Strengths And Weaknesses of Facebook

As well as the opportunities and threats in the global social media and online advertising market can be acknowledged through the SWOT analysis of the business. While Facebook remains one of the foremost players in the market. Facebook must interesting issue that the company must address to continue in the global market position. Correspondingly, the company must adjust its global Facebook’s social networking website the company must adjust its global strategies and internal factors along with changes in the external factors that affect the business, the company must adjust its global strategies In this method, Facebook can confirm that its weaknesses are contained and its strengths are sufficient to compete the global market.

Strengths: Firstly, Facebook strengths support its market position as one of the prime player in the social media market and the internet advertising that build business attractiveness. Secondly, Facebook social network’s status comes with a strong brand image, which is measured as strength. Thirdly, the company develops its business as a reliable social media service provider.

Get quality help now
Dr. Karlyna PhD
Verified writer

Proficient in: Business

4.7 (235)

“ Amazing writer! I am really satisfied with her work. An excellent price as well. ”

+84 relevant experts are online
Hire writer

In relation, the company’s large customer base is a strength that brings a numbers makes of beneficial externalities. Finally, Facebook’s organizational culture contributes to innovativeness in the workforce. This strength enables product development which is a growth the global strategy. Therefore, Facebook has the strength to maintain its competitive advantage and attractiveness in the online advertising market.

Weaknesses: The Company suffers from a number of weaknesses based on the nature of its business, social media and online advertising technologies create weaknesses that enable competition, which uses a force on firms in the industry.

Get to Know The Price Estimate For Your Paper
Number of pages
Email Invalid email

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related email

"You must agree to out terms of services and privacy policy"
Write my paper

You won’t be charged yet!

Imitable products and services negative sways of online advertising on user experience, low diversification of business. Facebook’s website, mobile apps, and services are social networking website, mobile apps, and associated services are imitable in terms of basic types. Facebook has internal strategic weakness because it makes the company vulnerable to competition. For example, Twitter, google can develop their social networking service to directly compete Facebook and online advertising because users could perceive advertisement as a nuisance in social media experience.

Additionally, the company suffers from a low level of diversification, which maximize the company suffers from a low level of diversification, the vast majority of the company’s earnings are generated through its social networking websites and related mobile app. Finally, Facebook must report its weaknesses to reduce market risk exposure and to increase potential business growth. A number of opportunities are available for Facebook to grow its social media business globally. It enumerates that the company can exploit to improve its business environments. Opportunities for Facebook are business diversification, product innovation and market penetration and development. Facebook has the opportunity to diversify outside its core social media and online advertising business.

For example, the company acquired Oculus virtual reality which is a virtual reality technology business that can balance social networking service. But, diversification needs to reduce Facebook’s business risk exposure. Another opportunity is for the organization to innovate products that are balanced to its social networking website and mobile apps. Additionally, market penetration and development can increase membership and revenues in line with Facebook generic competitive strategy and the intensive strategy. This indicates the need for the company to reform dome of its strategies and management direction to ensure continuous growth.

Threats: The company experience risks linked to threats in the social media and online advertising industry environment. Facebook must address the threats against its international business such as imitation, Cybercrime and Market saturation. Firstly, Imitation is one of the major’s threats to the business, considering that other firms could develop social networking websites and mobile apps similar to those of Facebook. Imitation is threats because it has the potential to reduce the company’s market share. Secondly, Facebook with increasing membership the company is now an attractive cybercrime target. Facebook with increasing membership, the company is now an attractive cybercrime target. Finally, Market saturation could lead to business growth plateau or inaction. Therefore, it is crucial that the company develop new product and related technologies and enter in the new businesses.

Recommendations of new strategic global plan to overcome the negative press of the last 20 months Facebook can get benefits from its market position in the social media business. But, this strategic global plan points out a number of issues that the company must address to maintain its growth and profitability. For instance, imitation enables other firms to compete in the online advertising industry. Likewise, Facebook is a prime target for cybercrime. These issues require new global strategic management initiatives to maintain the company’s status as an attractive site for online communication and information broadcasting. I recommended that Facebook diversify its business to minimize market risk exposure while exploiting possible additional sources of revenues to keep the organization growing.

Another commendation is that the company must continue its research and development investments to increase its capabilities in offsetting cybercrime that make a victim of users of social media services. The business must also continue its efforts in negotiating with governments to open up markets where it presently has insignificant or no presence. Conduct a VRIO analysis of your employer or the Minnesota State University, Mankato (if you are not full-time employed). I worked at Nike for a number of years while in high school and college. Below is my analysis. To cope with two pressures of cost reduction and local responsiveness, global firms have four possible strategic choices and four organizational structures to choose from.

