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STRATEGYPLAYBOOK FOR EXCEPTIONAL RESULTS
Aplaybook can be described as a collection or combination of tacticsand mechanisms. In business perspective, it entails development of adocument that distinguishes responsibilities of all members, targetsetting as well as performance measurements. Additionally, itoutlines the framework that develops opportunities. Generally, a goodplaybook integrates the following aspects
Company offers as well as value proposition
Toeffectively illustrate the above, I will look at Facebook Company.The company has developed one of the hugest and highly engagedaudience on the globe. A considerable ratio of the worldwide populacelog in on a daily basis. As portrayed by research, roughly 1.19billion users are active on Facebook on a monthly basis. Furthermore,each and every day, a considerable amount of people continue to join.Current research also shows that the number of users spending theirtime on Facebook has grown substantially over the years. Inaccordance to the company’s earnings reports, there was a 25percent increase in active individuals using the platform daily to astaggering 728 million in the year 2013.
Therise of Facebook is a massive boost for advertisers owing to thebroad audience. It represents an avenue to develop brands as well asacquire revenue. Consumers spend most of their times on Facebook andsince brands need to reach customers where most of their time isspent, it represents the best platform. Facebook has alsoincorporated other tools as portrayed by the Marin software to enableone reach a targeted segment thereby maintaining association withloyal consumers.
Thispaper will look to give a strategic playbook of Facebook Company withadequate constituents to illustrate the same. By providing a clearanalysis as well as providing answers to several questions, a solidbusiness strategy will be developed.
Toestablish a clear strategy it is paramount to check on theadvertising trends in Facebook over the years. This is becauseadvertisements are the major beneficiaries of Facebook, owing to thebroad avenue it provides. The key advertising trends include
Active users of Facebook have encompassed Cell phones as the medium. By the year 2013, about 74 percent of Facebook users utilized mobile devices to access the platform. This was a significant rise and with the ever increasing advertising avenues, it is bound to grow even more. Mobile advertising has diversified the means by which advertisers control their adverts or rather brands.
Marketers/Advertisers have accepted that Facebook and the news feeds are a vehicle for advertising. News feeds are a core area for advertisers, since it engages users immensely. In the 3rd quarter of 2013, news feed advertisements rose by roughly 140% and were even higher than side adverts.
It is more likely that Facebook users will acquire goods from brands they are acclimatized with. Custom audiences is one of the vital advertising capability introduced by Facebook. The capability allows advertisers to retarget its customers. The costs per conversion rates of retargeting customers are considerably better than targeting precise interests or broad categories.
Facebook utilizers tend to get involved with fresh/new creative. Facebook has tried to limit overexposure to certain adverts. The competitive nature of adverts allows Facebook to maintain certain levels of strictness. This means advertisers have to come up with creative strategies that are somehow unique. As portrayed by research, users tend to be more interested in fresh creative rather than common adverts [ CITATION Mar14 l 1033 ].
Evaluationof vision, mission an values
Thecore mission is to ensure Facebook remains at the helm both atbusiness and social perspectives. The company values privacy with avision to serve a wide range of personalities. When it came around,Facebook was only viewed as a social networking site i.e. bringingpeople together with the sole aim of socializing. However, as itprogressed, marketers began realizing the vitality it brought abouti.e. advertising was made easier and the target was much broad. Withthe continuing growth of the company, some aspects of advertising arequite important to understand when marketing. The trends have beenchanging with time in a positive manner. By analyzing the trendsmentioned above, the vision of the company will be easily understood[ CITATION Exp10 l 1033 ].
Internalstrategy analyzing tools
Internalanalysis mainly focuses on internal aspects that make a company tohave particular advantages or disadvantages over others. All theseaspects are mainly customer oriented since they are the majorbeneficiaries of the same. The aspects help determine theprofitability, quality, employee capabilities among others of acompany. They also describe the goals and capabilities of thecompany. By utilizing the SWOT tool i.e. Strength, Weakness,Opportunities and Threats, a clear analysis will be derived. TheFacebook Company has several strengths that make it a worldwidesuccess [ CITATION Eri15 l 1033 ].
Facebookboasts of numerous strengths. For instance, it incorporates ad toolsthat are visible to the users hence enabling marketing. With theincorporation of messaging, news feeds, groups, pages among others,the company is able to integrate so many functionalities making iteasier for users. For instance, previous communications was mainlythrough mails. As current studies would suggest, communicationthrough Facebook are much faster as compared to mails mainly due tothe fact that a user is more likely to log into Facebook more oftenthan mails.
