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Strategic Analysis of Facebook Inc - Term Paper Example

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In existing business environment, there are a number of different issues faced by business organizations. Owing to different environmental issues faced by the company, its performance in the share market varies accordingly…
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Strategic Analysis of Facebook Inc
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Strategic Analysis of Facebook Inc

In this regard, the business organization selected for the paper is Facebook Inc. Facebook is regarded as one of the most prominent social networking service provider company. The company was founded by Mark Zuckerberg in the year 2004. The company is headquartered in Menlo Park, California. In recent period of time, the company has become quite popular tool of social network among its users (Veer, 2011).The company provides the facility to its user of sharing information, posting their photos and videos, connecting and chatting with other person, joining any group, and playing online and interactive games. In order to avail such social networking facilities provided by the company, the user is required to make his own account on Facebook with the help of its e-mail Id. Nowadays, in order to make the usage of this site easy and convenient; Facebook is available on the user’s smart phone also (Business Summary, 2012). Earlier the firm used to operate as a private business organization within the marketplace, but in 2012, the company has become publicly traded corporation by launching one of the largest IPOs in US stock market history (Business Summary, 2012)....
Industry Structure and Global Markets The company operates in the industry of Internet Information Providers. In the existing period of time of where Information Technology has become quite advanced and effective, this industry has become quite competitive. This industry can be characterized as wide-ranging competitive industry. In this direction, the company is facing some stiff competition provided by other social networking facility provider company. Among such competitors, some major competitors of the company are Google, Microsoft, and Twitter Inc. In the competition of Facebook, Google has recently launched its social networking utility, namely Google+. Moreover, there are other social networking utilities such as E-buddy, blackberry messenger, Linkdin and so on, which are delivering some intensive competition to the company (Business Summary, 2012). In existing period of time, the company is enjoying some favorable business conditions across the world. As internet penetration across the world is increasing rapidly. Moreover, the interest of young generation towards social networking is also enhancing quite intensively, which shows some positive conditions for the growth of the company (BBC: News Technology, 2011). In direction to this, the company has registered some intensive market growth in terms of international presence. The total number of users of the company across the world can be presented as below: (Source: Facebook Users in the World, 2012). Economics Before the year 2012, the company was not traded on stock market. In May 2012, the company launched its IPO. The opening share price of the company at that period of time was $38, which was considered overvalued by traders. ... Read More
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