People can access Face book via several technological devices such as desktops, laptops, tablet computers, and smartphones over the Internet and mobile networks. Init was reported that Facebook reached over 1. Facebook puts its concern for the privacy policies for its customers to make them comfortable while sharing their personal information with others on a website. Facebook makes most of its revenue from advertisements, which appear onscreen.
Increasing number of mobile internet users Users using ad-block extensions Slow growth rate of online advertising Identity thefts Weak business model Strengths Integration with websites and applications. To enrich user experience and engage more users to use Facebook, the social network has launched many features that would allow closer integration with other websites and producers of applications that run via Facebook.
Easy integration and use of applications results in competitive advantage over other social networking websites that struggle to provide the same level of service. More than a billion active monthly users.
For a social network to grow, it must have users. The more users the Facebook has, the more socially connecting it is. With one billion active monthly users, Facebook is able to connect people not only locally but globally as well.
Facebook has an easy to use interface, is integrated with many website, can connect people through PC or mobile devices, is translated into more than 70 languages and has many more additional features that lack other social networks.
Except Google, no other business has so many data collected on what users like, dislike, needs and how the users behave online. With so much data, Facebook knows what exactly to offer to its users what additional features, what advertisements and how to further improve their experience with Facebook.
Weaknesses Weak CTR of advertisements. Facebook has a lower click-through-rate CTR than an average website, which is only 0. Social network lacks of some features. One source of revenues — advertisements on Facebook. The growth of the revenues directly depends on the growth of users.
This leaves the business very vulnerable and dependent on continuous growth of users, which will eventually be only marginal as the social network has already attracted so many users. Lack of website customization. Facebook, having so many users that upload personal information to the social network, is a target for attacks that steal passwords and other personal information from the users.
Such attacks occur every day and thousands of passwords are stolen. Opportunities Increasing number of people using Facebook through mobile devices. Currently Facebook has more than million users who use Facebook through mobile devices.
Until then, Facebook should prepare itself for such an entry.
Diversify sources of revenue. Facebook heavily relies on advertising on its social network as a source of income, but with being the number 2 website in the world and more than 1 billion active monthly users, Facebook could exploit other opportunities to attract the money.
With so many users and extensive coverage of the world, Facebook is well positioned to open Facebook marketplace.
Threats Increasing number of mobile internet users. If the company will be unable to monetize mobile users, it will face decreasing advertising income as more PC users will turn to mobile users.
Users using ad-block extensions.
Educated internet users often install extensions that block advertisements from the websites.A PESTEL/PESTLE analysis of Facebook Inc. identifies the external factors that significantly influence the condition of the firm’s remote or macro-environment.
A PESTEL analysis is a tool or framework for marketers. You can use it if you are seeking to analyze and screen the external marketing environment of you company. The strategic management tool gauges the macro environmental factors.
Facebook can earn more by analyzing the business environment more deeply Pestle analysis can help more to work on these strategies to design the policies for the future benefits. Political Factors The Facebook business is directly related to the political situation.
A PESTEL/PESTLE analysis of Facebook Inc. identifies the external factors that significantly influence the condition of the firm’s remote or macro-environment.
Cheshnotes is home to insightful articles, research and statistics. Articles published on Cheshnotes are based on well researched information from credible online resources including research papers, news and business news sites as well as ebooks and other credible sources like company documents.
Moreover, the market is increasingly saturated, as pointed out in the PESTEL/PESTLE analysis of Facebook Inc. Market saturation could lead to business growth plateau or stagnation.
Based on this element of the SWOT analysis of Facebook Inc., it is crucial that the company develop new products and related technologies, and enter new businesses.