MGT502 Business Communication: Facebook Financials Task B

This assignment, prepared for MGT502 Business Communication, analyzes the financial performance of Facebook, focusing on the challenges it faces in a competitive social media landscape. The paper begins with an introduction highlighting the intensified competition among social networking sites and its impact on Facebook's financial status. The argument section discusses Facebook's strategy of acquiring competitors like Instagram and WhatsApp, while also acknowledging its failure to acquire Snapchat, its biggest competitor. This section also addresses the decline in Facebook users and browsing time, impacting the company's financial performance. The conclusion summarizes the financial losses experienced by Facebook due to the increasing competition and other factors hindering its growth. The assignment is supported by references to relevant academic sources.

MGT502 Business Communication – Task B 0
Title: MGT502 Business Communication – Task B
Assignment Name:
Student Name:
Course Name and Number:
Professor:
Date:

MGT502 Business Communication – Task B 1
Contents
Introduction......................................................................................................................................2
Argument.........................................................................................................................................2
Conclusion.......................................................................................................................................2
References........................................................................................................................................4

MGT502 Business Communication – Task B 2
Introduction
With the emergence of new social media platforms, the competition amongst different
social networking sites has also intensified. It is due to this emergence that has imposed pressure
on the popular and dominating social networking site “Facebook”, which has impacted its
financial status. The following argument exhibits the different aspects that are impacting the
financial performance of the organization.
Argument
It is a known fact that Facebook has the propensity of tackling competition by buying the
competitors in the market. It is due to this approach of the organization that it bought Instagram
in 2012 and WhatsApp in the year 2014. It was an effective strategic approach of the
organization, as both these competitors have successfully reduced the users of Facebook. But the
organization cannot buy all its competitors (Ross, 2019). For instance, the organization failed to
buy Snapchat, which is currently its biggest competitor.
It is due to these emerging new social media platforms that the users of Facebook are
rapidly decreasing. In addition to this, the browsing time of the users on Facebook has also
decreased. The users are more attractive towards Snapchat, Twitter, and even Instagram. This
reduction has impacted the financial performance of the organization majorly (Hofacker &
Belanche, 2016).
Conclusion
With all these different aspects, this can be concluded that the organization's Facebook is
experiencing various financial losses due to the increasing competition in the market. In addition

MGT502 Business Communication – Task B 3
to this, there are various other factors, which are acting as huge barriers in the growth of the
organization, hence affecting the financial status of the organization.

MGT502 Business Communication – Task B 4
References
Hofacker, C., & Belanche, D. (2016). Eight social media challenges for marketing
managers. Spanish Journal Of Marketing - ESIC, 20(2), 73-80.
Ross, S. (2019). The Big Risks of Investing in Facebook Stock. Investopedia. Retrieved 18 March
2020, from https://www.investopedia.com/articles/markets/101315/biggest-risks-investing-
facebook-stock.asp.