A full case study analysis of Facebook Essay Example | Topics and Well Written Essays - 1500 words

A full case study analysis of Facebook - Essay Example The website has made itself available in more than 70 vernacular languages and massive expansion was achieved as most of the users were outside the U.S.A. and Canada. In 2012, the company made its first public offering and has ambitious plans for the future. Political: Government actions can have significant negative impact on the profitability of facebook’s future expansion. For instance, the Chinese government has banned the website from China and the governments of multiple nations like Germany has raised a concern that collecting user information by the company is a breach of security. Economic: Facebook has been able to maintain strong growth even during the period of recession and its revenue has increased significantly from $731 million in 2010 to $1,584 million in 2012 (Rothaermel and Taylor, 2014). Additionally the rising level of internet penetration in developing countries is contributing to its active users regularly. Social: Social tastes and preferences of consumers regarding the usage of social media are changing drastically which is largely visible from the rising popularity of other social websites like Twitter, LinkedIn and Instagram. In the U.K. particularly it has been noted that facebook had lost around 2 million users mainly belonging in the teenage group. Technological: As of now, Facebook does not have the technological expertise of Google which is in a better position to generate revenues from the online advertisement market. Google+, another social networking site is technologically more advanced than Facebook (Rothaermel and Taylor, 2014). Threat from buyers: Customers for facebook are the advertisers who pay the company to post their ads on the website. Current estimates of facebook show that $7.64 billion is expected to be earned from the advertising revenues even by charging higher price to them (Rothaermel and Taylor, 2014). This implies that the current customer