Strategic Planning–Social Media Industry –Facebook–Muhammad HussainMuhammad Owais–BOH4M – Br. TaherSection 1 Mission Statement?”Founded in 2004, Facebook’s mission is to give people the power to build community and bring the world closer together. People use Facebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them.” (Facebook Newsroom, 2017) Re-Write Mission Statement· Criteria for good Mission Statement: (Dr. Nolan, Applied Strategic Planning)o The mission statement is clear and understandable to all personnel, including all support staff & parents. o The mission statement is brief enough for most people to keep it in mind. o The mission statement clearly specifies what business the organization is in. This includes a clear statement about: “What” needs the organization is attempting to fill, not what services are offered; “Who” the organization’s primary “customers” are; and “How” the organization plans to go about its business.
o The mission statement should have a primary focus on one strategic goal. o The mission statement should reflect the distinctive competence of the organization. o The mission statement should be broad enough to allow flexibility in implementation but not so broad as to permit lack of focus. o The mission statement should serve as a template and be the means by which leaders and others in the organization can make decisions. o The mission statement must reflect the values, beliefs, and philosophy of operations of the organization and reflect the organizational culture. o The mission statement should reflect attainable goals.
o The mission statement should be worded so as to serve as an energy source and rallying point for the organization. (Does it show your passion?) Re-Written Mission Statement:”To provide the top the bottom and everything in between (with the help of social media, advertisement and facility) power to communicate, share and connect, ultimately making the world an interactive global village.” How did I improve the statement?As you can notice in the new mission statement that I have declared, I have made the goal and scope of the company very prominent. I have made sure to include “What” I am targeting, I have made clear “How” I attain the “What” and then I have shown care for my customers/targets by making it obsolete that everybody is deserving of taking part in being part of the “global village”. Logo (does it fit mission statement? furthermore, would I improve it to make it better?) (Bauer, seeklogo.net) The Facebook logo is very clear and has been the same since the start of the company itself, which is great, but it does need fixing In order to align with the company’s missions statement. It neither symbolizes/represents/shows power to the people, connection nor sharing of people.
It just represents the brand name. If I had to make changes to it I would probably switch the two “o”(s) after the letter “b” and make them miniature globes. and then connect the two to have some sort of representation of communication and connection in the world.
Financial and Strategic Objectives This is a screenshot of the “App Store” from the iPhone and it shows the highest downloaded apps of social networking that are free. #1 and #2 are “Facebook Messenger” and “Facebook” respectively. Now that I shared with you the level at which the Facebook and Messenger app are performing, with this, I will share with you a few of Facebook’s financial and strategic objectives. One of the financial objectives of almost every big company/organization and in this case especially Facebook is to minimize cost of doing business (Greenspan, Panmore). 1/3 people in the world today are active users of Facebook (Facebook Newsroom). The world’s population on 3th June 2017 was estimated to be: 7,519,028,970 and the amount of internet users on June 30th of 2017 were estimated to be: 3,885,567,619. This tells us that approximately half the world uses internet.
This also tells us that almost 67% percent of Internet users are active users of Facebook. Mark Zuckerburg (founder of Facebook) says that he wants Internet to be available to all of the world. He says, “Bringing the other two-thirds of the world online will enable them to invent and create new things that benefit us, too. Not only do the vast majority of people have no access to the Internet, but even more surprisingly, Internet adoption is growing by less than 9% each year. That’s very slow considering how early we are in its development and that rate is only slowing further.
The challenge for our industry will be to develop models for Internet access that make data more affordable while enabling mobile operators to continue growing and investing in a sustainable way. Efforts likeInternet.org — a global partnership founded by Facebook and other technology leaders –are already under way to solve this by working with operators to provide free basic Internet services to people.” (Zuckerburg, Wall Street Journal) This shows us that one of the strategic goals for Facebook I to make internet affordable and available to all of the world and then by minimizing their cost of business make profit and live by their mission statement and make the world a place where everybody from anywhere can connect with anybody.
Section 2 SWOT analysis Facebook’s: · Strengthso Integrations with and around Websites and Applicationso Exceeding amount of userso Excellent customer satisfaction and experienceo Understanding and Application of customer behaviour and needs· Weaknesseso Weak Click Through rate of advertisementso Lack of some social networking featureso Only one source of revenue (Advertisements on Facebook)o Creativity and customization of Apps and Websites is slow and lackingo Weak protection of users’ information· Threatso Increasing amount of mobile internet users (Snapchat, Instagram)o Ad-Blockso Slow growth rate of advertisingo Identity thefto Weak business model· Oppurtunitieso One of the highest mobile use rates in the worldo Expansion to vast markets like Asiao Diversification of revenueo Marketplace within facebook PEST Analysis · Politicalo Many Politicians of different countries use the means of Facebook for others to be influenced by their ideas and in turn become of their followers.o Many news channels for ex: AJ+ and Channel 4 News are committed channels pages that provide global news around the world through their lens from Facebook.· Economico Facebook provides many Jobs around the world due to their offices located worldwide and on-line employees as well.o The Facebook is worth around 2 Billion pounds.o Facebook is also part fo the Stock Market since 2012.· Socialo Youtubers, Religious Personalities, Movements and trends as well as fads that are exploited and exposed to society.o Entertainment and connection with Sports and the music industry is also a widely affective means.
