- 1 SWOT Analysis Of Facebook Inc.
- 2 Facebook – At A Glance
- 3 Facebook Products & Services
- 4 Top Facebook Competitors
- 5 Facebook SWOT Analysis
- 6 Facebook’s Strengths
- 7 Facebook’s Weaknesses
- 8 Facebook’s Opportunities
- 9 Facebook’s Threats
SWOT Analysis Of Facebook Inc.
FaceBook SWOT Analysis: The SWOT assessment of Facebook is a way of analyzing the strengths of the company, its weaknesses, opportunities as well as threats which affect the business. Facebook is currently the king of Social Media with over 2 billion active users per month, despite the numerous controversy in the past year.
How is it that it has survived so long? Will it last? This SWOT analysis addresses all of those questions and more.
Facebook – At A Glance
|Founders:||Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz, and Chris Hughes|
|Year of establishment:||February 4th, 2004|
|Headquarter:||1 Hacker Way, Menlo Park, California, U.S|
|Number of Employees (FY2019):||44,942|
|annual revenue (FY2019):||US$70.7 billion|
|Profit | Net income (FY2019):||US$18.5 billion|
Facebook Products & Services
Here Is The List Of Facebook Products:
- Social Media Platform
- News Feed
- Oculus – Virtual Reality Device
- Workplace – Business Tool
- Portal – Video Calling Device
- Calibra – Electronic Payment System
- Facebook Dating
Top Facebook Competitors
|Social Media & Messaging||Tencent (WeChat) | Twitter | Pinterest | Snapchat | Bytedance | Vkontakte | LinkedIn|
|Advertisement||Google | Amazon|
|Business tools||Business tools Microsoft Teams | Slack | Zoom|
|Videos||YouTube |Tik Tok|
|Online Dating||Tinder | Hinge | Bumble|
|Electronic Payment||PayPal | Venmo|
|Peer to Peer Marketplace||Letgo | OfferUp | Craigslist | eBay|
Facebook SWOT Analysis
Here is the detailed guide on Facebook SWOT Analysis.
1) Strong Brand
The importance of having a solid brand is essential for long-term stability and stability. In the year 2019, Facebook was ranked as the 5th most valued brands in the world by Forbes. It has $88.9 billion in value of its brand, Facebook is the strongest brand in the field of social media worldwide.
2) Diversified Portfolio
Diversification helps to ensure the stability of businesses by securing their financial assets in the event that the revenue of one industry declining. Facebook is aware that it is not advisable to put all your eggs into one place, but instead to spread their investment across various sectors.
Through 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 are dominant in their market have the ability to leverage their superior position to benefit. The most popular social network in all time, Facebook and its family products (Instagram, WhatsApp, Messenger) have a monthly active People (MAP) valued at 2.89 billion (Dec 31 January, 2019).
More infographics are available on Statista
4) Loyal Customer Base
Nothing demonstrates a firm’s solidity, stability and stability more than a huge and growing number of satisfied customers. The company has 40 percent of the global population is using Facebook as well as its family of applications (Instagram, WhatsApp, Messenger) This puts Facebook in a unique position.
5) World’s Best Employer
The excellent HR policies of Facebook are considered to be among the best , not only within the field of social media but also across other sectors. Facebook is known for its ability to attract and keep top talent within the business. Forbes placed 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 exemplary and visionary direction that is Mark Zuckerberg is something that the majority of businesses around the globe can only imagine. The results of Zuckerberg’s visionary leadership include a company stable, culture, profits, innovation, and sustainability with a minimum of internal conflicts within the company’s ranks and management, which is unlike other companies.
7) Focus on R&D
No matter what industry you are in regardless of the industry, success in the digital age is dependent on technological advancement by conducting R&D. Facebook is among the top companies in R&D spending , and has increased its investments into R&D between $4.8 Billion back in 2015. It will now be $13.6 billion in 2019 which is around 19 percent of its revenues.
8) Strong Advertising Business
Although Facebook is associated with social media platforms but the primary source of its income comes via advertising. In the year 2019, $69.66 billion (98.5 percent out of the $70.70 billion annual revenues) 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 daily makes Facebook an extremely powerful and efficient marketing tool.
1) User’s Privacy Concerns
Facebook is being criticized for its inability to protect of users’ privacy. This has led to the company suffering a decline in the popularity of 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 loss of its popularity.
In accordance with Edison Research data, Facebook has lost about 15 million users in the last year.
