SWOT Analysis of Facebook 2022
Facebook is one of the leading names in the market of social media platforms. The site was founded in 2004, by Eduardo Saverin, Mark Zuckerberg, Dustin Moskovitz, and Chris Hughes. Since then it has attracted a lot of users all around and has generated an annual income of $73.4 billion in the year 2020. The company’s headquarters is located at 1 Hacker Way, Menlo Park, California, U.S.
Here’s the SWOT Analysis of Facebook 2022.
Internal Strategic Aspects
Strengths of Facebook – What are the strengths of Facebook?
- A good brand is essential for long-term stability and sustainability. Forbes listed Facebook as the #5 most valuable brands in 2019. Facebook is the most valuable brand in the social media business, with a brand value of $88.9 billion.
- The next biggest strength is diversification, which helps in improving the stability of the company. The company’s diversification list includes virtual reality devices (Oculus), electronic payment systems (Calibra), Instagram, and business tools (Workplace). The number of monthly active people on these platforms is around 2.89 million.
- Facebook is famous for attracting and retaining top industry professionals. This has also helped it attain different ranks by Forbes like 147 Best Employers for Diversity 2020.
- Facebook is one of the world’s top R&D spenders, having raised its R&D spending from $4.8 billion in 2015 to $13.6 billion in 2019, accounting for almost 19 per cent of its yearly revenue. R&D department is one of the major strenghts of Facebook.
- The primary source of revenue of the company is Advertising. This has brought in $69.66 billion (98.5 per cent) of the company’s $70.70 billion annual revenue in 2019. Advertising is the 2nd biggest strength of Facebook.
- Facebook’s marketing is straightforward. The fact that their applications are used by over 2 billion people every day makes it a very powerful and successful marketing tool.
Weakness of Facebook – What is the weakness of Facebook?
- Facebook is receiving backlash for its failure to protect users’ privacy, and the firm is losing popularity in some parts of the world. If the company does not immediately and effectively handle users’ privacy concerns, it risks losing its popularity.
- Facebook has been chastised for disseminating false and misleading information. The incapacity of Fakebook to control false information can be extremely harmful to society as a whole.
- Since the company’s inception, a series of scandals has been eroding the concord that existed between top-level management. As top executives point fingers and seek to remove themselves from big crises such as the Russia meddling crisis, the requirement for responsibility is becoming a weakness.
- In June 2020, Facebook’s image was further tarnished when it was revealed that the corporation had fired an employee who had criticised Mark Zuckerberg’s silence in the face of Donald Trump’s inflammatory postings.
- The financial model of Facebook is mainly reliant on advertising. Advertising accounts for 98.5 percent of its annual revenue. The company’s advertising revenue was $69.66 billion in 2019, out of a total revenue of $70.70 billion.
External Strategic Aspects
Opportunities for Facebook – What are the opportunities for Facebook?
Below are the opportunities for Facebook. Take a look and understand their important in the SWOT analysis of Facebook 2022.
- With billions of users, Facebook can expand its present services like a marketplace, online video streaming, online dating, business tools, e-wallet, and so on to compete with Amazon, Netflix, Apple, PayPal, and so on.
- As technology improves, more applications and websites become integrated, allowing consumers to connect across several platforms. Facebook’s platform might be opened up to include e-commerce, surveys, podcasts, films, and games, among other things.
- Although Facebook is widely used, it is mostly used by a tech-savvy and younger clientele. Facebook can attract new target demographics by adding additional features, such as elderly generations or high-end business networks like LinkedIn.
- The majority of Facebook users utilise the mobile app to access their accounts. To take advantage of a 26 per cent rise in mobile in-app ads, Facebook has a fantastic chance to boost its mobile-based advertising.
- The need for remote work solutions has risen as a result of recent events. Facebook is attempting to capitalise on this opportunity, announcing in July 2020 that Messenger Rooms and Facebook Live will be expanded to allow users to hold live video conferences with up to 50 people at once. Facebook will be able to compete with service providers such as Zoom and Google with these functionalities.
Threats of Facebook – What are the threats of Facebook?
Threats of Facebook is one of the major sections of the SWOT Analysis of Facebook 2022. Let’s check out the Threats of Facebook.
- Facebook users may be dwindling as a result of competition from both old and new sites. Facebook’s future is becoming increasingly bleak as new entrants to the industry, such as TikTok, offer customised platforms aimed at younger generations. Facebook has created its version of the short, fun video platform “Lasso” in an attempt to compete with TikTok.
- The number of regulations that are adverse to Facebook is increasing at an alarming rate, spurred by recent scandals like Cambridge Analytica. Furthermore, concerns about data security, inappropriate material, and infringement of intellectual property rights have caused numerous regulatory agencies within the Department of Commerce to implement regulations.
- Facebook has been the victim of many data breaches that have affected millions of its users. For example, during a significant data breach in December 2019, the personal information of over 267 million Facebook users was exposed on the dark web.
- The United Kingdom and the European Union just adopted a new digital tax that will force Facebook to pay a greater tax, jeopardising its shrinking revenues. If additional countries embrace digital taxation, a big amount of Facebook’s income will be used to pay digital taxes.
- From the terror live stream in New Zealand to the Cambridge Analytica data scandal, fake news, and stolen accounts, to mention a few, Facebook’s once-impressive image and reputation are fading.
This concludes the article on SWOT analysis of Facebook 2022.
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