need to write a conclusion of this facebook study based off this information.

PESTLE Political factors: 1) Was blamed for the outcome of the 2016 United States Presidential election 2) Facebook is a social media stage utilized by in excess of billion clients everywhere throughout the world. In spite of the fact that it began as an approach to remain in contact with friends and family, its since become a phase to talk about degenerate practices and government arrangements. 3) Imprint Zuckerberg, the CEO and author of Facebook has arrived in heated water due to supposed Russian interfering in US decisions. Furthermore, Facebookis sccused for the spreading of counterfeit news to all clients. These debates infonce general sentiments about nearby governmental issues, current lawmakers in power and may influence the consequence of future decisions 4) In progressively traditionalist nations. Facebook is viewed as an apparatus to push particular plans and assist individuals with joining against political gatherings. To kop individuals from joining together, just as the spread of falsehood, a few nations have limited Facebook access to their residents. China and North Korea are only two models 5) Facebook itself pushes its own plan. To upgrade attaches with Washington, DC, the stage has made a Poltical Action Committee Facebook is as of now associated with billions of crowds the world over. With a huge come to the stage can without much of a stretch influence how individuals consider arrangements, the legislature and decisions. This is something residents dread, however nothing has really captured Facebook's impact Economic factors: 1) The solid US dollar has cost Facebook millions in outside monetary forms. In particular, Facebook has lost more than 100 million around the world. Expenses and costs are on the ascent as the organization keeps on extending and utice new laborers. 2) Facebook additionally contributes to improving the economy. In 2014, the organization has purportedly influenced in excess of 4 million occupations and had a financial worldwide effect of more than $200 billion USD. These numbers might be expanded as per a few business analysts. 3) This social media isn't just a stage to converse with your distant auntie Jean Facebook is a business stage as well Clients approach paid Facebook promotions to promote their own items Furthermore, they can pay to support their presents on contact new crowds. Enrollment specialists additionally use Facebook to enlist individual's dependent on their own profiles Social factors: 1) Facebook is a social media stage. The biggest on the planet began as a way to associate with individuals you haven't seen in for a little while. To impart enormous declarations and ordinary minutes to loved ones. Be that as it may, its gradually moved away from this reason 2) It presently has a commercial center where you can offer you things to individuals near you. The stage is stacked with promotions. Your course of events might be loaded up with "Well known posts from around the globe from organization pages that you've never observed or enjoyed previously. Facebook's calculation appears to concentrate more on indicating organization and organizations pages than your companion's statuses. This is an issue for Individuals who just need to remain in contact with their friends and family . Verizon 10:09 AM * 100% Technological factors: 1) The stage depends on the web. Without it, Facebook wouldn't exist. Also, it's something other than a site now. The organization offers an independent errand person application to converse with individuals on your companion's rundown, in any case on the off chance that you sign into your Facebook or use it. In any case, the applications and Facebook are known to follow you while you visit different sites. What's more, it's accepted to offer this data to promoters. More information security required 2) At that point there are the security issues, as I've examined on numerous occasions as of now. Facebook should investigate upgrading the security of their foundation to balance hacking endeavors and information spills. Clients would value it. 3) Facebook likewise possesses different stages including Instagram, another kind of social media, Individuals favor Instagram as a way to grandstand their lives, message their companions, and remain associated. It centers vigorously around pictures as opposed to instant messages. It's getting better known among the more youthful age than Facebook Legal factors: 1) Information breaks are what Facebook is getting generally known for in any event on the off chance that you search through ongoing articles about the organization. Furthermore, the predictable issue with keeping clients' data out of the grasp of con artists is influencing Facebook's notoriety. Contrarily. It might likewise land them in high temp water or before judge, 2) On another note. Europe has presented the European Union's General Data Protection Regulation (GDPR) this year. It's a stricter strategy with respect to information and information protection of clients. Damaging the guideline could prompt a few punishments. What's more, Facebook has had a couple of issues with following the GDPR rules as of now. As has other huge name organizations like Google. Environmental factors: The vast majority of Facebook's discharges are from the organization's American server farms. In any case, it's been somewhat low in the course of the most recent couple of years, contrasted with different organizations. Facebook still uses coal capacity to produce power in the server farms, however they use gas and atomic too. They should invest more energy into utilizing sustainable power source frameworks