Facebook Opportunities, Threats, and Strategy Analysis
Main opportunities and threats presented by technological
developments:
Opportunities
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.
Threats
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.