For 2017, 2016, and 2015, advertising accounted for 98%, 97% and 95% , respectively, of this American social media pioneer’s revenue. It is known to attract and retain top talent in the industry. Copyright by Panmore Institute - All rights reserved. Facebook has been under a lot of criticism for spreading fake and misleading information. About 98.5 % of its annual revenue comes from advertising. In the fiscal year 2020, iPhone sales of $137 Billion represent half (50%) of apple’s overall revenue of $274 Billion. As technology advances, more and more applications and websites are integrated, allowing users to connect via other platforms. This element of the SWOT analysis indicates the need for the company to reform some of its strategies and management direction to ensure continuous growth. See more of Business Consi on Facebook. such as online dating, peer to peer marketplace, hardware devices, e-wallet, news subscription, etc. However, this SWOT analysis points to the need for further diversification to reduce Facebook’s business risk exposure. A management consultant and entrepreneur. He is passionate about analyzing and writing about businesses. or. With billions of users, Facebook can expand its existing services such as marketplace, online video streaming, online dating, business tools, e-wallet, etc. PepsiCo’s Strengths. Tell us what you think? Recently, the UK and the EU introduced a new digital tax that will require Facebook to pay a higher tax threatening its dwindling profits. The following are Facebook’s main strengths: Facebook Inc.’s social network’s popularity comes with a strong brand image, which is considered as strength in the context of this SWOT analysis. It is known to attract and retain top talent in the industry. See our Privacy Policy page to find out more about cookies or to switch them off. This is a major threat. Facebook is without a doubt, the giant of the social media platforms.It has been the king for years. Also, the company must adjust its strategies and internal factors along with changes in the external factors that affect the business. External factors that impede business growth are outlined in this element of the SWOT analysis. By introducing new features, Facebook can attract other target segments such as older generations or high-end business platforms such as LinkedIn. Ambrose, J. In this element of the SWOT analysis, weaknesses are internal factors that prevent or reduce the company’s success. Detailed Overview with SWOT PDF Template included. Chat with us! These competitors influence the threats and opportunities that impact Facebook’s strengths and weaknesses. Facebook Community Boost: Helping to Create Jobs and Provide Digital Skills Across the US; Training 1 Million People and Small Businesses in Europe by 2020; Training 1 Million People and Small Business Owners Across the US by 2020 Facebook SWOT Analysis 2018. Facebook's mission is to make the world more open and connected. Recent research on team and organizational diversity: SWOT analysis and implications.Â, Johnson, D. (2017). Facebook’s Strengths 1) Strong Brand. Facebook’s excellent HR policies are regarded as one of the best not only in the social media industry but also globally across all other industries. The fact that over. Facebook is one of the global leaders in R&D spending and has increased investment in R&D from $4.8 Billion in 2015 to. It currently remains the King of Social Media with over 2 billion monthly active users, despite repeated controversies over the last year. Facebook is the largest social networking website and has more than a billion active users. Facebook SWOT analysis. SWOT analysis (strengths, weaknesses, opportunities, threats) may be the most famous strategic planning technique. Another opportunity is for the organization to innovate products that are complementary to its social networking website and mobile apps. Full Story. Dec 1, 2020, 08:30am EST | Abandon The SWOT: Instead, PLOT A New Strategy To Deal With Uncertainty. Gupta understands how to create and implement business strategies. Also, with increasing membership, the company is now an attractive cybercrime target. Did you find this article interesting? 2. Anything you can do to set better goals and give your social presence more purpose is … Furthermore, market penetration and development can increase membership and revenues, in line with Facebook Inc.’s generic competitive strategy and intensive growth strategies. These issues require strategic management initiatives to maintain the company’s status as an attractive venue for online communication and information dissemination. The number of unfavorable regulations to Facebook is being passed and adopted at an alarming rate, fueled by recent scandals such as Cambridge Analytica. In 2019, Facebook was. SWOT Analysis of Facebook: Conclusion A SWOT analysis of Facebook means examining the strengths, weaknesses, opportunities, and threats affecting the company. Press Release Global Call Center Market 2020 Trending Technologies, Developments, Size, Share, Swot Analysis and Forecast to … Nothing communicates a company’s strength, stability, and success more than a large and ever-growing number of extremely loyal customers. Best Global Brand – According to Forbes 2019 ranking, PepsiCo is ranked # 29 most valuable brand with a brand value of $18.8 Billion. As new entrants to the field, such as, In an attempt to compete with TikTok, Facebook has launched its own version of short, fun videos platform “, The number of unfavorable regulations to Facebook is being passed and adopted at an alarming rate, fueled by recent scandals such as, , and infringement of intellectual property rights have prompted several regulatory bodies in the department of commerce to enact regulations that will force Facebook to adhere to, For example, Facebook is banned in countries such as, Facebook has experienced many instances where its data was breached, affecting millions of its users. A majority of Facebook users access their accounts via mobile app. 21 Jun, 2020 Fitbit SWOT Analysis. December 18, 2020 at 11:18 PM. Facebook Inc. benefits from its market position in the social media business. Wearing Dior Diorshow Pump n Volume mascara today - who's tried it? Facebook is facing backlash over its negligence in the protection of user’s privacy, with the company experiencing a decline in popularity in some regions across the world. This element of the SWOT analysis enumerates the external factors that the company can exploit to improve its business situation. Here’s Why FedEx Sees Potholes on the Road Ahead. If the company does not address users’ privacy concerns promptly and effectively, it risks losing its popularity. Activating activism: Facebook trending topics, media franchises, and industry disruption.