to cut their carbon impression further. It will put less strain on the earth too SWOT ANALYSIS Verizon 10:09 AM 7 100% SWOT ANALYSIS Strengths - Intermal Weakness - Internal Ranked world's 5th most valuable Thinted public image related to ter public company privacy concerns Largest social media platform with Ineffective nonexistent crisis more than 2.2 billion users, 6 milion management plan advertisers and 60 milion Businesses across S4 countries as of 2018 Overdependence on advertising for revenue Diversified with ownership of Instagram and WhatsApp Inability to effectively control the spread of misinformation Highly influential amongstly and broad user base Conflicting opinions and significant tumover in per management team In 2017, revenues of $40.7 billion Facebook's daily visitor's growth slowed due to negative publicity Facebook missed its revenue forecast for second quarter 2018 Opportunity - External Threats - External Further acquisitions alow company to extend reach and control market share Explot changes in advertising trends Develop other revenue stream by exploring different models to monetize user traffic Employ/ galvanise large, loyal user base to control the narrative and public opinion Build user trust and improve public image through proactive self-regulation and transparency in privacy protection efforts Competition from other apps and social media platforms Increased regulations from governments worldwide Increased operational costs Banned in several countries Negative publicity and protests from human rights organizations Long-term recommended plan: This suggested crisis management plan is meant to reduce the impact of the crisis using forecasting data analysis, and an atmosphere of corporate responsibility We suggest the formation of a Pre-Crisis Management department. The department will have different levels of employees, each with a specific role that helps in the execution of the post crisis decision .. Verizon 10:09 AM 7 100% The first corporate level will be formed of Crisis officers who will be responsible for analyzing trends, envisioning stocks sudden fluctuations and declines, and forecasting problems that the company might face as a result of negligence of certain business laws. If the plan was to be implemented in Facebook, Crisis Officers would have been responsible for checking whether the collection of data and transferring it to a third party is constitutional or not and whether, if claimed unconstitutional, there are other alternative legal actions like the application of an opt-in model) can be implemented or not that grant the same results The Crisis Officer then has to write a report of potential threats, suggested solutions and public risks the company might be exposed to if it was not to take a quick action The report then has to be sent to a Crisis Analyst. The analyst is responsible for reviewing the report and making sure that the Crisis Officer's suggestions are evidence-based then backing them up by data that would facilitate the implementation of the pre-crisis plan. Moreover, the Crisis Analyst must highlight urgent potential problems that the company might get into it did not act wisely, quickly and professionally. Facebook's Crisis Analyst could have been doing the needed research to make suggestions for a "Know Facebook worldwide tour that strengthens the public's confidence in Facebook. This could have created some sort of a reputation immunity for the company, or at least could have increased its resilience to future risks or even trueuntrue attempts of outsiders to break its bond with its users Finally, for the first phase to be completed the edited report and a newly suggested evidence-based pre-crisis plan must be submitted to the Chief Crisis Analyst This person is responsible for the final execution of a dear and formally written crisis prevention plan then submits it to the Vice Pre-crisis Management Secretary The Pre-crisis Management's Director Secretary shall be responsible for evaluating how realistic the plan is with respect to the company's budget and set of resources then should assign the resources to each part of the plan to present a mature plan, proposal and PowerPoint presentation to the Pre-Crisis Management director. For example, the Director's Secretary could have been responsible for locating the major cities and capital of Facebook's biggest number of users, then communicates with branches and brand affiliates if the company was to present the "Know Facebook tour with respect to each culture then could have allocated the right costs to each step of the plan At the top of the department's hierarchy is the Crisis Management Director. The Crisis Management Director, in addition to supervising each and every step along the way, is the middleman between the department and the company's CEO. This person manages the pre-crisis management plan creation procedure to ensure the smooth flow of Information and reliability of resources and statistics so should have passed by each step of the corporate ladder starting from being an Analyst to being the director If Facebook had this department from the very beginning, the impact of the crisis might have decreased by hall and could have created some sort of confidence by going miles ahead of the crisis Short-term recommended plan: Facebook's short-term suggested plan, on the other hand, might be formed of a small public relations unit that aims to communicate with the public, construct surveys, and analyze data for handling post-crisis reactions. This unit might have three members an Analyst for choosing the right reaction and response, a Director who revises the resources and executes a plan and a Speaker who studied either