...Facebook: Winning the world Or has it already been won? | AbstractThis project aims to analyze the factors contributing to Facebook’s success in the social network industry and what competitive advantages they have that outperform other social network rivals. Anas Hamshari & George Khunjgurua European School of Economics - International Strategic Management – Professor Angelo Arcuri | Facebook: Winning the world Or has it already been won? | AbstractThis project aims to analyze the factors contributing to Facebook’s success in the social network industry and what competitive advantages they have that outperform other social network rivals. Anas Hamshari & George Khunjgurua European School of Economics - International Strategic Management – Professor Angelo Arcuri | TABLE OF CONTENTS Executive summary. 2. Introduction. (ANAS) 3. Mission & Vision Statements. (GEORGE) 3. Strategic Vision. (GEORGE) Analysis. 4. Competitive Advantages. (GEORGE) 8. Summary of Competitive Advantages. (GEORGE) 8. Other success factors of Facebook. (GEORGE) 11. PEST. (ANAS) 13. Porter’s five forces. (ANAS) 15. Exploration & Exploitation. (ANAS) 16. Red and Blue Ocean Strategies. (ANAS) Conclusions. 19. Final Conclusion. (ANAS) References. 21. Reference. EXECUTIVE SUMMARY INTRODUCTION Among social networking organizations, Facebook is one of the most talked about and the most popular choice for people around the world...
Words: 3751 - Pages: 16
...Percentage Index: 7% 1 I. Executive Summary This case study provides an analysis and evaluation of Facebook’s current strategy in the e-business of social networking. Facebook’s competitors are identified. Investigations are carried out to determine if Facebook’s strategy is effective in staying ahead of its competitors. It was found out that Facebook faced a few major problems. Intellectual property disputes with Harvard based houseSYSTEM’s creator, Aaron J. Greenspan and ConnectU had affected Facebook’s public image in 2004. Privacy issues problems forced Facebook to repetitively apologize to its users and made many amendments to its products. In late 2007, Facebook encountered over capacity in its data centers resulting in a drop in its user visiting Facebook website. With the existence of its competitors, MySpace and Twitter, Facebook found it challenging to expand its operation. It was recommended that Facebook should remain friends with its competitors and engaged in a collaborative alliance in developing technologies for the social network platform. Ensuring adequate privacy user controls is the key to customer satisfaction; therefore regaining trust back from Facebook’s user is crucial in its maintaining good business-customer relationship. 2 II. Statement of the Problem Since the day of its incorporation in 2004 until today, Facebook has faced several issues that affect the relationship with its customers and competitors. These issues can be categorized...
Words: 2813 - Pages: 12
...Balance Scorecard The balanced scorecard is a tool for management that facilitates the efficacious implementation of strategies instigated by an organization. This is an implement that has been measured expansively in study as well as practice (Figge, Schaltegger & Wagner, 2002). By linking organizational activities that are non-financial and functioning with fundamental chains to the organization’s long-lasting method, the Balanced Scorecard supports the appointment and administration of all corporate activities in agreement with their strategic implication. In theory, value-based sustainability management makes an endeavor to take into consideration the matter of business offerings and impacts on sustainability in an integrative way (Figge, Schaltegger & Wagner, 2002). It suggests that for companies to improve sustainable development, it is suitable for commercial performance developments in all three extents of sustainability, which include: social, economic and environmental, in a coordinated way. The Balanced Scorecard is considered to be a proper and efficient component when it comes to alignment. It can facilitate budget synchronization or management purposes by interconnecting strategy to administrators or supervisors, offering them a proper course. Similarly, it can aid executives to be able to supervise strategic advantages and creativities, interconnect and financial activities (Kumari, 2011). The vibrant representation of strategic significances by the Balanced...
