Principle of Marketing
Facebook Making the world more
open and connected
Prepared For Dr. Tamer Awad
Prepared by:
Islam Sami Abdel Fattah.
| Marketing Management | Nov, 6,2022
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Table of Contents
Prepared For Dr. Tamer Awad .............................................................................................. 1
I. Executive Summary ...................................................................................................... 3
II. Introduction ................................................................................................................... 3
III. How They had successes ............................................................................................... 4
III. A Strategic planning.......................................................................................................... 4
III. B Developing strategics for Growth ................................................................................ 4
III. C Marketing Return on Investment (ROI) ..................................................................... 5
IV. Discussion Questions..................................................................................................... 5
V. Learning Objective ....................................................................................................... 6
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I. Executive Summary
Facebook is the most clearly example of how organization be focused on their strategic
mission, by implementing this mission will giving the firm a tremendous flexibility to define
and server their customers need and wants.
By defining customers’ needs and wants, Facebook had created a firm value to be use it as
competitive advantage at the social media market.
Facebook mission statement is “to give people the power to share and making the world more
open and connected”.
II. Introduction
Facebook, American online social network service that is part of the company Meta Platforms.
Facebook was founded in 2004 by Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz,
and Chris Hughes, all of whom were students at Harvard University. Facebook became the
largest social network in the world, with nearly three billion users as of 2021, and about half
that number were using Facebook every day. The company’s headquarters are in Menlo
Park, California.
Access to Facebook is free of charge, and the company earns most of its money from
advertisements on the website. New users can create profiles, upload photos, join a
preexisting group, and start new groups. The site has many components, including Timeline,
a space on each user’s profile page where users can post their content and friends can post
messages; Status, which enables users to alert friends to their current location or situation;
and News Feed, which informs users of changes to their friends’ profiles and status. Users can
chat with each other and send each other private messages. Users can signal their approval
of content on Facebook with the Like button, a feature that also appears on many other
websites. Other services that are part of Meta Platforms are Instagram, a photo- and video-
sharing social network; Messenger, an instant-messaging application; and WhatsApp, a text-
message and VoIP service.
The attractiveness of Facebook stems in part from cofounder Zuckerberg’s insistence from the
very beginning that members be transparent about who they are; users are forbidden from
adopting false identities. The company’s management argued that transparency is necessary
for forming personal relationships, sharing ideas and information, and building up society as
a whole. It also noted that the bottom-up, peer-to-peer connectivity among Facebook users
makes it easier for businesses to connect their products with consumers.
The social network TheFacebook.com launched in February 2004. Harvard students who
signed up for the service could post photographs of themselves and personal information
about their lives, such as their class schedules and clubs they belonged to. Its popularity
increased, and soon students from other prestigious schools, such
as Yale and Stanford universities, were allowed to join. By June 2004 more than 250,000
students from 34 schools had signed up, and that same year major corporations such as
the credit card company MasterCard started paying for exposure on the site.
Nowadays, Facebook is the most successful social media websites, its go beyond the typical
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meaning of social website to become social website that sharing a human being them social
lives and be able to track their daily activities to deliver the value they needed.
III. How They had successes
The success of big firms isn't a luck fledgling while it's based on systematic steps leading to
such success like strategic planning, mission statement and designing the business portfolio.
III. A Strategic planning
Facebook had build-up a unique strategic planning which it’s the process of developing and
maintaining a strategic fit between the firm goals and capabilities and its changing marketing
opportunities.
While Facebook was gone through each step of strategic planning like: -
- Defining the company mission:
which it “to give people the power to share and making the world more open and
connected”.
- Setting company objective and goals:
is to “create a set of products that help the users to share any kind of content they are
wants with any audience they went”; Sequentially, Facebook had planned to Acquisition
of existing companies at the market to be the market leader of the market and the sole
social media service provider by building a mega business portfolio.
- Designing the business portfolio:
Facebook had investing one billion of dollars to acquire Instagram to add more than 27
million younger users to database.
Another acquisition was done by $19 billion by adding WhatsApp as one of Facebook
Apps, this acquisition adds more than 200 million of users to the database.
III. B Developing strategics for Growth
Facebook have developed a strategy for growth is consider as mix between three kinds of
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developing strategies as the following: -
- Market penetration strategy by enhance user experience of Facebook App by adding a
new feature like Facebook Surrounding360.
- Product Development by acquisitioning Instagram App and WhatsApp “New products at
the existence market.
- Diversification Strategy which includes adding a newly products like satellites and drones
to serve the remote areas likes villages and rural.
III. C Marketing Return on Investment (ROI)
Facebook revenues vest majority becomes via tried-and-true online advertising with total revenue
reach to 18 $ billions with a 20 percent margin.
Those market returns are used to improve customer value and engagement by enhance and adding
new App using acquisition techniques like (Instagram and WhatsApp) to increase customer attraction
(newly user 227 million had added to database); therefore, those newly users will increase the
marketing return on investment as usually.
IV. Discussion Questions
1-Is Facebook’s mission statement market oriented? Explain.
Facebook mission statement: “to give the power to share and make the world more open and
connected”. Based on this mission statement by Facebook, this is not the market oriented.
Facebook wouldn’t simply focusing on only one particular market. Rather, Facebook would
like to be as big as possible and reach as many people as they can.
2- How is Facebook’s strategy driven by its mission?
Based on the Facebook mission, Facebook strategy has driven by its mission through ensure
they are connected to as much people as possible and also making the internet as a basic need
for everyone where they able to access the full information. they are also focusing on satellites
and drones to provide internet all over the world. For example, Facebook surrounding 360
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degrees stereoscopic 3D video camera are also part of this strategy. These tools are all focused
on people sharing as many things as well as possible.
3- Is it wise for Facebook to give away its technologies for free? Why or why not?
Facebook has been constructed around a single-minded purpose of connecting everyone on
the planet and giving them tools they wishes “to share1 anything and everything in the natural
ways”. Hence, when fb mission would have been being profitable, making a gift of technology
at no cost seems to be a bad plan. But when fb is ready building user based and treating its
core social media products as work in approach, freely making a gift of technology might have
some benefits. With this technology, it become easier for people to share everything they
want. More people see it, and then they will be more advertisement. The benefits they get
for extra viewers, will increase revenue.
4- As it moves forward in fulfilling its mission, what challenges does Facebook face in the
future?
The challenge that facing Facebook as the following: -
- First challenge that facing Facebook to be focused on their mission which it shares
anything and everything in natural way.
- Secondly, the internet accessibility at rural and villages which them seems out-off internet
coverage at those areas using the traditional ways used telecom companies.
So, Facebook build-up the connectivity lab whom are focusing in innovation a way to makes
the internet accessibility are easier, cheaper and faster that the traditional ways to meet the
mission which it to share anything and connect everyone anywhere.
V. Learning Objective
Every firm has its own mission which it should be clearly describe the organization's reason
for existence. It describes the organization's purpose and its overall intention.
The firms who are focusing on their missions and avoid to be distracted away their primary
mission, they can survive at the market for longevity.