marketing or . Verizon 10:09 AM * 100% 0 communication who can rapidly handle the situation and communicate Facebook's dedication to its users, as well as presents the strategies that will be implemented going forward to prevent the crisis from happening again and to restore the public's confidence Porter Model 1) Competition in the industry Facebook has a lot of competitors in the rapidly growing social media industry. When Facebook was first created, the only competitor that existed was MySpace Facebook proved itself a superior product very quickly only to see more powerful competitors arise such as Twitter, Instagram Linkedin. Snapchat, etc. Facebook's early successes helped the company maintain its position as the most popular social media site even into 2020. Perhaps the most significant move Facebook has made within industry competition is buying Instagram. Instagram quickly emerged as a threat to Facebook's throne but was bought outright for $1 billion in 2012. Facebook also owns WhatsApp and Oculus in addition to Instagram. WhatsApp was bought for $19 billion. These moves have helped Facebook continue to grow and it will continue to grow while looking for strong competition to buy Outright. 2) Potential of new entrants into the industry The social media industry sees new entrants seemingly every day. With the social media industry growing in popularity, power, and importance for daily communication, is important that Facebook continues its stranglehold on the industry to ensure continued success. 2020 has seen the emergence of new social media power, Tik Tok which already has 850 milion users. Facebook has 2.7 billion users, not including its other owned sites. But, Tik Tok is getting a lot of attention and new users every day, and Facebook has to keep a watchful eye on it. Buying Tik Tok outright will possibly be an option for Facebook yet again. 3) Power of Suppliers Facebook has found many ways to keep driving up cost inputs. The most noticeable way is through Instagram where you can click on items in posts and buy them through the app Social media in general is designed to keep users engaged on the sites for as much time as possible, which makes money for companies like Facebook. The site takes your interests, personal connections and environmental factors to keep you . Verizon 10:10 AM * 100% interested in what is being presented to you. The site essentially tries to buy space in your mind and make money off of it. You view posts, advertisements, breaking news, perhaps purchase items within the app and they are always profiting 4) Power of Customers Facebook's greatest power is that customers have almost no power. There are no prices for the user to drive down. The customer base is so immensely large and has no personal connection with the company at all, Facebook has all the power and money The only thing a user can do to take away power is deleting the app, or stop using it which most users do not seem to do. If the app is opened, Facebook is making money and a lot of it. Facebook makes approximately $81 dollars per second. The customer base will continue to have less power as users continue to use more and more. One area where customers have seemed to grasp some power is legal accusations of crisis and pushing out 'counterfeit news'or fake news to the masses. Facebook has had to deal with the accusations to again instill integrity with its users. 5) Threat of Substitutes The first threat of a potential substitute social media site that Facebook saw was Instagram and quickly bought it outright. Facebook seems to be the most complete social media site based on the number of users. The same could be said for Instagram which no longer looms as a threat. The biggest threat to Facebook would be an alternative to social media in general. Another singular social media site could not pose a threat to Facebook. It could be several years before there is an alternative to social media. If and when this does happen, Facebook should be ready to quickly adapt to that threat Alternative Courses of Action 1. Transition away from the overdependence on the ad-based revenue business model Convert to a subscription-based revenue model and/or offer a subscription-based ad-free option Continue the mergetiacquisition strategy to diversify into other business areas with different revenue streams Develop and advance the strategies for monetization of th previously acquired companies and existing applications under company's ownership . Verizon 10:10 AM * 100% 2 Reframe corporate policy to emphasize user ownership of their data and privacy protection Shift to an opt-in policy for user privacy settings Create the option for users to choose to sell their data to third party Allow users' in-app capability to clear all history and personal data Provide, at the request of the user, detailed account of their data that has been passed to third parties 3 Reassess internal controls that allow third-party access to user data continually and regularly institute a strong privacy management team with the authority to make significant changes to privacy policy and penalize violators Develop a transparency strategy, staying ahead of scandal where privacy settings are clear, easily accessible and adjustable, and policy changes and violations are made public proactively 4. Cooperation with regulatory agencies publicly and active collaboration with drafting regulation in an effort to minimize potential loss Alternative Course of Action Analysis 1 Advantages: By transitioning away from an overreliance on advertising as the overwhelmingly predominant source of revenue. Facebook can extend its reach into additional diverse and previously unexplored income streams. Facebook can