· Technologicalo Many programming languages for example: PHP, Linus, MySQL, Apache, Memcache, Java, Pyhton and many more are used by facebook to create what it is that they create.o Avalable on many different platforms and devices as well. Section 3 Competitor analysis Section 4Environmental ScanningPorter’s Five Forces Analysis · Competitive Rivalry Within The Industry Social networking space is prone to innovation, swift change and the introduction of new technologies. Hence, Facebook’s massive user base cannot be taken for granted; the company continuously needs to innovate and to adapt to changing customer trends Any failure to do so could potentially cause its user base to migrate to other social media networks. Competition stems not only from social platforms that vie for users, but also from companies that allow marketers with targeted advertising and new development platforms for application developers. Facebook commands a loyal user base across several user demographics and geographies. However, competition from Google+ and Twitter can cause a reduction in the average time spent by active users on the FB platform, as these platforms offer unique sets of features.
Further, a number of social networks are cropping up that target a niche user base. For example, Snapchat appeals to a younger audience and is more popular among females. We expect this trend to persist and hence Facebook could see competition intensifying within different user demographics. Apart from this, since desktop usage is being replaced with mobile usage, we believe rapid changes on the mobile landscape pose a potential threat to Facebook. The mobile platform is inherently different, with apps being more targeted towards a specific functionality rather than a broad range of features. Currently FB provides a vast range of services such as photo-sharing, messaging, etc.
We believe newer innovative apps could emerge providing one of these discrete services. In the event that any such app gains widespread popularity, it could lead to lower engagement on FB-owned platforms. This could also result in Facebook buying out upcoming competitors at steep valuations. There are several regional social networks, such as Renren in China, Mixi in Japan, vKontakte in Russia, etc., and these compete with FB for users in their respective geographies.
Increased regulation in certain markets such as China is more beneficial to regional players. · Bargaining Power Of Customers Users on platforms including Facebook, Whatsapp, Instagram, Messenger, and marketers advertising on these platforms, represent customers for Facebook. Given the large-scale competition, the bargaining power of users is high. This means ensuring good user experience is the key to attract and retain customers on social networking platforms. The switching costs for users are low, making it easy for them to migrate to other platforms. This also places a higher limit on the ad load (the percentage of posts that are ads) on the FB platform; the ad load was previously measured to be around 5 to 10% and we believe this represents an optimal level without compromising on user experience. Since customers can choose from a wide array of messaging and other apps, this always restricts the fees Facebook could charge for Whatsapp in the future.
The wide-spread popularity of Facebook, along with its ad-targeting capabilities, makes it an attractive platform for marketers, raising FB’s bargaining leverage with advertisers. Facebook caters to a very large number of marketers across both large and small scale businesses and hence their individual bargaining power is limited. However, in the event, Facebook starts increasing ad pricing significantly, we think marketers could start gravitating more towards other social networking platforms. And hence this factor limits Facebook’s ability to dramatically raise ad pricing on the platform. · Threat Of New Entrants The Internet business is characterized by low barriers to entry. It is relatively easy to build new sites and applications.
However, significant amount of resources are required for marketing and for gaining brand recognition, and this raises the barriers to entry to an extent. The introduction of innovative and niche social networking sites could potentially be a threat to Facebook. Concerns related to falling teen engagement on FB had led to a drop in its stock price in 2013. The rapidly evolving mobile landscape is an area to watch out for as Facebook’s usage is increasingly shifting to mobile platform -mobile daily active users (DAUs) comprised for more than 80% of overall Facebook’s DAU in September 2014.
Hence, we believe investors should closely track the rising popularity of new mobile apps (in areas including social sharing, messaging, micro-blogging) as this market is still emerging with the advent of smart phones. · Bargaining Power Of Suppliers The Internet business is characterized by low barriers to entry. It is relatively easy to build new sites and applications. However, significant amount of resources are required for marketing and for gaining brand recognition, and this raises the barriers to entry to an extent. The introduction of innovative and niche social networking sites could potentially be a threat to Facebook.
Concerns related to falling teen engagement on FB had led to a drop in its stock price in 2013. The rapidly evolving mobile landscape is an area to watch out for as Facebook’s usage is increasingly shifting to mobile platform -mobile daily active users (DAUs) comprised for more than 80% of overall Facebook’s DAU in September 2014. Hence, we believe investors should closely track the rising popularity of new mobile apps (in areas including social sharing, messaging, micro-blogging) as this market is still emerging with the advent of smart phones.
· Threat Of Substitute Products There are a large number of social networks that facilitate sharing of information, and hence customers could choose these other platforms over Facebook. A number of social networks cater to specific interests such as cooking and gaming, and hence any increase in their popularity could impact engagement levels on FB-owned properties. Apart from this, new and innovative mobile applications keep entering the market and they could potentially impact user growth on Facebook in the long-run. Section 5 Strategic Decisions· What generic strategy do you feel this company is following? Why do you think this is the strategy they choose?· Does the strategy they choose fit their strengths? Explain.· Is there another strategy that would work better? Why?· Give at least three suggestions as to how to support and implement their strategies to ensure success.