facebook competitive advantage analysis

as social media platforms gained tremendous momentum in the 21st century, meta (fb), formerly facebook inc., propelled itself to the top of the heap, racing past rivals twitter inc. (twtr) and linkedin corporation in terms of users and revenue. it attracted nine million users in its first two years of existence. with the extraordinary number of users on the platform, a business would be remiss to forsake digital marketing. facebook pulled in $28 billion in advertising revenue for the third quarter of 2021. facebook holds an inordinate amount of user data and is efficient at target marketing. that said, the company came under scrutiny for a data privacy scandal, when it came to light in 2017 that political consulting and strategic communication firm cambridge analytica collected personal information from up to 87 million users on facebook.




more than 40 applications reside on the typical smartphone, with an estimated 18 applications accounting for 89% of daily usage. facebook defines “engagement rate” as the percentage of people who viewed a post and either liked, shared, reacted, or commented on the communication. facebook is at the top of the social media game as its platform caters to a wide variety of people, incorporating many different media aspects, from photos to messenger to text. because of its wide appeal, facebook has attracted a significant user base, which translates to ad revenue, since companies desire to spend their ad budgets on platforms that receive the most viewership, and with 2.91 billion active users monthly, it’s hard to top facebook. “why the cambridge analytica scandal is a watershed moment for social media.”

facebook did not have a first mover advantage in online social networking segment, as it was launched after friendster and myspace. nevertheless, an uncompromised approach on user experience and an adequate balance between standardisation and customization of the website resulted facebook becoming the most popular social networking site within a matter of a couple of years. facebook business strategy focuses on establishing presence in various branches of e-commerce via acquiring relevant businesses. earlier in 2012, facebook bought instagram a popular photo-sharing application for usd 1 billion cash and stock.

[2] solid financial position that can enable more strategic acquisitions in the future is one of the key sources of facebook competitive advantage. development of new products and services is placed at the core of facebook business strategy with positive implications on the numbers of its user base. the ability to develop new products and services according to its mission statement “to give people the power to share and make the world more open and connected”[3] is one of the key competitive advantages of facebook. facebook constantly experiments with different strategies finding and utilizing news ways of monetization in a regular manner. the report also illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porter’s five forces, value chain analysis and mckinsey 7s model on facebook inc. moreover, the report contains analyses of facebook leadership and organizational structure and marketing strategy and discusses the issues of corporate social responsibility.

the competitive advantage of facebook stems from its sheer number of monthly active users (mau) when you compare it to linkedin (310 million) and twitter the ability to develop new products and services according to its mission statement “to give people the power to share and make the world more facebook has continuously tweaked, honed, tested, and improved its news feed algorithm to organize friends’ information engagingly. eventually, it became a, what are the sustainable competitive advantages of facebook, facebook company strategy 2020, facebook company strategy 2020, do you think facebook’s strategy is sustainable over time, facebook competitors.

facebook’s competitive advantage lies within its ability to advertise with unlimited space. companies like google and microsoft have limited advertising facebook’s generic competitive strategy (porter’s model) supports the business through operational efficiency and customers’ ease of access. facebook uses its competitive advantage to great effect, as can be seen by their $17 per user annual revenue – far higher that twitter’s $7.5 or, facebook differentiation strategy, facebook business strategy, what makes facebook different from other social networks, rbv analysis of facebook, facebook advantage, strategic analysis of facebook, facebook key resources for competitive advantage, facebook is the most popular social network explain, facebook stability strategy, what makes facebook unique. what is competitive advantage of facebook? how do i do a competitor analysis on facebook? is facebook in a competitive market? what is a competitive advantage analysis?

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