also continue to grow its user base and preserve its market dominance over the competir by continuing to acquire young startups and using their comparative advantage ar core competencies to swiftly grow the companies while also broadening into adja social media markets and complementary businesses. Facebook should also top alternative monetization strategies for its Messenger and WhatsApp platforms with may not be naturally conducive to the ad-based format but may offer great untapped revenue potential .. Verizon 10:10 AM 100% Disadvantages: Conversion to a subscription-based model is not only a complete modification of the business model. It also goes against prior promises to ensure that the platform remains tree, but it also would need to secure enough subscriptions to replace bilions in advertising revenue in order to make the change cost-effective. In addition, future acquisitions and mergers must be in line with existing brand and relevant to current business structure to ensure that the company does not overdiversify into unrelated markets and gamble on risky acquisitions that make be counterproductive to the company's goals and profitability 2 Advantages: Allowing for more user control wil restore confidence in Facebook's commitment to the user and the protection of their privacy as an organization-wide priority. This approach could also reframe the public narrative that has furthered mistrust in the company and transition toward increased transparency. effectively revamping the reputation of the company. Creating a culture of user consent in the commodification of their data minimizes culpability in privacy violations Disadvantages: Relinquishing that level of control and being overly transparent may open the company up to avoidable criticism and unforeseen risks. In addition, it will likely reduce revenues from the primary revenue sou of targeted adv ng as Switching to an opt-in policy for user settings and aliowing all personal data to be cleared wil significantly reduce the user base for those ads. Permitting users to set their own information would also decrease revenue 3 Advantages: The proactive approach to user privacy protection will reduce the risk of privacy violation and any resulting damage to the company's public image and stock price. By establishing active and effective groups that monitor privacy settings and policies, Facebook could cultivate trust create transparency, and distinguish itself from the companies engaging in data harvesting with malicious and/or unethical intent by implementing internal safeguards against the abuse of users data Disadvantages: This approach may be detrimental in that it could reduce the number of advertisers paying or amount advertisers are willing to pay to utilize the platform as a marketing tool because of new restrictions and the potential of penalties associated with violating privacy protections Facebook would also need to increase the operational costs budget to include additional staff needed to fill user data monitoring and investigation roles, and the costs of third-party audits to increase privacy management transparency 4. Advantages: By taking a public and active role in compliance with government regulation, the company appears to be on the side of the platform's user's s rather than the big bad firms who are exploiting user data. Preemptive collaboration with regulatory entities could help the company to help negate or shape any legislation favorably to the company's business goals. It could also prevent more government bans in countries that are viable for expansion and future markets. Disadvantages: The company could become complicit to regulations that negatively affect their bottom line without the benefit of an increased user base nor a repaired public image Verizon 10:10 AM * 100% . who cando T Weg Made www C T Sw al 4 13 4 10 pel De 11 2 1 Current Situation and Issues problems: Facebook has maintained its prominence as the largest social media platform globally, dominating the market and maintaining a vast audience by either acquiring or overwhelming the competition. However, Facebook has been and continues to be embroiled in a public scandal regarding its user's privacy and the company's responsibility in protecting user information as pertains to the harvesting and selling of that data for profit. All of this came to a head with the exposure of the Cambridge Analytica scandal in March of 2018 and the role that the data leak played in the controversial 2016 election. The company is criticized for prioritizing growth over user protection which is largely due to the fact that Facebook's customer is not the social media platform's estimated 2.2 billion users. In the current business model the users are actually the product being sold to the company's true customer, the advertisers. At the time of the scandal, the latest reported revenues were $40.7 bilion in 2017, with 87% of that figure being the result of mobile advertising Facebook s reliance on advertising as the primary source of income has intensified to and astounding 985 % as of 2019. This dependency presents the company's fundamental challenge of the users are the product and the advertisers are the customer, the company's financial health is completely reliant on users interaction with the platform and the growth of that user base. There is a direct correlation with user trust in privacy protection or disregard for the collection and dissemination of their data and the potential revenues and profit the company. An instantaneous demonstration of this conundrum was the immed fallout from the Cambridge scandal in which users' trust in Facebook plummeted accompanied by the stock price. Facebook was able to recover, but I many ways reputation has not PESTLE Political factors: 1) Was blamed for the outcome of the 2016 United States Presidential election 2) Facebook is a social media stage utilized by in excess of billion clients everywhere throughout the world. In spite of the fact that it began as an approach to remain in contact with friends and family, its since become a phase to talk about degenerate practices and government arrangements. 