Facebook - Strategic Analysis
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Transcript of Facebook - Strategic Analysis
• 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)