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SWOT and PESTLE analysis of Facebook

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SWOT: Strenght
Pestle: Political

Publicado en: Marketing
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  • It seems like a detailed analysis of Facebook influences, however “PESTLE” (or PEST, PESTEL…) framework is not used correctly. The main objective is to analyze macro-environment in order to identify key trends and events. It is about how environmental drivers affect an organization and not what influences does an organization have. This is because environmental factors can influence success or failure of organization’s strategy. Environmental factor could enhance sales of products in one industry but decrease them in others. Understanding trends in macro-environment allows managers to develop more successful business strategies.
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SWOT and PESTLE analysis of Facebook

  1. 1. Ali Taki Eddin Gouffia Med Mouad Nada Tahiri Imane Bahhaj
  2. 2. Introduction  Facebook is a social network website that allows you to create an online page to connect with friends or familly, anywhere in the world.  On your facebook page you can share pictures , personal information , messages , videos , join groups and add applications
  3. 3. SWOT: Strenght Facebook become among of the huge and succesfull companies in the world . According to a SWOT analyse of facebook we did realize that this social network has a lot of strengths : Market penetration, 66% of Internet users in the US, 46% in Asia (excluding China) and 46% in Europe, Sharp increase in income (+ 119% between 2009 and 2011), cash up, and good profitability. In 2012, Facebook reached 62% market share of social networks, Facebook users have a strong sense of belonging, dependence and what is more is the Instagram redemption in 2012 for $ 750 million which made facebook more famous and with the acquisition Whatsapp, which itself has reached 500 million users, facebook cann provide mobile money transfer service to the huge mobile messaging user base. Nowadays companies can use facebook’s ad network to get insights into customer segments and market specific products to drive more sales and also provide call to action.
  4. 4. SWOT: Weakness  Weak CTR of advertisements  One source of revenues – advertisements on Facebook  Attitude towards users’ privacy  Lack of website customization  Weak protection of users’ information
  5. 5. SWOT: Oppurtinities  Increasing number of people using Facebook  Expansion to china  Diversity source of revenue  Open facebook market place
  6. 6. SWOT: Threats  Increasing number of mobile internet users.  Users using ad-block extensions.  Slow growth rate of online advertising.  Identity thefts.
  7. 7. PESTLE: Political  Facebook is one of the modern communication means which were used by the politicians to adopte their ideas, influence the individuals opinions, include them to adopt their ideas, and vote for them in elections.  They target the audience by the advertising messages and this is why workers in the political marketing focus on Facebook
  8. 8. PESTLE: Economic  Facebook adds an estimated 15.3 billion dollars value to the European economy and helps to support 232,000 jobs across Europe .  Increased businesses participation through advertising, customer referrals and enhanced brand value is worth around €7.3bn  The Facebook App Economy is worth €1.9bn and supports around 29,000 jobs.  While Facebook is changing businesses in new and exciting ways, the methodologies used to measure its economic impact are well established. In fact what makes this social network more powerfull is it’s intrdoduction to the stock market in 2012 . Facebook shares will be available to trade on the stock market for 38 dollars each- valuing the social network at an whopping 104 BILLION dollar
  9. 9. PESTLE: Socialism Facebook allows users to continuously stay in touch with friends, relatives and other acquaintances wherever they are in the world, as long as there is access to the internet and it has been known to reunite lost family members and friends because of the widespread reach of its network. One such reunion was between john watson and the daughter he had been seeking 20 years. They met after watson found her facebook profile .  Facebook is becoming a portal for socializing as well as to connect with people with different parts of the world in business, friendships and humanity.  It also helps small business to market themselves and grow and connect with their customers and provide services in better ways
  10. 10. PESTLE: Technological Facebook uses a variety of services, tools, and programming languages to make up its core infrastructure. At the front end, their servers run a LAMP (Linux, Apache, MySQL, and PHP) stack with Memcache. Let’s take a look at exactly what that means:  LAMP(Linux, Apache, MySQL, PHP)  Memcache  Languages programmation (java, python, c++, Erlang)Those languages are used to create services. I will give a Few essentials tools f acebook developed(Thrift(protocol),Scribe(log server),Cassandra(Database))
  11. 11. PESTLE: Legal  Existing laws may not be able to control behavior on facebook , the existing legislation usually invoked in prosecutions over comments on social network had been designed with different purpose in mind, Legislation including the Communications Act and the Criminal Justice and Public Order Act were written to control the smart phones.
  12. 12. PESTLE: Environmental  The thought of quitting has occurred to everyone at least once.  Suffice to say that the time wasted updating statuses, ‘‘liking’‘ trivial commentary some people said that facebook changed their lives because they gained the opportunity to socialize with people without calling them and they can know their news.  Market value exceeded $200 billion to put it among the world’s biggest corporations, as investors bet on the company to capitalize on the future of mobile advertising.  Facebook shares rose 0.8 percent to $77.89 at yesterday’s close in new York valuing the company at $201.6 billion, according to data compiled by Bloomberg. That made it the 22nd-largest company in the world, behind Verizon Communications Inc. and ahead of Toyota Motor Corp.