3) Imprint Zuckerberg, the CEO and author of Facebook has arrived in heated water due to supposed Russian interfering in US decisions. Furthermore, Facebookis sccused for the spreading of counterfeit news to all clients. These debates infonce general sentiments about nearby governmental issues, current lawmakers in power and may influence the consequence of future decisions 4) In progressively traditionalist nations. Facebook is viewed as an apparatus to push particular plans and assist individuals with joining against political gatherings. To kop individuals from joining together, just as the spread of falsehood, a few nations have limited Facebook access to their residents. China and North Korea are only two models 5) Facebook itself pushes its own plan. To upgrade attaches with Washington, DC, the stage has made a Poltical Action Committee Facebook is as of now associated with billions of crowds the world over. With a huge come to the stage can without much of a stretch influence how individuals consider arrangements, the legislature and decisions. This is something residents dread, however nothing has really captured Facebook's impact Economic factors: 1) The solid US dollar has cost Facebook millions in outside monetary forms. In particular, Facebook has lost more than 100 million around the world. Expenses and costs are on the ascent as the organization keeps on extending and utice new laborers. 2) Facebook additionally contributes to improving the economy. In 2014, the organization has purportedly influenced in excess of 4 million occupations and had a financial worldwide effect of more than $200 billion USD. These numbers might be expanded as per a few business analysts. 3) This social media isn't just a stage to converse with your distant auntie Jean Facebook is a business stage as well Clients approach paid Facebook promotions to promote their own items Furthermore, they can pay to support their presents on contact new crowds. Enrollment specialists additionally use Facebook to enlist individual's dependent on their own profiles Social factors: 1) Facebook is a social media stage. The biggest on the planet began as a way to associate with individuals you haven't seen in for a little while. To impart enormous declarations and ordinary minutes to loved ones. Be that as it may, its gradually moved away from this reason 2) It presently has a commercial center where you can offer you things to individuals near you. The stage is stacked with promotions. Your course of events might be loaded up with "Well known posts from around the globe from organization pages that you've never observed or enjoyed previously. Facebook's calculation appears to concentrate more on indicating organization and organizations pages than your companion's statuses. This is an issue for Individuals who just need to remain in contact with their friends and family . Verizon 10:09 AM * 100% Technological factors: 1) The stage depends on the web. Without it, Facebook wouldn't exist. Also, it's something other than a site now. The organization offers an independent errand person application to converse with individuals on your companion's rundown, in any case on the off chance that you sign into your Facebook or use it. In any case, the applications and Facebook are known to follow you while you visit different sites. What's more, it's accepted to offer this data to promoters. More information security required 2) At that point there are the security issues, as I've examined on numerous occasions as of now. Facebook should investigate upgrading the security of their foundation to balance hacking endeavors and information spills. Clients would value it. 3) Facebook likewise possesses different stages including Instagram, another kind of social media, Individuals favor Instagram as a way to grandstand their lives, message their companions, and remain associated. It centers vigorously around pictures as opposed to instant messages. It's getting better known among the more youthful age than Facebook Legal factors: 1) Information breaks are what Facebook is getting generally known for in any event on the off chance that you search through ongoing articles about the organization. Furthermore, the predictable issue with keeping clients' data out of the grasp of con artists is influencing Facebook's notoriety. Contrarily. It might likewise land them in high temp water or before judge, 2) On another note. Europe has presented the European Union's General Data Protection Regulation (GDPR) this year. It's a stricter strategy with respect to information and information protection of clients. Damaging the guideline could prompt a few punishments. What's more, Facebook has had a couple of issues with following the GDPR rules as of now. As has other huge name organizations like Google. Environmental factors: The vast majority of Facebook's discharges are from the organization's American server farms. In any case, it's been somewhat low in the course of the most recent couple of years, contrasted with different organizations. Facebook still uses coal capacity to produce power in the server farms, however they use gas and atomic too. They should invest more energy into utilizing sustainable power source frameworks to cut their carbon impression further. It