New! Hire Essay Assignment Writer Online and Get Flat 20% Discount!!Order Now

Facebook Case Study

Social medial has become a powerful tool for any individual, including customers, companies, agencies, and any business model operator. Social media is a platform where people connect and communicate with each other about multiple key factors and strategic elements. Many companies would run their campaigns and ads through the social media platform to engage with a more significant segment of people or consumers. Facebook is considered one of the adequate elements to help understand the strategic approach that would help the business and revenue model. Facebook has been an influential element in enhancing and developing the overall e-business as well as e-commerce management approach. Facebook helps users to develop their accounts and connect with many other users with multiple core features. It is considered to discover and learn about multiple key approaches and elements that would be helpful for the organization. It has been found that Europe has to hold the most significant numbers of users comparing to any other continent.  It is essential to develop SWOT and PESTLE analysis that would help better understand the company in Europe.

SWOT Analysis

The SWOT analysis would be effective and adequate, which would enhance the overall outcome in understanding the company. The chosen tool would include both internal and external environments that would be considered as strengths, weaknesses, opportunities and threats.

Strengths

Facebook has gained a significant and robust brand that has grown in the market. The company has become long-term sustainable, and therefore, it would be considered as an adequate strength. Another strength is its diversified portfolio, as it would help enhance the overall stability of various companies. The diversification and development of more extensive services such as Whatsapp, Messenger, Instagram, and many others are considered a diversified portfolio that would help enhance the company. The dominancy in the market is considered another strength, and it has the most significant users compared to any other social media platform. The higher loyalty rate of the customer base is considered as the major strength.

Weaknesses

The weakness of the brand is that it is facing the issue of privacy of the users. It is going through facing the backlash that the company in poor experiences of the users. The business model of the company (Facebook) is developing advertisements within the platform for revenue. Many users are not comfortable with such a business model. Facebook is also another social media platform that is spreading fake news, and hence, it is facing a lot of criticism.  The friction within the management is another weakness of the company.

Opportunities

Facebook already has a diversified portfolio, and continual diversification would result in the continual expansion of the existing platforms.  The company earns through social media business, and they may enhance their opportunity by diversifying the business model with multiple paid services. Expanding services towards online video streaming, online dating, e-wallet, and many others would create opportunities. Users connecting Facebook from other integrated platforms such as podcasts would create an opportunity for many applications. Facebook has more significant consumer segments, and by adding additional features or specifications, users would be expanded to the older age target population.

Threats

The continual increase of threats towards the competitors has been found that both existing users and new users are reducing the usage of Facebook. There are new entrants such as TikTok that is a customizable platform that would attract many younger generations. The continual increase in the regulation and legislation within Europe would be a threat for the company to operate in Europe. For example, a new transparency policy along with any form of requirement would need accountability. In Europe, Russia has banned Facebook as there are increased fake news and speculations transferred around. Both the European Union and the UK have introduced a new digital tax that would threaten Facebook if they don’t adhere.

PESTLE Analysis

Political Factor

Facebook has faced challenges due to the fake news that can spread very easily due to various numbers and millions of users on a global basis. The Facebook platforms provide complete freedom to post anything on the platforms. Therefore, the company is facing challenges as they were alleged to spread fake news during the US election by the Russian meddling. Therefore, the increasing rate of controversy would result in banning in the country that may impact the overall revenue and loss of the company.  Political ties along with the agenda would result in associated adverse events or outcomes.

Economic Factor

The Facebook platform has helped various small scale business owners to connect with their potential target customers, and hence, the company has successfully improved and enhance the overall economy. It provides a significant business model and platforms that would result in gaining the opportunity to meet the desire outcomes. In some countries or parts of Europe, Facebook has been banned, resulting in a great loss for the company. The changes in the tax structure would also result in a certain impact on the overall economic impact.

