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Facebook’s Strategic Management and Competitiveness Research Paper


The selected public corporation for this discussion is Facebook. The organization’s revenues and profits have been increasing significantly since 2010. The company operates in the social networking segment of the technology industry. Its platform makes it possible for people to share and communicate with their friends, family members, and workmates. Facebook’s leading products include Facebook.com, Messenger, Oculus, and Whatsapp. This giant corporation was founded in 2004 by Dustin Moskovitz, Mark Zuckerberg, Andrew McCollum, Eduardo Saverin, and Chris Hughes. The undeniable fact is that the company’s growth and success are attributable to the explosion of the Internet. This paper examines Facebook’s strategic competitive and managerial practices and how they influence organizational success and performance.

Globalization and Technology Changes

Globalization refers to the manner in which cultures, countries, organizations, and people from diverse backgrounds come together for various objectives (Bowen & Ozuem, 2015). The wave of globalization is driven by investments and international trade. That being the case, globalization has played a significant role in dictating the origin, development, and growth of Facebook as a social networking company (Smithson, 2017). The founders of the company must have been inspired by the need to support the goals of a connected global community. Since the world had already appreciated the power of globalization by 2000, it became possible for Zuckerberg and his colleagues to start an online-based site. Consequently, Facebook.com has enabled more people to interact and share ideas across the globe. Additionally, the introduction of new features such as messaging opportunities, news feeds, and advertising platforms on the site are developments that have been catalyzed by globalization.

Similarly, modern technological developments have impacted the growth, performance, and profitability of Facebook. For instance, the invention of the Internet and personal computers created a favorable environment for developing social media networks. Without the Internet, it would have been impossible to have a company like Facebook today (Menzies, Petrie, & Zarb, 2017). In the recent past, smartphones and handheld devices have become common in every part of the world. Facebook has been monitoring such changes in an attempt to customize its services in such a way that they can be accessed using different mobile devices. The evolution of mobile or online-based apps is something that has been supported by technological advancements. This corporation has been keen to acquire and develop superior apps that support or improve the way human beings communicate with each other. New inventions such as online-based advertising practices and instant messaging have also been considered by Facebook to achieve its objectives.

Earning Above-Average Returns

The industrial organization model states that external factors or forces will influence a company’s strategic goals or actions. The model assumes that external environmental impose constraints on companies and dictate specific strategic that can deliver desirable returns. The model also argues that organizational leaders should be committed and rational if they want to support their firms’ interests. This knowledge can be considered by Facebook’s managers to study the external environment, identify the best business practices, acquire the right resources, and develop superior strategies to achieve every business goal. The major objectives include identifying the business models used by different competitors, analyzing the demands of potential customers, and monitoring the nature of the changing global environment (Menzies et al., 2017). This knowledge will ensure the company revises its business strategy periodically. Consequently, the corporation will earn above-average returns in this competitive sector.

Resource-based model is founded on the notion that an organization’s resources, assets, and capabilities are critical whenever designing the most appropriate strategic actions. This model appears to support the goals and managerial practices associated with Facebook. The approach can ensure the company capitalizes on its current assets, human resources, and financial strength to implement powerful goals and objectives. Every employee should be empowered and equipped with the right resources to ensure the targeted goals are realized in a timely manner (Bowen & Ozuem, 2015). The model can also be considered to support Facebook’s strategic management process. The strategy will ensure internal resources are used to support various action plans, outline tangible goals, and identify emerging opportunities. By doing so, the company will produce superior apps, improve the quality and effectiveness of its services, and monitor the changing needs of every stakeholder. With a proper strategic focus, Facebook will be in a position to earn above-average returns and eventually become a leading competitor in the industry.

Vision and Mission Statements

Smithson (2017) believes strongly that Facebook’s success can be attributed to its mission and vision statements. Facebook’s mission statement is “to give people the power to share and make the world more open and connected” (Smithson, 2017, para. 3). This statement indicates clearly that the corporation is always committed to ensure its social networking products and services are practical and available to more users. Facebook subscribers are empowered and supported to share ideas and information. The mission encourages more users to use the company’s products and services to share with each other. People who connect or communicate are known as “friends”. The use of this mission statement, therefore, makes it possible for more people to embrace Facebook’s services and apps (Bowen & Ozuem, 2015). Every person who uses the company’s services understands that his or her expectations will be met in a timely manner.

