Meta Platforms, Inc., headquartered in Menlo Park, California, is a prominent American multinational technology conglomerate. Previously known as Facebook, Inc., the company now operates under the name Meta. It boasts an impressive portfolio of products and services, including well-known platforms such as Facebook, Instagram, Threads, and WhatsApp. Among publicly traded companies in the United States, Meta holds a place among the top ten, making it one of the most valuable corporations globally.
Here is a brief history of Meta Platforms:
- 2003: Mark Zuckerberg creates Facemash, an online service for Harvard students to judge the attractiveness of their fellow students.
- 2004: Zuckerberg launches Facebook, which is initially exclusive to Harvard students.
- 2005: Facebook expands to other universities and eventually becomes available to anyone with an email address.
- 2006: Facebook introduces the News Feed, which allows users to see updates from their friends in real time.
- 2007: Facebook launches the Platform, which allows developers to create third-party applications for the platform.
- 2008: Facebook goes public on the Nasdaq stock exchange.
- 2012: Facebook acquires Instagram for $1 billion.
- 2014: Facebook acquires WhatsApp for $19 billion.
- 2015: Facebook launches Oculus VR, a virtual reality headset company.
- 2016: Facebook introduces the React Native framework, which allows developers to create mobile apps that can run on both iOS and Android devices.
- 2017: Facebook launches the Messenger Kids app, which is a version of Messenger designed for children under the age of 13.
- 2018: Facebook introduces the Watch Party feature, which allows users to watch videos together in real time.
- 2019: Facebook introduces the Rooms feature, which allows users to have group video chats.
- 2020: Facebook launches the Horizon Workrooms app, which allows users to collaborate in virtual reality.
- 2021: Facebook changes its name to Meta Platforms and announces its focus on the metaverse.
Facebook’s Founding and Growth:
Founded in 2004 by Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz, and Chris Hughes, Facebook quickly grew to become the world’s largest social network. By 2021, it boasted nearly three billion users, with approximately half of them actively using the platform every day. Along the way, Facebook made significant acquisitions, including Instagram in 2012 and Oculus Virtual Reality in 2014. One of its most prominent purchases was WhatsApp, the instant-messaging service, which Facebook acquired in 2015.
Here is a table of META current stats in 2023:
| Metric | Value |
|---|---|
| Market capitalization | $500 billion |
| Daily trading volume | $10 billion |
| Number of active users | 100 million |
| Number of dApps | 10,000 |
| Total value locked (TVL) | $100 billion |
| Gas price | 10 Gwei |
| Block time | 15 seconds |
| Consensus mechanism | Proof-of-stake |
Facebook Controversies:
Over the years, Facebook has faced several controversies that affected its reputation and raised concerns about its impact on society. In 2018, a whistleblower exposed how user data had been shared without consent with Cambridge Analytica, leading to concerns about privacy and election manipulation. Additionally, changes in Facebook’s algorithm in the same year increased hate speech and conspiracy theories by prioritizing content from friends and family over journalistic posts. Another whistleblower in 2018 revealed that Facebook granted certain celebrities “VIP” status, enabling them to post harmful content without consequences. Furthermore, the company was aware of Instagram’s negative impact on teenage mental health, exacerbating issues like body dissatisfaction and eating disorders.
Marketing Mix of Facebook
Facebook’s product strategy revolves around providing a social network that satisfies various social needs, allowing people worldwide to interact electronically without physical meetings. Its impact on communication and information exchange has been tremendous, enabling instant feedback and connecting friends and loved ones seamlessly. Additionally, organizations utilize Facebook to turn strangers into friends and eventually into customers. The platform allows users to host and share information, creating personalized interactions and controlled privacy settings.
Product Strategy of Facebook
Facebook’s product strategy revolves around providing a social network that satisfies various social needs, allowing people worldwide to interact electronically without physical meetings. Its impact on communication and information exchange has been tremendous, enabling instant feedback and connecting friends and loved ones seamlessly. Additionally, organizations utilize Facebook to turn strangers into friends and eventually into customers. The platform allows users to host and share information, creating personalized interactions and controlled privacy settings.
Promotion Strategy of Facebook
As part of its promotion strategy, Facebook has implemented advertising strategies through “Facebook Ads” to enhance user engagement. This system enables businesses to create their own pages, which users can recommend to friends. However, the challenge lies in striking the right balance between commercial messages and user experience. The vast user base of over 2.85 billion monthly users worldwide presents both opportunities and challenges in terms of marketing potential.
Distribution Strategy of Facebook
As a distribution strategy, Facebook serves as a gateway for individuals, organizations, and groups to sell their offerings to the public. It facilitates the posting of goods and services for sale, ensuring that production is not complete until reaching the final consumer. The platform has become an essential component of informational distribution, with professional networking, job searching, and background checks being common uses.
Pricing Strategy of Facebook
Pricing is a critical and sensitive aspect of Facebook’s marketing mix. Striking the right balance is crucial to attract and retain customers. Higher prices may deter consumers, while extremely low prices might convey inferiority. Facebook’s pricing structure varies depending on factors like the number of users and advertisers on the platform. A large user base attracts more organizations and typically results in higher prices for services. Ultimately, an effective combination of the marketing mix on Facebook can yield significant benefits for individuals and organizations in the modern business landscape.
The Metaverse’s Legacy:
As the controversies mounted, Facebook’s reputation suffered, drawing criticism on issues like “big tech” and the lack of government regulation. Despite this, Mark Zuckerberg expressed enthusiasm for the concept of a metaverse, where users could create avatars and participate in virtual events. However, by October 2022, the newly rebranded Meta (formerly Facebook) encountered substantial losses, amounting to $13.7 billion, due to its metaverse development. Additionally, there were quality issues with metaverse applications and low user engagement. In February 2023, Zuckerberg announced a shift in focus away from the metaverse, directing attention towards generative artificial intelligence to build “creative and expressive tools.” The metaverse was now considered relevant for a smaller, targeted audience, such as video game players.
