Porter's Five Forces Of Competition Research Paper

Length: 10 pages Sources: 10 Subject: Education - Computers Type: Research Paper Paper: #36305462 Related Topics: Competition, Last Duchess, Goldman Sachs, Myspace

Excerpt from Research Paper :

For example, these individuals want to make sure that they are likely to get what it is they want by having a Web presence. This means that they are going to do everything possible to have as many contacts as possible from off the Internet in order to get as much revenue as possible that it could lead to a monopoly. In essence, if a monopoly does occur, then they are going to face breaking the law in the process. Furthermore, privacy issues are concern because of how much of a giant they have become since the inception of the organization as of 2004 (Facebook, 2011d). By studying Porter's Five Forces, one learns that Facebook is an MNE that is as big as Google. They are constantly growing in all aspects by means of internally and externally. At least hundreds of individuals are on their staff, and thousands or millions use Facebook daily. Each of these gives them much control by causing rivalry, buyer and supplier power, product development and so forth. Regardless, Facebook relies on these, so that they can meet the needs of the community through the Internet as well as their contacts around the world through expanding to new markets (Mintsberg, Lampel, & Ahlstrand, 2005).

Facebook has much strength that is worth mentioning (Kim & Mauborgne, 2005). The organization is able to meet the needs of others by means of creating games, using fan pages, and making sure that they are able to make a difference in the world by allowing a business or individual to advertise on their website. Since the business is so current, their employees are constantly going through continuing education classes, so that they are able to keep up with their target market that is constantly changing. Each person is striving to make the company continue to reach all parts of the world. They started in the United States, and the organization is present in Europe and Asia. However, Facebook is striving to go to Africa and South America in the years ahead. This could take many months and years to accomplish, but the executives have the skills and education to make this possible (Quick MBA, 2011).

Many other fortes are important. Facebook has founders who are Harvard trained, and those that are in management do have an MBA (Facebook, 2011e). With these great minds, they are able to make sure that their organization becomes widespread for all ages. This company has the education and experience to hire individuals that are qualified to work for them. Not only that, but they are located on the coast, so this was strategic in reaching people who were interested in their products and services. These individuals have their weekly meetings in order to make sure that goals are achieved on a regular basis, such as going to other parts of the globe. They have the funds to do it, and each of them makes a difference in making it happen by negotiating to other business professionals. Because of their hard work, one has to note that each of them are doing whatever is possible to grow as an industry. Their examples have encouraged many other social networking sites to emerge, such as Twitter and MySpace. Facebook has rivals and this continues to cultivate daily as new sites enter the market (Marcus, 2009).

The weaknesses are what are holding back Facebook in reaching their full potential. In regards to the biggest weakness is that of privacy (The New York Times, 2011).

Like other social networks, Facebook allows its users to create a profile page and forge online links with friends and acquaintances. It has distinguished itself from rivals, partly by imposing a Spartan design ethos and limiting how users can change the appearance of their profile pages. That has cut down on visual clutter and threats like spam, which plague rivals. It has decisively outstripped other networks that preceded it, like MySpace

and Friendster, becoming what many analysts see as the "default platform" of a new age of information organized around personal relationships (The New York Times, 2011,

para 10).

The privacy issue has become a hot topic over the years. They are trying to define standards for everyone, especially since we are "in the Internet age" (The New York Times, 2011, para 11). As of May 2010, management had set forth new controls in order for individuals to grasp what one can share online as well as with whom. However, their biggest mistake was...


Because of this, as of October 2010, the company did manage to acknowledge that information was shared that did identify individuals who played games, such as Farmville. This made other companies track the person. Now they are seeking ways to not let it happen again (The New York Times, 2011).
Another area that is a weakness is how Facebook originated. Much controversy is on this issue as well. "Three other Harvard students maintain that they came up with the original idea and that Mr. Zuckerberg, whom they had hired to write code for the site, stole the idea to create Facebook" (The New York Times, 2011, para 12). The company has denied these allegations. Not only that, but a lawsuit is pending with this matter. Furthermore, another student claimed that he coined the idea of it as well, Aaron Greenspan. However, he will not enter into the legal battle, despite the fact that he came up with the architecture of it (The New York Times, 2011).

As of 2010, a movie was made about Facebook and its origins arose, that was created by A.O. Scott (The New York Times, 2011). He called it "a creation story for the digital age and something of a morality tale, one driven by desire, marked by triumph, tainted by betrayal and inspired by the new gospel: the geek shall inherit the earth" (The New York Times, 2011, para 13). The film exaggerated Mr. Zuckerberg, and how he did manage to have much arrogance because of it (The New York Times, 2011).

Facebook has a plethora of opportunities before them to continue to prosper in the years following. They are able to expand to new markets, such as South America and Africa. This means that they are willing to become a part of a monopoly, or to make one because of how wiling their executives are wanting to go to all parts of the world. Thorugh these efforts, their organization is going to reach the billions or trillions because of how popular the website is to their target market (Mintsberg, Lampel, & Ahlstrand, 2005).

Another opportnity is to make sure that they are current with various technologies and product development. Since a plethora of games are already present, many of the executives are having the opportunity to add more (Facebook, 2011a). This can lure in new users to the website and for it to continue to grow. Management learns of new ways in which to implement them, and then a person will find out about them through a friend, which will entice someone to get addicted to the website to keep coming back for more (Facebook, 2011c). These provide endless possiblities by adding various applications for consumers to enjoy (Facebook, 2011b). Not only that, but also a person can stay current on getting a newsletter from the company after advertising from management (Kim & Mauborgne, 2005). They do this sometimes to allow others to market their company or services in an efficient manner, especially if they had a wonderful experience with it (Facebook, 2011e). For example, more business was generated for the individual because of utilizing Facebook to make it all happen. As a result, the person is thankful, and he or she will want to continue this effort in the days ahead. Regardless, both organizations benefit, which keeps them prospering to meet the needs of the community and world (Facebook, 2011d).

