The world’s largest social media platform with 2.5 billion monthly active users and the third most visited website after Google and YouTube. Due to taking our Facebook case study for this article, it is the fastest growing company in social media and is among the top ten largest companies in the world today.
Case study of successful company teaches us a lot, so we bring articles on case study of different successful company. Facebook founder and president Mark Zuckerberg studied at Harvard School and seeing the success of this project, he left his education incomplete and made this project successful. Not only made this project successful but also made it the biggest company in the world.
Today we will see how was the journey of Facebook and try to study the business strategy in their success. The company is about to become the fifth trillion dollar company in the world, which is an important milestone for them. That’s why we will try to know in detail here what is the secret of Facebook’s success.
Mark Zuckerberg & Meta Platform –
At the age of 37, Mark has become the fifth richest person in the world with a net worth of $122 billion. He became a Billionaire in only 23 years of his age which shows about his potential where he has achieved this position at a time when children live in college and under the shadow of their families.
On 25 May 2017, Harvard University awarded him a degree with honors, the college he had left for his project and the same college had expelled him from the college for hacking the Harvard University site.
His parents were doctors and his father’s dentist clinic was run from home, then he made his first invention which could send messages to all the computers in the house, which was named “Zhuknet”. During his school days, his father had appointed a teacher for computer programming, due to which his interest in computers had increased a lot.
Formation of Facebook Company –
After making some initial software while studying at Harvard, he started coding for “The Facebook” project, which started in February 2004, which later in 2005 bought a good price for the domain of this name and thus Facebook. com was created.
The initial objective of which was only to bring Harvard students on one platform on the Internet. Seeing its success, it started being used in other colleges, then seeing its success, it was decided to make it for everyone.
In the initial days, seeing the growing graph of Facebook, many companies made offers to buy them, in which the then top company Yahoo.com offered one billion dollars to Mark, which he turned down. Microsoft invested $240 million in Facebook for a 1.6% stake, one of the most significant investments Facebook has received.
Acquisition of Instagram by Facebook –
Instagram was started in 2010 and it had achieved a lot of success in social media within a few days, Facebook is considered to be the biggest company in social media, so Instagram was very famous for photos and videos which they used in future. Was competitive.
Facebook had made proposals to Instagram many times before but it had turned them down. Twitter offered to take over Instagram, but they turned it down too. Mark Zuckerberg bought Instagram for one billion US dollars, which at that time had not been bought by anyone for such a huge amount.
This was a historic deal, says Bu Zuckerberg, “While doing this deal, I remember Yahoo’s offer which I turned down because I had determined what would be the future of Facebook, so I didn’t listen to anyone and turned down the offer.” “He didn’t listen to anyone when he bought Instagram and it was only because of his determination that he bought Instagram at that price because he wanted to eliminate future competition.
Acquisition of WhatsApp by Facebook –
In February 2014, the acquisition of WhatsApp was the second significant acquisition in the history of Facebook for which Facebook paid US$19 billion. The reason for buying WhatsApp by paying such a huge price was that it was the second biggest competitor in social media.
Whose messages were many times more than Facebook, which used to say one day’s data, it was necessary for Facebook to end this competitor. Facebook has its own mobile survey company, through which it studies about the future of a company, according to which Facebook paid such a price for WhatsApp.
Meta Platform Project of Facebook –
This is an ambitious project of Mark Zuckerberg which is going to take the Internet world to the next level. We have seen this concept in many Hollywood movies which is a virtual world, what a person cannot do in real life he can do in this virtual world. It is not that Facebook has brought this concept, many big companies in the technology sector are working on it, especially this concept is very popular in the video world, which Facebook wants to launch directly through a project and for this several thousand Tech Expert is taking Facebook for this project.
Earlier, Facebook was known as the parent company, which has been changed to Meta Platforms, before Google also changed the name of its main company to Alphabet, branding it separately was a business strategy. Companies like Facebook, Instagram and WhatsApp will be run under the Meta platform. Looking at the future changes of the internet world, meta platform has been created for branding and separating the risk factor.
Other Acquisitions of Facebook –
Facebook has made a total of 83 acquisitions and mergers by October 2021. Connect-u company was acquired through court settlement, and Friendster company’s intellectual property was also acquired. Facebook has acquired most of the company or US that it has been able to acquire.
