Facebook Marketing Strategy – Term Paper

Facebook company analysis


     Facebook is an internet based platform that offers services like social networking and online social media for profit. Facebook was founded in February 2004 by Mark Zuckerberg in conjunction with his colleagues in college. Its current headquarters are based in Menlo Park California. The Facebook website we currently know was started with limited membership to the students of the Harvard University. However, the membership was extended to other colleges and universities in Boston. The Ivy League schools received the membership alongside Stanford University. With continued use, Facebook attracted membership from high school students when it eventually opened membership to everybody who was at the age of 13 years and above.

     So as for a person to access Facebook, the only requirement is the internet. One creates a user account and thereby will be able to share personal details like the name, his or her occupation, and even educational background (Facebook, 2016)

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. These details are the ones that enable a person to have Facebook friends depending on their similarity in personal details.  When individuals update their profiles, friends are notified through Facebook notifications.  Editors are able to pin posts on groups that are created on Facebook. Whenever a user meets an unpleasant user, he or she has the option to block the user so that the blocked user may not be able to access his or her personal information. Therefore Facebook makes money through advertising of individuals and brands whereby this constitutes the highest amount of revenue. However, there is a huge amount of data that circulates in Facebook thus raising concerns about its private policy. Currently, Facebook has over 1.65 billion active users every month (10-K, 2016). This has really contributed to its growth and polarity. One of the breakthroughs Facebook has managed is the purchase of Instagram and WhatsApp which are so much contributing its success (10-K, 2016). Thus due to its patented growth and success, it, therefore, becomes my best option to do both microenvironment analysis a well as macro environment analysis.

Why is Facebook successful

The customers

Facebook has various customers. They are both local and international. Being a customer in Facebook involves registering for free membership. Thus you can interact with other customers at no charge. You are referred to as a subscriber. The company targets its customers from individuals from all walks of life, small groups like class groups or schools, small to large business operations, companies both private and public and even government departments. Thus Facebook is an all-inclusive platform that only discriminates its subscriber by age whereby only the under 13 years old people would be barred from operating a Facebook account (Facebook, 2016). Facebook customers are so much satisfied with Facebook as it allows them quality service delivery. Facebook invests enormously through adverts on other websites so as to acquire new customers this has been the major way it has been able to show its presence. Another way is through referrals from existing subscribers who would find it cheaper to communicate via Facebook.  For major businesses they prefer to advertise their brands on Facebook and engage with customers directly in regards to product reviews complains and suggestions.


Facebook as an online social platform does not have physical products. It only offers a service that is communication thus it does not release any pollutants into the environment thus environment-friendly. As it has an open office system in melon park California. This has enabled a conducive and friendly staff engagement thus improving their relationships at work. Thus the employees respect each other which have created unity among the staffs. The company has rules and regulations that govern its ownership of intellectual property like the use of the brand name and logos (“Facebook”, 2016). Again in regards to its rules and regulations is that they have tightened rules in regards to using the content that may offend the public or display a bad message to the underage (below 1 years of age).


Facebook is able to compete successfully in the digital market by offering communication and advertisement spaces. Its competitors include Google+ LinkedIn, Yelp, Groupon, and Tumblr. In an effort to increase its competitive advantage a thus increase more revenue, Facebook acquired Instagram and WhatsApp. On ads, Facebook relatively offers affordable advertising packages relative to that offered by the competitors making it affordable (10-K, 2016). It has exemplified its winning strategies like having a huge subscriber’s pool which creates a ready target market for businesses that then prefer to advertise their brands on Facebook rather than the other social sites. So as to improve service delivery to its customers who mainly sell tangible products, Facebook launched an e-commerce platform referred to as Shopify. It allows business owners to upload pictures of their products and the relative prices thus buyers can be able to purchase direct from the platform and make secure payments for the products. With this, many sellers are required to just operate warehouses around their main customers thus easing delivery services. This is a milestone that has boosted the revenue of Facebook.

Marketing intermediaries

The company is one of the major marketing intermediaries for products of many seekers from around the world. It gets marketed through ads and referrals to market it. Therefore it receives countless subscriptions every minute from its target customers

Facebook SWOT analysis

Macro-environment analysis


Currently, Facebook operates on a mixed economy system. Thu it is likely to be affected by the change in consumer behavior, inflation, and recession, supply, and demand of products. In the current economy, system increased prices of products and or services may mean that advertising charges are likely to go up. Thus not many merchants will be able to afford the charges which anticipating may reduce the revenue base. The kind of environment Facebook works in is best referred to as developing environment. This environment entails development of computer and mobile applications and technologies that are giving the world solutions to most of the problems involving communication and demography.  So many apps like WhatsApp and Instagram that are widely used by the common subscribers are an example of what Facebook development entails.

Favorable economic condition like competition and terms like globalization has made it profitable for Facebook since many companies are now increasing their global presence through Facebook. Thus Facebook as the provider of advertisement services, this has made it offer globalization solutions to the market. Due to high rates of unemployment, Facebook has turned to be a major source of income to the many individuals who sought into the world of virtual marketing thus advertises on behalf of companies on their personal networks created on Facebook. This thus helps such individual reach a larger audience to make a living, in return through premium ads Facebook earns from such practices. Competition from other e-commerce platforms are the major threat to the business but numerous strategies are being employed to command the biggest share of the market. When demands of goods and services increase, then the advertisers have to advertise more for their products, thus this acts in the favor of the business (Facebook) as revenue increases.


     The business is favored by the latest technological advancements, Facebook has launched so many initiatives that will see developers come up with technological advancements o be incorporated in Facebook. An example being the solar-powered plane that is providing internet access to the most remote parts of the world. Another technological advancement is the creation of artificial intelligence which is underway in research labs in Paris. This development is aimed at making a computer system that can work like human senses whereby it can hear, understand language and even translate it. This thus will make Facebook user experience better and better. However, the advancements are likely not to influence the user charges but relatively increase efficiency.


Facebook target groups include the generation X, generation Y and generation Z. These cohorts form the foundation of the Facebook’s subscribers. It is characterized by people who depend on other peoples reviews about products before they buy, this platform has an influx of these cohorts who are giving product reviews and thus targeted by sellers as well. Because the age groups are increasing, this only means more customers to Facebook. The age groups are evenly spread across the world and nearly all use Facebook. Generation X are the people who are nearing to retire from their jobs, generation y are actively working whereas generation z are just fresh from the college and are competing for available job opportunities with the other generations. Thus with this diverse group, Facebook has managed to create diverse products that meet their preferences.

Thus the above discussed factors both derived from the microenvironment to those derived from the macro environment are the major influences to the business undertaken by Facebook Corporation. They therefore shape and define the future of Facebook.