The last area is that of threats with Facebook (Mintsberg, Lampel, & Ahlstrand, 2005). Many are prominent as the company continues to grow internally and externally. These include Google, Yahoo, MSN, Ning and so much more. In essence, every major company that is on the website that has their own search engine, and an opportunity for people to buy from them is considered a hazard to Facebook. All of them are MNEs, and are global, which brings about much competition within the industry (Marcus, 2009).

All of these have one thing in common. They are all on the Internet (Kim & Mauborgne, 2005). Each of them makes money through their consumers who place advertisments or join the social networking aspect of it that is offered to them (Facebook, 2011d). Because of this, their business threatens Facebook. However, one needs to discuss the actual sites that do social networking, such as Twitter and MySpace (The New York Times,…

Sources Used in Documents:


Facebook. (2011a). About Facebook. Retrieved June 25, 2011, from Facebook: http://www.facebook.com/press/info.php?factsheet

Facebook. (2011b). Statistics. Retrieved June 25, 2011, from Facebook: http://www.facebook.com/press/info.php?statistics.

Facebook. (2011c). Timeline. Retrieved June 25, 2011, from Facebook: http://www.facebook.com/press/info.php?timeline.

Facebook. (2011d). Executives. Retrieved June 25, 2011, from Facebook: http://www.facebook.com/press/info.php?execbios.
Facebook. (2011e). Founder bios. Retrieved June 25, 2011, from Facebook: http://www.facebook.com/press/info.php?founderbios.
Quick MBA. (2011). Porter's five forces. Retrieved June 25, 2011, from Quick MBA: http://www.quickmba.com/strategy/porter.shtml.
The New York Times. (2011). Facebook. Retrieved June 25, 2011, from The New York Times: http://topics.nytimes.com/top/news/business/companies/facebook_inc/index.html.

Cite this Document:

"Porter's Five Forces Of Competition" (2011, June 27) Retrieved October 4, 2023, from

"Porter's Five Forces Of Competition" 27 June 2011. Web.4 October. 2023. <

"Porter's Five Forces Of Competition", 27 June 2011, Accessed.4 October. 2023,

Related Documents
Porter Five Forces: Banking and Wells Fargo
Words: 617 Length: 2 Pages Topic: Banking Paper #: 43884493

Porter’s Five Forces model of analyzing any industry marketplace first assesses the overall level of competition of the industry actors, the threat of substitutes, the bargaining power of consumers, the bargaining power of suppliers, and the threat of new entrants into the marketplace (Maverick, 2020). Clearly, the banking industry at present is intensely competitive. Even the most casual observer of a typical city, suburban, or even rural area will see

Inputs for Porters 5 Forces Analysis on Kraft Foods
Words: 1569 Length: 4 Pages Topic: Business Paper #: 5177771

Economics Sources of Information for a Porters Five Forces Analysis on Kraft Foods To undertake a Porters Five Forces analysis it is necessary to identify potential sources of information that will give the required information. The Five Forces analysis will require an assessment of the five areas; degree of rivalry among competitors, threat of new entrants, bargaining power of suppliers, bargaining power of customers, and availability of substitutes. This process can be

Airbus and Boeing Porters 5 Forces the
Words: 1005 Length: 3 Pages Topic: Transportation Paper #: 43989112

Airbus and Boeing Porters 5 Forces The airframe manufacturing industry is a highly competitive environment that has come to be dominated by two firms: Boeing and Airbus. Airbus is a European joint venture between EADS and BAE Systems headquartered in Toulouse, France and originally founded in 1970 (Mayer, 2007). Boeing, on the other hand, is an American firm founded in 1916 in Seattle, Washington, and now headquartered in Chicago, Illinois (Mayer,

Emirates Airlines Porters Five Forces Analysis
Words: 2627 Length: 9 Pages Topic: Business Paper #: 92557311

Porter’s Five Forces Analysis Porter’s five forces model is a tool that is utilized to analyze the competitive environment within which an organization or a product operates. There are five particular forces including the threat of entry, the bargaining power of suppliers, the bargaining power of buyers, threat of substitutes and rivalry amongst existing competitors. The threat of new entry delineates how simple it is for a new entity to enter

Porter's 5 Forces Analysis of the Medical Devices Industry in Australia...
Words: 555 Length: 2 Pages Topic: Healthcare Paper #: 54343627

Porters Australia Porters Five Forces Analysis of Medical Devices in Australia Threat of New Competition -- Medium The threat of new competition in the medical devices industry is believed to be at a medium level. This is primarily due to the fact that this industry is heavily regulated and must comply with legislation such as the Therapeutic Goods Act of 1989 (Department of Health and Ageing, 2011). The regulatory environment acts as a

Five Forces Analysis Porter 1980
Words: 1857 Length: 7 Pages Topic: Business Paper #: 57406247

Five forces' analysis (Porter 1980) Five Forces Analysis of Competitive Structure Michael Porters Five Forces Analysis of Competitive Structure is a paradigm for competitive position, which states that overall a company's profitability may be determined as a measure of the industry it is competing in and its strategic position within that industry (Strategy4u, 2004). According to the model some industries by nature will have a higher profit potential than others, primarily because