Social Factor

The poor or incoherence with Facebook’s core value would result in poor social value. The major value of Facebook was letting the users connect with people and share their values, belief and respect with other people. However, Facebook has changed their value towards gaining revenues through multiple advertisements that have led to fewer people using Facebook although they have their user account. It has been found that the more people watch such advertisements, the more it would occur in the newsfeed. Therefore, Facebook has become an adequate element in promoting the ultimate business pages for the people. The lower quality service would reflect a lower social impact on the overall services.

Technological Factor

The technological impact on Facebook was initially social networking sites that have turned into multiple other services with technological advancement. The messenger application would allow people to connect, message, call, including voice and video calls. The expansion towards acquiring Instagram is another opportunity for Facebook.

Legal Factor

Any form of a security breach of the users would result in significant legal issues in Facebook. It has been found that hackers can easily access the user's personal information and may impact the overall reputation of the people or any company. The European Union has launched a new policy and regulation towards data protection, which has resulted in protecting the data of users. Facebook needs to adhere strongly with the guidelines and policies that would help eliminate any form of penalties or losses.

Environmental Factor

The maintenance of data and usage would result in the need for generating power for developing coal power. Although the emission is very low, one can minimize or cut the overall usage of carbon footprint that would lower the strain as well as the environment. Most of the company is working towards using renewable resources as the core source. On the contrary, Facebook is still working and is based on relying on energy sources such as coal and oil that would provide the power to the data storage centres.

 

Bibliography

Achinas, S., Horjus, J., Achinas, V. and Euverink, G.J.W., 2019. A PESTLE analysis of biofuels energy industry in Europe. Sustainability11(21), p.5981.

Andreou, A., Silva, M., Benevenuto, F., Goga, O., Loiseau, P. and Mislove, A., 2019, February. Measuring the Facebook advertising ecosystem. In NDSS 2019-Proceedings of the Network and Distributed System Security Symposium (pp. 1-15).

Cabañas, J.G., Cuevas, Á. and Cuevas, R., 2018. Facebook use of sensitive data for advertising in Europe. arXiv preprint arXiv:1802.05030.

Corejova, T., Rostasova, M. and Valicova, A., 2020. REMARKS ON THE EVALUATION OF THE STRATEGIC FOCUS OF THE SOCIAL NETWORK. Economic and Social Development: Book of Proceedings, pp.304-311.

Glińska, E. and Rudolf, W., 2019. City brand personality projected by municipalities from central and eastern europe Countries—A comparison of Facebook usage. Sustainability11(19), p.5440.

Lapierre, J., Goyer-Pétrin, G., Philibert, L., Gagnon, M.P., Dupéré, S., Guillaumie, L., Ouellet, M., Bationo, F., Ouedraogo, C. and Rouamba, S., 2020. Perceived outcomes and SWOT analysis of a virtual community of practice in Burkina Faso. European Journal of Public Health30(Supplement_5), pp.ckaa165-909.

McManaman, R.M., 2019. Strategic Audit of Facebook Through the Lens of International Reputation.

McManaman, R.M., 2019. Strategic Audit of Facebook Through the Lens of International Reputation.

Musonera, E. and Weber, J.M., 2018. Analysis of Marketing Strategies in the Social Media: Facebook Case Analysis. Journal of Marketing Development & Competitiveness12(1).

Zankadi, H., Hilal, I., Daoudi, N. and Idrissi, A., 2018, May. Facebook and moocs: a comparative analysis for a collaborative learning. In 2018 6th International Conference on Multimedia Computing and Systems (ICMCS) (pp. 1-7). IEEE.

Zankadi, H., Hilal, I., Daoudi, N. and Idrissi, A., 2018, May. Facebook and moocs: a comparative analysis for a collaborative learning. In 2018 6th International Conference on Multimedia Computing and Systems (ICMCS) (pp. 1-7). IEEE.

Other Company Case Study Analysis

Getting started with EssayAssignmentHelp is FREE

15,000+ happy customers and counting!

Rated 4.7/5 based on
1491 reviews