Sample Case Studies Paper on Facebook

1.1 INTRODUCTION
Facebook is a well-known free social networking website that allows registered users to
create profiles, upload photos and videos, send messages, and stay in touch with friends,
family, and coworkers. Facebook had over 500 million active users as of July 2010.
Users can create a personal profile, add other users as friends, and exchange messages, as
well as receive automatic notifications when their profile is updated. Users can also join
user groups based on common interests, such as workplace, school, or college, or other
factors.
This case study investigates Facebook, a popular social networking company, and its
ability to manage and comprehend market forces that affect its overall positioning. A
SWOT analysis compares external opportunities and threats, as well as internal strengths
and weaknesses, to current market conditions. The case study contrasts Facebook's
perception of itself in 2013 with a more recent assessment of its position. Each factor is
analyzed and evaluated in relation to its actual impact on the organization, culminating in
a recommendation for continuous assessment.
The primary goal of this paper is to finish my term paper and educate my reader on the
technicalities of Facebook; SWOT analysis and advice on solutions to the problem
statement.
1.2 PROBLEM STATEMENT
People want complete ownership and control over their information, with the ability to
disable access to it at any time. At the same time, people want to be able to bring
information shared with them by others—such as email addresses, phone numbers,
photos, and so on—to other services and grant those services access to that information.
These two points of view are diametrically opposed. There is no system in place today
that allows me to share my email address with you while also allowing me to control who
you share it with and you to control which services you share it with.
1.3 SWOT ANALYSIS
2 SWOT Analysis is an excellent business analysis tool that provides an easy to understand 3 illustration demonstrating how organizational internal weaknesses and strengths, as well as external 4 opportunities and threats, affect the business. While it can be used as a standalone indicator for a 5 company’s health, it is best used as a discussion point, allowing business leaders to base their assessment 6 on the points mentioned in the SWOT analysis (Ritson, 2013). Taking multiple SWOT snapshots over 7 time can highlight certain patterns and provide visibility into how an organization has been adjusting its 8 strategy to meet its goals. 9 Case Facts 10 Facebook is one of the biggest internet media giants that operates a social networking website that 11 boasts to have billions of users worldwide. It was started by a college dropout and grew to become one of 12 the most successful businesses of this century. Based on the SWOT assessment performed in 2013, a 13 number of items can be seen in each of the quadrants, allowing for a conversation on how these items 14 impact the business (SWOT Analysis, 2013). 15 In the list of their Strengths, the top items include a large number of users, technological 16 advantages, and great user experience. User experience is a major aspect of most businesses that provide 17 products that interact with users. In some notable examples, the right or wrong decisions in this area have 18 sent companies skyrocketing, as well as plummeting all the way to bankruptcy. As in the example of 19 MySpace, a company that was not paying much attention to the user experience which ultimately led to its 20 demise (Dredge, 2015). 21 Their Weaknesses include things like a loosely defined privacy policy, insufficient user 22 customization options, and limited sources of advertising. Facebook is essentially a marketing company 23 that makes money from selling advertising spots to its sponsors in exchange for the number of views from 24 25 BUS 5611 – Unit 1 Case Study – SWOT Analysis 3 26 its users. While this business model can have huge potentials, historically, it can also be limiting, 27 especially in the face of so many other advertising competitors. If, for instance, someone wants to target a 28 specific audience, they can do so through other channels, like Google or even traditional print advertising. 