Business Case Study: Facebook Marketplace Product Analysis

This report provides a comprehensive case study of Facebook Marketplace, a peer-to-peer sales platform. It begins with an executive summary outlining the platform's purpose and target audience. The report then delves into the history of Facebook and the Marketplace, its product and market analysis, including competitors like Twitter, Amazon, and eBay. The benefits of using the Marketplace are discussed, such as the ease of selling and connecting with a large user base, while also acknowledging disadvantages like limited geographical availability and lack of buyer protection. The report offers a prognosis for Facebook's future, highlighting opportunities in business diversification and product innovation. References to supporting sources are included, providing a well-rounded analysis of Facebook Marketplace within a business context.

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FACEBOOK MARKETPLACE
Executive summary
The company selected in this report is Facebook. The term Facebook refers to a social
networking site that makes it so easy for users to connect as well as share with friends and
families online. The main product that shall be discussed in this report is Facebook Marketplace.
Facebook marketplace is a platform mainly for peer-to-peer sales. It is available on Android as
well as IPhone mobile Applications for 18+ citizens of United States, United Kingdom, Australia
and other parts of the world. It is true that technology has made it easier for the sellers to
distribute their products to many places at the comfort of their premises and homes.
History of Facebook
Facebook remains an American online social networking and social media services based
in California. The company was started by Mark Zuckerberg together with his Harvard college
students as well as roommates Andrew McCollum, Eduardo Saverin, Chris Hughes and Dustin
Moskovitz. Originally created for college learners, Facebook was created in the year 2004
(Bjursten, Andreas and Paulina 2). The original purpose of Facebook was to allow students of
Harvard to use their photos and email addresses to connect with others. Currently, Facebook is
one of the most widely used social networks in the world.
Product and Market
The Facebook products and services include Messenger, Facebook Marketplace,
Instagram, Facebook Media, Boomerang, WhatsApp, Facebook youth portal. Facebook

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Marketplace remains a digital marketplace where people may arrange to sell trade and buy items
with others in their area. Facebook marketplace remains somewhere an individual may easily
obtain a higher number of sales. An individual may even find his/her future home using
Facebook Marketplace. Market place is appropriate destination on Facebook to buy, discover, as
well as sell products with individuals in your community (Ahuja and Shirin 175). It is true that
Facebook has found a suitable algorithm the works for it and remains easy for individuals to use
as well as understand. Many people sell and buy their furniture, trinkets, and clothes on the
social media and make money from it (Gordon, Zettelmeyer, Bhargava & Chapsky 195). The
product shall be shipped directly to the doors of the buyers, and the transaction remains
complete. It is easy, it is quick, and everyone remains getting into it.
Competitors
Some of the main rivals in Facebook’s competitive set include Twitter, Snap, Linkedin,
Pinterest, Amazon, Apple and Microsoft (Love 843).
The comparative advantage of Facebook is the ability to share and connect with many
people around the world. It is also the largest social network in the world.
Benefits of Selling Things on Marketplace
There is no limit to the amount of items an individual may sell which makes generating a
higher number of sales easier than ever. Also, there is no price limit for selling and buying,
which remains good for all. By selecting Marketplace over other available platforms, you may
actually help develop your firm in the process. One thing that remains not permitted is positing
the same product under a different location. For instance, if a person placed a couch sell in Sandy
Springs, but the same put the same couch in Atlanta, Marketplace shall not allow this person to
sell it. Facebook knows when an individual duplicate a post and they do not allow it. Although

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this remains the case, the market for selling remains automatically bigger as compared to it could
be elsewhere because there are numerous Facebook users.
Besides selling items, it is never easier to select new items for your organization. No
more going to expensive stores to purchase simple piece table for your office. Marketplace
automatically shows to the users offer in their area, so buying and selling things for the business
have never been easier. It is true that Marketplace provide opportunity for most businesses to
interact with potential consumers.
Disadvantages of Using Facebook Marketplace
Currently, this system is explicitly available to Facebook users in Australia, New
Zealand, United Kingdom, and United States. This completely inhibits numerous customers from
different parts of the world from using the platform. Also, you may only access Facebook
marketplace if you are using an iOS as well as Android phone. Also, there is no protection of
buyers. There remains little protection for those who buy in Facebook Marketplace. So if
someone sells to the buyer defective products or different from what he/she ordered, the buyer
cannot make claim on the platform. eBay provides return policies, as well as has a feedback
system for reviews, whereas Facebook Marketplace does not.
Prognosis
It is true that Facebook shall be successful in the future. The future of Facebook shall be
all about the family. Particularly, Messenger, Instagram, as well as WhatsApp are some of the
family messaging application that shall steer the growth of the platform. Some of the
comparative disadvantages of Facebook include: The lack of business diversification, lack of
security and privacy, Advertisers short commitment.
The challenges that Facebook will face in the future include:

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Monetization pressure: with the decline of engagement on main News Feed of Facebook,
the company remains under pressure to monetization.
Governance troubles: With more negative feedbacks coming out almost every week, and
workers morale hitting new low, the management shall experience governance troubles in future.
Declining trust in Tech: Many researchers argue that the use of social media has plateaued in the
United States and other tech giants like Apple.
There are a number of opportunities that this company (Facebook) may leverage in order
to be successful. These opportunities include:
Business diversification: This Company has a great opportunity to diversify most of their
activities outside of the core online advertising and social media business. Facebook need to use
their great capabilities in data analytics and Artificial Intelligence to penetrate other market
segment.
Product innovation: There remains a great opportunity for Facebook to great more
innovative commodities based on the experience of users as well as the data they have.

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References
Ahuja, Vandana, and Shirin Alavi. "Using Facebook as a Digital Tool for Developing Trust
amongst Consumers using Netnography and Social Media Analytics: A Study of Jet
Airways." Journal of Relationship Marketing 17.3 (2018): 171-187.
Bjursten, Amanda, Andreas Lampeitl, and Paulina Åberg. "The Social Media Battle of the
Younger Generation-Snapchat vs. Facebook." LBMG Corporate Brand Management and
Reputation-Masters Case Series (2017).
Gordon, B. R., Zettelmeyer, F., Bhargava, N., & Chapsky, D. (2019). A comparison of
approaches to advertising measurement: Evidence from big field experiments at
Facebook. Marketing Science, 38(2), 193-225.
Love, Breana. "The Chaos of the CFAA: Facebook's Successful CFAA Claim Affects Website
Owners, Competitors, and You." Loy. LAL Rev. 50 (2017): 831.