Facebook Web Presence Analysis 5 pages

Organizational Social Web Presence


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Social media are virtual organizations that foster and encourage interactions among members allowing them posting personal and company information, connect and communicate with other users. Major social media are Facebook, Twitter, Linkedin, Youtube, Google+, and Whatsapp’s. In most cases, frequently interactions with other users make the network interactions becoming stronger, and the social media allow users to communicate through the message, weblogs, music and video stream.


The objective of this paper is to investigate how Facebook as an example of a major social achieving competitive market advantages.


Key Elements of Facebook Web Strategy


Facebook is the U.S. for-profit organization providing the social networking and social media services. Based in California, Facebook was launched in 2004, and initially, Facebook only allowed the Harvard students to access the website. Gradually, Facebook supported other students from other universities in the United States. Since 2016, Facebook allowed users aged 13 above to register on the website. Since 2010, the number of Facebook’s registered users continue to increase, and presently, the social media penetration has increased and there is an estimation that there are 2.7 billion active social media users in 2016. However, the Facebook is the leader of the social media with more than 1.79 billion active users monthly with an increase of 16% active users yearly.


Many companies have taken the advantages of social media to achieve competitive market advantages. For example, Nike Inc. has taken the advantages of the key elements in the Facebook to achieve competitive market advantages. Nike Inc. is a multinational corporation specializing in design, production, and marketing of apparel, footwear, accessories, equipment and services. Headquartered in Oregon in the United States, the company has taken the advantages of social media such as Facebook to create global awareness for their products. Typically, Nike is taking the advantages of a key element in the Facebook to achieve the company objectives. For example, Nike has launched its website in the Facebook posting their logo on the Facebook. Thus, the Facebook has assisted the company in sharing video, photos, information about their products and services.


In September 2016, Facebook recorded 1.18 billion active users daily, however, approximately 84.9% of Facebook daily active users are outside the United States and Canada. Facebook generates its revenue from the advert launched by users such as business organizations, governments and individuals. In 2014, Facebook reported $3.2 billion total revenue and increased by 59% between 2013 and 2014. In 2014, Facebook generated over $2.96 Billion by allowing users to advertise their product and services. Since Facebook active users increase yearly, the company total revenues also increase. For example, the company recorded the net income of $2.94 billion at the end of 2014 fiscal year, however, the net income increased to $3.68 billion at the end of 2015 fiscal year. However, an increasing number of non-web applications are serving as an alternative to Facebook. For example, the smartphone is increasingly being used to chat and provide some other functions that Facebook offers. Moreover, the Chatsim application assists users to chat and send message free of charge without the internet.


Despite an increase in the non-web presence, Facebook is still a leader in the social media business. The target market includes business organizations, and governments. Moreover, Facebook appeals to users aged 35 and above. In 2015, 72% of American adults are connected to Facebook. Facebook also targets people aged between 18 and 29 because 79% of them use the Facebook. Moreover, 64% of people between 50 and 64 use Facebook, while 48% of people aged 65 and older use Facebook. Thus, Facebook targets virtually all age group above 18 years of age. However, the company targets middle-aged group than other categories of the population because this segment is the most active group of the U.S. population and earning monthly incomes. However, the current customer base for the Facebook is in the United States and outside the United States with the active users continues to increase since 2008. By October 2016, Facebook has active users of more than 1.79 billion monthly active users, and some of these users advertise on the Facebook to promote their businesses. Typically, millions of sole proprietors have taken the advantages of low costs that Facebook charge to promote their business.


Over the years, Facebook has driven more traffic to businesses than other major social media. Ingram, (2015) argues that Facebook is a crucial social media that generates incoming traffic, and Facebook has overtaken the Google as a source of an incoming traffic. However, Facebook drives traffic to their website through an advert in the major search engines such as Googles, Yahoo and Bing. Moreover, more than 98% of the Android phone manufacturers install the Facebook application on the phones before being sold to customers. Thus, the strategy has assisted the company in increasing their profits year by year. Since 2011, the company net profits continue to rise. For example, Facebook’s net income was $1 billion, however, the company net profits increased to $3.68 billion at the end of 2015 fiscal year.


Competitor Analysis


Facebook is facing competitions in the competitive business environment from both non-web and web competitors. The company non-web competitor is smartphones because users can communicate, send messages, and pictures through their smartphones. In the United States and outside the United States, billions of people are using their smartphones to communicate, send messages, send video and pictures to other users. However, major web competitors of Facebook are Twitter, Whatsapp’s, Linkedin, Snapchat. Moreover, Google, Microsoft, Yahoo, and AOL are other major competitors of Facebook. However, a major strength of Facebook is its strong brand in the social media industry. Typically, Facebook allows people to advertise charging low fees assisting the company to enjoy high-profit margins. The company has also recorded billions of active users monthly and the users are growing daily. Facebook also offers excellent users experience to customers making the company be ahead of its competitors. Moreover, Facebook is ranked first among the social media with 1.79 million monthly active users. (Ingram, 2015).However, Youtube is ranked second with 1 million month visitors. Other competitors of Facebook are Twitter, Instagram, Linkedin, and Google+. (Investopedia, 2015). However, Facebook is ranked first compare to other social media. Despite the strength of the Facebook in the business environment, the threats of Facebook is the aggressive competitions from other social media companies. The active users from the competitors are also rising.


Competitive Advantage


The Facebook brand positioning is to connect people with their friends as well as others who live, study, and work around them. Overview of Facebook reveals that the company has achieved sustainable market advantages by allowing users to communicate with one another. Typically, Facebook has allowed old friends and old loves reuniting together. Many businesses have achieved competitive market advantages from Facebook because the website allows companies to post their website free of charge. However, the competitors are likely to emulate the strategy employed by Facebook based on the financial successes of the company over the years.


Consumer Perspective


An analysis of the Facebook reveals that the website is providing a convenient shopping experience for consumers. Typically, the Facebook allows consumers to create their profiles and assisting them to shop online. However, the privacy policy of Facebook is low because other people can have access to the photos of other users. Sometimes, some users can have access to messages and contents of communication of other users. The recommendation for improvement is to allow some element of privacy for users by preventing a user having access to the information of other users without their consents. The strategy will assist Facebook to implement a sustainable business model, which will make them achieving competitive market advantages because the method will attract more active users to the website.


Web Presence from Integrated Marketing Communications


The integrated marketing communication is a coordinated promotion strategy intended to reinforce prospect customers. Typically, the IMC (integrated marketing communication) uses the comprehensive marketing strategy such as personal selling, public relations, sales promotion, advertising and combine them together to maximize communication impact. The different between web presence and IMC is that the IMC combines both the web and non-web promotion strategies to promote businesses. However, promotion strategy using the only web does not involve using the traditional method of the advert. All the promotion is through online. The major common element between IMC and web presence is that both focuses on the promotion of the organization product and services. However, IMC covers a wider segment of the population than web presence because the IMC combine both tradition and web method of promotion.




The study analyzes the strategy that Facebook employs in achieving competitive advantages. The outcome of the analysis reveals that Facebook is number one social media with billions of active users monthly. The company is able generate revenues from costs of adverts paid by the users.




Bonchek, M., & Choudary, S.P. (2013). Three Elements of a Successful Platform Strategy. Harvard Business Review.


Investopedia (2015). Who are Facebook’s (FB) main competitors? Investopedia Inc.


Ingram, M. (2015). Facebook has taken over from Google as a traffic source for news. Fortune New.

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