Anothermajor strength is the ability of Facebook to integrate both socialand formal functionalities. As opposed to mails that are mainly usedfor official purposes, Facebook can be used for both formal andsocial functions. It is also much preferred to WhatsApp that ismainly a social site.
Facebookis also able to change with time, continuously improving and addingbetter services. The flexibility of the company is a major boost thatdistances it from other competitors. Therefore, the growth of thecompany is mainly due to it being flexible. Additionally, itcontinuously blends with older functionalities to create a stableplatform [ CITATION Eri15 l 1033 ].
Oneof the major weakness of the company is security. Security is a hugechallenge owing to the vast number of users and the growing hackingtrends. Hackers have the tendency of impersonating innocent users andsometimes lead to losses of some kind. For instance, one may hack anaccount and take control and start sharing inappropriate informationto the general public.
Illiterateusers also find it hard to handle an account. Some countries viewFacebook as an avenue for the young adults. This perception leads tomarketing strategies that target youths rather than the generalpublic. Users who are not well acclimatized to Facebook also have aproblem in the tagging capability. Some end up being tagged ininappropriate photos such as pornography without their knowledge. Ingeneral therefore, the major weakness has to with security [ CITATION Eri15 l 1033 ].
Theglobe is moving towards a technological era. With the growingtechnological advancements, it is appropriate that Facebook alsotakes advantage of the same. Information spreads faster in faster inFacebook more than any other site. Marketers as well as otheradvertisers should therefore take advantage of the same in allaspects. The company should therefore provide adequate platform witha dense provision of functionalities to attract all kinds of usersi.e. marketers, advertisers and consumers.
Thenumber of social sites is quite broad with each being advantageous inone or more aspect. Facebook has been facing competition from sitessuch as twitter that commands quite a huge following. Twitter boastsof a strong following especially in the socializing aspect. Theability to follow any person, entity, organization, club etc. andreceive up to date information gives twitter a huge following. Forinstance, one can follow a specific event such as a football matchand get up to date information on the same in a common conversingmedium. This one aspect that makes twitter a huge competitor ofFacebook.
Inline with the above analysis, in the strategy playbook, the emergingtrends will be a major consideration. Facebook relies on its majorstrength which is the ability to integrate several functionalities.The flexibility aspect also ensures the company will continue to growand traverse many areas in the global market. Adverts being a keycomponent, the emerging mobile devices will continue to be utilizedon the same [ CITATION Eri15 l 1033 ].
TheP.E.S.T theory is based on the fact that a company’s success aswell as its strategy depends on external factors i.e. political,economic, social, and technological.
Underthis category, it is vital to look at the trends impacting on FB i.e.PRISM, EU’s data protection ordinance, FB blockade in China anddevelopment of FWD.US.
Theidea that NSA’s surveillance covers all activities conducted onlineincluding Facebook is bound to pose some challenge on the generalpublic. Users may start limiting whatever is posted online thusdecreasing the number of active users. In 2013, Facebook was thefirst company to offer the government information requests. TheUnited States government requested a substantial amount of user dataas well as accounts. Though PRISM encountered a broad outrage fromthe general public, the impact was not that substantive and Facebookwas able to survive the scare.
Thereis a general view that the United States and China is in a cyber-war.The Beijing leaders only allow usage of Chinese services so that theycan be monitored and influenced. American online providers are mostlydenied direct access into the Chinese markets. This is evident sinceGoogle and Facebook are accessed in China via Hong Kong sites.Research has shown that China has the most active social mediaglobally i.e. networking sites, blogs among others [ CITATION Jep13 l 1033 ].
ForFacebook to excel in China, there is a general view that it needs toallow the Chinese government to monitor them and make itdistinctively Chinese. However, it would still face tremendouscompetition from the Chinese social networks that are more effectivein China. It may be hard just like it is in Russia, where VK has beendeveloped to withstand Facebook [ CITATION Jep13 l 1033 ].
Data protection directives
TheEuropean Commission drafted a directive to regulate data protectionand would surpass data protection directive. The aim of EU is torestrain the amount of time holders of database could store data,rights to alter and delete database as well as put up regulationsthat enforce privacy setting. This has however met considerableresistance from online providers such as google. Facebookcontinuously relies on google to counter and maintain the firms’capabilities. Any attempts to implement the same may take severalyears [ CITATION Jep13 l 1033 ].
