About Facebook Performance In The Social Media Market (Term Paper Sample)

FACEBOOK INC.
ZACHARY GREENWOOD
COURSE:
INSTRUCTOR:
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Table of Contents TOC \o "1-3" \h \z \u 1.0 EXECUTIVE SUMMARY PAGEREF _Toc482267740 \h 22.0 INTRODUCTION PAGEREF _Toc482267741 \h 33.0 PROBLEM STATEMENT PAGEREF _Toc482267742 \h 44.0 PROJECT QUALIFICATION PAGEREF _Toc482267743 \h 44.1 The scope of Facebook PAGEREF _Toc482267744 \h 45.0 ASSUMPTIONS PAGEREF _Toc482267745 \h 56.0 LITERATURE REVIEW PAGEREF _Toc482267746 \h 56.1 Overview of the firm’s performance PAGEREF _Toc482267747 \h 56.2 Data collection approaches PAGEREF _Toc482267748 \h 66.3 Popularity of Facebook PAGEREF _Toc482267749 \h 67.0 STRATEGIES THAT FACEBOOK INC. CAN USE TO WIN THE MARKET PAGEREF _Toc482267750 \h 77.1 Market development PAGEREF _Toc482267751 \h 77.2 Diversification PAGEREF _Toc482267752 \h 87.3 Product development PAGEREF _Toc482267753 \h 87.4 Consistent focus on user experience PAGEREF _Toc482267754 \h 87.5 New means of monetization PAGEREF _Toc482267755 \h 97.6 Acquisition PAGEREF _Toc482267756 \h 97.7 Penetration Strategy PAGEREF _Toc482267757 \h 98.0 CONCLUSION PAGEREF _Toc482267758 \h 109.0 RECOMMENDATIONS PAGEREF _Toc482267759 \h 1010. REFERENCES PAGEREF _Toc482267760 \h 12
1.0 EXECUTIVE SUMMARY
As the leading social media company in the world, Facebook Inc. can reverse its current decline in the number of clients and remain competitive in the social media industry. Facebook Inc. boasts of 1.6 billion users worldwide and is the leading social media organization around the globe (Smith, Grimm, & Gannon, 2014). Despite the fact that users are shifting to competitor’s products, employment of the right strategies can re-establish customer loyalty and lure more targeted consumers aged between 18 and 35. The research conducted has established that the company is capable of maintaining its current market leadership due to various reasons. Firstly, technology is consistently advancing providing consumers with convenient and efficient means to interact and communicate (Smith, Grimm, & Gannon, 2014). Individuals from different cultures and backgrounds are embracing social media as an effective means of communication. Social media is facing fewer restrictions in many nations. Social media is a growing e-commerce tool that is widely used by businesses and consumers to sell and purchase products. Facebook is a widely recognized brand hence investing in intense and aggressive marketing is not required (Shih, 2016).
2.0 INTRODUCTION
There is no doubt that Facebook Inc. is arguably the leading social media network around the globe. However, due to the entry of other players in the industry, there has been a decline of Facebook users. Therefore, due to the recent and current decline in the number of Facebook consumers, the company has considered our group suitable to evaluate the strategies that can be undertaken to revive its market leadership position. Therefore, the group conducted a study to determine suitable strategies to reverse the decline, lure new customers and maintain consumer loyalty. Facebook is a global entity; it operates in almost all countries across the globe. Competition has become stiff due to innovations and the growing number of social media companies in the global setting. The company is a recognized brand image both in the United States and other continents such as Europe, South America, Asia, Africa and Australia (Shih, 2016).
This report aims at covering numerous factors that will lead to reviving the market leadership position of Facebook Inc. These strategies include mergers, product diversification, product development, market development, Consistent focus on user experience, new means of monetization and acquisition. This study will involve the management at Facebook Inc. Social media consumers in America and across the globe. Most of the research will be conducted through the web because consumers of social media products and services are located globally. Contrary to many existing opinions, we believe that the company can revive itself by applying the right market strategies and developing customer products that can attract and retain its clients.
