Facebook SWOT Analysis analyzes, Facebook, Inc. is an internet corporation which runs the social networking website Facebook. Facebook became a public company after its record initial public offering (IPO) on February 2012. Facebook is the largest social networking website and has more than a billion active users. Facebook’s mission is to make the world more open and connected.
Did you know? The color blue used by Facebook was chosen as it’s the color Mark Zuckerberg can see most easily due to his color blindness due to red and green?
With billions of users all over the world, Facebook has managed to grow into a market leader, surpassing all other communication companies. This great success has been attributed to meticulous planning and focuses on technology trends that saw the founders’ capture an uncaptured market segment that it has managed to conquer impressively. In the social media field, some companies tried to stand out, yet Facebook has always managed to stay ahead of the competition.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Facebook.
Facebook At A Glance – Facebook SWOT Analysis
Company: Meta Platforms Inc.
Founders: Mark Zuckerberg | Eduardo Saverin | Dustin Moskovitz | Andrew McCollum | Chris Hughes
Year of establishment: February 2004, Cambridge, Massachusetts, United States
CEO: Mark Zuckerberg
Headquarters: Menlo Park, California, United States
Employees (Dec 2020): 60,654
Ticker Symbol: FB
Type: Public
Annual Revenue (Dec 2020): $73.4 billion
Profit net income (Dec 2020): $21 billion
Products & Services: Social Media Platform | News Feed | Watch | Marketplace | Stories | Messenger | Lasso | Instagram | WhatsApp | Oculus – Virtual Reality Device | Workplace – Business Tool | Portal – Video Calling Device | Calibra – Electronic Payment System | Facebook Dating
Company Website: www.facebook.com
Facebook Competitors
Competitors: Social Media & Messaging – Tencent (WeChat) | Twitter | Pinterest | Snapchat | Bytedance | Vkontakte | LinkedIn
Facebook SWOT Analysis
SWOT Analysis Of Facebook analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Facebook SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Facebook SWOT Analysis. Below Is The Detailed SWOT Analysis Of Facebook.
Facebook Strengths – Facebook SWOT Analysis
1. Strong Brand: A strong brand is essential for long-term stability and stability. In the year 2019, Facebook was ranked as the 5th most important brands according to Forbes. It has $88.9 billion in value for its brand, Facebook is the strongest brand in the field of social media across the globe.
2. Diversified Portfolio: Diversification helps to ensure the stability of businesses by safeguarding their primary financial assets in the event that revenue declines in one area. Facebook recognizes that it is not advisable to put all your eggs into one place, but instead to spread its investments across various areas. In addition to WhatsApp, Instagram, Messenger, Oculus (virtual reality device), Workplace (business tool), Portal (video calling device) along with Calibra (electronic payments system) within its umbrella, the diversification of Facebook’s portfolio is an important strength.
3. Market Dominance: Businesses who have a dominant position in the market are able to leverage their dominant position to benefit. The largest social network in worldwide, Facebook and its family products (Instagram, WhatsApp, Messenger) have a monthly active People (MAP) worth 2.89 billion (Dec 31 January, 2019).
4. Loyal Customer Base: There is nothing that demonstrates a company’s durability, strength and stability more than a huge and growing number of satisfied customers. Around 40 percent of the global population is using Facebook as well as its other family-oriented applications (Instagram, WhatsApp, Messenger) which puts Facebook in a position that is unbeatable.
5. World’s Best Employer: The excellent HR policies of Facebook are widely regarded as among the most effective, not just in the field of social media, but also across other sectors. Facebook is known for its ability to attract and retain top talent within the field. Forbes ranks Facebook within the categories below:
– #147 Best Employers for Diversity 2020,
– #144 World’s Best Employers 2019, and
– #71 America’s Best Employers 2019
6. Visionary Leadership: The visionary and flawless management that is Mark Zuckerberg is something that the majority of businesses around the globe can only imagine. The benefits of Zuckerberg’s visionary leadership include a company stable, culture, profit, innovation, and sustainability with a minimum of internal conflicts within the company’s ranks and management, in contrast to other companies.
