Strategic Management Analysis of Facebook Inc

Running head: STRATEGIC MANAGEMENT
Strategic Management
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Executive Summary
The report has aimed in the analysis of the strategic management aspects of the company
Facebook Inc to understand their place in the competitive business environment. With the
help of the PESTEL, SWOT and Porter’s Five Forces Analysis, the different strengths,
threats, opportunities and weaknesses have been identified that helped in understanding the
aspects which can be incorporated for the growth of the business and improve the overall
presence of the business in the market. Lastly, the cost leadership strategy has been
considered to be the most effective tool that will make the business of Facebook more
appropriate along with diversification that will be leading to success of company.

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Table of Contents
a) Introduction............................................................................................................................3
Overview of Case of Facebook Inc........................................................................................3
Mission and Vision................................................................................................................4
b) Internal and External Audit of Facebook Inc.........................................................................4
Porter’s Five Forces Model Analysis.....................................................................................4
SWOT Analysis.....................................................................................................................6
PESTLE Analysis...................................................................................................................8
c) Analysis of Current Business Strategies of Facebook Inc.....................................................9
d) Conclusion and Recommendations or Future Strategies.....................................................10
References................................................................................................................................12

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a) Introduction
The report aims in strategic management analysis of the Facebook Inc Company
through the internal and external audit of the company appropriately. With help of SWOT,
Porter’s Five Forces Analysis along with PESTEL Analysis, the different kinds of strengths,
opportunities along with weaknesses are identified that can affect the growth of the company
in the market in a positive or negative manner. Lastly, future recommendations are required
to be provided based on the respective case study that will be appropriate for growth of
company in contrast to the other companies which are competitors of Facebook.
Overview of Case of Facebook Inc
Facebook Inc is one of the American social media and social networking service
provider organizations which is based in Menlo Park, California. The company was
established in the year 2004 and it is headquartered at the United States of America. The
areas served by the organization is the entire worldwide and the CEO of the company is Mark
Zuckerberg. Facebook Inc is considered to be one of the Big Four Technology Firms like
Amazon, Apple as well as Google.
The revenue has increased to a great extent in the last few years and it is US$ 55.838
billion till the year 2018 and the number of employees employed in Facebook Inc is 30275
till the year 2018. The company had more than 2.3 billion monthly users who are active in
status till December 2018 and there are different kinds of media coverage which is
prominent. Facebook Inc offers the products and services wherein it acquired Instagram,
Oculus, WhatsApp and GrokStyle (Facebook.com 2019).