• PESTEL Analysis and Porter‘s Five Forces Analysis

• Industry Structure

• Main Competitors and Strategic Mapping

• Business Model

• Resources and Capabilities

• Competitive Advantage

• Business Strategy & Innovation

: Strategic analysis

Summary

PESTEL AnalysisPOLITICAL FACTOR

• Stable political situation

• Facebook ban

ECONOMIC FACTOR

• Recovery after a major

economic crisis

SOCIO-CULTURAL FACTOR

• Link between people

• Addiction

TECHNOLOGICAL FACTOR

• Smartphone and tablet era

• Mobile advertisement

ENVIRONMENTAL FACTOR

• Pollution: CO2-emissions

• Climate change

: Strategic analysis

P E

S

TE

LEGAL FACTOR

• Law suits in U.S.

• Privacy issues in EuropeL

Porter 5 forces analysis

Threat of Entry:

• Small initial investment

• Sector of innovation

• Start-ups go mobile

Power of Suppliers:

• Users‘ activity = info

• Switching to anoternetwork

Power of Buyers:

• Revenue from mobile platform

• Important advertisers

Threat of Substitutes:

• No perfect substitute

• WhatsApp, Skype

Rivalry:

• Google+

• How active are users?

• High revenue from Ads

MED/HIGH MEDIUM

SMALL

SMALLHIGH

: Strategic analysis

Facebook Main competitors

Q4- 2013

: Strategic analysis

Main Competitors & Strategic Mapping

Pace of innovationlow

low

high

high

User interaction

Revenue stream :

•Advertising

•30% cut on facebook credits

: Strategic analysis

Business Model

NETWORK EFFECT model

BRAND ADVERTISING

model

• Facebook apps and game developers

Key partners

• Platform development and maintenance

Key activity

• Smart people and technology

• Huge brand

• Huge user base

Key resources

• Long-term , sticky relationship

• Network effect

Customer relationships

• Everyone on the internet

• SME , micro advertisers

• Facebook Apps and Games developers

Customer segments

Resources and Capabilities

Resources:

• Capital

• Technical Equipment

• 1.2 billion users

Capabilities:

• keen sense of which

firm to acquire

(Instagram, WhatsApp,

face.com, etc.)

: Strategic analysis

Competitive Advantage

: Strategic analysis

ValuableRareCostly to imitate

Organized to capture

Sustained competitveadvantage

Business Strategy

• Integration Focus on differentiation

• Learning Curves

: Strategic analysis

Innovation

• Key factor for success!

• Product innovation: time line, privacy settings, spotify integration,...

• Process innovation: new search engine (improved algorithm)