Here are some of Meta’s key products and services:
- Facebook: A social networking website that allows users to connect with friends and family, share photos and videos, and join groups.
- Instagram: A photo and video sharing app that allows users to share their photos and videos with a wider audience.
- WhatsApp: A messaging app that allows users to send text messages, photos, videos, and voice messages.
- Oculus VR: A virtual reality headset that allows users to experience immersive virtual worlds.
SWOT Analysis
Facebook’s Strengths
Strong Brand: Facebook, now known as Meta, has a strong brand reputation, ranked #15 in Interbrand’s list of most valuable brands in 2021. This strong brand recognition ensures stability and long-term sustainability.
Diversified Portfolio: Meta’s diversified portfolio, including WhatsApp, Instagram, Messenger, Oculus, Workplace, Portal, and Calibra, enhances its financial stability and minimizes risks associated with revenue fluctuations in a particular sector.
Global Presence: Meta has a strong presence in different regions, with the United States and Canada being its largest market, accounting for about 44% of total revenue. Europe, Asia-Pacific, and the Rest of the World follow, providing ample room for revenue growth through further monetization efforts in these regions.
Market Dominance: With its family of apps, including Facebook, Instagram, WhatsApp, and Messenger, Meta is the leading social network globally, boasting an impressive Monthly Active People (MAP) value of 2.91 billion as of December 2021.
Loyal Customer Base: Approximately 40% of the world’s population uses Meta’s family products, signifying a strong and ever-growing number of extremely loyal customers.
World’s Best Employer: Meta’s excellent HR policies and visionary leadership of Mark Zuckerberg attract and retain top talent in the industry, creating stability, increased profitability, innovation, and sustainability.
Focus on R&D: As a global leader in R&D spending, Meta invests about 21% of its annual revenue in technological innovation.
Strong Advertising Business: Despite being synonymous with social media, Meta’s major source of revenue is from advertising, generating 98% of its annual revenue.
Effective Marketing Strategy: With over 2 billion daily active users, Meta’s applications serve as a powerful and effective marketing tool.
Facebook Geared to Invest Billions on the Metaverse: Meta plans to invest $10 billion every year for the next 10 years to dominate the world of virtual avatars.
Facebook’s Weaknesses
User’s Privacy Concerns: Facebook’s negligence in user privacy protection has caused a decline in popularity in some regions, risking further loss of popularity if not addressed effectively.
Over-dependence on Advertising: The company’s heavy reliance on advertising revenue (98% of total revenue) makes it vulnerable to fluctuations in the advertising market.
Spreading Fake News: Facebook has faced criticism for its inability to control misleading information, which can be detrimental to society.
Friction in Management: Consecutive scandals have disintegrated the harmony within top-level management, impacting the company’s stability.
Allegations of Racial Bias: Facebook has faced allegations of racial bias, leading to negative publicity and boycotts from several companies.
Negative Publicity: Various incidents, including the New Zealand terror live stream and Cambridge Analytica data scandal, have tainted Facebook’s reputation.
Duplicate & False Accounts: Facebook estimates that around 11% of its Monthly Active Users (MAU) worldwide represent duplicate accounts, and 5% represent false accounts, affecting its user base.
Financial Regulations: Facebook’s Libra digital currency faces challenges as central banks work on their own digital currencies.
Mass Boycott: More than 750 companies have boycotted Facebook due to concerns about hate speech and racism on the platform, impacting its advertising revenue.
Facebook’s Opportunities
Generate Diversified Revenue Sources: Meta can extend its portfolio beyond social media and advertising, exploring additional paid services and business models.
Expansion of Existing Platforms: With billions of users, Meta can expand its existing services to compete with giants in various industries.
Increasing Integration to Other Applications: Meta can open its platform to integrate with various other applications, expanding its reach and user engagement.
Target Different Audience: By introducing new features, Meta can attract other target segments, broadening its user base.
Expansion through New Acquisitions: Meta has the financial resources to acquire established entities or promising startups to diversify its portfolio.
Exploit Changes in Advertising Trends: Improving mobile-based advertising and capitalizing on in-app ads can boost revenue opportunities.
Offer Remote Work Solutions: Expanding features like Messenger Rooms and Facebook Live can enable Meta to compete with remote work service providers.
Deliver Libra: Facebook’s Libra can cater to the increasing demand for a globally interconnected monetary system.
Enhanced Features on WhatsApp: By introducing new features like fun message reactions and emojis, Meta can further enhance user experience.
Develop Autonomous Vehicles: Utilizing its expertise in artificial intelligence, Meta can venture into developing self-driving software for autonomous vehicles.
Facebook’s Threats
Competition: Increased competition from old and new platforms threatens to reduce Facebook’s user base.
Increased Regulations: Unfavorable regulations related to privacy, data safety, and content impact Facebook’s operations and user engagement.
Bans in Several Countries: Facebook is banned in several countries, limiting its global reach.
Data Breach: Instances of data breaches have exposed user information, affecting user trust.
New Digital Tax: The introduction of a new digital tax threatens to impact Facebook’s profits.
Tainted Reputation: Various scandals and controversies have tarnished Facebook’s image, posing a threat to its popularity.
Duplicate & False Accounts: Facebook’s user base is impacted by a significant percentage of duplicate and false accounts.
Financial Regulations: Facebook’s Libra faces challenges from central banks’ efforts to launch their own digital currencies.
Mass Boycott: Advertisers’ boycott due to concerns about hate speech and racism impacts Facebook’s advertising revenue.
