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 :

In fact, many of them are more likely to make sure that as much space is provided when it comes to taking over the Internet. 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...


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 that of their privacy features became increasingly complicated; consequently, many of the users were not able to fully use them properly on the website. 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,…

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.

Cite this Document:

"Porter's Five Forces Of Competition" (2011, June 27) Retrieved September 16, 2021, from

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