29 Looking at the external factors, there are a lot of opportunities for Facebook. It can diversify its 30 sources of revenue by entering new markets in order to expand its user base. This sort of horizontal 31 expansion is a common method for organizational growth (Dahl, 2018). 32 There are also a few Threats. An increasing number of mobile users puts a strain on product 33 development, which must now focus on many different user experiences. Users could also find a way to 34 block advertisements, effectively preventing Facebook from making money. Another major threat comes 35 from identity theft. The last thing any digital company wants is for their data to be stolen creating a public 36 relations nightmare which may lead to loss of confidence, customers, and ultimately revenue. With a 37 global rise in this type of cybercrime, this is a significant threat for a company whose livelihood depends 38 relies on customer data (Tatham, 2018). 39 SWOT Analysis is an excellent business analysis tool that provides an easy to understand 40 illustration demonstrating how organizational internal weaknesses and strengths, as well as external 41 opportunities and threats, affect the business. While it can be used as a standalone indicator for a 42 company’s health, it is best used as a discussion point, allowing business leaders to base their assessment 43 on the points mentioned in the SWOT analysis (Ritson, 2013). Taking multiple SWOT snapshots over 44 time can highlight certain patterns and provide visibility into how an organization has been adjusting its 45 strategy to meet its goals. 46 Case Facts 47 Facebook is one of the biggest internet media giants that operates a social networking website that 48 boasts to have billions of users worldwide. It was started by a college dropout and grew to become one of 49 the most successful businesses of this century. Based on the SWOT assessment performed in 2013, a 50 number of items can be seen in each of the quadrants, allowing for a conversation on how these items 51 impact the business (SWOT Analysis, 2013). 52 In the list of their Strengths, the top items include a large number of users, technological 53 advantages, and great user experience. User experience is a major aspect of most businesses that provide 54 products that interact with users. In some notable examples, the right or wrong decisions in this area have 55 sent companies skyrocketing, as well as plummeting all the way to bankruptcy. As in the example of 56 MySpace, a company that was not paying much attention to the user experience which ultimately led to its 57 demise (Dredge, 2015). 58 Their Weaknesses include things like a loosely defined privacy policy, insufficient user 59 customization options, and limited sources of advertising. Facebook is essentially a marketing company 60 that makes money from selling advertising spots to its sponsors in exchange for the number of views from 61 62 BUS 5611 – Unit 1 Case Study – SWOT Analysis 3 63 its users. While this business model can have huge potentials, historically, it can also be limiting, 64 especially in the face of so many other advertising competitors. If, for instance, someone wants to target a 65 specific audience, they can do so through other channels, like Google or even traditional print advertising. 66 Looking at the external factors, there are a lot of opportunities for Facebook. It can diversify its 67 sources of revenue by entering new markets in order to expand its user base. This sort of horizontal 68 expansion is a common method for organizational growth (Dahl, 2018). 69 There are also a few Threats. An increasing number of mobile users puts a strain on product 70 development, which must now focus on many different user experiences. Users could also find a way to 71 block advertisements, effectively preventing Facebook from making money. Another major threat comes 72 from identity theft. The last thing any digital company wants is for their data to be stolen creating a public 73 relations nightmare which may lead to loss of confidence, customers, and ultimately revenue. With a 74 global rise in this type of cybercrime, this is a significant threat for a company whose livelihood depends 75 relies on customer data (Tatham, 2018). 