7. Focus on R&D: No matter what industry you are in regardless of the industry, success in the digital age demands technological innovation by way of research as well as development. Facebook is among the top companies in R&D expenditure and has increased the amount of money it invests on R&D between $4.8 Billion back in 2015. It will now be $13.6 billion in 2019 which amounts to around 19 percent of its revenues.
8. Strong Advertising Business: While Facebook is associated with social media however, the main source of its revenues comes through advertising. In the year 2019, $69.66 billion (98.5 percent out of the $70.70 billion annual earnings) was derived from advertising.
9. Effective Marketing Strategy: The Facebook marketing strategy is easy. The fact that more than 2 . billion users utilize their services each day make it an extremely efficient and effective tool for marketing.
Facebook’s Weaknesses – Facebook SWOT Analysis
1. User’s Privacy Concerns: Facebook is facing criticism over its inability to protect of users’ privacy. This has led to the company suffering a decline in its popularity in certain regions around the world. If Facebook fails to take action to address privacy concerns of users quickly and efficiently the company is at risk of being stricken from its popularity. In accordance with Edison Research data, Facebook has lost about 15 million users in the last year.
2. Overdependence on Advertising: Facebook’s business model is heavily dependent on advertising to generate its revenue. It is estimated that 98.5 percent of its revenue is derived from advertising. In 2019, out of $70.70 billion revenue per year, $69.66 billion was its advertising revenue.
3. Spreading Fake News: Facebook has come under lots of criticism for distributing false and false information. The fake-news platform’s inability to regulate misleading information could be damaging to the entire society.
4. Friction in Management: Consecutive scandals are destroying the harmonious relationship which existed between the top-level management since the time the company was established. The requirement for accountability has become an issue as management blame others and try for ways to shield themselves from significant scandals like that of the Russia meddling controversy.
5. Allegations of Racial Bias: Recent protests against inequality have exposed a number of actions by Facebook which amount to discrimination based on race. The company has permitted advertisers to deny minorities from certain rights within its social media platform. Additionally, less than 4 percent on Facebook’s staff are Black. The platform has also hindered research into the impact of the platform on minorities groups. The rage against Facebook has forced 700 companies to cease advertisements on its platform, and was compelled to investigate whether its algorithms have a bias towards racial groups.
6. Negative Publicity: In June of 2020 Facebook’s reputation was marred further following the revelation it had terminated one of its employees who had expressed displeasure over Mark Zuckerberg’s reluctance to respond to Donald Trump’s controversial posts.
Facebook’s Opportunities – Facebook SWOT Analysis
1. Diversify Portfolio: Although Facebook Inc. owns WhatsApp, Instagram, Messenger, and many other platforms, the bulk of its revenue from business is dependent on social media and advertisements. Facebook has the potential to expand its offerings beyond the realm of social media.
As an example, create for example, a commercial model with other premium services like online dating, peer-to- peer marketplace as well as hardware devices such as e-wallet, news subscription, etc.
2. Expansion of Existing Platforms: With billions of people using it, Facebook can expand its current offerings, including marketplace streaming video online dating online, electronic-wallet for business, and more.to challenge giants like Amazon, eBay, YouTube, Netflix, Apple, Tinder, PayPal, etc.
3. Enhancing Integration with other Applications: As technology improves as technology advances, more and more websites and apps are connected with each other, allowing users to connect with different platforms. Facebook is able to open its platform for integration with other applications, including surveys, e-commerce, blogs as well as contests, podcasts, videos games, reviews and many more.
4. Target Different Audience: While Facebook is very popular, the main reason behind its popularity are mostly young and tech-savvy. With the introduction of new features, Facebook is able to attract other groups like older generations or premium business platforms like LinkedIn.
5. Expansion via New Acquisitions: Facebook has the capabilities to expand its portfolio by purchasing established companies. It can also buy promising tech start-ups that have the potential to transform the world, much like Facebook did.
For instance, in October 2019 Facebook bought the brain computing startup ” CTRL – Labs” which specializes in transmitting brain signals to computers and then using those signals to complete different tasks.
6. Exploit Changes in Advertising Trends: The large majority Facebook users login to their accounts through mobile applications. Facebook has a great chance to improve its mobile-friendly advertising in order to take advantage of the 26 percent rise in the amount of the number of ads in mobile apps.
