Opportunities1 Facebook is going to continue an aggressive pace of investment. By using the SWOT approach, I was able to focus my attention on the realities of the Facebook organization, and analyze the internal and external factors that the company is currently facing. The SWOT approach essentially lays the groundwork to developing a strategy for the firm, and by capitalizing on its strengths and opportunities, it allows one to determine a path forward for the company. There are a number of weaknesses present in this article that Facebook has been challenged with since its initial public offering back in May.
Increasing number of mobile internet users Users using ad-block extensions Slow growth rate of online advertising Identity thefts Weak business model Strengths Integration with websites and applications.
To enrich user experience and engage more users to use Facebook, the social network has launched many features that would allow closer integration with other websites and producers of applications that run via Facebook.
Easy integration and use of applications results in competitive advantage over other social networking websites that struggle to provide the same level of service.
More than a billion active monthly users. For a social network to grow, it must have users. The more users the Facebook has, the more socially connecting it is.
With one billion active monthly users, Facebook is able to connect people not only locally but globally as well. Facebook has an easy to use interface, is integrated with many website, can connect people through PC or mobile devices, is translated into more than 70 languages and has many more additional features that lack other social networks.
Except Google, no other business has so many data collected on what users like, dislike, needs and how the users behave online. With so much data, Facebook knows what exactly to offer to its users what additional features, what advertisements and how to further improve their experience with Facebook.
Weaknesses Weak CTR of advertisements. Facebook has a lower click-through-rate CTR than an average website, which is only 0. Social network lacks of some features. One source of revenues — advertisements on Facebook. The growth of the revenues directly depends on the growth of users.
This leaves the business very vulnerable and dependent on continuous growth of users, which will eventually be only marginal as the social network has already attracted so many users.
Lack of website customization. Facebook, having so many users that upload personal information to the social network, is a target for attacks that steal passwords and other personal information from the users. Such attacks occur every day and thousands of passwords are stolen. Opportunities Increasing number of people using Facebook through mobile devices.
Currently Facebook has more than million users who use Facebook through mobile devices. Until then, Facebook should prepare itself for such an entry.
Diversify sources of revenue. Facebook heavily relies on advertising on its social network as a source of income, but with being the number 2 website in the world and more than 1 billion active monthly users, Facebook could exploit other opportunities to attract the money.
With so many users and extensive coverage of the world, Facebook is well positioned to open Facebook marketplace. Threats Increasing number of mobile internet users. If the company will be unable to monetize mobile users, it will face decreasing advertising income as more PC users will turn to mobile users.
Users using ad-block extensions. Educated internet users often install extensions that block advertisements from the websites. Slow growth rate of online advertising. Even today, identity thefts are common on Facebook.
For example, slowing growth of online advertising, new social network, shift from advertising on Facebook to other websites, growing number of mobile users Facebook is yet unable to monetize them or failure to diversify source of income. Internet advertising still a growth business, but pace slows.In this Five Forces analysis, such a condition exerts a strong force against the business, despite the social network’s strong popularity (see SWOT analysis of Facebook Inc.).
In addition, low switching costs are an external factor that makes it easy for customers to shift away from the company’s social networking website, mobile apps, and. Liquidity Ratio Analysis Facebook’s current ratio has improved from 5 to This means that Facebook is well positioned to pay off its current liabilities.
This ratio is considerably better than the industry average. Solvency Ratios Analysis Facebook’s Debt Ratio and financial .
Business Strategy Analysis on Facebook 1. Facebook is a social networking service launched in February , founded byMark Zuckerberg with his college roommates and fellow Harvard Universitystudents Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris yunusemremert.com name of the service stems from the colloquial name for the book given tostudents at the start of the .
Opportunities in the SWOT analysis of Facebook The revenue of sales has increased as per statistical report released by Facebook to % growth in Facebook has collaborated with Microsoft for serving banner advertising, and apart from it, there are several ads being showcased on Facebook.
A SWOT analysis identifies the internal strategic factors (strengths and weaknesses) and external strategic factors (opportunities and threats) significant to the business.
In this case of Facebook Inc., such factors pertain to the dynamics of the online social networking environment and online advertising market. To answer that question, let's do a simple SWOT (strengths, weakness, opportunities, and threats) analysis of Facebook's business.
Strengths Facebook, the world's largest social network, has