Explain each strategy and structure, state advantages and disadvantages.  At least one example for each organizational structure. Strategy Home Replication: It emphasizes international replication of home country-based competences such as production scales, distribution efficiencies, and brand power. Advantages: Leverages home country-based advantages and relatively easy to implement and expand. Disadvantages: Lack of local responsiveness, may result in foreign customer alienation.  Localization: it is an extension of the home replication strategy. Localization strategy focuses on a number of foreign countries/regions, each of which is viewed as a stand-alone “local” market commendable of significant attention and adaptation.

Maximizes local responsiveness. Disadvantages: High costs due to duplication of efforts in multiple countries, too much local sovereignty. Global standardization: global standardization is the development and distribution of standardized products worldwide to secure the maximum benefits from low-cost advantages. Advantages: Leverages low-cost advantages. Disadvantages: Lack of local responsiveness, too much-centralized control.   Traditional strategy aims to capture the best of both worlds by trying to be cost efficient and locally responsive. In addition to cost efficiency and local responsiveness, a third hallmark of this strategy is global learning and diffusion of innovations and invention. Advantages: Cost efficient while being locally responsive, engages in global learning and diffusion of innovations. Disadvantages: Organizationally complex, Difficult to implement.

International Division It is typically set up when firms initially expand in the overseas, often engaging in a home replication strategy. Advantages: able to replicate efficient business models. Disadvantages: foreign subsidiary managers, whose input is channeled through the international division, are not given sufficient voice relative to the heads of domestic divisions. Second, by design, the international division serves as a “silo” whose activities are not coordinated with the rest of the firm that focuses on domestic activities. Company example: Cardinal Health Geographic area structure: It organizes the MNE according to different geographic areas.

Fascinatingly and unexpectedly, both the strengths and weaknesses of this structure lie in its local responsiveness. Although being locally responsive can be a virtue, it also encourages the disintegration of the MNE into highly independent, hard-to-control “fiefdoms”. Corporate example: Mittal Steel Global product division: it is the opposite of the geographic area structure, supports the global standardization strategy. Advantages: This structure greatly facilitates attention to pressures for cost efficiencies because it allows for consolidation on a global (or at least regional) basis and reduces incompetent duplication in multiple countries. Disadvantages: local responsiveness suffers. Company example: European Aeronautic Defense and Space Company.

Global matrix: it is a hallmark that sharing and coordination of responsibilities between product divisions and geographic areas to be both cost efficient and locally responsive. Advantages: alleviates the disadvantages associated with both geographic area and global product division structures. Disadvantages: Have to report to multiple managers. Company example: Boeing, Dow Chemical Some of the most corrupt countries are Somalia, South Sudan, Syria, Afghanistan, Yemen, and Sudan. Some of the least corrupt countries are New Zealand, Denmark, Finland, Norway, and Switzerland. The United States scores 75 out of 100 on the corruption perceptions index, ranking #16 out of 168 countries. This indicates that the United States is not seen as being very corrupt.

One of the main aspects of this study is that it is using qualitative data to create quantitative results, meaning it is very difficult to measure. Some reasons that people may perceive the US governments to be somewhat corrupt are issues like Trumps campaign colluding with Russia, and Hillary’s “pay to play” Clinton foundation. These issues go to show that even in the United States, we have room for enhancement. When looking at formal and informal institutions between the United States, New Zealand, and Denmark, there are a lot of similarities. Because all three countries have strong economies and good formal institutions, informal institutions play a huge role. All three countries conduct business following norms, cultural guidelines, and act ethically.

Also, the norms and values in all three countries are very similar, possibly because a lot of people from New Zealand and Denmark have immigrated to the United States, allowing those values and beliefs to spread in the United States. All three countries also have strong beliefs in freedom of speech, which typically leads to less corruption because people have the power to speak out when they spot corruption in their formal institutions. A key difference between highly corrupt countries and those who aren’t is that more corrupt countries seem to be smaller and more penurious, while less corrupt countries seem to be economically strong, first world countries. There appears to be a strong correlation between per capita GDP and corruption as well.

Cite this page

Strengths And Weaknesses of Facebook. (2021, Dec 30). Retrieved from

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

get help with your assignment