Facebook case study

Case Materials

History

https://www.britannica.com/topic/Facebook (Links to an external site.)

https://interestingengineering.com/history-of-facebook (Links to an external site.)

NEWS

https://about.fb.com/news/

INTRODUCTION

Social networks are a recent phenomenon enabled by the growth of the Internet and hastened by mobile connectivity. And Facebook is the largest social networking platform in the world. This case exhibits a fascinating and exceptional, if unproven, business model. It illustrates the problems associated with introducing capital shareholders into an organization perhaps more concerned with social relevance than with the bottom line.

While most people are familiar with Facebook, the case takes us behind the scenes. Opening with the launch of the company and insightful background on its founder, the case then describes Facebooks rapid ascent and subsequent public offering. The companys evolving mission, developer-centered and motivational culture, strategic leaders, and financial performance are described in detail, followed by information about the social networking industry and Facebooks direct competitors.

The role of innovation and the challenges of monetizing the most expansive user base ever assembled are prominent themes in this case analysis. While unique in its approach, Facebook confronts the same strategic need as other firms to shape its future based on existing conditions.

QUESTIONS

• Define and discuss the interests of Facebooks major stakeholder groups. What measures does the company take to manage its different stakeholders? How does it prioritize or balance their different needs?
• Conduct a financial analysis, and summarize your findings.
• What industry and competitive considerations are most relevant for the companys strategic planning purposes?
• Based on your knowledge of Facebooks current situation, what are the most critical issues demanding the attention of its leaders? What recommendations can you make to ensure the companys future success?