Facebook Case Study Analysis Management Case Study (Case Study Sample)

Individual Case Study-Facebook
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Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc16719022 \h 3Strategic Analysis PAGEREF _Toc16719023 \h 4PESTEL Analysis PAGEREF _Toc16719024 \h 4Political Factors PAGEREF _Toc16719025 \h 4Economic Factors PAGEREF _Toc16719026 \h 5Social Factors PAGEREF _Toc16719027 \h 5Technological Factors PAGEREF _Toc16719028 \h 5Ecological Factors PAGEREF _Toc16719029 \h 6Legal Factors PAGEREF _Toc16719030 \h 6Porter’s Five Forces Analysis PAGEREF _Toc16719031 \h 7Competitive Rivalry or Competition PAGEREF _Toc16719032 \h 7Bargaining Power of Buyers PAGEREF _Toc16719033 \h 7Bargaining Power of Suppliers PAGEREF _Toc16719034 \h 7Threats to Substitutes PAGEREF _Toc16719035 \h 7Threats to New Entrants PAGEREF _Toc16719036 \h 8VRIO Framework Analysis PAGEREF _Toc16719037 \h 8Financial Analysis PAGEREF _Toc16719038 \h 11Overall Analysis PAGEREF _Toc16719039 \h 11Key Strategic Issues PAGEREF _Toc16719040 \h 12Recommendations PAGEREF _Toc16719041 \h 13Conclusion PAGEREF _Toc16719042 \h 15References PAGEREF _Toc16719043 \h 15
Introduction
Facebook, Inc. is among the leading social media companies around the world. It is also considered the most competitive of all other companies in the industry. Google is among top Facebook’s rivals or competitors, especially in the marketing of Ads. From the case, one can learn that the company’s leaders are dedicated to competitiveness and growth, particularly in improving the company’s revenue. Chief Executive Officer (COO) Sandberg shows great efforts in innovation and setting higher targets for the company, which has, over time, resulted in incredibly good results (Rothaermel, 2018). But, Sandberg found that her determination might be crippled by Facebook’s lack of efficient and outstanding effectiveness. Its rival Google has a strong search advantage, which keeps the company ahead.
Facebook does not have such a long history. Zuckerberg’s computer wits and Sandberg’s marketing abilities learned from Google, where she had been the Vice President were joined up to form a competitive company through the use of various strategies. Based on the information provided in the case, this case analysis uses tools such as the PESTEL, Porter’s Five Force, and VRIO framework. A financial analysis comparing Facebook, Inc. to its rival, Facebook is also conducted. All these are conducted under the strategic analysis of the company.
Arguably, Sandberg is seen as a very strong figure who has greatly contributed to Facebook’s success. But, how successful is Facebook, Inc.? Facebook is currently at position 57 in the Fortune 500 list, which moved up from the previous rank of 76 (Kohan, 2019). The company now stands at $55 billion worth revenue with 37.5% change (increase) (Nasdaq, 2019). In the 2018 fiscal year, the company closed with $22.11 billion profit, which was 38.8 profit. Below is a comprehensive strategic analysis of the company based on the case presented by Rothaermel (2018).
Strategic Analysis