Facebook Opportunities, Threats, and Strategy Analysis

Main opportunities and threats presented by technological developments:


1.      Increasing number of people using Facebook through mobile devices:
Facebook has an opportunity to create a platform that could be used to display ads for mobile users and increase firm’s income.
2.      Expansion to China:
Facebook should prepare itself for such an entry.
3.      Diversify sources of revenue:
Facebook with being the number 2 website in the world and more than 1 billion active monthly users, could exploit other opportunities to attract money.
4.      Open Facebook marketplace:
With so many users and extensive coverage of the world, Facebook is well positioned to open Facebook marketplace. If successful, it would bring more revenues than the advertising, thus boosting company’s growth and future prospects.


1.      Users using ad-block extensions:
Many internet users often install extensions that block advertisements from websites. The growing number of such users is threatening Facebook’s model as they can’t see advertisements and click on them.
2.      Slow growth rate of online advertising:
Online advertising is slowing down which is threatening the growth of Facebook’s advertising income.
3.      Identity thefts:
Identity theft is common on Facebook. The more identities are stolen the more criticism Facebook will receive and strongly damage its name
4.      Weak business model:
Facebook’s aim is to attract social network users, display the ads for them and charge the businesses for the ads. Facebook may face difficulties if some conditions change that are not in control. Thus, slowing growth of online advertising, and new social networks coming up will shift from advertising on Facebook to other websites. Also, despite the growing numbers of mobile users Facebook is yet unable to fully monetize that platform.

Based on the nature of the company/industry, create a strategy for company’s relations with:

1.      Shareholders
Mark Zuckerberg controls a majority of Facebook’s voting rights, and will continue to enjoy that control even after they are public, according to an unusual arrangement he struck with some key investors and colleagues among Facebook’s shareholders.
 Zuckerberg only owns 28.2 percent of the shares, the additional gives him an additional 30.6 percent of the voting power, leaving him with a total of 56.9 percent of the shareholder voting power. That gives Zuckerberg full control of the company’s decision making.
2.      Government
Facebook. strives to represent transparency and trust in all there aspects services, including the approach that responds to government data requests.
Facebook released their first Global Government Requests Report, which includes the following:
§  Which countries requested information from Facebook about users
§  The number of requests received from each of those countries
§  The number of users/user accounts specified in those requests
Governments make requests to Facebook seeking account information in official investigations. The vast majority of these requests relate to criminal cases.
3.   Customers
The Statement of Rights and Responsibilities derives from the Facebook Principles. Because Facebook provides a wide range of Services, they may ask users to review and accept the terms that apply to their interaction. Although, Facebook attempted several user right violation that was lately surprising things their policies have allowed to do:

1. Data is kept forever, even if you leave

 Facebook added a straightforward account deletion option in 2010..

2. Telling your friends what you buy online

Facebook’s had an ad platform called Beacon, which companies like Travelocity and Fandango could automatically post items to users feeds indicating that they had bought products. Eventually Facebook added an opt-out option.

3. Tracking your movements across the web

Facebook says this tracking is used to show user a personalized experience on other sites to help maintain and improve their service, and to protect both the users and Facebook from malicious activity.
4. Using facial recognition software to spot you in photos
Many users were worried about having their facial logged on Facebook servers. Currently Facebook is working with the U.S. Department of Commerce to draft a voluntary code of conduct on how to use facial recognition software.
4.   Employees
Facebook employees are expected to act lawfully, honestly, ethically, and in the best interests of the company while performing duties. Facebook as a number one social media company in the world should always be determined to build a better and a more connected place for everyone.
5.      Civil Society Organization
 Facebook is embedding deeper into our daily lives. It means a wonderful new way to connect societies and cultures. Thus, it means analytics are available to governments and this could have some significant consequences in terms of civil society. Facebook  plays a main role in public opinion and is used by citizen groups to organize. Despite the complains that comes over Facebook’s about confusing privacy rules we continue to use the services they offer. 

Finally, Facebook could offer the use of predictive analytics to governments to assign certain services. This could range from public transportation to waste removal and management.