will put less strain on the earth too SWOT ANALYSIS Verizon 10:09 AM 7 100% SWOT ANALYSIS Strengths - Intermal Weakness - Internal Ranked world's 5th most valuable Thinted public image related to ter public company privacy concerns Largest social media platform with Ineffective nonexistent crisis more than 2.2 billion users, 6 milion management plan advertisers and 60 milion Businesses across S4 countries as of 2018 Overdependence on advertising for revenue Diversified with ownership of Instagram and WhatsApp Inability to effectively control the spread of misinformation Highly influential amongstly and broad user base Conflicting opinions and significant tumover in per management team In 2017, revenues of $40.7 billion Facebook's daily visitor's growth slowed due to negative publicity Facebook missed its revenue forecast for second quarter 2018 Opportunity - External Threats - External Further acquisitions alow company to extend reach and control market share Explot changes in advertising trends Develop other revenue stream by exploring different models to monetize user traffic Employ/ galvanise large, loyal user base to control the narrative and public opinion Build user trust and improve public image through proactive self-regulation and transparency in privacy protection efforts Competition from other apps and social media platforms Increased regulations from governments worldwide Increased operational costs Banned in several countries Negative publicity and protests from human rights organizations Long-term recommended plan: This suggested crisis management plan is meant to reduce the impact of the crisis using forecasting data analysis, and an atmosphere of corporate responsibility We suggest the formation of a Pre-Crisis Management department. The department will have different levels of employees, each with a specific role that helps in the execution of the post crisis decision .. Verizon 10:09 AM 7 100% The first corporate level will be formed of Crisis officers who will be responsible for analyzing trends, envisioning stocks sudden fluctuations and declines, and forecasting problems that the company might face as a result of negligence of certain business laws. If the plan was to be implemented in Facebook, Crisis Officers would have been responsible for checking whether the collection of data and transferring it to a third party is constitutional or not and whether, if claimed unconstitutional, there are other alternative legal actions like the application of an opt-in model) can be implemented or not that grant the same results The Crisis Officer then has to write a report of potential threats, suggested solutions and public risks the company might be exposed to if it was not to take a quick action The report then has to be sent to a Crisis Analyst. The analyst is responsible for reviewing the report and making sure that the Crisis Officer's suggestions are evidence-based then backing them up by data that would facilitate the implementation of the pre-crisis plan. Moreover, the Crisis Analyst must highlight urgent potential problems that the company might get into it did not act wisely, quickly and professionally. Facebook's Crisis Analyst could have been doing the needed research to make suggestions for a "Know Facebook worldwide tour that strengthens the public's confidence in Facebook. This could have created some sort of a reputation immunity for the company, or at least could have increased its resilience to future risks or even trueuntrue attempts of outsiders to break its bond with its users Finally, for the first phase to be completed the edited report and a newly suggested evidence-based pre-crisis plan must be submitted to the Chief Crisis Analyst This person is responsible for the final execution of a dear and formally written crisis prevention plan then submits it to the Vice Pre-crisis Management Secretary The Pre-crisis Management's Director Secretary shall be responsible for evaluating how realistic the plan is with respect to the company's budget and set of resources then should assign the resources to each part of the plan to present a mature plan, proposal and PowerPoint presentation to the Pre-Crisis Management director. For example, the Director's Secretary could have been responsible for locating the major cities and capital of Facebook's biggest number of users, then communicates with branches and brand affiliates if the company was to present the "Know Facebook tour with respect to each culture then could have allocated the right costs to each step of the plan At the top of the department's hierarchy is the Crisis Management Director. The Crisis Management Director, in addition to supervising each and every step along the way, is the middleman between the department and the company's CEO. This person manages the pre-crisis management plan creation procedure to ensure the smooth flow of Information and reliability of resources and statistics so should have passed by each step of the corporate ladder starting from being an Analyst to being the director If Facebook had this department from the very beginning, the impact of the crisis might have decreased by hall and could have created some sort of confidence by going miles ahead of the crisis Short-term recommended plan: Facebook's short-term suggested plan, on the other hand, might be formed of a small public relations unit that aims to communicate with the public, construct surveys, and analyze data for handling post-crisis reactions. This unit might have three members an Analyst for choosing the right reaction and response, a Director who revises the resources and executes a plan and a Speaker who studied either marketing or . Verizon 10:09 AM * 100% 0 