Key External Factors for US and Canada Weight

Rating
Opportunities

1. Twitter’s growth is expected to decline to 9% in 2015, 8% in

2016 and 7% in 2017
2. Sosial network’s consolidated advertising revenue around to 4.9
billion U.S. dollars
3. The sosial network’s advertising revenue 2016 was 26.89 billion
U.S. dollars
Total Weight
Rating
Threats

4. Facebook started selling mobile advertising space in 2012 and

not even the keenest optimists could have predicted how lucrative
this decision would turn out to be
5.
Total

Key External Factors for Europe Weight

Rating
Opportunities

1. Facebook quarterly revenue of the third quarter of 2017 is 2.43

billion U.S. dollars
2.
Total
Weight
Rating
Threats

1.
2.
Total

Key External Factors for Asia Pacific Weight

Rating
Opportunities

1. Facebook’s have 309 million daily active users

2. Market size represents 15% of companys’s advertising revenue
3. The social network generates the majority of its revenues via
social media marketing and advertising in 2016
Total
Weight
Rating
Threats

1
2
Total

Key External Factors for Worldwide Weight

Rating
Opportunities

1. LinkedIn's has 332 million registered users, but only a third of

that frequently visits the site.
2. In 2013, India, Brazil, and Mexico represented key sources for
growth for Facebook. It is likely that growth in these countries will
continue over the next few years.
3. Two thirds of the world’s population does not have access to the
Internet
Total
Weight
Rating
Threats

1. Employers are increasingly searching social media sites to learn

about potential employees
2. Facebook has been or is currently restricted whole or in part in China,
Iran and North Korea. Governments in other countries can also seek to
restrict access to Facebook if they consider Facebook to be violation to
their laws Facebook while at work
Total

IFE Matrix by Division

Key External Factors for US and Canada Weight
Rating
Opportunities

1. Twitter’s growth is expected to decline to 9% in 2015, 8% in

2016 and 7% in 2017
2. Sosial network’s consolidated advertising revenue around to 4.9
billion U.S. dollars
3. The sosial network’s advertising revenue 2016 was 26.89 billion
U.S. dollars
Total Weight
Rating
Threats

1. Facebook started selling mobile advertising space in 2012 and

not even the keenest optimists could have predicted how lucrative
this decision would turn out to be
 2.
Total

Key External Factors for Europe Weight

Rating
Strengths

1. Facebook quarterly revenue of the third quarter of 2017 is 2.43

billion U.S. dollars
2.
Total
Weight
Rating
Weaknesses

1.
2.
Total

Key External Factors for Asia Pacific Weight

Rating
Strengths

1. Facebook’s have 309 million daily active users

2. Market size represents 15% of companys’s advertising revenue
3. The social network generates the majority of its revenues via
social media marketing and advertising in 2016
Total
Weight
Rating
Weaknesses

1
2
Total

Key External Factors for Others Weight

Rating
Strengths

1. LinkedIn's has 332 million registered users, but only a third of

that frequently visits the site.
2. In 2013, India, Brazil, and Mexico represented key sources for
growth for Facebook. It is likely that growth in these countries will
continue over the next few years.
3. Two thirds of the world’s population does not have access to the
Internet
Total
 Weight
Rating
Weaknesses

1. Employers are increasingly searching social media sites to learn

about potential employees
2. Facebook has been or is currently restricted whole or in part in China,
Iran and North Korea. Governments in other countries can also seek to
restrict access to Facebook if they consider Facebook to be violation to
their laws Facebook while at work
Total
Weighte
Score
d

3. Both Twitter and LinkedIn reported negative net income in 2014.

4. Two thirds of the world’s population does not have access to the Internet.
5. Worldwide revenue generated from "in app" purchases was $4.6 billion in 2013 and is fore
Weighte
Score
d to increase to $36.9 billion in 2017.

6. The global mobile advertising market is expected to grow from $11 billion in 2013 to $25 b
in 2016.
7. In 2013, India, Brazil, and Mexico represented key sources for growth for Facebook's MAU
likely that growth in these countries will continue over the next few years.
8. Number of mobile internet connections is forecasted to grow from 234.2 million connectio
Weighte
Score
d 2014 to 313 million connections in 2019.

9. Global market for video games is projected to grow from $67 billion in 2012 to $82 billion
2017, with mobile and smartphones accounting for much of the growth in the portable game
category.
10. Millions of children become first-time Facebook customers annually.
Weighte
Score
d Threats
1. LinkedIn is the leading business-oriented social network.
2. Many workers lose significant productivity at work by spending too much time on Faceboo
resulting in many companies banning using Facebook while at work.
3. Facebook has received a lot of bad publicity over the years from the media and from its us
regards to privacy issues associated with user profiles.
Weighte
Score
d 4. Social media users increasingly feel commercialized when pop-up ads cover their compute
screens while surfing social media platforms.
5. Employers are increasingly searching social media sites to learn about potential employee

6. Facebook has been or is currently restricted whole or in part in China, Iran, and North Kore
Governments in other countries can also seek to restrict access to Facebook if they consider
Facebook to be in violation of their laws.
Weighte
Score
d 7. YouTube is projected to bring in $1.13 billion in 2014 video advertising revenue, which ma
a total of 18.9% of the overall digital video advertising market.
8. A Gallup survey conducted in 2014 of 18,000 people found that roughly 62% of the people
 surveyed said that social media has no influence at all on their buying decisions.
9. Facebook faces regional threats from foreign social networking sites such as Weibo and Re
China.
Weighte
Score
d 10. Facebook is a prominent target for cyber attacks which may harm Facebook's reputation

ability to maintain existing customers.