76 SWOT Analysis is an excellent business analysis tool that provides an easy to understand 77 illustration demonstrating how organizational internal weaknesses and strengths, as well as external 78 opportunities and threats, affect the business. While it can be used as a standalone indicator for a 79 company’s health, it is best used as a discussion point, allowing business leaders to base their assessment 80 on the points mentioned in the SWOT analysis (Ritson, 2013). Taking multiple SWOT snapshots over 81 time can highlight certain patterns and provide visibility into how an organization has been adjusting its 82 strategy to meet its goals. 83 Case Facts 84 Facebook is one of the biggest internet media giants that operates a social networking website that 85 boasts to have billions of users worldwide. It was started by a college dropout and grew to become one of 86 the most successful businesses of this century. Based on the SWOT assessment performed in 2013, a 87 number of items can be seen in each of the quadrants, allowing for a conversation on how these items 88 impact the business (SWOT Analysis, 2013). 89 In the list of their Strengths, the top items include a large number of users, technological 90 advantages, and great user experience. User experience is a major aspect of most businesses that provide 91 products that interact with users. In some notable examples, the right or wrong decisions in this area have 92 sent companies skyrocketing, as well as plummeting all the way to bankruptcy. As in the example of 93 MySpace, a company that was not paying much attention to the user experience which ultimately led to its 94 demise (Dredge, 2015). 95 Their Weaknesses include things like a loosely defined privacy policy, insufficient user 96 customization options, and limited sources of advertising. Facebook is essentially a marketing company 97 that makes money from selling advertising spots to its sponsors in exchange for the number of views from 98 99 BUS 5611 – Unit 1 Case Study – SWOT Analysis 3 100 its users. While this business model can have huge potentials, historically, it can also be limiting, 101 especially in the face of so many other advertising competitors. If, for instance, someone wants to target a 102 specific audience, they can do so through other channels, like Google or even traditional print advertising. 103 Looking at the external factors, there are a lot of opportunities for Facebook. It can diversify its 104 sources of revenue by entering new markets in order to expand its user base. This sort of horizontal 105 expansion is a common method for organizational growth (Dahl, 2018). 106 There are also a few Threats. An increasing number of mobile users puts a strain on product 107 development, which must now focus on many different user experiences. Users could also find a way to 108 block advertisements, effectively preventing Facebook from making money. Another major threat comes 109 from identity theft. The last thing any digital company wants is for their data to be stolen creating a public 110 relations nightmare which may lead to loss of confidence, customers, and ultimately revenue. With a 111 global rise in this type of cybercrime, this is a significant threat for a company whose livelihood depends 112 relies on customer data (Tatham, 2018). 113 Facebook is one of the biggest internet media giants that operates a social networking website that 114 boasts to have billions of users worldwide. It was started by a college dropout and grew to become one of 115 the most successful businesses of this century. Based on the SWOT assessment performed in 2013, a 116 number of items can be seen in each of the quadrants, allowing for a conversation on how these items 117 impact the business (SWOT Analysis, 2013) 118 Facebook is one of the biggest internet media giants that operates a social networking website that 119 boasts to have billions of users worldwide. It was started by a college dropout and grew to become one of 120 the most successful businesses of this century. Based on the SWOT assessment performed in 2013, a 121 number of items can be seen in each of the quadrants, allowing for a conversation on how these items 122 impact the business (SWOT Analysis, 2013)Facebook is one of the most powerful internet media companies, operating a social
networking website with billions of users worldwide. Based on the 2013 SWOT analysis,
a number of items can be seen in each of the quadrants, allowing for a discussion about
how these items impact the business (SWOT Analysis, 2013).