Mark Zuckerberg was asked in an interview in 2010 about the acquisition, he replied, “We do not acquire any company for our company, but we include the excellent people of that company in our team, which will benefit our company.” happens for the development of
With this we get good founders of the company whose knowledge we benefit from. Is this answer part of a strategy or something else? But this is not visible in the acquisition of Oculus, Instagram and WhatsApp, because critics believe that this acquisition was done only and only to end the competition.
How Facebook works –
Facebook is a free registration site through which any person can create a profile and send messages, information, photos and videos to his friends, family, colleagues, or many different mediums that Facebook provides. Data servers are located in Virginia and San Francisco, USA, through three tier 86 servers that store data stored on the website. Despite such a large amount of information, Facebook uses such technology to enable the customer to use it well at low internet speed.
Keeping in mind the competition of Facebook, new updates keep coming, due to which its customers continue to subscribe to Facebook. By creating many groups, creating pages, uploading videos, messaging, promoting, customers can use it. Facebook is available in almost all the countries in today’s era but it has failed to get the Chinese market because of its security policy and strict rules, it has lost a huge market in China. Facebook has also been banned in North Korea and Iran.
60654 employees work in Facebook, Facebook branches have been established in almost all countries. Because it is a big company to win due to being an internet and technology base company, there is no need for that much staff. Most of the work is done through computer.
How Facebook earns –
Facebook has 300 million users all over the world, including users in WhatsApp and Instagram, such a huge market Facebook provides for the company Yo. From this you can guess that advertisement / advertisement is the biggest means of earning money from Facebook. The Facebook account company provides for free, but its algorithm is so effective that it analyzes the information of these users in different ways for market research and provides data for its product to the user who is promoting and advertising. Can buy
As of 2020 data, 98% of the company’s income came through advertising and 2% income came from payment fees from developers, selling Oculus-Portal devices. Listings on Facebook are determined on an auction that takes into account supply and demand. Facebook’s net income in 2020 was $29 billion and profit margin was 38%, an increase of 22% from last year.
Facebook vs YouTube –
In today’s date, YouTube is the biggest competitor of Facebook in the social media sector, which Facebook cannot even buy because it is a subsidiary of the world’s largest company. The number one two most used websites on the internet are Google and YouTube, with Facebook being the third most used website of the user.
Comparing the time users watch videos on YouTube, on average, people on Facebook like to watch 20 – 40 seconds of videos, while on YouTube, this time is 3 minutes. That’s why there is a lot of improvement to compete with YouTube.
Facebook and Reliance Jio Deal –
Recently, the Competition Commission of India, the Regulatory Authority of the Government of India, which controls the competition in the market, has approved this deal of Facebook and Reliance Jio. Due to which Facebook in Reliance Jio 9. 99% invested.
Facebook wants to enter other areas of digital business and keeping in front a big market like India, the company has invested in Jio. Due to which the established wants to use the direct network of the company in India.
It is said that Facebook wants to create Amazon, which is the world’s largest company in e-commerce. Anyway, the WhatsApp payment feature of the Facebook company was hanging in government offices for several days, with this deal, Facebook has a chance to enter the retail sector in the Indian market.
Business Strategies of Facebook –
- Providing free services to users visiting Facebook
- Continuously developing services according to the user’s convenience in the Facebook Services.
- To acquire a competing company from its capital so that future competition can be eliminated and to establish the supremacy of the company on the market.
- To analyze the competitor company and collect data by continuously surveying, so that to decide what strategy to make for the company, with the help of these surveys, Facebook has made many acquisitions.
- Facebook is providing services in almost all countries, so keep political and social good relations with those countries, do charity.
- In a country with more customers like China, Facebook has been banned for security reasons, so India is the biggest customer for Facebook, so the deal made with Reliance Jio has been decided to grow Facebook’s business in other areas.
- Facebook’s competition is from social media like Twitter and YouTube, so Facebook tries to think two steps ahead of all the features that this company is offering.
- An eco system of social media has been created by Facebook, WhatsApp and Instagram which will act as an entry barrier to the competing company.
- 95% of Facebook’s income comes from advertising and for this the user’s data is their biggest asset, so the company tries to provide the best services it can for its customers.
