Facebook Case Study analysis 1
Facebook Case Study Analysis
Charles A. Joyner III
Facebook Case Study Analysis 2
Table of Contents
* The history, development, and growth of Facebook
* The nature of the external environment surrounding Facebook
* The kind of corporate-level strategy that Facebook is pursuing
* Recommendations for Facebook
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S. social networking activity,
accounting for 90 percent of all time spent on social networking sites in the U.S. In this case
study, we will discuss Facebook’s history, development and growth in addition to the external
environment surrounding it. What kind of corporate-level strategy it is chasing after and
recommendations on how to remain at the top of the social network world.
Facebook Case Study Analysis 4
The history, development, and growth of Facebook
In early 2004, Facebook was the brainchild of Mark Zuckerberg with help from Dustin
Moskovich, Chris Hughes and two other fellow Harvard classmates. In the beginning,
membership was limited to only students attending Harvard but later opened up to other U.S.
colleges and then on to European and Asian universities. In late 2006, Facebook opened up to
any global email address. A year later, with over 40 million active users, Facebook was right
behind MySpace as the second biggest global social networking site. Growth was enormous in
the late 2000’s with the company’s growth at 270% between 2006 and 2007. Part of this growth
includes growth in Canada and the United Kingdom. As of 2007, a third of all Canadians have
joined the website, a rise of almost 3K% since the following year. The United Kingdom is also
showing impressive numbers in user growth. Having more than 5 million active users with
London having the biggest network with over 1 million members as of late 2007. The company
was not experiencing as much growth in Europe and Asia for the simple reason that it was only
available in English.
In mid 2012, Facebook found itself in strange territory as it struggled to meet investors'
expectations, as the social network's revenue growth shrank for at least the fifth straight quarter
while costs soared. You could say that “growth” was the culprit here. With facebook's shift to
smart phones, more users began accessing the social site on their phones instead of their personal
computers, where the company has far more paid ad formats. The mobile troubles are not the
only monkeys on Facebook’s growing shoulders. Facebook is facing heightening costs and
flattening user growth which has sent it shares further into a tailspin down 10% to $24.12.
Facebook Case Study Analysis 5
The nature of the external environment surrounding Facebook
Part of Facebook’s explosive rise to the top of the social networking mountain is the world’s
global obsession for connecting with one another. In 2009, two-thirds of the world’s internet
population was accessing a social networking or blogging site and the sector now accounts for
almost 10% of all time spent on the internet. During this time period, a number of external