The company’s vision statement is that “people use Facebook to stay connected, to discover what is going on in the world, and express what matters to them” (Smithson, 2017, para. 3). Individuals who come across this vision statement for the first time will be willing to try the corporation’s services and apps in an attempt to connect, discover, and share with others. Since the firm’s goal is to maximize its revenues, the statement encourages more people to use various services. The company then applies its business model accordingly to increase its profits.

The mission and vision statements are attractive and capable of encouraging and attracting more people to become part of Facebook’s fraternity. With an increasing number of Facebook users, it becomes possible for more advertisers to sign contracts with the company and eventually improve performance. Carboni and Maxwell (2015) go further to explain why the company should continue to produce advanced services and make sure they are available in different corners of the globe. The move will support the company’s goals and eventually make it competitive.


There are several stakeholders whose bargaining powers have the potential to influence Facebook’s business performance. The first group is composed of users or Facebook members. This group is prioritized by the company since it dictates its attractiveness and popularity. The increasing number of users will definitely encourage advertisers to do business with the organization. When these users are satisfied, it becomes easier for the company to succeed (Hoffmann & Lutz, 2014). The second category is that of advertisers. These stakeholders are the leading source of income for the company. The corporation uses automated services and interventions to ensure its advertisers are satisfied with different service. Advertisers can also select different audiences or platforms on Facebook.com to achieve their goals. Contented advertisers make it possible for the corporation to succeed.

Employees are critical stakeholders since they develop products and offerings that make the company attractive. Their needs are addressed in a timely manner. They also receive proper remunerations and allowances in order to support the organization’s business model. These initiatives are taken seriously to strengthen the company’s image and make it profitable (Hoffmann & Lutz, 2014). Communities are important stakeholders whose needs are always prioritized by Facebook. The needs of different members of the public are addressed using corporate social responsibility (CSR) initiatives. The government is another critical stakeholder. Facebook makes sure its practices and activities are in accordance with existing government policies and regulations to ensure its operations are executed smoothly (Menzies et al., 2017). Satisfaction of such stakeholders has made it easier for the company to succeed in the global market.


The case of Facebook is a clear indication that companies should use desirable models and strategies such as strategic management to meet their customers’ diverse needs. The organization examines its internal and external environments whenever developing appropriate strategic visions. Additionally, the emerging needs of different stakeholders are addressed in a timely manner. The company’s mission and vision also resonate with the expectations of its stakeholders. These approaches explain why Facebook has become one of the most successful and profitable public corporations today.


Bowen, G., & Ozuem, W. (2015). Computer-mediated marketing strategies: Social media and online brand communities. Hershey, PA: IGI Global.

Carboni, J. L., & Maxwell, S. P. (2015). Effective social media engagement for nonprofits: What matters? Journal of Public and Nonprofit Affairs, 1(1), 18-28.

Hoffmann, C. P., & Lutz, C. (2014). The impact of online media on stakeholder engagement and the governance of corporations. Journal of Public Affairs, 15(2), 163-174. Web.

Menzies, R., Petrie, K., & Zarb, M. (2017). A case study of Facebook use: Outlining a multi-layer strategy for higher education. Education and Information Technologies, 22(1), 39-53. Web.

Smithson, N. (201). Panmore Institute. Web.

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"Facebook's Strategic Management and Competitiveness." IvyPanda, 16 Sept. 2020, ivypanda.com/essays/facebooks-strategic-management-and-competitiveness/.

1. IvyPanda. "Facebook's Strategic Management and Competitiveness." September 16, 2020. https://ivypanda.com/essays/facebooks-strategic-management-and-competitiveness/.


IvyPanda. "Facebook's Strategic Management and Competitiveness." September 16, 2020. https://ivypanda.com/essays/facebooks-strategic-management-and-competitiveness/.


IvyPanda. 2020. "Facebook's Strategic Management and Competitiveness." September 16, 2020. https://ivypanda.com/essays/facebooks-strategic-management-and-competitiveness/.


IvyPanda. (2020) 'Facebook's Strategic Management and Competitiveness'. 16 September.

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