As the biggest social networking site (SNS) Facebook pursues the mission of giving people the power to share and make the world more connected. Founded in 2004, Facebook has more than 843 million daily active users and employs more than 3000 people, who maintain website’s operations in more than 70 languages (Fact Sheet, 2012, online).
Today Facebook is the biggest SNS in the world; nevertheless, it is faced with a range of serious business challenges that need to be dealt with timely and effectively in order to ensure the long-term growth of the business. Specifically, the emergence of recently launched Google+ as the main competitor, presents significant business challenges for Facebook taking into account high level of a wide range of tangible and intangible resources possessed by Google.
Moreover, growing personal data security concerns fuelled by media represents another significant challenge for Facebook that threatens the company business perspectives unless dealt with effectively and efficiently. Also, the lifecycle of services introduced by SNS have greatly diminished increasing the importance of innovativeness and creativeness for Facebook.
Furthermore, the world’s biggest SNS is faced with growing numbers of local competitors that possess substantial competitive advantage over the Facebook. Namely, local SNS associated with specific countries develop website’s design and various features taking into account cultural and other differences associated with specific regions whereas Facebook only able to offer standard design and features globally, and thus may find it difficult to attract the representatives of various cultural backgrounds.
- Fact Sheet (2012) Facebook, Availabel at: http://newsroom.fb.com/content/default.aspx?NewsAreaId=22 Accessed April 5, 2012