communication who can rapidly handle the situation and communicate Facebook's dedication to its users, as well as presents the strategies that will be implemented going forward to prevent the crisis from happening again and to restore the public's confidence Porter Model 1) Competition in the industry Facebook has a lot of competitors in the rapidly growing social media industry. When Facebook was first created, the only competitor that existed was MySpace Facebook proved itself a superior product very quickly only to see more powerful competitors arise such as Twitter, Instagram Linkedin. Snapchat, etc. Facebook's early successes helped the company maintain its position as the most popular social media site even into 2020. Perhaps the most significant move Facebook has made within industry competition is buying Instagram. Instagram quickly emerged as a threat to Facebook's throne but was bought outright for $1 billion in 2012. Facebook also owns WhatsApp and Oculus in addition to Instagram. WhatsApp was bought for $19 billion. These moves have helped Facebook continue to grow and it will continue to grow while looking for strong competition to buy Outright. 2) Potential of new entrants into the industry The social media industry sees new entrants seemingly every day. With the social media industry growing in popularity, power, and importance for daily communication, is important that Facebook continues its stranglehold on the industry to ensure continued success. 2020 has seen the emergence of new social media power, Tik Tok which already has 850 milion users. Facebook has 2.7 billion users, not including its other owned sites. But, Tik Tok is getting a lot of attention and new users every day, and Facebook has to keep a watchful eye on it. Buying Tik Tok outright will possibly be an option for Facebook yet again. 3) Power of Suppliers Facebook has found many ways to keep driving up cost inputs. The most noticeable way is through Instagram where you can click on items in posts and buy them through the app Social media in general is designed to keep users engaged on the sites for as much time as possible, which makes money for companies like Facebook. The site takes your interests, personal connections and environmental factors to keep you . Verizon 10:10 AM * 100% interested in what is being presented to you. The site essentially tries to buy space in your mind and make money off of it. You view posts, advertisements, breaking news, perhaps purchase items within the app and they are always profiting 4) Power of Customers Facebook's greatest power is that customers have almost no power. There are no prices for the user to drive down. The customer base is so immensely large and has no personal connection with the company at all, Facebook has all the power and money The only thing a user can do to take away power is deleting the app, or stop using it which most users do not seem to do. If the app is opened, Facebook is making money and a lot of it. Facebook makes approximately $81 dollars per second. The customer base will continue to have less power as users continue to use more and more. One area where customers have seemed to grasp some power is legal accusations of crisis and pushing out 'counterfeit news'or fake news to the masses. Facebook has had to deal with the accusations to again instill integrity with its users. 5) Threat of Substitutes The first threat of a potential substitute social media site that Facebook saw was Instagram and quickly bought it outright. Facebook seems to be the most complete social media site based on the number of users. The same could be said for Instagram which no longer looms as a threat. The biggest threat to Facebook would be an alternative to social media in general. Another singular social media site could not pose a threat to Facebook. It could be several years before there is an alternative to social media. If and when this does happen, Facebook should be ready to quickly adapt to that threat Alternative Courses of Action 1. Transition away from the overdependence on the ad-based revenue business model Convert to a subscription-based revenue model and/or offer a subscription-based ad-free option Continue the mergetiacquisition strategy to diversify into other business areas with different revenue streams Develop and advance the strategies for monetization of th previously acquired companies and existing applications under company's ownership . Verizon 10:10 AM * 100% 2 Reframe corporate policy to emphasize user ownership of their data and privacy protection Shift to an opt-in policy for user privacy settings Create the option for users to choose to sell their data to third party Allow users' in-app capability to clear all history and personal data Provide, at the request of the user, detailed account of their data that has been passed to third parties 3 Reassess internal controls that allow third-party access to user data continually and regularly institute a strong privacy management team with the authority to make significant changes to privacy policy and penalize violators Develop a transparency strategy, staying ahead of scandal where privacy settings are clear, easily accessible and adjustable, and policy changes and violations are made public proactively 4. Cooperation with regulatory agencies publicly and active collaboration with drafting regulation in an effort to minimize potential loss Alternative Course of Action Analysis 1 Advantages: By transitioning away from an overreliance on advertising as the overwhelmingly predominant source of revenue. Facebook can extend its reach into additional diverse and previously unexplored income streams. Facebook can also continue to grow its user base and