CASE

ANALYSIS:

FACEBOOK
 VISION (Proposed)

– Facebook, Inc., headquartered in Menlo Park, California,

is the largest social network in the world with over 1.3 billion
current active users of its website. This strategic
management case is set in 2014 and includes the 2013 and
2014 financial statements, competitor information, and more.
Sufficient internal data such as the organizational structure
and marketing strategy, and also the external data are
provided in order to enable us to evaluate current strategies
and recommend a three-year strategic plan for the company.
VISION (Proposed)

“Facebook envisions itself of

being not just a tool for
improving connections but to be
a platform of creating socially
relevant social networkers. “
MISSION STATEMENT (Actual)

“To give people the power to

share and make the world more
open and connected”
MISSION STATEMENT (Proposed)

“We aim to give people of all ages, genders, and race from all over the
world (1, 3, 6, and 7) the power to share relevant information (2) without
compromising customers’ privacy and security (8). Together with our
highly and ethically dedicated employees, (9) we want to make the
world more open and connected through the years by continuously
acquiring and developing new information technologies (4) that respond
to the needs of the customers that would pave way to the continuous
growth of the company in the long run (5).
1. Customers 6. Philosophy
2. Products or services 7. Self-concept
3. Markets 8. Concern for public image
4. Technology 9. Concern for employees
5. Concern for survival,
growth, and profitability
• Well-defined Mission statement and people-
oriented vision ideas • Privacy criticism
• High revenue from internet advertising • Tendency of becoming a platform for
• Largest social media network in the world fake yet supposedly significant news
• Adaptability to social changes and market • Medium for cybercrimes and other
needs illegal activities
• Ability to acquire competitors
• Strong financial position
• Strategic partnership with competitors
• Strong management team Strengths Weaknesses
• Knows how to value customers in a global
scale
Opportunities Threats

• Investments from companies all over

the world • Rivals ( Google+, LinkedIn, Snapchat,
• Countries shifting to massive internet Twitter)
usage • Possibility of change in users’
• Extreme growth of social media preference of socializing onlinae
usage • Political threats
• Ease of internet access nowadays
• Advertisers/Marketers
IFE matrix Weight Rating Weighted
Score

STRENGTHS
1. Well-defined Mission statement and people-oriented 8% 2 0.16
vision ideas

2. Largest social media network in the world 25% 4 1

3. Adaptability to social changes and market needs 3% 2 0.06

4. Ability to acquire competitors 3% 2 0.06

5. Strong financial position 10% 2 0.2

6. Strategic partnership with competitors 5% 1 0.05

7. Strong management team 6% 2 0.12

8. Knows how to value customers in a global scale 4% 3 0.12

IFE matrix Weight Rating Weighted Score
WEAKNESSES
1. Privacy criticism 16% 3 0.48
2. Tendency of becoming a platform for
5% 3 0.15
fake yet supposedly significant news
3. Medium for cybercrimes and other illegal
15% 3 0.45
activities
TOTAL 100% 2.85
EFE matrix Weight Rating Weighted
Score

OPPORTUNITIES
1. Investments from companies all over the world
15% 3 0.45

2. Countries shifting to massive internet usage 12% 2 0.24

3. Extreme growth of social media usage 15% 4 0.6

4. Ease of internet access nowadays

10% 3 0.3

5. Increasing number of Advertisers/Marketers 10% 3 0.3

EFE matrix Weight Rating Weighted Score
THREATS
1. Rivals ( Google+, LinkedIn, Snapchat,
18% 3 0.54
Twitter)
2. Possibility of change in users’ preference
12% 2 0.24
of socializing online
3. Political Threats 8% 2 0.16
TOTAL 100% 2.83
 1. Investments from
2. Largest social media network in the
companies all over the
world
world

5. Strong financial position

6. Strategic partnership with 3. Extreme growth of social

competitors media usage

4. Ease of internet access

7. Strong management team
nowadays
 1. Rivals ( Google+, LinkedIn,
5. Strong financial position
Snapchat, Twitter)

7. Strong management team

2. Possibility of change in users’

2. Largest social media preference of socializing
network in the world online

3. Adaptability to social
changes and market needs
1. Privacy criticism 1. Investments from
companies all over the world

2. Countries shifting to massive

internet usage

3. Extreme growth of social

media usage

2. Tendency of becoming 4. Ease of internet access

a platform for fake news nowadays

3. Medium for cybercrimes 5. Increasing number of

and other illegal activities Advertisers/Marketers
 1. Rivals ( Google+, LinkedIn,
1. Privacy criticism
Snapchat, Twitter)

2. Tendency of becoming a 2. Possibility of change in

platform for fake yet users’ preference of
supposedly significant news socializing online

3. Medium for cybercrimes

3. Political threats
and other illegal activities
Competitive Profile Matrix

Facebook Snapchat LinkedIn Corporation Google, Inc. Twitter, Inc.

Success Weight Weighted Weight Weighted Weight Weighted Weight Weighted

Weight Rating Weighted Score
Factor Rating Score Rating Score Rating Score Rating Score

Company
0.18 4 0.72 3 0.54 3 0.54 4 0.72 4 0.72
Image

Product
0.20 3 0.60 4 0.80 2 0.40 3 0.60 4 0.80
Design

Advertising
/Marketing 0. 17 4 0.68 1 0.17 2 0.34 4 0.68 2 0.34

Brand
0.15 3 0.45 3 0.45 3 0.45 4 0.60 3 0.45
Reputation
Global
Competitiv 0.14 3 0.42 2 0.28 3 0.42 4 0.56 3 0.42
eness
Active
Users/Cust 0.16 4 0.64 2 0.32 2 0.32 4 0.64 3 0.48
omers

Total 1 3.51 2.56 2.47 3.8 3.21

Grand Strategy Matrix

Rapid Market Growth

Quadrant I
Quadrant II

Strong
Weak Competitive
Competitive
Position
Position

Quadrant IV
Quadrant III Slow Market Growth
Recommendation

• Facebook should clearly define their vision.

• Improve their mechanism/system of privacy.
• Strengthen the protection of user’s information.
• Minimize or control the display and pop-up of ads in a
way that users may be at ease.
• Venture on other revenue-generating projects aside
from internet advertising-or find more sophisticated
ways to reach its users.