Instructions:

SWOT Analysis. Read the selection below and answer the guide questions that follow, and write the information in the SWOT Matrix.

The SWOT of Facebook

Facebook began in 2004. It is a well-known social networking service that has 1.94 Billion monthly active users as of March 2017. Individuals and businesses can sign up and create a free profile where they can upload pictures and videos and post personal information. Founded by Harvard entrepreneur Mark Zuckerberg, the business was floated in 2012.

The main success of Facebook is that its brand name has become synonymous with social networking, similar to Apple and Google which have become premier brands for new technology. There is no real competitor to Facebook. Facebook currently generates revenue through advertising, either by cut per click or cost per impression. There is the opportunity to extend this as the business grows. While Facebook has plenty of regular traffic, some would argue that it is becoming mature and that it has already acquired most of its potential customer base. Since Facebook is free, there is no income stream from subscriptions. Competitors such as LinkedIn have a subscription approach.

Some would say that having such a young group of entrepreneurs run a large global business is a potential risk. Most CEO tend to be over 40 years old.

As often reported, Facebook is having a similar history to MySpace. MySpace famously became the premier place to network socially online. Then it became unfashionable and its market share was eroded by businesses such as Facebook only once it has been sold. Thus, there is an element of uncertainty about Facebook and whether it can maintain its growth in the future.

Discussion Questions

1. What are Facebooks internal (company-specific) strengths, competencies, and capabilities?
2. What are its internal weaknesses that need to be improved on?
3. What opportunities presented by customers, competitors, and other forces can be taken advantage of?
4. What are possible threats to Facebooks business operation?

STRENGTHS	WEAKNESSES
OPPORTUNITIES	THREATS