CASE ANALYSIS: FACEBOOK PLATFORM Harvard Case Solution & Analysis


Issues for the company

The company is working well and the website has become the number 1 website for social networking across the world, but there are some issues which the company has been facing after the deployment of its Platform which is known as the Facebook Platform. This platform enables the users to develop apps such as games and other funny things and to post them on Facebook, moreover the user can also make advertisements from there by accepting and working according to the term and condition of the website.

In this section, we will try to identify the issues which the website is facing since the inception of the platform which was launched in 2007. Afterwards we will also try to suggest alternative strategies which will be useful in order to resolve these issues.
The biggest threat that the platform is facing is that the users of internet are using ad blocks on their devices which blocks the ads and other pop ups, this disables the ad to show and also unable the developer to attract his target audience. In addition, there is also an option of like and comment the page or post which enables the new user to observe whether the page is being appreciated or not, this option is also making trouble for developers since, after looking towards the negative comments the new user doesn’t pay attention towards the ad.

Furthermore, the user who is looking ad on Facebook looks another ad by the competitor of the developer and get confused either to pay attention on the first ad or the second. Moreover, the online marketing industry has a slow growth rate and developers are unable to get their desired results from the campaign.
Finally, the users also faced privacy issues while surfing these ads and pages and it has been observed that they looked their picture and other personal information on ads in their news feed.
Solutions and recommended strategies
The company’s major source of revenue is advertising which is being affected by many threats such as the competition, apps which disables the ads and many other things. The company should have to change the theme or internal elements of the website in order to overcome this threat and to sustain the major share of its revenue which is being generated by advertisements.
The other sources that are the online games, apps and pop up which contribute significantly towards therevenue are also facing competitive pressures and challenges such as the ad block security apps. The company has to make a way out to overcome this threat. The company can make new mobile apps where these things will be shown to every user, also the company can enable this thing by alternating its website and make the ads and other apps enable on the website as well.

The company has to enter new segments in order to increase its sources of revenue, for doing this the company can enter in the segment of B2B business which will allow the businesses to integrate with each other. The company can charge a spread or commission for giving this service and can increase its revenue. Furthermore, this will allow the website to attract more users and to retain the old ones.

The company can also increase its sources of revenue by making strategic alliances among the app developers or other businesses in order to increase its revenue, profitability and number of users. The company can also increase the visibility of its Platform by entering in to partnership agreements with other business and individuals allowing them to generate revenue and give a specific share of it to Facebook...................

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