Facebook's global strategy involves standardizing its social media platform to provide a uniform user experience worldwide, while also customizing locally for different regions and their needs. It pursues strategic alliances and acquisitions to gain new capabilities, expand into new markets, and maintain its competitive advantages. Going forward, Facebook will need to continue evolving its strategies to address challenges like regulatory issues and long-term sustainability, while shifting towards innovative new technologies and markets to support future growth.
3. Facebook Inc.
Founded 2004
Mark Zuckerberg, Eduardo
Saverin, Andrew McCollum, Dustin
Moskovitz & Chris Hughes
Menlo Park, USA
GIVE PEOPLE THE POWER TO
SHAREAND MAKE THE WORLD
MORE OPEN
AND CONNECTEDWorld’s Largest Social
Media Network
8. Standardisation
Provides Competitive
Advantage
Uniform User Experience &
Product Offerings
Global Accessibility
World as Single Entity
Scale & Scope Economies
Global Brand Awareness
Connect People Around
the World
BENEFITS
Enables Rapid Growth
9. Levitt
Competitive advantage
in cost & effectiveness
Product may be
standardised
Branding, positioning
& promotion need to
reflect local conditions
Tailor global marketing
concepts to meet
specific needs
11. Customisation
LOCALISED IN
+140 LANGUAGES
ADAPTING TO EU
REGULATION
ISSUES
ADAPTING TO
LOW INTERNET
ACCESSIBILITY
ADAPTING TO
DIFFICULT MARKETS
BALANCE BETWEEN
PRODUCT UNIVERSALITY
AND LOCAL MARKET
PARTICULARITIES
RECOMMENDATION: WHAT ABOUT LOCAL CUSTOMISATION
ON A FUNCTIONALITY BASIS?
15. Connecting 2/3 of
the World without
Internet Access
ACCESS TO WIDER
POTENTIAL MARKET
Facebook-Led
Non-Profit Organisation
Multinational
Tech Partnerships
NOKIA
OPERA
MEDIATEK
ERICSSON
SAMSUNG
QUALCOMM
18. Acquisitions A KEY TO FACEBOOK’S
GROWTH & SUCCESS
IMPROVED VALUE
PROOPOSITION
MOBILE
TECHNOLOGY
CAPABILITIES
PHOTOGRAPHY
PLATFORM
DEVELOPMENT
ADVERTISING
PLATFORM
CONSOLIDATION
EXPANSION INTO
NEW
CAPABILTIES
2010 2011 2012 2013 2014
19. Acquisitions
BEFORE AFTER
Targeting New &
Upcoming Companies
Capture Best
Talent
Dissolution of Target
Company Identities
Acquire Popular Services
$19B User Base Expansion
$1B Drive User Engagement
Drive Market Share & Maintain
Target Company Identity
EVOLVING ACQUISITION
STRATEGY OVER TIME
20. Strategic Weaknesses
WEAKNESSES OUR RECOMMENDATION
Maintain & Evolve Current
Successful Strategy
Shift Towards New, More
Innovative Markets & Trends
Risk of
Cannibalisation
Long Term
Sustainability?
Regulatory Challenges
& Privacy Issues
21. Future Focused
ACQUISITIONS
VISIONIS GONNA BE
THE NEXT
PLATFORM
– Mark Zuckerberg
Shift Towards New
Markets
Oculus Rift Capabilities
Focus on New
Features
Increased Competitive
Capabilities
22. Conclusion
Facebook is the global
market leader in social media
Global product offering in
which users can create their
own unique experience
Evolving growth strategy
as they advance in their
brand lifecycle
Focussed on the
future of building a more
connected world
Can anybody tell me what this is?
What if I told you that you all actually now what this is?
What if I told you most of you likely use this every day?
The answer…
…is Facebook.
And today we are going to discuss the…
World’s largest social media network, comprising of multiple products we know and love.
Facebook now affects billions of users across the world
Company has grown to this massive scale due to both organic and inorganic means
Organic – rapid adoption of platform & internal expansion of services/products within Facebook
Inorganic – acquisition of many apps/products/technologies to enable new competencies and capabilties
56 Locations across the world
Currently looking to hire ~995 people across NA, LATAM, EMEA & APAC
Enabled them to grow drastically
Competitive advantage
Uniform experience
Can access anywhere and everywhere
View the world as a single entity
Lower costs due to scale and scope economies
Brand is known everywhere
Connect people around the world with others
Adopting a standardised strategy provides a competitive advantage in cost and effectiveness
The global product is standardised, the branding, positioning and promotion may need to reflect local conditions,Not an either or scenario(can do both)( so a visual that it doesn’t have to be one or the other with regard to standardisation and customisation)
not whether or not to go global, but how to tailor the global marketing concept to meet specific needs
About Yahoo
Technology company
Known for web portal, search engine Yahoo! search
What is the alliance?
Advertising partnership
settle patent claims
extend and expand distribution agreements.
‘Social Bar’
Advantages for FB
Yahoo!’s premium content and reach
About Nielson Co
American global information and measurement company
What is the alliance
- Provide better insight and information to marketers around the world
- Opportunity to understand and improve current and future campaigns
Advantages for Facebook
NIELSEN’S expertise in data analysis
About Internet Org
connect the 2/3 of the world that doesn’t have internet access.
What is the alliance
Facebook led
Technology leaders
Non-profit
Local communities
Advantages for FB
Access to more users
Opportunity to help others
http://sproutsocial.com/insights/5-instagram-stats/
+ all my other sources in google doc
http://www.forbes.com/sites/andygreenberg/2014/02/21/whatsapp-comes-under-new-scrutiny-for-privacy-policy-encryption-gaffs/
http://www.theverge.com/2014/4/10/5601878/ftc-issues-stern-privacy-warning-to-facebook-whatsapp
Facebook - The Whatsapp Acquisition. Mar2014, p1-20. 20p. (Marketline case study)
Other sources: Google Doc !
A bet on future strategic markets
Thinking further than mobile
A way to compete with top competitor Google
Goal: To become a major video host and to keep users on the platform
Great ressource for advertising
Stepping on competitor Youtube’s territory
http://blogs.wsj.com/digits/2015/01/08/facebook-acquires-video-compression-startup-quickfire/
Move Over, Glass: With Oculus Acquisition, Facebook Out-Googles Google.Forbes.com. 3/25/2014, p1-1. 1p. 1 Color Photograph