Words: 3940 - Pages: 16
...Lesson 1 Case Study Vally Rumao BUS 590: Business Strategy Professor Giang Biscan September 9 , 2015 CASE 1: Facebook vs. Twitter: The Coming Facebook-Twitter Collision CASE ABSTRACT Facebook, the popular social media site, has 150 million users. Most people who follow Facebook believe that it competes with MySpace for the youth market and with LinkedIn for the adult market. The writer of this article argues that while all three – Facebook, MySpace, and LinkedIn – aim to connect people, Facebook’s real competition is the microblogging site, Twitter. Both Twitter, with its 6 million users, and Facebook have some features in common and yet are different. They seem to be embarked on a collision course. KEY POINTS • The impact of a changing competitive environment on business strategy (Chapter 4: External Environment) • The importance of strategic leadership (Chapter 12: Leadership and Culture) RELATED CHAPTERS Chapter 1: Strategic Management, Chapter 2: Company Mission, Chapter 4: External Environment, Chapter 6: Internal Analysis, and Chapter 8: Business Strategy QUESTIONS FOR ANALYSIS 1. Why does the author feel that Facebook’s real competition is Twitter and not MySpace or LinkedIn? The Author feels that Facebook’s real competition is Twitter because both have a huge market share and in future Facebook and twitter will help Individual to network and grow their business. Compared to MySpace or LinkedIn, Twitter business...
Words: 698 - Pages: 3
...Summary Molson Canada has been facing negative reactions their recent social media marketing initiative, Cold Shots Campus Challenge. Parties claimed that this Facebook contest promoted irresponsible drinking behaviours among university students. As a result, Molson pulled the contest one week before the scheduled deadline. Now, Molson must evaluate the use of social media, specifically Facebook, in its marketing strategy. The available alternatives are to revamp the Facebook initiative, to focus on static webpages or to focus on traditional marketing strategies. The recommendation is to revamp the Facebook initiative over a period of three months with ongoing monitors and checkpoints. The projected cost of this recommendation is $75,500 initially, with recurrent annual costs of $36,000 per year. The advantage of this recommendation is that it can be easily expanded to include other types of social media, such as micro blogging, video sharing, photo sharing and online forums if the response to this project is positive. 2 I. Key Issues Molson Canada faces four key issues moving forward from November 2007. The first issue is related to brand image. Brand image is the most important and urgent issue (see Chart 1) because of the negative feedback Molson received as a result of the Cold Shot Campus Challenge Facebook initiative. Molson is seen as promoting irresponsible drinking behaviour. In order to rectify the situation, Molson build and increase corporate social responsibility...
Words: 3320 - Pages: 14
...Case Study: Zynga Introduction Thesis: Zynga’s business strategy is successful but not sustainable. Purpose This case study highlights the success of Zynga in online games. This forms an excellent basis for assessing the relationship between durable and virtual products. The continuous over- reliance of Zynga on Facebook is also another essential aspect of consideration in paper. Finally, the case study addresses the various implications of Zynga on the existing video game business. Overview Zynga is among the world’s most popular online gaming firms. The firm has been operational since 2007. During this period, Zynga’s popularity has increased because of its unique approach to online gaming. Whereas most gaming companies produce games with innovative features, Zynga relies on customer analytics (Laudon, 2012). This involves the assessment of trends evident among the gamers. For instance, Zynga analyzes the most popular game features among the users. Facebook forms the platform for more than 90% of Zynga’s games. Question a: Among the most notable strategies used by Zynga is the development of “durable” and virtual products. From the context of gaming, “durable” products encompass online goods whose lifespan is considerably longer compared to the “nondurables”. The phrase “virtual” comes into application because they are sold and used online. An example of a marketing relationship between the durable and virtual products is the use of sale of virtual real estate...
Words: 1025 - Pages: 5
...increase in interest tax yield ➢ Interest Tax shield gain is partially offset by increase in cost of equity ➢ There are complex processes involved in mergers and acquisition .It is difficult to compare betas measured against different indices due to differences in composition of index. ➢ Changing financial leverage affects the systematic risk that shareholder’s face. ➢ Risks when the acquirer and the Acquirer-Target merging entities are in two different countries For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. (Facebook acquiring WhatsApp) There are many reasons that a company consider before doing any merging or acquisition activity. Hence it can be safely considered that Facebook too has considered the factors related to the same. First of all, the number of users of...
Words: 1636 - Pages: 7
...Internal and External Environments Nokia and Facebook Student’s Name Professor’s Name Date Internal and External Environments of Nokia and Facebook Nokia Environmental Analysis Internal Environment Nokia being the most renowned name in the world has a very big network which is distributed across the world, and has large selling when it is compare to other phone company in the world. It is of very high quality and has user-friendly features. The company has strong financial base which enables it to make innovations with a lot of ease. Nokia has a high product range which makes it very attractive many customers. Nokia’s financial health is strong, which makes it very profitable. Essentially, the price of the product is actually the main issue, as some of the Nokia’s products are not friendly to the users, which fail to sail through in the market. The service centres in some countries are quite few quite often there or no quality after sales services. Most of these product models are quite heavy to carry and not easy to handle. External Environment The digital market is developing so fast. Hence, Nokia has the opportunity to improve its sales as well as its share n the market. Due to An increase in the income level of the people, the purchasing power also increases; therefore, Nokia has to strategically go for the right customer so as to be able to achieve a big gain out of this important situation (Nokia Company, Investor relations, 2015). Also, they would have the good chance...