preserve its market dominance over the competir by continuing to acquire young startups and using their comparative advantage ar core competencies to swiftly grow the companies while also broadening into adja social media markets and complementary businesses. Facebook should also top alternative monetization strategies for its Messenger and WhatsApp platforms with may not be naturally conducive to the ad-based format but may offer great untapped revenue potential .. Verizon 10:10 AM 100% Disadvantages: Conversion to a subscription-based model is not only a complete modification of the business model. It also goes against prior promises to ensure that the platform remains tree, but it also would need to secure enough subscriptions to replace bilions in advertising revenue in order to make the change cost-effective. In addition, future acquisitions and mergers must be in line with existing brand and relevant to current business structure to ensure that the company does not overdiversify into unrelated markets and gamble on risky acquisitions that make be counterproductive to the company's goals and profitability 2 Advantages: Allowing for more user control wil restore confidence in Facebook's commitment to the user and the protection of their privacy as an organization-wide priority. This approach could also reframe the public narrative that has furthered mistrust in the company and transition toward increased transparency. effectively revamping the reputation of the company. Creating a culture of user consent in the commodification of their data minimizes culpability in privacy violations Disadvantages: Relinquishing that level of control and being overly transparent may open the company up to avoidable criticism and unforeseen risks. In addition, it will likely reduce revenues from the primary revenue sou of targeted adv ng as Switching to an opt-in policy for user settings and aliowing all personal data to be cleared wil significantly reduce the user base for those ads. Permitting users to set their own information would also decrease revenue 3 Advantages: The proactive approach to user privacy protection will reduce the risk of privacy violation and any resulting damage to the company's public image and stock price. By establishing active and effective groups that monitor privacy settings and policies, Facebook could cultivate trust create transparency, and distinguish itself from the companies engaging in data harvesting with malicious and/or unethical intent by implementing internal safeguards against the abuse of users data Disadvantages: This approach may be detrimental in that it could reduce the number of advertisers paying or amount advertisers are willing to pay to utilize the platform as a marketing tool because of new restrictions and the potential of penalties associated with violating privacy protections Facebook would also need to increase the operational costs budget to include additional staff needed to fill user data monitoring and investigation roles, and the costs of third-party audits to increase privacy management transparency 4. Advantages: By taking a public and active role in compliance with government regulation, the company appears to be on the side of the platform's user's s rather than the big bad firms who are exploiting user data. Preemptive collaboration with regulatory entities could help the company to help negate or shape any legislation favorably to the company's business goals. It could also prevent more government bans in countries that are viable for expansion and future markets. Disadvantages: The company could become complicit to regulations that negatively affect their bottom line without the benefit of an increased user base nor a repaired public image Verizon 10:10 AM * 100% . who cando T Weg Made www C T Sw al 4 13 4 10 pel De 11 2 1 Current Situation and Issues problems: Facebook has maintained its prominence as the largest social media platform globally, dominating the market and maintaining a vast audience by either acquiring or overwhelming the competition. However, Facebook has been and continues to be embroiled in a public scandal regarding its user's privacy and the company's responsibility in protecting user information as pertains to the harvesting and selling of that data for profit. All of this came to a head with the exposure of the Cambridge Analytica scandal in March of 2018 and the role that the data leak played in the controversial 2016 election. The company is criticized for prioritizing growth over user protection which is largely due to the fact that Facebook's customer is not the social media platform's estimated 2.2 billion users. In the current business model the users are actually the product being sold to the company's true customer, the advertisers. At the time of the scandal, the latest reported revenues were $40.7 bilion in 2017, with 87% of that figure being the result of mobile advertising Facebook s reliance on advertising as the primary source of income has intensified to and astounding 985 % as of 2019. This dependency presents the company's fundamental challenge of the users are the product and the advertisers are the customer, the company's financial health is completely reliant on users interaction with the platform and the growth of that user base. There is a direct correlation with user trust in privacy protection or disregard for the collection and dissemination of their data and the potential revenues and profit the company. An instantaneous demonstration of this conundrum was the immed fallout from the Cambridge scandal in which users' trust in Facebook plummeted accompanied by the stock price. Facebook was able to recover, but I many ways reputation has not