Business Strategy

Business Strategy

  • Submitted By: jayjie17777
  • Date Submitted: 09/30/2013 7:07 AM
  • Category: Business
  • Words: 4780
  • Page: 20
  • Views: 114

Executive Summary
Facebook’s growing popularity since it was established has made it generate sustainable revenue. However, patenting disagreements have generated law suits against the company, impacting the company’s in brand image negatively. A decline in the use of computers and turning to phones to access Facebook, is another issue that has reduced the company’s ability to generate revenue. Many people and new users are mainly using phones to access Facebook. Stiff competition from social networking sites such as Google +, tweeter, and LinkedIn is another issue that calls for strategic action to ensure growth is sustained by Facebook Incorporated. Looking at the external analysis, it is evident that opportunities and threats are present. Some of the opportunities that exist within the company’s market include; a growing number of Facebook users, expansion into new territories, diversification of the income sources, creation of Facebook market place, mobile advertisement and improved advertising approaches. On the other hand, threats are also present. They include; well established competitors in social networking, legal restrictions and unfavorable policies in some countries, use of the ad-block extensions to prevent advertisements from being displayed on the users’ page, and slow growth rates in online advertisements.
After using the VRIO analysis for the internal analysis of the company, some strengths and weakness have been established. Some of Facebook’s strengths include; the ease of integration of the social website with other websites and applications, availability of over one billion Facebook active users, excellent user experience facilitated by the easy to use user interface, and Facebook’s massive data collection and store that improves on the understanding of the users’ needs and behaviors. Nonetheless, weakness also exists, and they include; the lack of some features on the Facebook platform, existence of a single source of revenue, poor...

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