Words: 1252 - Pages: 6
...17 March 2011 LinkedIn Corp., 2008 Individual Case Memo LinkedIn's strategy to date was to become the leader in professional networking (PNS), a leader in business networking. Dan Nye has called LinkedIn a productivity tools that is used to search individuals of various professionals, recruit, find experts and get expert advice. Their strategy was to emerge as a major player in PNS which they successfully did. In 2008, LinkedIn was the largest PNS in the world, drawing members from about 170 industries. The company wanted to keep a strong differentiation between PNS and SNS along with maintaining a large crop of their professional users. The company, through continued innovation and expansion of new products, employees and a growing number of members has made their initial strategies come to fruition. The main risk in their current strategy is that they may be leaving a large number of prospective members on the table by being solely professional networking rather than expanding to social networking, ala Facebook. Most notably, MySpace and predominantly Facebook, has continued to grab a stranglehold of more members each day passing than LinkedIn. Both social networks target a much younger audience that has grown up with the networks. Both have also targeted entering the professional networking platform. Another main competitor is Monster, the world's largest job search engine. The strengths of LinkedIn include their high revenue stream which allows the company...
Words: 1207 - Pages: 5
...SPOTIFY An Analysis of Spotify’s Market Strategies Spotify Spotify AN ANALYSIS OF SPOTIFY’S STRATEGY Spotify is a Swedish online music streaming service that was launched in 2008. Since, its launch Spotify has had a meteoric rise and currently boasts a library of around 15 million music tracks and about 20 million users. Though Spotify still lags behind Pandora, the market leader, it is interesting to understand how Spotify managed to succeed in the competitive music streaming industry. The following report will start off by giving a brief overview of the music industry, Spotify’s features and the competition Spotify faces. We will then analyze how Spotify managed to succeed in the competitive music streaming industry. Finally, we will discuss the risks Spotify faces and future strategies it could undertake in continuing its success in the online music streaming industry. DIGITAL MUSIC INDUSTRY The digital music industry can be divided into two submarkets: the streaming market with numerous competitors and the digital download market dominated by iTunes and Amazon. Digital music industry revenues have grown by 8% in 2011 reaching a valuation of $5.2 billion. Currently the streaming market only generates 10% of digital music industry revenue but the growth rate of this market is greater than the growth rate of the download market. Competition within the streaming industry is very strong as many companies operate in this market with similar business models. Companies...
Words: 3266 - Pages: 14
...Business Strategies: Marketing Heather Schmidt MKT/421 May 30, 2012 Ron Smith Business Strategies: Marketing Of all the business aspects one must consider when owning an organization, the most important business consideration involves a company’s marketing strategy. Marketing is the livelihood of any organization, for without it, a company’s existence may go unnoticed by the public, or whatever unique competitive edge an organization may possess ultimately might remain undiscovered. Marketing not only draws consumers to the goods or services offered by a business, but it also offers customers a chance to familiarize themselves with the business’ organizational atmosphere, products, services, and operational processes. It is important for a business to establish this familiarity to secure future business relationships with its customers, thus securing a future income for the business. The following will explain different definitions of marketing as well as elaborate on how marketing affects an organization’s success, including examples of marketing techniques used by businesses worldwide. According to the Merriam-Webster Dictionary (2012), marketing can be defined as “the process or technique of promoting, selling, and distributing a product or service.” A popular example of promotion includes the Coca-Cola Company that is well known for its Coca-Cola Polar Bear Campaign. These polar bears originally made their debut in a print advertisement in France in 1922. Until...
