For Facebook describe the Proposed Alternatives (2 p. Based on your Strategic Alternatives Matrix and the issues identified in the opening paragraph, choose 2 alternatives to develop further, and justify your choice based on the items from your SWOT that would be affected by that choice (threats and/or weaknesses mitigated, opportunities and/or strengths exploited, etc). One of the proposed alternatives should be relatively short term and would not cost much, and one should be relatively long term and would require significant investment. For each of the proposed alternatives, describe risks and/or benefits to at least two internal stakeholders, and two external stakeholders.
here is my SWOT:
SWOT Analysis for Facebook
| Strengths | Weaknesses |
| Strength that leads to a sustained competitive advantage:
1.Integration with websites and applications – Facebook has partnered with many websites and app manufacturers to enrich its user experience by linking with other websites. The ease of being able to get from Facebook to other websites and vice-a-verse-a is something other social networking sites struggle with. Core Competencies: 2.More than a billion active monthly users – With so many users Facebook has succeeded in connecting its users on a local, national, and global level. 3. 3.Excellent user’s experience – Facebook is translated into 70 languages and is available through both PC and mobile devices. The integration with apps and other websites provide an unparalleled experience for its users. 4. Understanding of user’s needs and behavior – Other than Google, no site collects as much data on its users as Facebook does. This allows Facebook to know what its users like, dislike, their needs, and behaviors. Using all this data, Facebook can offer an experience that other social networking sites will never dream of. |
1. Weak Click-through-Rate (CTR) of advertisements – This means that people are not clicking on ads. Changing the way ads are displayed without interfering in users’ experience is something Facebook needs to work on.
2. Social network lacks some features – Facebook still does not offer video chats or dislike buttons. 3. Only one source of revenue, advertisements on Facebook – This constitutes 80% of Facebook’s income. 4. Collection of private user data, lack of protection and regard for that data – Facebook collects private data, then uses or sells it. They also don’t use proper protection for data and don’t have protection enough for users data to be safe. Identity theft runs rampant on Facebook. |
| External Opportunities | External Threats |
| 1. Increasing number of people using Facebook through mobile devices – Mobile users make up 60% of all users in Facebook and yet only constitute 14% of advertising income. Facebook is missing out on a large portion of its income here.
2. Expansion to China – The possibility of being able to enter China’s social network arena is becoming more likely and Facebook should prepare for this. 3. Diversify sources of revenue – Advertising is a huge source of income for Facebook. They should diversify and find other sources. 3.Diversify sources of revenue – Advertising is a huge source of income for Facebook. They should diversify and find other sources. 4. Open Facebook marketplace – This is a major source of revenue that Facebook is missing entirely. With so many users, Facebook stands to make a lot of money should they open a Marketplace. |
Increasing number of mobile internet users – As more users turn to mobile internet, Facebook stands to lose considerable income if they don’t manage to cash in on mobile advertising.
Users using ad-block extensions – The more users that begin using ad-block extensions the less clicks there will be on ads. If Facebook does not diversify its income prospects it stands to lose a major amount of money. Slow growth rate of online advertising – Online advertising is slowing in growth and Facebook is poised to lose a lot of money if they don’t find another source of income. Identity thefts – Identity thefts are very prevalent on Facebook. It makes users unhappy and unwilling to use pieces of Facebook that keep their data. This is an issue Facebook really needs to work on. |
