Internal & External Factors for Facebook
FACEBOOK: WHEN YOUR FRIENDS
ARE WORTH A BILLION
INTERNAL FACTORS FOR A
BUSINESS
Definition: factors within the organization's control
Examples: company culture, leadership, management style,
workforce, financial resources, and marketing
Definition: factors outside the organization's control
Examples: economy, government policies, competition, market trends,
technological advancements, social and cultural changes, and natural disasters
EXTERNAL FACTORS OF A
COMPANY
FACTORS OF INTERNAL ENVIRONMENT
CONTRIBUTED TO FB SUCCESS
Encourages
experimentation
Promotes risk-taking
Launches new features and
services
Keeps users engaged
Maintains competitive edge
Innovative culture
'
Founder Mark Zuckerberg
instrumental in shaping
company's vision
Leadership has driven
company's success
Strategic decisions made
Helped Facebook grow and
expand its reach
Strong leadership
Uses wealth of user data
Analyzes user behavior and
preferences
Tailors services and offerings
to meet user needs
Helps maintain relevance
over time
Data-driven
FACTORS OF EXTERNAL ENVIRONMENT
CONTRIBUTED TO FB SUCCESS
Facebook launched in 2004
Internet and social media
becoming increasingly
popular at the time
Created opportunity for
Facebook
Captured large user base
Expanded rapidly
The rise of the internet and
social media Other platforms existed
during Facebook's launch
Facebook differentiated
itself
Offered unique user
experience
Featured ability to create
and join groups, share
photos, and connect with
friends
Competitive landscape
Operates in many countries
Supports multiple
languages
Reaches massive user base
Builds strong brand
presence
Global reach
EXTERNAL ENVIRONMENTAL CHALLENGES THAT
COULD POSE DIFFICULTIES FOR FACEBOOK
Government Regulations: Facebook is being monitored by governments
worldwide, which may impact its economic model.
Competition: Facebook competes with other social media platforms, and new,
innovative platforms may threaten its market dominance.
Changing User Preferences: Facebook may struggle to keep up with changing
user preferences.
INTERNAL ENVIRONMENT ELEMENTS THAT MAY
POSE DIFFICULTIES FOR FACEBOOK INCLUDE:
Employee Retention: Criticized office culture may make it difficult to retain talent.
Maintaining User Trust: Scandals related to privacy, content moderation, and
misinformation have harmed Facebook's reputation and may be challenging to
restore user faith.
Innovation: Facebook has been criticized for a lack of innovation and may struggle
to keep up with changing user preferences.
INTERNAL ENVIRONMENT ELEMENTS THAT MAY
POSE DIFFICULTIES FOR FACEBOOK INCLUDE:
Privacy and Security Concerns: Leaked information, unauthorized access, and
third-party misuse of user data could lead to regulatory scrutiny, legal liability,
decreased engagement, and slow user growth.
Competition and Market Changes: Changing consumer preferences and market
conditions, such as user behavior, advertising trends, or new entrants, may affect
Facebook's revenue and growth.
Long-term success and sustainability of Facebook depends on ensuring privacy
and security of user data and anticipating changing market trends
Government Scrutiny: Governments monitor Facebook's user data privacy,
content moderation, and misinformation handling.
Impact of Regulations: New rules could affect Facebook's business model and
operations.
Fines and Penalties: Facebook faces significant fines and penalties for
noncompliance.
Civil Action and Brand Image: Noncompliance could lead to legal action and
harm Facebook's image.
Competition: Facebook competes with other social media platforms that also
follow government regulations.
FACEBOOK MUST WORK HARD TO DEAL WITH THE EXTERNAL
FORCE OF GOVERNMENT RULES IF IT WANTS TO KEEP DOING
WELL.