Facebook SWOT Analysis [Update 2022] ❤️

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 that 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

Company: Facebook, Inc.
CEO:  Mark Zuckerberg
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
Type:  Public
Ticker Symbol: FB
annual revenue (FY2019):  US$70.7 billion
Profit | Net income (FY2019):  US$18.5 billion

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Facebook Products & Services

Here Is The List Of Facebook Products:

  • 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

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

A SWOT analysis can be an efficient way to study the factors that make businesses grow or help in the growth of the business. SWOT is a term used to describe strengths as well as weaknesses, opportunities, and threats. The strengths and the weaknesses of a person are internal elements while opportunities or threats come from external ones.

  • strengths: These are the factors that guarantee that the brand and company gain a significant market share
  • Its weaknesses: the shortcoming or disadvantages compared to rivals;
  • Chances: mainly the external variables that could boost or accelerate the growth of the company
  • Risks are one of the issues that could harm a company’s image or earnings.

Facebook’s Strengths

❤️ 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 brand 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.

❤️ Diversified Portfolio: Diversification helps to ensure the stability of businesses by securing their financial assets in the event that the revenue of one industry declines. Facebook is aware that it is not advisable to put all its eggs into one place, but instead to spread its investment across various sectors.

Through WhatsApp, Instagram, Messenger, Oculus (virtual reality device), Workplace (business tool), and Portal (video calling device) with Calibra (electronic payments system) within its umbrella, the diversification of Facebook’s portfolio is an important strength.

❤️ Market Dominance: Businesses that are dominant in their market have the ability to leverage their superior position to benefit. The most popular social network of 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

❤️ Loyal Customer Base: Nothing demonstrates a firm’s solidity, stability, and stability more than a huge and growing number of satisfied customers. Company has 40 percent of the global population using Facebook as well as its family of applications (Instagram, WhatsApp, Messenger) This puts Facebook in a unique position.

❤️ 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

❤️ 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 company stability, culture, profits, innovation, and sustainability with a minimum of internal conflicts within the company’s ranks and management, which is unlike other companies.

❤️ 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 in R&D by $4.8 Billion back in 2015. It will now be $13.6 billion in 2019 which is around 19 percent of its revenues.

❤️ Strong Advertising Business: Although Facebook is associated with social media platforms 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 in annual revenues) was derived from advertising.

❤️ 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.

Facebook’s Weaknesses

❤️ User’s Privacy Concerns: Facebook is being criticized for its inability to protect users’ privacy. This has led to the company suffering a decline in popularity of certain regions around the world. If Facebook fails to take action to address the 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

❤️ 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.

❤️ Spreading Fake News: Facebook has received many criticisms for distributing false and false information. The fake-news platform’s inability to regulate misleading information could be negative for society in general.

❤️ 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

Facebook’s Opportunities

❤️ Diversify Portfolio: Although Facebook Inc. owns WhatsApp, Instagram, Messenger, and other platforms, the bulk of its revenue from the 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-wallets, news subscriptions, etc.

❤️ 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 the business, etc. to challenge giants such as Amazon, eBay, YouTube, Netflix, and Apple, Tinder, PayPal, etc.

❤️ 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, contests and reviews games, etc.

❤️ Target Different Audience: While Facebook is very popular, the main reasons 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 of business platforms with high-end features like LinkedIn.

❤️ 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 the potential to change the world, much as Facebook did.

For instance, in October the year 2019, Facebook bought the brain computing startup ” CTRL – Labs” which is specialized in transmitting brain signals to computers and then using those signals to accomplish different tasks.

❤️ Exploit Changes in Advertising Trends: A large majority of Facebook users log in to their accounts through mobile applications. Facebook has a great opportunity to optimize its mobile-based advertising in order to benefit from a 26 percent growth in the number of ads in mobile apps.

More infographics are available on Statista

Facebook’s Threats

❤️ Competition: 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, creating specific platforms that target younger users the future of Facebook is becoming dim and less dim. To challenge TikTok, Facebook has launched its own version of the short fun video platform ” Lasso.”

❤️ Increased Regulations: The number 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 have 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

❤️ Bans in Several Countries: In countries with democratic governments, laws are being enacted to stop fake news that undermines democratic institutions, while autocratic governments 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.

❤️ 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, a massive data breach that affected over 267 million Facebook users’ personal data (names and user IDs, phone numbers) was made available to the dark internet.

❤️ New Digital Tax: In the past, the UK and the EU have introduced a new digital tax that will force Facebook to pay a 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.

❤️ Tainted Reputation: Starting with New Zealand’s terror live stream to the 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.

❤️ 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, and Vietnam in addition to Indonesia.

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SWOT Analysis of Facebook Inc. – Recommendations

Facebook Inc. is a market leader in social media. This SWOT analysis reveals a few issues that the company needs to address in order to grow and remain profitable. 

In the online advertising market, imitation is a way for other companies to succeed. Cybercrime is also a major target for Facebook. 

These issues demand strategic management initiatives in order to keep Facebook’s appeal as an online platform for communication and information dissemination.

Facebook should diversify its business in order to reduce market risk and exploit potential additional revenue sources to grow the company. 

The company should continue to invest in research and development (R&D), in order to improve its ability to combat cybercrime, which affects users of social media platforms. 

It is important that the business continues to negotiate with governments in order to gain access to markets it does not currently have.


  1. Facebook (2012). Financial Releases. Available at: http://files.shareholder.com/downloads/AMDA-NJ5DZ/2264826225x0x607714/2f174ca3-556b-429a-85d3-bea437ee2e6a/FB_News_2012_10_23_Financial_Releases.pdf
  2. Heussner, K. M. (2012). Internet advertising is still a growth business, but the pace slows. Available at: http://gigaom.com/2012/10/11/internet-advertising-still-a-growth-business-but-pace-slows/
  3. Wikipedia (2013). Facebook, Inc. Available at: http://en.wikipedia.org/wiki/Facebook,_Inc.
  4. Wikipedia (2013). Criticism of Facebook. Available at: http://en.wikipedia.org/wiki/Criticism_of_Facebook

SWOT Analysis of the Conclusion

Everybody knows Facebook. You or someone you know are either on Facebook. Even if the platform isn’t your primary tool, you can still use WhatsApp, Instagram, and Messenger. 

Facebook owns all three of these programs. This begs the question: Can you escape Facebook’s influence and control?

Facebook and Instagram Ads are used by businesses; WhatsApp and Messenger are used by family members to keep in touch. 

Facebook is the most popular social media platform worldwide, despite the privacy scandals surrounding CEO Mark Zuckerberg. However, it remains the king of Social Media.

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