3.0 PROBLEM STATEMENT
As one of the major social media corporations, which also provide social networking services, Facebook has recently experienced a decline in its total number of users. This research aims at establishing strategies that can be applied to reverse this decline for the company to remain relevant in the current social media industry.
4.0 PROJECT QUALIFICATION
The current world is driven by globalization. All the communication barriers are broken down. Facebook Inc. is one of the companies that managed to create a platform that is allowed people not only to communicate but also to make business deals. Therefore, the recent decline of its dominance in the social media industry must raise concerns to the owners. There are many other players in the social media industry thus leading to stiff competition.
4.1 The scope of Facebook
Facebook is a global entity; it operates in almost all countries across the globe. Competition has become stiff due to innovations and the growing number of social media companies in the global setting. The company is a recognized brand image both in the United States and other continents such as Europe, South America, Asia, Africa and Australia (Shih, 2016). This report aims at covering numerous factors that will lead to reviving the market leadership position of Facebook Inc. These strategies include mergers, product diversification, product development, market development, Consistent focus on user experience, new means of monetization and acquisition. This study will involve the management at Facebook Inc. Social media consumers in America and across the globe. Most of the research will be conducted through the web because consumers of social media products and services are located globally.
5.0 ASSUMPTIONS
This study will be based on various distinct assumptions. Firstly Facebook is a globally recognized brand hence the audience that will be engaged in this research have a basic knowledge of Facebook. Additionally, the researchers assume that the decline in the number of consumers of Facebook products has been experienced across the globe, in all nations. Moreover, the marketing techniques and other corporate practices are uniformly carried out across distinct countries around the globe.
6.0 LITERATURE REVIEW
6.1 Overview of the firm’s performance
Following researches that I conducted including literature reviews, observation, expert reviews and personal experiences, I believe that Facebook is capable of reviving itself as a leading social media corporation. Currently, Facebook Inc. boasts of 1.6 billion users worldwide (Walther et al., 2013). The company is also the leading social media service corporation with the largest number of users around the globe. Currently, the company utilizes a marketing mix, which supports and capitalizes on its popularity. In the company’s marketing mix, major considerations entail the nature of its online mobile apps and networking websites. However, users are opting for other services due to fact that the service has been overwhelmed with political rants and bad memes. Additionally, some of these sites deliver fast news and contents, which are easy to assess just by a click of a button. Nevertheless, I believe that Facebook has what it takes to regain its market leadership position by using the right marketing approach.
6.2 Data collection approaches
Due to the scope limitations pertaining primary sources such as observation and interviewing, primary research will be complemented by secondary research. In this regard, secondary sources will be widely utilized. Secondary sources include online materials in the form of journals, expert analysis, scholarly articles, data from the stock exchange and the company’s recent financial year reports.
6.3 Popularity of Facebook
Facebook is the leading social network globally and there is no doubt about that. The statistics indicate that despite the entry of many other players in the market, not of these competitors have been able to win the market against the Facebook in the market. Therefore, the firm still remains a leader in the market despite the challenges that the Facebook is facing in the current social industry.
Fig. 1.1: Source statics 2016
Facebook is the leading social media network with over 1.4 billion users. The company is followed closely by QZone, which holds the second position (Shih, 2016). This means Facebook is an established brand that controls the biggest share of the social media market, which is an advantage for the organization. Additionally, the recent acquisition of other competing networks such as Whatsapp and Instagram has helped ease competition making the company relevant in the social media market.
7.0 STRATEGIES THAT FACEBOOK INC. CAN USE TO WIN THE MARKET
7.1 Market development
This is a secondary business intensive strategy that the company can use for corporate growth. The main goals of this growth strategy are to penetrate a new market. One of the main techniques under this strategy entails coordinating with governments to ensure citizens can access online social networks globally (Shih, 2016). This strategy is deemed to yield results because it aligns the company’s vision with its mission statement, which entails expansion through a global market penetration. This form of global market reach will maximize efficiency and effectiveness of the corporation, hence enhancing the organization’s cost leadership generic strategies.
7.2 Diversification
Diversification can be used as a supportive intensive strategy for the company’s growth. The main goal of this growth strategy is to initiate new corporate ventures. For, instance, the company successfully bought Ocu...