Facebook's Business Model and Fake News Case Study Analysis

This case study analyzes Facebook's business model, its impact on users, and the controversies surrounding fake news in the post-truth world. It delves into the reasons why people use Facebook and explores the platform's role in shaping public opinion and the spread of misinformation. The analysis...Read More

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author note

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Table of contents
Introduction......................................................................................................................................2
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................3
Conclusion.......................................................................................................................................4
Reference list...................................................................................................................................4

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Introduction
Facebook has become one of the popular social networking sites in the global media platform
(Hassan, Nadzim and Shiratuddin 2015). Increasing numbers of users with huge traffic, face has
brought unique marketing opportunities for different companies. The purpose of this study is to
describe the significant impact of Facebook in human life. Analyzing the business model adopted
by Facebook its sustainability in the market has been analyzed.
Question 1
Facebook Inc is a popular American online social media networking cite, which was founded in
the year 2004 by Mark Zukerberg, Eduaardo Saverin, Andrew McCollum, Chris Hughes and
Dustin Moskovvitz. Within last few years the company has improved its market share with
increasing numbers of uses. Analyzing the major reason behind increasing numbers of Facebook
users, it has been identified that as large numbers of people are in Facebook, this is the reason
others use the Facebook (Pucihar et al., 2017). With the total numbers of 1.3 billion users,
Facebook has become one of the popular platforms for getting connected with friends and
families. In order to make the world connected and open to the people. Analyzing the mission of
Facebook it has been identified that the company aims to bring the unique marketing
opportunities in the market as well as it also plays an important role in case of maintaining the
connection with friends and family. In the words of Brettel et al. (2015), Facebook helps to
discover the world and help to express and share the opinion to the world. People use Facebook
as it has the features of uploading videos and photos. Registering own profile in Facebook,
people can send messages. In case of sharing creative ideas of individuals, Facebook can be
considered as the important platform, which can ensure the people engagement.
Question 2
The criticism and Scandal have brought an important impact on the image of Facebook. In the
current scenario, CEO Mark Zukerberg has introduced new regulation in case of outlining the
four law areas. By following the General data Protection regulation the company tries to
maintain the privacy policies and others regulatory operations (Heyman 2016). In the year 2016,
the company banned fake news as well as illegal disrupted sites. A new plan has also been
introduced by the CEP in terms of detecting the misinformation. After the completion of integral

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investigation the company has adopted the strategy in terms of ensuring thee confidentiality as
well as authenticity of the shared information. In case of political controversies, the company has
banned 30000 French accounts in terms of ensuring the political stability. In that case, it can be
said that like others social media platforms, Facebook does not need to introduced more
regulatory framework as it has already developed effective regulations in its strategic operations.
Question 3
The business model, which is being developed based on advertising can play an effective role for
ensuring the sustainability in the market. The strategic decisions of the company have been
adopted for ensuring the long term engagement of the users. Introducing a steady stream of
advertising, the company aims to diversify its services. It cannot be denied that revenue if the
company comes from advertising (Fleisch, Weinberger and Wortmann 2015). The business
model based on advertising can ensure the long term user engagement. Analyzing the potential
sources of revenue, it has been identified that customer subscription, supply charges and
advertising are the important revenue sources. The economic building operations of Facebook
gets influenced due to the accessibility of the users. By continuing this, it can also be said that in
both the international and national market, Facebook tried to maintain the strict media rules.
Especially in the remote regions, the company has spread its popularity. It cannot be denied that
in the current social media platforms, Facebook is maintaining its monopoly business, which has
increased its competitiveness. In case of ensuring the privacy assurance and managing
information exchange process, the company has tried to maintain its service standard. In the year
2017, the new strategic direction of Facebook has been introduced by Zukerberg, in which the
company has mentioned about the improvements of social infrastructure (Pucihar et al., 2017). In
case of contributing towards the global community, the company has tried to introduce isolation
and diverseness. In that case, it can be concluded that the company can play an important role in
terms of ensuring the company can be able to maintain its sustainable position in the global
social media platform for the long term.
Conclusion
In this study, it can be concluded that Facebook has become one of the important contributors in
the social media platforms. Due to its increasing popularity, various challenges has been created

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controversial image of the company from the last few years. The strategic initiatives, which have
been adopted by the CEP can effectively ensure its sustainability.
Reference list and bibliography
Brettel, M., Reich, J.C., Gavilanes, J.M. and Flatten, T.C., 2015. What drives advertising success
on Facebook? An advertising-effectiveness model: Measuring the effects on sales of “likes” and
other social-network stimuli. Journal of Advertising Research, 55(2), pp.162-175.
Fleisch, E., Weinberger, M. and Wortmann, F., 2015. Business models and the internet of things.
In Interoperability and Open-Source Solutions for the Internet of Things (pp. 6-10). Springer,
Cham.
Hassan, S., Nadzim, S.Z.A. and Shiratuddin, N., 2015. Strategic use of social media for small
business based on the AIDA model. Procedia-Social and Behavioral Sciences, 172, pp.262-269.
Heyman, R., 2016. Facebook & Users: Who is Using Who? A Material Semiotic Approach to
the Irreversibilisation of Facebook as a Case of Lifeworld Colonisation by Social
Media (Doctoral dissertation, Ph. D., Brussels, Belgium: Vrije Universiteit Brussel).
Makeuseof.com 2019. Retrieved from: https://www.makeuseof.com/tag/10-reasons-people-still-
use-facebook-ask-results/ [Accessed on 29th May, 2019]
Pucihar, A., Borštnar, M.K., Kittl, C., Ravesteijn, P., Clarke, R. and Bons, R., 2017. Use of
Facebook and Google Platforms for SMEs Business Model Innovation. 30TH Bled eConference:
Digital Transformation–From Connecting Things to Transforming Our Lives, p.169.