Situation

To date, Facebook is by far the main social newtork worldwide, with more than a billion monthly active users.

 

SWOT analysis:

 

This SWOT analysis consist in a structured strategic planning which aims to evaluate Strengths, Weaknesses, Opportunities and Threats that the environment of the market (in our case, it's online social network) contains. Strengths show company's characteristics which make it better over others. Weaknesses refer to disadvantages over others. Opportunities are the chances to make greater profits using external sources from within the environment. And Threats contain external elements (in the environment) that could cause troubles for the company.

Let's see theses characteristics in the case of Facebook:

 

Favorable

Unfavorable

 

 

 

 

internal

Strengths

 

  • Currently the market leader in social networking (monopoly)

  • A platform for millions of applications

  • More than a billion active monthly users

  • Free communication with chat, mail and recently video chat

  • Easy to use

  • Translated into 70 languages

  • Diverse sources of revenue

  • Quick adaptability regarding technology (for example: mobile access to Facebook)

  • Help to organize people (with events, groups,...)

  • Powerful Targeting

Weaknesses

 

  • Bad publicity from media (attitude towards users’ privacy)

  • Irrelevant applications and major reason of wasting time

  • Users cannot operate on website during bugs and problems

  • Lack of ability to customize pages

  • Proper feedback is not giver, instead FAQ's are used

  • Strongly depend on mode effect

  • One big source of revenue : advertisements on Facebook

  • Complex configuration concerning confidentiality

 

 

 

 

 

external

Opportunities

 

  • Increasing number of users through mobile devices

  • Diversify sources of revenues (example: mobile advertising, application,..)

  • Expansion to China

  • Open Facebook marketplace (buy/sell)

  • Seduce concurrent's users

  • Possibility to develop new services (innovation)

  • Become an alternative to Google with online advertisements

  • Become a default address book

Threats

 

  • New entrants into the industry

  • Competitors like twitter, Google,..

  • Bad effect of increasing mobile device (Facebook’s mobile platform doesn’t show ads)

  • Users using ad-block extensions

  • Privacy issue (million of photos are leaked, identity thefts,...)

  • excessive free tagging (counter to the right of the image)

  • Costs might grow faster than revenue

  • Google and Apple could delete facebook apps on mobile

 

 

World position

 

 

At the end of the year 2012, only five different social networks are leaders in at least one country while there was seventeen in 2009. In countries such as Brazil (Orkut), Japan (Mixi) or Vietnam (Zing), the principal social network was the national one in 2009. In 2012, Facebook has gained the upper hand on these local networks. The twelve networks that have disappeared from the world map of social networks (between 2009 and 2012) were replaced by Facebook.
Nowadays, Facebook is the leader in 127 countries out of 137. 
In Russia, V Kontakte is the leader with over 190 million active users per month. V Kontakte is the national Russian social network. Although it is the leader in Russia, this network is not used in the rest of the world, or practically not. Only, Byelorussia, Kazakhstan and Ukraine have also V Kontakte users.
In China, the most popular social network is QZone (556 million). It is important to remember that China filters the access to foreign social networks.
In Iran, the leader is Cloob. In this country, the implantation of Facebook is difficult because of censorship.

 

Social Platform active usage

 

According to Global Web Index report, Facebook, Google+ and Twitter are the most used social platforms. This analysis was realized in January 2013. Another interesting bit from the report shows that Google+ has surpassed Twitter in terms of share and has also had the strongest growth across the 31 globally monitored markets at 40% (in comparison Facebook only grew by 33%).
Predictably, Facebook is leading comfortably with 51% of the global users using the network. Google+ was accessed by 25% of the surveyed users. Twitter along with YouTube share the third spot with 21% share each.


Interestingly, the five social networks that ranked from fifth to ninth are only available in China (Qzone, Sina Weibo, Tencent, Youku and Tudou). However, the study shows that local social networks such as these are rapidly losing market share and some have lost as much as half their members this past year. The business-oriented Linkedin completes the top 10.
A study realized by IAB (interactive Advertising Bureau) and InSites Consulting reveals that 69% of the Belgian population is a social networks user. A Belgian user has an account on three social networks in average but is really active on only 1.4.
Nowadays, social network sites are whole part of our life. In Belgium, at a penetration rate viewpoint, Facebook is the leader (62%) amongst the different social networks. The same trend is observed in Europe (65%). The professional social network LinkedIn is second with a penetration rate of 19%. Google+ is the third (18%).

 

 

Leading Social Networks in Belgium and Europe

Social Network Market share (Belgium) Market share (Europe)
Facebook 62% 65%
LinkedIn 19% 14%
Google+ 18% 21%
Twitter 12% 19%
Netlog 8% 7%

 

 

Penetration Rate

 

 

At the end of the year 2012, only five different social networks are leaders in at least one
country while there was seventeen in 2009. In country such as Brazil (Orkut), Japan (Mixi) or Vietnam
(Zing), the principal social network was the national social network in 2009. In 2012, Facebook have
token an advantage on these local networks. The twelve networks that have disappeared from the
world map of social networks (between 2009 and 2012) were replaced by Facebook.
Nowadays, Facebook is the leader in 127 countries out of 137. Facebook has over 1 billion
active user per month.
In Russia, V Kontakte is the leader with over 190 million active users per month. V Kontakte is
the national Russian social network. Although it is the leader in Russia, this network is not used in the
rest of the world, or practically not. Only, Byelorussia, Kazakhstan and Ukraine have also V Kontakte
users.
In China, the most popular social network is QZone (556 million). It is important to remember
that China blocks the access to foreign social networks.
In Iran, the leader is Cloob. In this country, the implantation of Facebook is difficult because
of the censor.