Â, Leigh, D., & Pershing, A. J. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. This internal factor enables product development, which is a growth strategy. According to Edison Research data, Facebook has lost about 15 million users since 2017. Apart from it Facebook’s revenue from ads has also grown fast. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. Regardless of the industry, success in the digital age requires technological innovation through research and development. In the recent months, the network has been through a series of issues related to user generated content and user privacy. Google SWOT analysis for 2020, analyzing the strengths, weaknesses, opportunities, and threats before the company. Facebook SWOT analysis. In addition, issues with data safety, insensitive content, and infringement of intellectual property rights have prompted several regulatory bodies in the department of commerce to enact regulations that will force Facebook to adhere to new transparency and accountability requirements. For example, in December 2019, during a major data breach, over 267 million Facebook users’ personal information (names, user ID, phone numbers) was exposed to the dark web. In 2019, Facebook was ranked #5 most valuable brand by Forbes. Even though Facebook is synonymous with social media networks, the major source of its revenue is from the advertisement. The fruits of Zuckerberg’s strong visionary leadership include company culture, stability, increased profitability. The main competitors of YouTube are Facebook, Vessel, Vimeo, Flickr, Dailmotion, Metacafe, Photobucket, Veoh, Bit.tube, Snapchat, Netflix, Twitter, BuzzFeed and Vice. This SWOT analysis considers such internal strategic factor a weakness because it makes the company vulnerable to competition. For example, the company acquired Oculus VR, which is a virtual reality technology business that can complement social networking services. Facebook business model relies heavily on advertising for its revenues. The Guardian; Sainato, M. (2020, January 14). Headquarter of the company is located in California, US. Share your thoughts and experiences in the comments section below. Having a strong brand is vital both for stability and long-term sustainability. In 2019, $69.66 billion (98.5% of its $70.70 billion annual revenue) came from advertising. Facebook Inc.’s strengths and weaknesses, as well as the opportunities and threats in the global social media and online advertising markets can be identified through a SWOT analysis of the business. The leading social network of the world, Facebook and its family products (Instagram, WhatsApp, Messenger), have Monthly Active People (MAP) value of 2.89 billion (Dec 31, 2019). These laws threaten to reduce the number of Facebook users, as some of its customers can migrate to other platforms. The company experiences risks linked to threats in the social media and online advertising industry environment. Facebook has the opportunity to extend its portfolio beyond the social media industry. 1. It has a strong financial position as well. Students Working Overseas Trust is a multi-award winning charity ran by QUB medical students raising money for hospital equipment in the developing nations Strength: With the growing use of mobile phones and introduction of Facebook app, a precedent increase is seen in the overall usage has occurred. Facebook is one of the global leaders in R&D spending and has increased investment in R&D from $4.8 Billion in 2015 to $13.6 Billion in 2019, which is about 19% of its annual revenue. The fact that over 2 billion people use their applications every day makes it a very powerful and effective marketing tool. Thus, this element of the SWOT analysis shows that Facebook Inc. has the strengths to maintain its competitive advantage and attractiveness in the online advertising market. July 26, 2020 by Shelly Palmer SWOT Analysis Tweet Article Share Article on Facebook Email Article Share Article on LinkedIn. Facebook Inc.’s Organizational Culture (An Analysis), Facebook Inc. Five Forces Analysis (Porter’s Model) & Recommendations, Facebook Inc.’s Marketing Mix (4Ps) Analysis, Facebook Inc.’s Generic Strategy & Intensive Growth Strategies, Facebook Inc.'s Organizational Structure (Analysis), Facebook Inc. PESTEL/PESTLE Analysis & Recommendations, Facebook Inc.’s Mission Statement & Vision Statement (An Analysis), Facebook Inc. Corporate Social Responsibility & Stakeholder Analysis, Facebook Inc. Operations Management: 10 Decision Areas, Productivity, Burger King SWOT Analysis & Recommendations, Microsoft Corporation’s SWOT Analysis & Recommendations, Toyota’s SWOT Analysis & Recommendations, Nike Inc. SWOT Analysis & Recommendations, Walt Disney Company SWOT Analysis & Recommendations, Unilever's SWOT Analysis & Recommendations, Wendy’s SWOT Analysis & Recommendations. Exploring SWOT analysis – where are we now? Brad Cousins Forbes Councils Member. Although Facebook is popular, the drivers of its popularity is mainly tech-savvy and younger demographic. ” that specializes in sending brain signals to a computer and use these signals to perform various tasks. From New Zealand’s terror live stream to Cambridge Analytica data scandal to fake news, to hacked accounts, just to name a few, the spectacular image and reputation of Facebook is going down the drain at a frightening rate. This element of the SWOT analysis enumerates the company’s strengths and how they relate to business performance. With $88.9 billion in brand value, Facebook is the strongest brand in the social media industry globally. Power of One Strategy – Selling “Food & Snacks” (Frito Lays, Cheetos, Doritos, Kurkure) and “Beverages” (Pepsi, Gatorade, Tropicana) under one umbrella makes PepsiCo a stronger and diversified business. Facebook has experienced many instances where its data was breached, affecting millions of its users. 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