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Dose Facebook Has a Strategy?

In: Business and Management

Submitted By bulewind1989
Words 606
Pages 3
Facebook Mini Case

1. Why is Facebook the number-one social media company, and not Myspace which enjoyed a first-mover advantage?
The reason why Facebook replaced Myspace as the most popular social networking site is the different strategy they applied. Myspace’s strategy was getting more profit by concentrate on a few developed markets, since it owned by a public company and had a hard pressure of profitability. However, Facebook was a private company at the beginning and get some investment from investment group, so it didn’t have the pressure to make a lot of profit and revenue. For this reason, Facebook applied a real global strategy. The first target for Facebook is more users, and then profit. Since the strategy Facebook applied, it attracted more and more people all over the world. While Myspace suffered great from financial crisis in 2008.

2. Given the hallmarks of good and bad strategy (discussed in Chapter 1), do you think Facebook has a good strategy? Why or Why not?
I think Facebook has a good strategy. The first reason is Facebook pursue a truly global strategy. Developed market is small compare to the developing market. There are more opportunities in the developing market. The second reason is Facebook keep push out new thing. Facebook launched News feed in September 2006, Timeline in September 2011 and Graph Search in January 2013. The new function and version provide better user experience than before. The last reason is customer-centricity. Facebook treat the user as the most important. It improves its functions and version through the eyes of the users. The users are first, then the profit.

3. The first step in creating a good strategy is to diagnose the competitive challenge. What do you believe is Facebook’s number-one competitive challenge?
I think Facebook’s number-one competitive challenge is loss of users. Many different social…...

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