Strengths
• A large number of users;
• A technological advantage; and
• An excellent user experience

Most businesses that provide products that interact with users place a high value on
user experience. In some notable cases, the right or wrong decisions in this area have
sent businesses skyrocketing or plummeting all the way to bankruptcy. As in the case
of Myspace, a company that did not prioritize the user experience, which ultimately
led to its demise. Dredge (2015)
Weaknesses
• A hazily defined privacy policy
• Inadequate user customization options
• Limited advertising sources

Facebook is essentially a marketing company that makes money by selling
advertising spots to sponsors in exchange for the number of views generated by its
users.
Opportunities
• It can diversify its revenue sources by expanding its user base by entering new
markets. This type of horizontal expansion is a common strategy for organizational
development (Dahl, 2018).
Threats
 The growing number of mobile users places a strain on product development, which
must now focus on a wide range of user experiences.
 Users may also discover a way to block advertisements, effectively preventing
Facebook from profiting.
 Theft of identity. The last thing any digital company wants is for their data to be
stolen, resulting in a public relations nightmare that could lead to a loss of trust,
customers, and, ultimately, revenue. With a global increase in this type of cybercrime,

this poses a significant threat to a company whose livelihood is dependent on
customer data ( (Tatham, 2018)
SMART GOALS FOR FACEBOOK
The author has established specific, measurable, actionable, relevant, and time-bound
goals to guide the development of Pint Please's Facebook marketing strategy for the UK
market over the next three months of May, June, and July 2017. Despite their quarterly
nature, results should be monitored on a weekly and monthly basis for continuous
feedback. (Bashynska, I.,2018)
These objectives are intended for Pint Please UK's own Facebook page content as well as
Pint Please UK's own paid and promoted Facebook content.
The objectives are as follows:
 • The number of applications installed. Between January and February of this
year, the number of new app installs increased by 10%. (In January 2017 133
new app installs and in February 146 new app installs). In the next three
months, the goal is to increase new app installs by an average of 15% per
month.
 The number of active weekly app users fell by 17.6 percent in January 2017
and 17.2 percent in February 2017. In the next three months, the goal is to
increase the number of active weekly users by 15% on average each month.
 App Installs (UK segment), Active Weekly Users (UK segment), and three-
month period averages are the key metrics in Facebook Analytics for Apps.
Visits to the Google Play Store and the Apple App Store.
 The average monthly referral from paid and organic Facebook content to the
Pint Please App install site (Apple App Store or Google Play Store) in the UK
is currently 18,5 people (December 28, 2016 – February 28, 2017). The goal is
to drive more traffic from Facebook to Pintrest. Please App install site into 22
average monthly UK visitors in the next three months by improving Facebook
page content and better targeting of Facebook paid advertisements. Key
metrics in Facebook Analytics for Apps: Facebook referrals to Your App,
three-month average 56 Customer Acquisition Cost

 According to Facebook Ads Manager, the average cost per app install (CPI)
in the UK market in the last six months (September 2016 – February 2017) is
12,10 €, and 9,47 € when considering the average of the entire lifetime Pint
Please has been advertising through Ads Manager. The goal for the next three
months is to reduce the CPI to an average of two euros per app install by
utilizing more specific targeting options in Facebook advertising. Key metrics
in Facebook Ads Manager: Cost per Mobile App Install (CPI) in the United
Kingdom over a three-month period. Engagement with Content
 For the last three months (December 2016 – February 2017), the average
engagement rate (ER) was 1.4 percent. The engagement rate varies between
ER 5% of high reach posts and less than 1% of posts with no significant reach.
ER 4 percent was awarded to a couple of posts about craft beer, regardless of
their reach. The goal for the next three months is to have an average
engagement rate of 1.6 percent for all published posts and to increase the
number of craft beer related posts rather than generic beer related posts.
Important metrics in Facebook Insights: Followers on Page, three-month
average Engagement Rate
 Pint Thank you very much. The UK Facebook page now has 3 512 followers.
The goal is to increase the number of followers by 5% over the next three
months, so that the total number of followers is 3,688 by the end of the third
month. This equates to an average of 5,853 new followers per month. More
important than the total number of followers is increasing the number of
followers who are thought to belong to the company's target segments. The
following are the most important metrics in Facebook Insights: Average page
likes over a three-month period.

References

Bashynska, I. (2018). SMART-APPROACH TO DETERMINING OF SMARTIZATION
GOALS OF INDUSTRIAL ENTERPRISE. Scientific Notes of Taurida National V.I.
Vernadsky University. Series: Economy and Management, 5(69).
https://doi.org/10.32838/2523-4803/69-5-8
Dahl, S. Social media marketing.
Jurevicius, O. (2021). Facebook Company SWOT analysis 2013. Strategic Management Insight.
Retrieved 16 May 2021, from https://strategicmanagementinsight.com/swot-
analyses/facebook-swot-analysis.html.

Lee, J., Lee, S., & Jung, K. (2020). Balanced SWOT: Revisiting SWOT Analysis through Failure
Management and Success Management. SSRN Electronic Journal.
https://doi.org/10.2139/ssrn.3612519
Tatham, R. (2004). Managing Web Projects. Technovation, 24(12), 1011.
https://doi.org/10.1016/j.technovation.2004.08.005