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Facebook SWOT & PESTLE Analysis

ID : 5285853| Apr 2019| 15 pages


Business Sector :Social Networking, Technology

Operating Geography :North America, United States, Global

About Facebook :

Facebook was started in the year 2004 by Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes. It’s a profit organization headquartered in Menlo Park, United States which provides social networking and online social media platform for users across the globe to connect with each other. Started in 2004, by Mark Zuckerberg, along with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes, the website restricted it’s membership to Harvard students only. Now it has a global user base and can be accessed via a wide spectrum of devices with Internet connectivity, such as desktops, laptops and tablet computers, and smartphones. The Company's products include Facebook, Instagram, Messenger, WhatsApp and Oculus.
This American social media giant enables people to connect, share, discover and communicate with each other and employs various forms of engagement, including News Feed, which displays an algorithmically-ranked string of stories and advertisements customized for individuals. Facebook first launched its IPO in 2012, valuing the company at $104 billion, the largest valuation to date for a newly listed public company. With over 25,000+ employees, as of 2018, Facebook provides a platform to people to stay connected with each other, stay abreast with the most updated happenings in the world and to share what matters to them.
Facebook’s mission statement reads “Our mission is to give people the power to build community and bring the world closer together.” Facebook Inc.’s USP or unique selling proposition lies in being one of the largest social media companies of the world helping people to share, express, discover, learn and connect and having the power to transform the world.

Facebook Revenue :

$ 40,653 million – FY ended 31st Dec, 2017 (y-o-y growth 47%)
$ 27,638 million – FY ended 31st Dec, 2016

Competitive Analysis of Facebook

The SWOT Analysis for Facebook is given below:
1. Healthy balance sheet with strong financials
2. Global presence
3. Unlimited potential in terms of integration with other applications
4. User addictive interface
5. Vast spectrum of products capturing user engagement on multiple fronts
1. Advertising is the only major revenue source
2. User privacy and security scandals
3. Negative publicity and dented company reputation
4. Crackdown on third party apps
1. High potential innovation and venturing into unchartered territory
2. Enhancement of mobile advertising market with supporting tools
3. Venturing into augmented reality and artificial intelligence
4. Instagram
1. Uncertain user loyalty
2. Governments banning Facebook usage
3. Personal data security breaches
4. Instagram caught in the ire of fake fashion products
5. Pressures on the Company to curb user engagement
6. Failure of the company to control fake news problem
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Detailed SWOT Analysis of Facebook



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1. Advertising is the only major revenue source: The major source of revenue for Facebook Inc. is advertising. Facebook earns its bread and butter substantially from selling advertising placements to third parties advertising on Facebook, Instagram, Messenger, and third-party applications and websites. For 2017, 2016, and 2015, advertising accounted for 98%, 97% and 95% , respectively, of this American social media pioneer’s revenue. Ads enable marketers to reach people based on a variety of factors including age, gender, location, interests, and behaviours. This sole dependency on advertisements for revenue is an innate weakness of the Company as revenues could be adversely impacted due to decrease in user engagement, improper targeting efficiencies, pricing policies, competition and legal developments or government interventions.

2. User privacy and security scandals: The personal data of users for Facebook Inc. products are stored on cloud servers which are accessible across world. With increase in identity theft issues, Facebook Inc. has got embroiled in many controversies and scandals. The company trailed into 2018 with a damaged reputation, and concerns about abuse, hate speech and privacy. Perhaps the worst scandal Facebook hit in March 2018, when news broke that data consulting firm Cambridge Analytica used Facebook data on behalf of the Trump campaign to target and influence voters in the U.S., which violated the social network's rules. By and large, 87 million Facebook users got impacted by the Cambridge Analytica data scandal, a figure that was originally pegged at 50 million. More so, the social networking platform was allegedly used to spark a genocide of Rohingya Muslims in Myanmar, played a role in Russian interference in the 2016 U.S. presidential election, and, most recently, beans were spilled about Facebook hiring an opposition research organization to tie its opponents to George Soros and even accuse them of anti-Semitism. Facebook stocks steeply slid in light of these revelations, as they apparently sealed controversies about Facebook’s failure to protect user data. The rage and anguish of the people resulted in massive protests against the stock, sparking a #DeleteFacebook campaign at one point.

The remaining section of “Weakness” is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.

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Facebook SWOT & PESTLE Analysis - SWOT & PESTLE.COM

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Facebook SWOT and PESTLE analysis has been conducted by Supreet Panigrahy and reviewed by senior analysts from Barakaat Consulting.

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Facebook SWOT & PESTLE Analysis
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