Strategic Management Case Study: Analyzing Facebook's Strategy

This case study analyzes Facebook's strategic management, examining its mission, vision, and values, which focus on community building and connecting people. It identifies the internet industry as Facebook's competitive landscape, highlighting rivals like Google, Instagram, and Snapchat. The study emphasizes Facebook's strengths, including a strong brand image and innovation capabilities, and its core competencies in social networks and user engagement. The business model, built on value proposition, architecture, and income generation, is user-driven, with revenue generated through user activity and advertising. The analysis explores Facebook's potential to compete with Google, particularly in advertising, by leveraging its large user base and mobile presence. It also discusses Facebook's successful entry into the mobile market and its strategies for maintaining its dominance in the digital advertising space, as well as its ability to innovate and attract users to overcome Google's dominance. The document concludes with a list of relevant references.

Strategic Management

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1.
Mission statement of the company is to give the power to people to build the community and
bring the world close together. Vision statement of the company is to connect the friends and
family and provide the current information related to the world. Focus on impact, build social
value, be open, move fast, and be bold are the values of the company. Mission and Vision
statements states that the position of the company in the form of success and the objective
(Smithson, 2018). Vision of the company is more concise, clear and inspiring which helps the
leaders to develop the strategies in order to achieve the success.
2.
Internet is the industry in which the Facebook is competing. As the developing technology
and more research of the human beings on the advancement of technology brings the new
changes in the services which helps the industry is changing. Instagram, Snapchat, LinkedIn,
Google and Microsoft are also competing with the Facebook. Google are the main
competitors of Facebook because it provides the similar services with the good market value
to the users. The applications target the mobile space due to which the users are attracted
towards these applications but it increases the competition among them. The users spend
more time on twitter and the other applications as per the business basis or for entertainment
basis.
3.
As per the case study, it is founded that the high brand image in the market is the main
strength of the company. The company develop the new changes which is the main capability
of Facebook. Key to new product is an ability of the company to the leverage Holy Grail of
the user’s Facebook. Strong financial performance states the resources of the company which

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can be invest by the company in order to gain the competitive advantage. Social graphs and
networks are the main core competency of Facebook (Bright, Kleiser, & Grau, 2015).
Yes, the resources and capabilities form the basis to gain the competitive advantage.
Resources and capabilities of the company help to gain the competitive advantage. As the
new innovation encourage the new users to login the Facebook Id and use it to interact with
each other. Large number of users reflects the high market share in the industry which helps
to gain the competitive advantage. Facebook is creative which helps it to sustain the
popularity in the growing industry. As the company has strong financial capabilities which
states the Facebook can easily purchase the other social media platform in order to gain the
competitive advantage (Chayka, 2016)..
4.
It is observed that the three pillars is the Facebook’s business model. Three pillars model is
state in the three categories and these are value proposition, value architecture, and income
model. The business model of Facebook is “user driven” because the users do the work on it.
Facebook gets the money as the users use the application for their work. The latest pillar of
the model is Graph Search which allows the users to post their query information. The search
feature of last pillar makes the new connections which help to earn the money. The company
have the different features of connection in which the users contact with each other. The users
also earn the money from this application as the performing the task as an advertiser. Each
and every part of income of application of Facebook currently makes the money (Larsson,
2018).
5. Yes, it is possible that Facebook can easily compete with the Google’s Dominance. It is
necessary for the company to maintain their step for being innovative and attractive for the
clients in order to attract them toward the services. Facebook can overcome the advantage of

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Google in terms of advertising by increasing it cost. Advertisers who have the large
marketing budget may not get the best positions on the search page such as Google page.
They can buy their special page in the Facebook but in the high cost that technique helps the
Facebook to overcome the Google Dominance (Tufekci, 2015).
6.
Facebook entered into the mobile application market as it has the good brand image in the
advertising market. Facebook is converted into the entertainment industry because the people
share their all details from eating breakfast to go at the bed. It gains the high brand image
from the mobile space due to high demanding applications in the mobile phones. As the high
uses of Facebook in the mobile space, Sandberg maintains their image in mobile space and
tries to grow in the market in order to gain the competitive advantage. At the time of high
majority, Google and Facebook offer their services for free to attract the large number of
consumers (Gans, 2016).
Facebook is operating in billions dollars with the high brand image in the market. But the
Google is also operates in billions due to its online advertising services. The services of
Google are exhaustive and dominant as compared to the Facebook. It has been seen that the
users are more attracted by targeting the mobile space. There are many developers use the
Facebook to connect the users with their products. The services provided by the company
helps to beat the Google. Facebook invent the new features with the new techniques which
attracts the large number of users. Large number of users means to beat the competitors in the
competition (Matthews, 2016).

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References
Bright, L. F., Kleiser, S. B., & Grau, S. L. (2015). Too much Facebook? An exploratory
examination of social media fatigue. Computers in Human Behavior, 44, 148-155.
Chayka, K. (2016). Facebook and Google make lies as pretty as truth. The Verge, 6.
Gans, H. J. (2016). Public sociology and its publics. The American Sociologist, 47(1), 3-11.
Larsson, A. O. (2018). The news user on social media: A comparative study of interacting
with media organizations on Facebook and Instagram. Journalism studies, 19(15), 2225-
2242.
Matthews, J. (2016). What are Google's Competitive Advantages?. Retrieved from:
https://turbofuture.com/internet/What-are-Googles-Competative-Advantages
Smithson, N. (2018). Facebook Inc.’s Mission Statement & Vision Statement (An Analysis).
Retrieved from: http://panmore.com/facebook-inc-vision-statement-mission-statement
Tufekci, Z. (2015). Algorithmic harms beyond Facebook and Google: Emergent challenges
of computational agency. J. on Telecomm. & High Tech. L., 13, 203.