- Facebook has been maintaining a strategy to grow its business in the digital sector in the future, under which Reliance Jio’s investment and WhatsApp payment feature is important.
5 October 2021 Facebook shutdown –
On this day, the services of Facebook, Instagram and WhatsApp were stopped for six hours, due to which the company had to suffer a lot. Facebook later said that this happened due to technical problem and there was no cyber attack. It was said that the data of all the users is safe.
Different speculations were made by many media but Facebook has denied all these things. It was said by the media that the system within the Facebook company had also come to a standstill. The company is believed to have lost $6 billion dollars.
Controversies and Facebook Company –
Facebook, like many large tech companies, has been the subject of several controversies over the years. Here are a few examples:
- Privacy and Data Collection: Facebook has been criticized for its handling of user data and privacy. The company has faced several high-profile scandals, such as the Cambridge Analytica scandal, in which the data of millions of Facebook users was collected without their consent and used to influence the 2016 US presidential election.
- Misinformation and Hate Speech: Facebook has struggled to effectively police its platform for misinformation and hate speech. The company has been accused of allowing false information and hate speech to spread unchecked, leading to real-world harm.
- Monopoly Power: Facebook has been accused of using its dominance in the social media market to stifle competition and harm smaller rivals. The company has faced antitrust lawsuits and investigations from government regulators around the world.
- Political Influence: Facebook has been accused of using its platform to influence political outcomes, such as the 2016 US presidential election. The company has also been criticized for allowing foreign governments to use the platform to interfere in democratic processes.
- Treatment of Content Moderators: Facebook has also faced criticism for its treatment of content moderators, who are responsible for reviewing and removing objectionable content from the platform. Many content moderators have reported experiencing low pay, poor working conditions, and mental health issues as a result of their work.
Overall, Facebook has faced a range of controversies related to privacy, data collection, misinformation, hate speech, monopoly power, political influence, and treatment of content moderators. The company has taken steps to address some of these issues, but they continue to be a source of concern for many users and regulators.
Critical Analysis of Facebook Company –
Facebook is a social media platform that was founded by Mark Zuckerberg in 2004. It has since grown to become one of the largest and most influential companies in the world, with a market capitalization of over $900 billion. While the company has undoubtedly had a significant impact on the way people interact with each other online, it has also been the subject of a great deal of controversy and criticism.
One of the primary concerns with Facebook is its approach to privacy. The company has been accused of mishandling user data, including allowing third-party apps to access user information without their consent. In 2018, it was revealed that the political consulting firm Cambridge Analytica had obtained the data of millions of Facebook users without their knowledge, and used it to influence the 2016 US presidential election. This led to a major scandal and a backlash against Facebook, which was accused of failing to protect the privacy of its users.
Another major criticism of Facebook is its role in spreading misinformation and fake news. The company has been accused of allowing false information to spread on its platform, including during the 2016 election. In response to these concerns, Facebook has taken steps to address the issue, including partnering with third-party fact-checkers and using algorithms to demote false or misleading content. However, there are concerns that these efforts have not been enough to prevent the spread of fake news and propaganda.
Facebook has also faced criticism for its impact on mental health, particularly among young people. Some studies have suggested that social media use can contribute to feelings of anxiety and depression, as well as a sense of social isolation. There are also concerns about the addictive nature of social media, and the ways in which it can distract people from more productive or fulfilling activities.
In addition to these concerns, Facebook has also been criticized for its role in enabling hate speech, harassment, and other forms of online abuse. The company has been accused of being slow to respond to reports of abusive content, and of failing to adequately protect users from harassment and threats.
Despite these criticisms, Facebook remains one of the most influential companies in the world, with billions of users and a significant impact on the way people communicate and interact online. While it has taken steps to address some of the concerns raised by critics, there are ongoing debates about the extent to which the company is responsible for the negative consequences of social media use.
This has been a seventeen-year journey of Facebook, in which many allegations were filed against him, but the company has continued its journey of success under the leadership of Mark Zuckerberg, today Mark is only 37 years old but he is in the top ten company of the world. And Mark himself is one of the richest people in the world.
In this way, we tried to know the journey of Facebook in this case study. This is an inspiration for many business minds and those who want to do business.