FACEBOOK CASE STUDY

Facebook Case Study

Introduction1

Task A: Analyzing the Strategic Capability of Facebook2

7s Model2

Benchmarking Strategy2

Contemporary Studies4

Complexity theory4

Chaos Theory5

Economies of Return6

Task B: Strategic success of Facebook7

Ansoff Matrix7

Blue Ocean Strategy8

Porters cost leadership and differentiation8

BCG Matrix10

School of Thought13

Conclusion14

Facebook Case Study

Introduction

The paper would be based on discussing the Harvard Business Review Case Study related to Facebook. The paper would be based on critically analyzing the strategic capability of Facebook by using relevant analytical frameworks. Furthermore, it would also provide the extent to which prescriptive models of strategy be used to explain the strategic success of Facebook. Facebook is considered as a social networking website which was launched in 2004 and was owned by Facebook Inc. The users of Facebook increased with time and last year it was noted that Facebook had 1 billion active users and among them half of them used Facebook through mobile device.

Facebook was founded by Mark Zuckerberg with the help of his colleagues in Harvard University known as Chris Hughes, Andrew McCollum, Dustin Moskovitz and Eduardo Saverin. At first, the membership of the Facebook was limited to Harvard University founders and later it was expanded to other colleges in Boston Area such as Stanford University and Ivy League. Facebook allows users who declare them to be at least 13 years to be registered users for the website. David, (2003) stated that Facebook is considered as a social utility that connects people, to keep up with friends, upload photos, share links and videos (David, 2003, p. 1016 ). In 2005, Jim Breyer invested $1 million of money in Facebook and Accel partners invested $12.7 million. In 2011, 7.5 million children started using Facebook who were aged under aged which violated the sites terms and conditions (Baruh, 2010).

Task A: Analyzing the Strategic Capability of Facebook

7s Model

The 7s model has been developed by McKinsey which include the following factors

Strategy: This is considered as consistent system of selected actions which are to be conducted

Structure: It includes the division of tasks and determines how reporting takes place within the organization

Systems: It is the process and flow which demonstrate how things are done by the staff

Style: It includes the management behavior

Staff: employees in the organization and their capabilities

Shared values: These include values which are shared by everyone in the organization

Skills: These are capabilities possessed by the employee which makes them competent.

The concept underlying the model is that all seven of these variables must be in shape with each other the successful implementation of strategy. The values are considered as the essential core of the framework because they are the subjects around which Facebook implements it strategy (Thompson, Strickland, 2003, p. 3).

Benchmarking Strategy

It is considered as a concept which helps in comparing the firm with the more capable firm in the industry. Therefore, benchmarking is a systematic activity which is aimed at identifying control points of a business regardless of their size, scope and geographical location. It is considered as an effective strategic planning tool to help guide the company to track trends in the market in order ...