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Strategic Opportunities and Threats Facing Facebook - Essay Example

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Acquisition of Instagram by Facebook is a prominent occurrence in the business world in the recent times.  A comprehension of the strategic reasons behind this acquisition is a critical aspect to gauge the long-term motives of the companies. Facebook is a social networking platform that helps to connect with family as well as friends…
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Strategic Opportunities and Threats Facing Facebook

It has only 35 million users of the application especially the Apple Smartphone users as well as other Android smartphone users. It is also very surprising for all because there are a lot of blog sites that are already accumulated with Facebook, despite this, it has acquired such as a small application based company (Gavaghan & Warren, 2013).
In this context, it is definitely required to be pointed out that understanding the strategies of the big companies is at times really quite complex. The term strategic management describes the process of analyzing decisions as well as actions taken by an organization in order to create and derive sustainable competitive advantages. Therefore, it is determined that managing the strategy of an organization effectively as well as efficiently is the essence of organizational growth (The Social Media Guys, 2010).
This essay intends to critically discuss the strategic opportunities and threats facing Facebook. Moreover, the different methods of strategic development that can be used by the companies will be identified. Consequently, amid these methods, the appropriate method applicable in case of Facebook’s acquisition of Instagram will be evaluated. In addition, with the aid of the TOWS matrix, a critical analysis would be made of the strategic decision taken by Instagram’s management to join forces with Facebook.
In the global business world, every organization has to deal with two types of environment i.e. internal environment as well as external environment. In this context, the parameters that will be described comprise the opportunities as well as the threats faced by Facebook by taking concern the external environment (Thompson & et. al., 2005).
In the context of strategic opportunities for Facebook, firstly there is a need to highlight the acceptance of the global people of this innovative concept. The audience size of this social networking media and the talents who are associated with this concept is a significant strength as well as the opportunity of this organization for dealing with any hurdle coming from the global competitors. ... Read More
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