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Ali Taki Eddin Gouffia Med Mouad Nada Tahiri Imane Bahhaj

SWOT and PESTLE analysis of Facebook

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Page 1: SWOT and PESTLE analysis of Facebook

Ali Taki Eddin

Gouffia Med Mouad

Nada Tahiri

Imane Bahhaj

Page 2: SWOT and PESTLE analysis of Facebook

Introduction

Facebook is a social network website that allows youto 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

Page 3: SWOT and PESTLE analysis of Facebook

SWOT: StrenghtFacebook 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.

Page 4: SWOT and PESTLE analysis of Facebook

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

Page 5: SWOT and PESTLE analysis of Facebook

SWOT: Oppurtinities

Increasing number of people using Facebook

Expansion to china

Diversity source of revenue

Open facebook market place

Page 6: SWOT and PESTLE analysis of Facebook

SWOT: Threats

Increasing number of mobile internet users.

Users using ad-block extensions.

Slow growth rate of online advertising.

Identity thefts.

Page 7: SWOT and PESTLE analysis of Facebook

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

Page 8: SWOT and PESTLE analysis of Facebook

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 €1.9bnand 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 intrdoductionto 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

Page 9: SWOT and PESTLE analysis of Facebook

PESTLE: Socialism

Facebook allows users to continuouslystay 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 friendsbecause of the widespread reach of itsnetwork. One such reunion was betweenjohn watson and the daughter he hadbeen seeking 20 years. They met afterwatson found her facebook profile .

Facebook is becoming a portal for socializing as well as to connect withpeople with different parts of the world in business, friendships and humanity.

It also helps small business to marketthemselves and grow and connect withtheir customers and provide services in better ways

Page 10: SWOT and PESTLE analysis of Facebook

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 acebookdeveloped(Thrift(protocol),Scribe(log

server),Cassandra(Database))

Page 11: SWOT and PESTLE analysis of Facebook

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.

Page 12: SWOT and PESTLE analysis of Facebook

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.