7. Offer Remote Work Solutions: Recent events have heightened the need for remote work solutions for remote work. Facebook intends to take advantage of this market opportunity and announced in July of 2020 that it would be expanding the capabilities that it offers in its Messenger Rooms as well as Facebook Live to allow users to host live video conference that can accommodate as many as 50 people simultaneously. These capabilities will allow Facebook to be competitive with service providers such as Zoom as well as Google.
8. Deliver Libra: The need for a global interconnected financial system is growing quickly due to globalization. The Facebook Libra can be perfectly placed to meet the demands.
9. Develop Autonomous Vehicles: Facebook is a major player with experience in Artificial Intelligence and can create self-driving programs for the manufacturers of autonomous vehicles. Rivals such as Apple, Google, and Amazon are already leveraging and profiting from the self-driving automobile market. Some time ago Facebook’s chief operating officer Sheryl Sandberg was at the Frankfurt Motor Show and created excitement over the company’s entry into the automobile industry.
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Facebook’s Threats – Facebook SWOT Analysis
1. Competition: The competition from both old and new platforms is set to decrease Facebook users. With new players entering the field, like TikTok as well as TikTok, create targeted platforms for younger generation the future of Facebook is becoming dim and dimming. To be competitive with TikTok, Facebook has launched its own version of the short fun video platform ” Lasso.”
2. Increased Regulations: The number of negative regulations for Facebook is getting passed and implemented at a rapid pace, driven by recent scandals, such as Cambridge Analytica. Additionally, concerns about security of data, insensitive content as well as infringing the rights of intellectual property have forced various regulatory bodies within Commerce Department to pass rules that force Facebook to comply with the new accountability as well as accountability obligations.
These laws may decrease the amount of Facebook users, since some of its customers could be forced to switch from Facebook to different platforms.
3. Bans in Several Countries: In countries with democratic governments, laws are being enacted to stop fake news, which can undermine democratic institutions, while autocratic government have imposed restrictions on access to Facebook to limit the freedom of expression.
For instance, Facebook is banned in countries like China, Iran and North Korea. Additionally, Russia has recently removed Facebook in its territory.
4. Data Breach: Facebook has had numerous instances when its data was compromised and affected millions of users. For instance, in December 2019, as a result of the time of a massive data breach that affected more than 267 million Facebook users’ personal data (names and user IDs, phone numbers) were exposed to the dark internet.
5. New Digital Tax: In the past, the UK and the EU have introduced a new digital tax which will force Facebook to pay an higher tax, which could affect its declining profits. In the event that the digital tax is accepted by more nations and countries, a significant portion of Facebook’s revenue will be devoted to paying digital taxes.
6. Tainted Reputation: The New Zealand’s terror live stream to Cambridge Analytica data scandal to fake news, and hacked accounts, to mention some, the stunning image and image of Facebook is disappearing at an alarming rate. This is a significant risk.
7. Duplicate & False Accounts: Facebook estimates that from its 2.5 billion (Dec 2019) Monthly Active Users (MAU) across the globe, 11 % might be duplicate accounts, and 5percent could be fake accounts. The majority of fake and duplicate accounts are located in countries that are developing like those in the Philippines, Vietnam as well as Indonesia.
8. Financial Regulations: Since Facebook announced it was going to introduce the Libra digital currency central banks across the globe have joined their efforts to create their own currency. The U.K. The Committee on Payments (CPMI) is laying the foundations of a three-step process that will eliminate the obstacles to transborder payments as well as make it more affordable and easier to transact worldwide. It will be harder to allow Facebook’s Libra to achieve its goals if the majority of central banks sign up to this program.
9. Mass Boycott: In recent years the amount of violent groups that use Facebook to spread hate and discrimination has risen dramatically. Unfortunately, the social media giant has been unable to tackle the problem. More than 750 disgruntled companies have resisted joining Facebook since they don’t wish for their ads to be displayed in the same space as racist and hateful posts. This poses a significant danger as Facebook relies heavily on advertisements.
Facebook SWOT Analysis Template
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