FACEBOOK

MEMBERS
AHMAD ABID
SHUKRULLAH
AJMAL NASEEM
What is Facebook …..?
• Facebook is “a free social networking website "that allows you to
create an online page to connect with friends, family or make
new friends with anyone anywhere.
• On your Facebook page you can share:
• Pictures
• Personal information
• Messages
• Videos
• Join groups
• Add application
• Play games
• Marketing of your business
• History of Facebook
History of facebook
• Facebook was created in 2004 by Harvard student Mark Zuckerberg.  The website
was intended to be an online version of the University's printed Facebook, a
directory of new students.  At that time, membership to the website was limited to
Harvard students only.  In a month's time, Facebook grew to include other Ivy League
students as well, and within a year had over 1 million users.  By the end of 2005,
Facebook expanded to include, first, a network of 800 colleges and universities, then
high schools, and then international students.  In time for the fall semester of 2006,
Facebook began accepting membership of anyone over the age of 13.  According to
Facebook's Press Room, the social networking site currently has over 90 million
active users.

Facebook is a privately owned company headquartered in Palo Alto, California.  Mark

Zuckerberg, age 24 and a Harvard drop-out, is ranked 785 in Forbes Magazine's list of
the world's billionaires, with a net worth of approximately $1.5 billion.
 POLITICAL ECONOMIC
FACTOR FACTOR

PEST
ANALYSIS
TECHNOLOGICAL
SOCIAL FACTOR FACTOR
 PEST ANALYSIS

POLITICAL FACTOR ECONOMIC FACTOR

1.Political stability in developed
countries.
2.Popular governmental support
for globalization
3.Political barriers in the Chinese
market.
4.Political action on online data.
1.Increasing stability of
developing countries.
2.Rapid economic growth of
developing countries.
3.Increasing disposable incomes.
 PEST ANALYSIS
SOCIAL FACTOR
1.Increasing preference for high
quality services.
2.Increasing online buying.
3.Increasing support for corporate
social responsibility.
TECHNOLOGICAL FACTOR
1.Increasing use of mobile
devices.
2.Increasing number of online
social media companies.
3.Diversification of online retail
firms.
 SWOT ANALYSIS
&
INDUSTRIAL ANALYSIS

AJMAL NASEEM
STRENGTH WEAKNESS

SWOT

OPPORTUNIT THREAT
Y
 SWOT ANALYSIS
STRENGTHS
• Integration with website and
application.
• More than a billion active users.
• Excellent users experience.
• Understanding of user’s needs
and behavior.
WEAKNESSES
• Weak CTR of advertisement.
• Social network lack of some
features.
• One source of revenues-
advertisements on facebook.
• Attitude towards user’s privacy.
 SWOT ANALYSIS
Opportunities
• Increasing number of people
using facebook through mobile
device.
• Expansion to china.
• Diversify source of revenue.
• Open facebook market place.
Threats
• Increasing number of mobile
internet users.
• Users using ad-block extensions.
• Slow growth rate of online
advertising.
• Identity thefts.
• Weak business model.
 PORTER’S MODEL (FIVE FORCES ANALYSIS)

Threat of new Bargaining power

entrants of customers

Rivalry among
existing firms

Threat of
Bargaining power substitute
of supplier products or
services
Business level strategy
&
corporate level strategy

Shukrullah
COST LEADERSHIP DIFFERENTIATION

BUSINESS
LEVEL
STRATEGY

FOCUSED LOW FOCUSED

COST DIFFERENTIATION
 COST LEADERSHIP
Facebook Inc. uses the cost leadership generic competitive strategy. This generic
strategy involves minimizing the costs of doing business. Cost minimization enables
the company to reduce its prices competitively. The company also broadly provides its
online social media services to the global market. This condition is achieved through
the nature of Facebook’s business. For example, the company uses computing
technologies to maximize the efficiency of its social networking website. The online
nature of this business enables Facebook to easily reach Internet users across the
international market, thereby satisfying the broad competitive scope of the cost
leadership generic strategy.
The cost leadership generic competitive strategy leads to the strategic objective of
expanding Facebook’s online social network user base. A related financial strategic
objective would be to increase the company’s revenues by at least 35% annually. In this
generic strategy for competitive advantage, Facebook has the potential to satisfy such
strategic objectives by focusing on growing its membership, which currently stands at
more than 2 billion monthly active users. Cost leadership is strongly linked to the
company’s intensive growth strategies.
 STABILITY EXPANSION

CORPORATE
LEVEL
STRATEGY

RETRENCHMENT COMBINATION
 GROWTH STRATEGY
Market Penetration.
Facebook achieves growth primarily through the market penetration intensive
strategy. The objective of this intensive growth strategy is to maximize current market share. For
example, as one of its strategic objectives, the company increases its share in current markets by
establishing alliances with telecommunications companies to increase the number of users who
access the company’s social media service through the Facebook mobile app.
Market Development.
Market development is the secondary intensive strategy that Facebook uses for
business growth. The objective in this intensive growth strategy is to enter new markets. For
example, one of Facebook’s strategic objectives is to coordinate with governments to allow their
citizens to access the online social network. 
Diversification.
Facebook Inc. uses diversification as a supporting intensive strategy for growth.
The main objective in this intensive growth strategy is to establish new businesses.
Product Development.
Product development is a supporting intensive growth strategy used in
Facebook Inc.’s social media business. This intensive strategy involves offering new products.
For example,Facebook Inc. developed mobile apps to complement the social networking website.
Thanks for your kind
Attention