Facebook Industrial Analysis

Group 8: Kushal Adhia, Lucia Falcioni, Sara Mitterhofer, Francesco Polano, Marco Raffael

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Industry
In general, Facebook is an interactive social network

providing online media, entertainment and facilitating communication. Google in the advertisement industry.

In terms of revenues, it competes with companies like

Facebook offers a lot of complementary services, like

games, news, music and apps. In this way it competes in the entertainment and information industry.
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PEST-Analysis
Political: faster spreading of political opinions and

ideas, politial influence, governmental restrictions over privacy and security, increased potential for lobbying;
Economic: increasing importance of web advertising,

increasing purchasing power of developing countries (most of all BRIC-countries)

Social: growing importance of networking, globalization

of information and relationships, increasing number of internet users, virtual life

Technological: innovative and creative web services,

technological devices in everyday life, access to internet

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Porter-Analysis
Complementors Games, news, apps , music, blogs, etc. providing contents (medium power)

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Conclusion of industry analysis

Facebooks success is based on the large number of

users and their relationships with each other social trends and can vary as fashion

People interaction with social media is affected by The industry seems to be saturated because a normal

users avoid utilizing more than 2 social network simultaneously devices are crucial elements of a social medias success
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Constant innovation of applications and ubiquity on

There are some relevant issues related to privacy and

Advice
Facebook New entrants Lobbying to enter Differentiate in a creative way

developing countries Exploit a niche position Solving privacy and security issues Offer unique and customized contents Partnerships to gain power Constant innovation to defend the leadership position
Being fancy and follow

social trends

Segmentation of users

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