Words: 970 - Pages: 4
...Proposal for Online Business Expansion A1. Viability of Service Get Fit is a fitness training business based in Charlotte, North Carolina. Get Fit has a clientele of people of all ages, gender and fitness levels. The operation currently operates successfully at several physical locations and is seeking to expand the online presence. Get Fit offers several fitness options with the most popular being the customized, one on one fitness plan. This plan provides written nutrition and activity planning and up to six hours on personal instruction per week with a certified trainer. In addition to our personal fitness services we also offer group classes such as Zumba, Body Pump, Insanity, Cycling and more. All of the classes are taught by certified trainers and nutritionists. Get Fit presently has a website promoting the services available at the physical location the current website has a list of locations, group fitness calendars for each location and a description of the services that we offer. In addition to all of our services our website also has a client feedback form. Due to the popularity of the services and feedback from clients at Get Fit’s physical locations we have decided to explore the online training options. Get Fit is seeking to expand its services to include one on one personal fitness and nutrition consultation via video chat sites such as Skype, Oovo and Tango. The classes would provide the personal one on one fitness instruction to the clients; these sessions...
Words: 1993 - Pages: 8
...SPOTIFY An Analysis of Spotify’s Market Strategies Spotify Spotify AN ANALYSIS OF SPOTIFY’S STRATEGY Spotify is a Swedish online music streaming service that was launched in 2008. Since, its launch Spotify has had a meteoric rise and currently boasts a library of around 15 million music tracks and about 20 million users. Though Spotify still lags behind Pandora, the market leader, it is interesting to understand how Spotify managed to succeed in the competitive music streaming industry. The following report will start off by giving a brief overview of the music industry, Spotify’s features and the competition Spotify faces. We will then analyze how Spotify managed to succeed in the competitive music streaming industry. Finally, we will discuss the risks Spotify faces and future strategies it could undertake in continuing its success in the online music streaming industry. DIGITAL MUSIC INDUSTRY The digital music industry can be divided into two submarkets: the streaming market with numerous competitors and the digital download market dominated by iTunes and Amazon. Digital music industry revenues have grown by 8% in 2011 reaching a valuation of $5.2 billion. Currently the streaming market only generates 10% of digital music industry revenue but the growth rate of this market is greater than the growth rate of the download market. Competition within the streaming industry is very strong as many companies operate in this market with similar business models. Companies...
Words: 3266 - Pages: 14
...BUSINESS VALUATION Dt: March, 10, 2011 FACEBOOK Facebook Business Valuation Case Valuation Based on 5 year cash flow projections Facebook can be valued at 41.51 Billion dollars. Based on the analysis and the most likely scenario of projections the company can be fairly valued at 38.2 Billion Dollars but when superimposed on the dynamic pattern of internet businesses a valuation of 41.5 Billion dollars can be assumed a fair value. The company at present has a very strong impact and potential to grow in the near future but at the same time it faces a lot of risks that can put it out of business any time in the future. For Facebook to sustain it must diversify. In the light of new developments and information release regarding Facebook‘s business model, Goldman Sach‘s valuation of the company at 50 Billion dollars is opportunist. The reason for this discrepancy could be a conflict of interest as the company gets a priority while going public. This could also be because of the information limitation. Likelihood NPV (CF) NPV (TV) Facebook Valuation Optimistic Scenario 25% 50.31 10 Pessimistic Scenario 25% 27.68 2 Given the latest improvements and introduction of Facebook email and deals in April, 2011 and also potential talks of evolving it as a search engine with a one stop availability, the company can be valued up to 100 Billion dollars. Realistic Scenario 50% 33.02 5 41.51 *Values in Billion $s The scenarios...
Words: 6511 - Pages: 27
...current customers and also to gain the business of new customers. More and more consumers are using the internet and social media websites to make purchases. Some businesses don’t even advertise in the newspaper anymore or use circulars. It is cheaper for them to go to the internet and use social media websites and they also reach more people. This is definitely the future for businesses. With the success that Pepsi had, I can see more and more businesses doing this in the near future. Reasons social media marketing has become exceedingly popular among businesses More than 66% of small businesses plan to invest as much or more in digital marketing, such as websites, social media and online advertisements, as they did last year. These results were from the 2013 AT&T Small Business Technology Poll, with 1,000 businesses replying to this poll (Eddy, 2013). As we can see from this poll, there is definitely a strong interest from businesses in using this type of avenue for advertisement purposes. I think businesses see that through these social media websites, they can be successful. When you go to the Facebook website, you see advertisements for different businesses. There is also LinkedIn. They are a social media network that caters to people in professional occupations. What a great network to use for advertisement purposes. You know that you are reaching an audience of people who can definitely help grow your business and afford to purchase the products advertised...
Words: 2980 - Pages: 12
