhancing the source of revenue they can develop a payment method just like you
tube. As the Facebook is a leading in social networking market they should also engage in the
manufacturing of mobile phones – as they already have the opportunity to enter in this market
segment. To assure the security of users, they have to invest in the cybersecurity because the
website can be operate on desktop as well as on self phones. Along with this the company should
emphasize on the development of apps that fulfil the wants and needs of youth. This leads to the
innovation and helps the young persons to share their ideas and information. Facebook's target
market is youth but all the age group people can operate this except children. To attract the
children they should include the games also as it will cover entire age group of people. In their
working line they should focus on improving the technologies. With the help of virtue reality
they can develop a digital connection. They should focused on their mission to connect an
individual through internet across the globe. This also have a positive impact on decreasing the
illiteracy and enhance the connective world wide.
CONCLUSION
It is concluded that the Facebook has gained a success as time goes. To maintain the
status of firm in the future is a biggest task for Mark Zuckerberg. The Facebook is a most used
social platform and first networking site. It is used to connect the people across the world and to
share the information and ideas. For this the Zuckerberg has faced many challenges and used the
strategies. The company has also expanded their firm into venture. They had done partnership

with HTC and introduces the new product. It is observed that the diversification and innovation
is the important aspect in the expansion of business.

REFERENCES
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