Facebook Analysis

Running head: FACEBOOK ANALYSIS 1 FacebookAnalysisNameInstitution

Time Context

The year in whichFacebook started to experience user’s dissatisfaction is 2007

Point of View

Facebook experiencedgrowing number of young users’ dissatisfaction due to its inabilityto offer targeted users experience

Main Problem

The central problemthat faced Facebook Inc. in 2007 is having a sustained detachmentwith the young generation of social sites users, who were the maintarget of the site during its establishment period.

The SecondaryProblems

  1. Growing competition in the market from niche targeting social sites

  2. Frequent shutdowns of Facebook pages

  3. Legal suit by ConnectU

  4. Loss of trust by the users due to low ability of the company to offer confidentiality

  5. Growing view against pokes, and other features offered by Facebook

  6. Low level of advertisements


  1. Determine ways in which Facebook can be all inclusive

  2. Develop a plan that would see Facebook claim back its perception as “all people’s’ site

  3. Establish marketing strategy that would ensure Facebook sustains its market dominance

  4. Establish ways in which Facebook can develop synergy with existing social sites

Areas ofConsiderations

Facebook SWOTAnalysis


Strengths of Facebook Company include the ability to integrate withother applications, a high number of annual users (amounting to morethan a billion), exciting experience for the users, and high revenuegrowth. On addition to this, the company has a good brand image andhas continued growth in the number of professional users.


Weaknesses of the Facebook Company include lack of customizationability of the website, a weak click-through-rate of theadvertisements, poor protection of the users’ information, and agrowing attitude toward the user’s privacy which is creating anegative image for the Company. Other weaknesses include havingadvertisement as the sole source of revenue and lack of such featuresas video chats.


Facebook opportunities include the availability of more source ofrevenues such as subscriptions and growing number of advertisers,expansion of the China market, an increase in the number of peoplewho use the mobile phone Facebook app, and the existence of an openmarketplace for the company. Other opportunities include new productdevelopment and expansion of the number of the PC’s users.


Threats to Facebook include ad-block extensions wide usage byFacebook users, a weak business model, privacy concerns such asidentity theft, and low growth of the online marketing. On additionto this Facebook is likely to become unfashionable like MySpace.

Facebook Inc.PEST Analysis

Political Factors

Government and users of Facebook have expressed concerns over theprivacy issues of Facebook, which may harm the strategy of thecompany to use the user information to have effective advertisement.The company is facing some of the legal suits that could hinder theability of the company to get data of its users. Some countries likeGermany have expressed concern that the operation of the Facebook iscontrary to European privacy rules.

Economic Factors

Facebook has been able to record a high revenue growth, strong cashflow, and reduced expenses. The global economy is growing to a middleeconomy. This creates an opportunity for more revenue creation, whichwill enable the company to create financial flexibility. The companycan convert its sale to free cash flow giving it more ability investin expansion programs inorganically.

Social Factors

Facebook launched an App Center, which was the first step inmonetizing the mobile user base. This is a place where people canaccess social apps. This has created Facebook’s success in anonline environment. However, Facebook has to be wary of the growingcompetition where such sites as Twitter have attracted more than 200million users.


Some of the technological issues that are facing Facebook is thatmany users, as indicated in the case study would wish that the sitewould have more reflection of their personalities. Facebook, hashowever not been able to customize its website to reflect individualpersonalities, where all users have to use standardized templates.Other social sites such as Google+ creates room for a morepersonalized network for the users.

AlternativeCourses of Actions (ACA)

Facebook Company isfailing to satisfy its users due to such factors as lack of websitecustomization, taking a long time before developing improvement, andlack of Niche market. The company should adopt the following coursesof actions.

  1. Create a customizable website where people can be able to have a more personalized look. For example, the company should enable its users to use the theme of their choice, change the look of their Facebook page, and enables the, to have more freedom, without necessarily having to stick with a standardized format. This will help to reach the young and innovative generation, who do not like to have a conservative approach to technology.

  2. Facebook should adopt an enhanced end-to-end encryption. This will help to protect the messages, documents and photos of the users. This will help to ensure that the messaging and other communication that are meant for a particular person are only accessed by those who it is intended to. This will lower the level of privacy concerns that have been raised by various users and the government.

Decision Criteria

Factors that would help to evaluate the success action plan would beincreased satisfaction from the users, and less concerns raised bythe government agencies. The demerits of this action plan candetermine the extent to which it will restrict communication ofbetween the users. The aim of a social site is to ensure that theperson is able can reach as many people as possible, and the actionplan should not be hider attainment of this objective.

The action plan`ssuccess will be measured by the extent to which Facebook will be ableto get have a high young people command., the percentage of the youngpeople using the website should be monitored and implementation ofthis action plan, would be measured by the extent to which thecurrent number of young people the company has changes.


Based on the decision criteria the company should adapt an enhancedend-to-end encryption and website customization action plan. Thiswill enable the company to meet its goals, of been the leading socialsites that integrates everybody in the society. Ability to customizeindividual Facebook page will create a new excitement for Facebookusers, which will attract more people and encourage the retention ofthe existing ones. It will lead to a higher young-people satisfactionand thereby, it will solve the problem of tapping the young people.End-to-end encryption would boost users’ confidence in the abilityof Facebook to protect their privacy.

The Case Plan

Facebook should start by hiring the best and skilled IT staffs whowould propel the company in attaining its goals. The company shouldconduct a survey of the kinds of themes that the users would like tohave. After carrying out the survey, the company should decide on theencryption keys where it can either choose encryption by apre-arranged symbols string (pre-shared secret) or use the QTR(Diffie-Hellman key exchange) secrete key encryption (Hoet al., 2016). The company should implement the advancedencryptions and enhance customization. During implementation, thecompany should evaluate, the desirability of these action plans,implement them and evaluate and monitor them for possible areas ofimprovements.

TheImplementation Plan

The implementationprocess should follow the following process:

Initiation Phase

In this level, theFacebook customization ad securities improvement idea should beelaborated and explored. The feasibility of the idea should beassessed. The technical team should write the deception of the ideato the management.

Definition Phase

After developingthe project plan in the first step, the plan should be approved bythe senior management. Requirements for the idea will be clearlyexplained to the management.

Design Phase

The design should bedeveloped in the form of screen design (for prototype). Prototypedesign should be used to choose a definitive design which will beimplemented for the project.

Development Phase

This requires anargument of technical and activities for the project. This phase willbe complete when the implementation is ready.


In this stage, theproject will be implemented. Programmers will be occupied withdesigning, encoding, graphic development and reorganization of thesite.


Ho,K., Nistala, A., Tu, K., &amp Rivest, R. (2016). End-To-End MessageEncryption for Tinder.