More infographics are available on Statista
2) Overdependence on Advertising
The business model of Facebook is heavily dependent on advertising revenue. It is estimated that 98.5 percent of its revenue is derived from advertising. In 2019, out of $70.70 billion in annual revenue, $69.66 billion was its advertising revenue.
3) Spreading Fake News
Facebook has received many criticisms for distributing false and false information. The fake-news platform’s inability to regulatemisleading information could be negative for society in general.
4) Friction in Management
Consecutive scandals have shattered the unity that existed between top management since the time the company was established. The necessity for accountability has become an area of weakness as top executives blame each other and attempt to shield themselves from significant scandals like that of the Russia meddling controversy
1) Diversify Portfolio
Although Facebook Inc. owns WhatsApp, Instagram, Messenger, and other platforms, the bulk of its revenue from business is dependent on advertising and social media. Facebook has the potential to expand its reach beyond the social media sector.
As an example, create an example commercial model that includes additional premium services like online dating, peer-to- peer marketplace and hardware such as e-wallet, news subscriptions, etc.
2) Expansion of Existing Platforms
with billions of people using it, Facebook can expand its existing offerings like marketplace streaming video online dating online, electronic-wallet for business, etc. to challenge giants such as Amazon, eBay, YouTube, Netflix, Apple, Tinder, PayPal, etc.
3) Expanding integration to other Applications
As technology develops increasing numbers of websites and apps are connected and allow users to join different platforms. Facebook allows its platform to be integrated with other applications like surveys, e-commerce, blogs and podcasts and videos, contestsand reviews games, etc.
4) Target Different Audience
While Facebook is very popular, the main reason behind its popularity are mostly younger and more tech-savvy. Through the introduction of new features Facebook could be able to draw in other groups, such as the older generation or business platforms with high-end features like LinkedIn.
5) Expanding through New Acquisitions
Facebook has financial resources that allow it to grow its portfolio by purchasing established businesses. Additionally, it has the ability to buy promising technology startups that have potential to change the world, much like Facebook did.
For instance, in October the year 2019, Facebook bought the brain computing startup ” CTRL – Labs” that is specialized in transmitting brain signals to computers and then using those signals to accomplish different tasks.
6) Exploit Changes in Advertising Trends
A large majority of Facebook users log into their accounts through mobile applications. Facebook has a great opportunity to optimize its mobile-based advertising in order to benefit from an 26 percent growth in the number of the number of ads in mobile apps.
More infographics are available on Statista
Competition from both traditional and new platforms is set to cut down Facebook users. With new players entering the market, such as TikTok as well as TikTok, create specific platforms that target younger users the future of Facebook is becoming dim and less dimmer. To challenge TikTok, Facebook has launched its own version of the short fun video platform ” Lasso.”
2) Increased Regulations
The amount of regulations that are unfavorable for Facebook is being enacted and implemented at a rapid rate, which is fueled by recent scandals, such as Cambridge Analytica.
Furthermore, issues related to data security, insensitive content as well as the infringement of IP rights has forced various regulatory bodies within the Department of Commerce to pass rules that force Facebook to comply with the new accountability as well as accountability standards.
The new laws could decrease the amount of Facebook users, since some of its users could move from Facebook to different platforms.
There are more infographics on Statista
3) Bans in Several Countries
In countries with democratic governments, laws are being enacted to stop fake news that undermines democratic institutions, while autocratic government restrict 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 been able to ban Facebook in its territory.
4) Data Breach
Facebook has had numerous instances in which its data was compromised and affected millions of users. For instance, in December of this year, during an massive data breach which affected over 267 million Facebook users’ personal data (names and user IDs, phone numbers) was made available 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 greater tax that could hurt its declining profits. In the event that taxes on digital transactions is accepted by more nations the majority of Facebook’s earnings will be used to pay digital taxes.
6) Tainted Reputation
Starting with the New Zealand’s terror live stream to Cambridge Analytica data scandal to fake news, and hacked accounts, to name some, the stunning image and image of Facebook is disappearing at an alarming rate. This poses a serious risk.
7) Duplicate & False Accounts
Facebook estimates that from its 2.5 billion (Dec 2019) Monthly Active Users (MAU) across the globe, 11 % could be duplicate accounts and five percent are fake accounts. Most fake and duplicate accounts are located in countries that are developing like Indonesia, the Philippines, Vietnam in addition to Indonesia.