Facebook Inc. Report

  • Published: January 2017
  • 9293 Words
  • 39 Pages
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Facebook Inc. is a social media giant that owns Facebook, Instagram, WhatsApp, Oculus and a range of other e-commerce businesses. Founded in 2004 in Harvard University dormitory by Mark Zuckerberg and several of his classmates, Facebook emerged to become the most popular social media site in the world attracting more than 1.13 billion daily active users and 1.03 billion mobile daily active users (Stats, 2016).

Facebook’s mission statement is “to give people the power to share and make the world more open and connected” (Annual Report, 2015) and the company generates revenues from selling advertising placements to marketers. Facebook business strategy is associated with an extensive and continuous focus on user experience, growth via acquisitions, new product development and continuously exploring the new ways of monetization.

The social media company employs more than 12600 people globally and in 2015 the company generated revenues of USD17.93 billion, which is an increase of 44% year-over-year and ad revenue was of USD17.08 billion, which is an increase of 49% compared to the previous year (Annual Report, 2015). Facebook has been successful in efficient capitalization on mobile advertising and its evolving role as a news source for increasing numbers of its users has positive implications on the long-term growth prospects of the business. At the same time, the social media company is not free of weaknesses and its major weaknesses include the dependence of revenues only on advertising, challenges in sustaining the growth rate of revenues and the dependence of the business on a few key personnel such as Mark Zuckerberg and Sheryl Sandberg.

Facebook Inc. Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Facebook. Moreover, the report contains analyses of Facebook’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.

1. Introduction
2. Business Strategy
3. Leadership
4. Organizational Structure
5. SWOT Analysis
5.1 Strengths
5.2 Weaknesses
5.3 Opportunities
5.4 Threats
6. PESTEL Analysis
6.1 Political Factors
6.2 Economic Factors
6.3 Social Factors
6.4 Technological Factors
6.5 Environmental Factors
6.6 Legal Factors
7. Marketing Strategy
7.1 7Ps of Marketing
7.2 Segmentation, Targeting & Positioning
7.3 Marketing Communication Mix
7.3.1 Advertising
7.3.2 Sales Promotion
7.3.3 Events & Experiences
7.3.4 Public Relations
7.3.5 Direct Marketing
7.3.6 Personal Selling
8. Porter’s Five Forces Analysis
9. Value-Chain Analysis
9.1 Primary Activities
9.2 Support Activities
10. McKinsey 7S Framework
11. Corporate Social Responsibility (CSR)
11.1 CSR Programs and Initiatives
11.2 CSR Criticism
12. Recommendations

List of Figures

Figure 1 Facebook Inc. Organizational Structure
Figure 2 Facebook monthly active users (in millions)
Figure 3 Facebook Porter’s Five Forces
Figure 4 Most popular social networking websites in the USA (as of August 2016)
Figure 5 Facebook Value Chain Analysis
Figure 6 Facebook Inc. business operations mapping
Figure 7 Facebook McKinsey 7S Framework

List of Tables

Table 1 Facebook Inc. SWOT analysis
Table 2 Facebook segmentation, targeting and positioning
Table 3 Facebook CSR performance

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  • Published: January 2017
  • 9293 Words
  • 39 Pages