Strengths
Weighte
Score
d 1. Facebook is the largest social media network in the world, with over 1.3 billion current acti

2. Facebook ended 2014 with record numbers: a total of 890 million users, 745 million daily a

mobile users, and $3,851 million in revenue.

3. Facebook’s revenues from advertising totaled $3.6 billion, and $257 million in collected pa
other fees. Facebook advertisements can be highly targeted based on user demographics, su
location, age, gender, language, behaviors, and connections within or outside the advertiser’
connection reach.
4. Facebook spent 29% of its revenue dollars on R&D in 2014.
5. Revenues were up 57% in 2014.
6. Entrepreneurs and small business owners now must pay Facebook for their product servic
they want to receive higher volumes of distribution of their materials.
7. Facebook’s new “professional” service enables users to keep their personal postings, pictu
identity separate from the professional and work content.
Weighte
Score
d Threats Weight Rating Weighted Score

1. LinkedIn is the leading business-oriented social network. 0.04 3 0.12

2. Many workers lose significant productivity at work by spending

too much time on Facebook resulting in many companies

banning using Facebook while at work.
Weighte
Score
d 0.03 2 0.06

3. Facebook has received a lot of bad publicity over the years from
 the media and from its users in regards to privacy issues
associated with user profiles.
0.05 3 0.15
4. Social media users increasingly feel commercialized when pop-up
Weighte
Score
d ads cover their computer screens while surfing social media

platforms.
0.03 3 0.09
5. Employers are increasing searching social media sites to learn
about potential employees.
Weighte
Score
d 0.07 1 0.07
6. Facebook has been or is currently restricted whole or in part in
China, Iran, and North Korea. Governments in other countries
can also seek to restrict access to Facebook if they consider
Facebook to be in violation of their laws.
0.04 2 0.08
Weighte
Score
d 7. YouTube is projected to bring in $1.13 billion in 2014 video
advertising revenue, which makes up a total of 18.9% of the
overall digital video advertising market.

0.03 2 0.06
8. A Gallup survey conducted in 2014 of 18,000 people found that
roughly 62% of the people surveyed said that social media has
Weighte
Score
d no influence at all on their buying decisions.
0.04 2 0.08
9. Facebook faces regional threats from foreign social networking
sites such as Weibo and Renren in China.
0.04 3 0.12
10. Facebook is a prominent target for cyber attacks which may harm
Weighte
Score
d Facebook's reputation and ability to maintain existing customers.

0.06 3 0.18

TOTALS 1.00 2.89

Copyright
©
2017
Weighte
Score
d Pearson

Education,

Inc.
5
8. Facebook has a significant advantage versus its competition, given its reported 1.35 billion
are active monthly and 864 million who use Facebook daily. The firm recently started Interne
special service project to provide internet to the two thirds of the world’s population who cu
not have access to the Internet.
9. Instagram's user growth is expected to climb to 21% in 2015, 15% in 2016, and 10% in 201
10. Facebook, Inc. has an extensive network of users which enables it to collect a large amou
about its users’ demographics, their social connections, their interests, and their activities on
internet.
Weaknesses
1. Facebook does not have a formal vision or mission statement posted on their website.
2. Facebook has a hybrid complex structure.
3. Only 7% of revenues are derived from sources other than advertising.
4. Firm’s goodwill increased from $800 million in 2013 to $18 billion in 2014 after the acquisi
WhatsApp.
5. User information is used for advertisement targeting and because of this, user privacy has
maintain. User information on Facebook is also not guaranteed to be kept private when a use
a third party website or app through any social login using their Facebook ID.
6. Facebook has been involved in constant litigation over the years, ranging from privacy suit
over their IP.
7. Mark Zuckerberg is both CEO and Chairman of the Board.
8. Facebook has a weak Click Through Rate (CTR), which hurts revenue. In order to gain more
Facebook must change the way it displays ads.
9. Half of Facebook’s revenue is derived from the US and Canada, and 75% comes from the U
and Europe.
10. Facebook lacks pertinent features (i.e. Group Chats, Video Chats, Dislike Button).
o the Internet.
$4.6 billion in 2013 and is forecasted

om $11 billion in 2013 to $25 billion

or growth for Facebook's MAUs. It is

t few years.
w from 234.2 million connections in

7 billion in 2012 to $82 billion by

e growth in the portable games

ing too much time on Facebook

rom the media and from its users in

op-up ads cover their computer

arn about potential employees.

t in China, Iran, and North Korea.

s to Facebook if they consider

dvertising revenue, which makes up

hat roughly 62% of the people

 buying decisions.
ing sites such as Weibo and Renren in

y harm Facebook's reputation and

with over 1.3 billion current active users.

million users, 745 million daily active

nd $257 million in collected payments and

ased on user demographics, such as
thin or outside the advertiser’s current

ebook for their product service exposure if

p their personal postings, pictures, and

 given its reported 1.35 billion users who
e firm recently started Internet.org as a
the world’s population who currently do

, 15% in 2016, and 10% in 2017.

ables it to collect a large amount of data
nterests, and their activities on the

nt posted on their website.

billion in 2014 after the acquisition of

cause of this, user privacy has been hard to

d to be kept private when a user accesses
r Facebook ID.
ears, ranging from privacy suits to suits

revenue. In order to gain more revenue,

da, and 75% comes from the US, Canada,

Chats, Dislike Button).