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Marketing Strategy And Plan Of Facebook

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Your task in this case analysis is to answer two questions by critically analysing Facebook’s history,resources and market situation. What marketing strategy or strategies has Facebook adopted since it was created?What marketing options can you describe for Facebook if it wishes to remain a successful organisation throughout the next decade?




Executive Summary

This report aims at highlighting on the organization Facebook Inc. within the market environment of social network. It focuses on the marketing strategies that the company adopted to capture the maximum share possible, along with the tool of strategic partnership. For reflecting upon the marketing strategies of Facebook, some of the applied models are Boston Box, Shell’s Directional Policy Matrix, and GE Matrix. These strategies enable us to determine the market growth as well as shares acquired by the company. it also reflects upon the latest innovative technologies that have proved even more beneficial for the company. The report ends with a vivid conclusion and at the end it also gives a definite recommendation for Facebook Inc. to enable it to combat all market challenges and lead to successful growth in the future.


Strategic marketing refers to the objective of attaining business growth with increased sales as well as revenue by means of some specific innovative market strategies and techniques. This involves a lot of planning and series of implementation steps and that of monitoring and controlling. With the help of these strategies, business firms attain competitive advantage which allows successful growth in the long run (Abuin, 2014).

This report has been developed based on analysis of marketing strategies of Facebook Inc. The main purpose of the report is to understand the relevant marketing strategies applied by the company. This also highlights some of the most effective market strategies that support the company is leading the competitive environment.

Company Background

Facebook Inc. was incorporated in July 2004 and ever since got heavily engaged in developing products to increase utility for its users, advertisers, and developers. It is said to operate as a social networking organization worldwide. It gives a set of developmental tools as well as application programming interfaces enabling developers to link Facebook with that of web or mobile applications (Banerjee and Dey, 2013). People make use this media to remain connected with the enlarged society and acquire information about the surroundings. This platform may be used by developers to build websites as well as applications which integrate with Facebook for reaching out to the global network of users for developing personalized social products. The company has acquired Mixtent Inc. in March 2013. Ever since then it has been acquiring companies and growing at a tremendous pace. As per records, on December 31, 2013 the company had around a billion monthly active users. It has a strategic partnership with that of the AXA Group for developing marketing as well as commercial collaboration in the social, digital and mobile sphere.


As per the market research of 2013, it reflects that Facebook possesses more than a billion active users during a month (Bhardwaj, Adhikari and Ahuja, 2014). For maintaining popularity as well as improving its brand image, Facebook Inc works cohesively with AXA Group. This group enables the firm to develop its marketing strategy as well as to collaborate with the digital media.

Marketing Analysis

Facebook Inc. has been focusing on some key aspects since ages. These include products for developers, products for users, and products for advertisers and marketers. The platform of facebook is a set of application programming interfaces which developers may use for building social apps on facebook or integrating the websites with it. In March 2012, more than around nine million applications as well as websites were integrated with Facebook (Ebeid, 2012). Some of these include social plugins, open graph, application on Facebook, mobile applications, payments, desktop applications, and other platform-integrated websites. The open graph is used by the developers for building applications as well as websites which enable to share relevant activities with contacts on Facebook (Majid, 2012). Social plugins refer to those attributes which developers may easily integrate with the websites by implementing a single line HyperText Markup Language code.

GE Matrix:

It has been argued that this matrix technique enables analysis of the market attractiveness along with that of the competitive strength of the firm. Besides, it has been claimed that GE Matrix is the best way to judge the total strengths of the firms in the competitive market environment. It has been acknowledged that this technique is very useful in analyzing the attractiveness of the firms within the external factors like market growth, market size, segmentation, market entry, barriers, etc  (Eid and Hughes, 2011).

Facebook Inc. has been recently successful in acquiring the market share of around 25% out of 100% in the market environment of social network. The company is said to acquire multiple strategies like that of post ads within websites, Facebook fan pages which enables users to identify their target audiences as well as gain the exposure of business with respect to brand identity, provides the suitable tool to the people to post useful information like coupon codes, and detail information about newly launched products and associated items in the industry.

Boston Box

The founder of Boston Consulting Group, Bruce Henderson, had developed an innovative market analysis matrix known as Boston Consulting Group Matrix (BCG Matrix). This analyzing model is an effective tool for helping to understand the current position of the organization within the market environment (Hutton, 2012). From market research it is identified that Facebook Inc is considered to be the market leader within the industry of social networks. So, CG matrix enables identification of extreme high as well as low market shares of Facebook Inc. This is said to have a less rate of market growth of their products. For instance, even since its introduction, the company has hardly made any sort of inauguration within its business (Lauer, 2013). The historical data faces some challenges at its source on account of the recent IPO of the company. as per the external market share, acute resources of the company did not enhance effectively. Although the company holds leading position in the market share of social network, yet it fails to increase its profitability rate as compared to that of its other competitors like My Space, Twitter, Google Plus, etc.

Star – Ever since the initiation of the social network business, Facebook Inc has been continuously improving its business along with attaining of increased market share. For competing with all competitors, the company has even launched an innovative messenger which allows people to send text messages from mobile to mobile (Raghupathi and Fogel, 2013). It also enables sending of images or videos easily and quite faster than any other means of social networking.

