Facebook's Inc.'s Effective Business Strategy
BA 5080 - Business Strategy
University of Cincinnati
July 30, 2024
The world’s largest social networking site, Facebook, was created in a
college dorm room at Harvard in 2004 by 19 year old Mark
Zuckerberg and three of his other pals. A site which was initially
created for college students to socialize online became the world’s
largest social networking site having billions of users and revenues. A
website which is more popular than Google is seen to be the ‘most
transformative social change’ in the recent history by Zuckerberg,
which made him the world’s youngest billionaire because of it.
Overcoming the first-mover advantage of Myspace, who was an early
leader in social media, was the first thing Facebook did before it
became the global phenomenon. Myspace’s success attracted the
attention of News Corporation, which later got acquired by them in
2005. After Myspace became a publicly owned company, its revenues
and profitability became more pressing issues and their business
model started shifted on generating more revenues by focusing on ad-
heavy markets. Later in 2008, Myspace declined in its business which
laid off 45% of its staff. Facebook remained a private company until
Microsoft purchased $240 million equity stake and a Russian
investment group added $200 million, which gave Facebook less
pressure to produce bottom-line results than Myspace that allowed
them to pursue a different business strategy to make more users first
and profits later. Facebook pursued a global strategy due to which it
has more than 70% of its users outside the Unites States. Facebook
displaced Myspace from being the most popular social networking site
in 2008 but faces new challengers in social media space like Google,
LinkedIn, Pinterest and Twitter.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
Facebook and Myspace are the social networking sites that allows
users to create public profile on the website and to connect with other
users which were introduced in 2004 and 2003 respectively. The users
find it interesting because they offer a lot of benefits and services like
connecting them with their friends, new people and they can even
share their thoughts, opinions and interests on them. Before Facebook
became a worldwide sensation, it had to overcome the first-mover
advantage held by Myspace. Before the Facebook was introduced,
Myspace was popular in the social networking business as many
people were new to having access to a site like that which had new
contents and could connect with friends and find new friends through
it too and even its success attracted the attention of News Corporation
in which they acquired Myspace for $580 million in 2005. After being
publicly owned company, Myspace focused more on a few ad-heavy
markets to grow revenues and profits rather than increasing more
users. They also kept on redesigning their website which made them
to lose its user data base and they also started getting off because there
were too many bugs and issues. On the other hand, Facebook pursued
a different business strategy: more users first, profits later, which was
a global strategy. As Facebook’s strategy was to gain more users first,
it made its website simple, better and easy to use and they didn’t keep
on changing its designs so people got used to it and started to use it.
As the main motive pursued by the Facebook was more users first and
profits later, it focuses on lowering the cost and affordability of its
product which leads towards increment of the users of Facebook.
Facebook also focused on the differentiation strategy by providing its
users with better features in its product like ‘news feed’ which is at the
heart of user’s homepage and provides regular updates of friends’
posts, photos, events, etc., ‘timeline’ which allows users to paint a
complete life story on his or her profile and ‘graph search’ allows
users to query in that portion which is connected and filled with other
users. For the focus strategy, Facebook serves its customers with the
taste, size and design of the product that could best match with the
customer’s need and requirements.
Facebook also follows the intensive growth strategy to sustain in the
market. It uses the market penetration strategy to maximize its current
market share by making alliances with telecommunication companies
to increase the number of users using the company’s social media
service through the Facebook mobile app. For the market development
strategy, Facebook coordinates with the governments of different
countries to allow their citizens to have access to online social
network which emphasizes in the growth of Facebook in the global
market.
The competitive challenge should be pointed out properly to formulate
strategies. Facebook’s main competitive challenger was the first-
mover advantage of Myspace as they were already in this online social
networking business with many of its users when Facebook was just
starting. But Facebook slowly increased its customer as at that time
their main focus was to increase customers first and earn profits later,
so, they were able to overcome that challenge. This challenge turned
into its competitive advantage in the long run. Right now, Facebook’s
main competitive challenge is to maintain its competitive advantage
for having a huge customer base. If only Facebook had no edge over
its competitors, it would have been hard for Facebook to sustain in the
market as it earns money from its large number of users. So
maintaining this challenge, Facebook staying in this online social
networking business is its biggest competitive challenge. Therefore,
this is how Facebook became the number-one social media company,
and not Myspace which enjoyed a first mover advantage.
After analysing the case along with the strategies used by Facebook I
think the strategy followed by Facebook seems very fine to me
because of the strategy that they used they have gained a lots of users
around the globe. More than 70% of Facebook’s users are outside of
the Unites States and its bringing billions in revenue and gaining
popularity in the world. So, I think Facebook has a good strategy.
Only three recommendations that I would like to give to Mr.
Zuckerberg are:
1. Be aware of the rapid increment in the growth,
development and obsolescence of current technology because the
Facebook platform can get outdated any time, so it needs to act
accordingly and adapt to the new updates in the distribution of
the services they provide, exclusively since what they offer are
highly technology amplified.
2. To start focusing more on sustaining large number of
users they have and less on increasing the number to grow
because focusing on sustaining their large number of users will
help them to gain more loyal customers who stay active on their
site around the globe and those loyal users will benefit the
company more by influencing other users to be in it together
which will be a win-win situation for both Facebook and its
users.
Acquire what they have invested in for so long. Their enormous
customer base has yet to explore a lot of opportunities. As social
networking has highly influenced many people’s loves, Facebook
needs to capture as many opportunities as possible that is present in
the absolute number of users they have online.
