How has Facebook sustained success? Why the acquisitions? Why the slow integration of big acquisitions? Why the advertising model? Solution Facebook has been able to sustain its success due to several factors. The company has been able to create a network effect and this is a competitive advantage for the company. The deed pockets of Facebook have enabled it to sustain its competitive advantage. Network effect of Facebook helps it with multiplier effect in terms of user addition and in terms of advertisement revenue. Facebook has been able to sustain its success due to ‘economic moats’. Economic moats are nothing but sustainable competitive advantage. Thus the economic moat for Facebook is the network effect. Besides its large base of users the company also owns applications like WhatsApp and Instagram. This has helped the company to leverage the advantaged of network effect to full extent. Prominent acquisitions by Facebook include WhatsApp, Oculus VR, Instagram, Atlas.