Dogs – The virtual position of the company within the industry of social networking is the key instance of Dogs. The company has faced many threats while holding niche within the environment of social networking (Ramsaran-Fowdar, 2013). The dogs of the company are quite profitable as compared to others since it supports people to share their ideas, images, videos without any follower.

Cash Cow – The Company has adopted latest technology like mobile phone application as well as messenger for IOS, android, and others and this is helpful for the company in acquiring increased market share although the rate of market growth is quite low in the utmost competitive market conditions.

Question Marks – The Company is an innovative one within the life cycle of social network business and is quite different to that of the traditional model of social networking. However, adequate investments may support the company immensely in counteracting its declining business conditions.

Strategic Marketing

The initiator as well as developers of the Facebook Inc is well aware of the values attached with the leading position of the company in the market. It also understands well about the flaw of IPO. The rate of growth in the mobile industry is tremendously high. So the company needs to understand well the potential revenue required to bring about sustainable growth in the future (Schnack, 2012). Some of the strategies adopted by the company to maintain steady market position are as follows:


Maintaining consistent actions – The Company needs to exhibit opportunities to create relationship with the potential customers. It is argued that the company provides an effective platform to move customer towards the company rather than any other firm in this industry. Starting out with simple calls to action is considered the best method to create greater fan following within the industrial environment (Waddingham, 2013).

Becoming a Content Machine – The company needs to deliver effective tools to the developers to make the firm a content machine. It ensures the firm that the content of social network for Facebook Inc has always been empowering, informing, and entertaining. The best strategy for the firm would be to mix up media as well as create innovative content to ensure long tern sustainability.

Word of Mouth Policy – It is researched that users tend to trust as well as share information through social media to reach out to their friends. Since it is used as an effective platform, the company must strive to improve its page scrutiny.

Creating Human Touch Page – For achieving increased success, the company needs to create its logo to attract increased people. Effective communication on a continuous basis with that of the users and keeping them updated through proper notification on their personal profile would prove to be an attractive way to seek increased sustainability (Woolley and Peterson, 2012).

Promoting direct conversation – Facebook Inc must create community to encourage the interaction amidst its users. By encouraging the community for fans, it enables the firm to proceed forward towards high market growth as well as future sustainability. Many ways like that of nominating ‘fan of the week’ may provide opportunities to engage fans as well as extending its brand value.


This report successfully highlighted the market strategies implemented by Facebook Inc within the social network environment. The company has been effectively implementing strategies like BCG matrix, Shell’s Directional Policy Matrix, and GE matrix. With usage of such strategies, it becomes easier for analysts to determine the growth of the company and that to predict the future sustainability of the company (Zhang, Johnston and Shao, 2014). However, to maintain the success rate and recognition, Facebook Inc must integrate multiple strategies of marketing within its operations and other business models. The initiator as well as developers of the Facebook Inc is well aware of the values attached with the leading position of the company in the market. It also understands well about the flaw of IPO. The rate of growth in the mobile industry is tremendously high. So the company needs to understand well the potential revenue required to bring about sustainable growth in the future.


Abuin, N. (2014). Advertising strategies of Spanish advertisers in Social Media The Facebook case.aDResearch ESIC, 009, pp.64-75.

Banerjee, N. and Dey, A. (2013). Identifying the Factors Influencing Users’ Adoption of Social Networking Websites—A Study on Facebook. IJMS, 5(6).

Bhardwaj, P., Adhikari, R. and Ahuja, V. (2014). An Analytical Study of the Facebook Content Management Strategies of Dominos India. International Journal of Customer Relationship Marketing and Management, 5(1), pp.64-78.

Ebeid, A. (2012). Does Facebook Matter in Egyptian Graduate Environment? A Marketing Perspective.IJMS, 4(3).

Eid, R. and Hughes, E. (2011). Drivers and Barriers to Online Social Networks’ Usage. International Journal of Online Marketing, 1(1), pp.63-79.


Hutton, D. (2012). Facebook Marketing: Designing Your Next Marketing Campaign. Kybernetes, 41(9).

Lauer, C. (2013). Praxis-Marketing mit Facebook – darauf sollten Sie achten. veterinär spiegel, 22(04), pp.197-199.

Majid, A. (2012). Blended Scaffolding Strategies through Facebook to Aid Learning and Improving the Writing Process and Writing Performance. IOSRJHSS, 1(4), pp.36-40.

Raghupathi, V. and Fogel, J. (2013). Facebook advertisements and purchase of weight-loss products.Journal of Medical Marketing: Device, Diagnostic and Pharmaceutical Marketing, 13(4), pp.201-211.

Ramsaran-Fowdar, R. (2013). The Implications of Facebook Marketing for Organizations.Contemporary Management Research, 9(1), pp.73-84.

Schnack, D. (2012). Marketing über Facebook und Co. Hausarzt, 49(13), pp.58-59.

Waddingham, J. (2013). The future of Facebook fundraising. Int. J. Nonprofit Volunt. Sect. Mark., 18(3), pp.187-191.

Woolley, P. and Peterson, M. (2012). Efficacy of a Health-Related Facebook Social Network Site on Health-Seeking Behaviors. Social Marketing Quarterly, 18(1), pp.29-39.

Zhang, G., Johnston, C. and Shao, C. (2014). A Model for Optimally Promoting Application Diffusion on Facebook. IJMS, 6(4).



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