Facebook Case Analysis Essay

3051 Words Feb 22nd, 2016 13 Pages
BUSN 204 – Case Problems in Business

Strategic Profile and Case Analysis Purpose (page 12-1)
Zuckerberg and his top management team knew that they needed to consider how to adjust the firm's strategies to compete as a public company, partly in response to the belief among some users and analysts that Facebook was losing its ability to satisfy customers and shareholders simultaneously. In this regard, what should the firm do strategically to ensure its long-term and profitable growth? While Facebook's advertiser base is constantly looking to the firm for additional innovative means to target users, its investors are questioning its ability to monetize its user base. Relatedly, in a highly dynamic and competitive industry, how will
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Procter & Gamble estimates that it generates in sales from Facebook advertisements. Over 3,800 Wal-Mart stores have their own Facebook page. These sites also provide a platform for employers to monitor current employees as well as find and screen possible new employees. With this screening, new information may lead to new social capital for a firm. Access to new ideas via social networking is critical to the innovation process. This process allows for a type of integration among suppliers and buyers that is difficult to find elsewhere. The last major source of innovative activity involves application, software, and gaming developers. Creations for Facebook apps and electronic platforms and operating systems have become especially popular. Zynga, a game development firm, developed the highest grossing online game on Facebook, Farmville, and represented of Facebook's total revenues. Whether acting as a hosting service, development platform, employment locater, or an innovation hub, “social networks” is a fascinating innovation with seemingly unlimited potential to identify and serve customers' needs. General Environmental Analysis Technological Trends Acquisitions have played a significant role in Facebook's success. Beginning in 2008 with ConnectU, Facebook has forged relationships with many influential companies over the years. The firm uses acquisitions to add products and technologies; but most

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