FWD.usis an organization that aims to uphold education reforms andcomprehensive immigration. Education reforms entail producing morestudents in the math, technology and science fields. Comprehensiveimmigration on the other hand entails simplifying immigrants hiring.Effects of these two are most likely to be long term.
Thenumber of people coding is growing with time thereby increasing thesource of talent for Facebook. Cloud storage, data warehousing andinternet connections among others continue to be cheaper since theyare vastly available. In another aspect, if more and more people areable to code or make their own social networks, then Facebook’splatform may be deemed unimpressive hence increasing competition tothe disadvantage of Facebook [ CITATION Jep13 l 1033 ].
Socialaspects impacting largely on Facebook include the traditional valuesand how they are adjustable to the internet era. The parent childrenrelationships, friends to acquaintance, as well as networking in thebusiness environment. Facebook has been facing numerous criticismespecially when changing the privacy settings to somehow enablepeople be more transparent in the information they give. Advertiserssometimes use information to market their products and serviceswithout the consent of the users and hence cause outrage. Whenever,the changes seem unpopular, Facebook always revokes the alterations.With the number of internet literate individuals continuouslyincreasing, ad blocks could cease being a detrimental aspect to theusers. Some people also encounter fatigue i.e. getting tired ofFacebook. This however in most case is temporary due to numerousincorporations into the platform.
Thetechnological aspects include Ad blocking software, shift to mobiledevices, encrypted communication, open standards, technical risk andmalicious hacking. All these aspects are a major influence inFacebook capabilities.
Thecompetitive nature of the social media ensures quality of service iswell above the required standards. My aspirations within Facebook isto ensure the competitive nature of the social media does not impactnegatively on the company. By competing with twitter and other globalsocial media, Facebook services will be up to date. As evidenced inmany research, China poses a challenge due to stringent rules thattend to scare American business persons especially internet relatedones.
Theunique mechanisms of winning over more customers is ensuring thecompany is continuously integrating services without necessarilyimpacting on the company’s visions. For instance, advertisementshave become quite normal in the social media. It is therefore, vitalto incorporate all the aspects of adverts to reach the prospectedmarkets [ CITATION Pam15 l 1033 ].
Themajor profit generating venture is advertisements. Though the companyventures in a number of areas, advertisements are a major aspect thatgenerates substantial revenue. In that respect, the recommendedstrategy has to deal with venturing more on the same and improvingall the features surrounding adverts. Facebook can receive revenuesfrom marketers/advertisers in several channels including
Displaying adverts on Facebook
Provision of Advert intelligence services to the advertisers
Appropriate network advertising in the internet
Asearlier established, the company needs to bank on the fundamentaladvertising trends that have been ongoing. Users across the globehave embraced usage of mobile devices, are more involved with newsfeeds, engage on brands they are acclimatized with and also like newcreative. The company should therefore continue to be strict on adsto ensure users do not get bored with common adverts. The companyought to educate marketers on the essential aspects of keeping theirconsumers intact or rather in touch.
Facebookcan offer a lot in the perspective of data analytics. Firms withlarge advert budgets as well as intelligence companies can beintegrated to form a standard platform. That way, an avenue toadvertise as well as an advert analytic software is offeredconcurrently. It therefore means Facebook can continue to hike theadvert prices.
Anotheravenue generating revenue involve virtual goods. It is myrecommendation that the company enhances its security measures tocurb criminal activities. With so many users adopting goods purchasethrough Facebook credit, it is important to tighten any avenues thatmay lead to loss of vital information or even cash. The company hasnot maximized its potential in the virtual goods perspective andhence should do more to maximize profits in this sector.
Facebookcan achieve more in the social commerce perspective. This entailsbuying, selling, referrals, ratings, recommendations and forums amongothers. With Facebook having the capabilities to brand products, addsocial amenities as well as developing online user experience, itsmarket cannot be limited.
of playbook elements
Who are the competitors? How to handle competition?
With the ever increasing competitive nature of the social media, it is vital to keep pace with current technologies and trends
The advert trends include use of mobile devices, embracing new ideas, use of news feeds among others
Integration of various capabilities i.e. advertising, socializing among others makes the company more competitive
Who are the target group? What are their preferences?
It is vital to provide the anticipated services to achieve customer satisfaction
It is also crucial to know your customers before making any alterations to service delivery or product provision
What are the mechanisms used in service provision?
When targeting a certain group, the means of service delivery is also vital. Provide better services than your competitor
What are the skill required?
The company ought to have a dense availability of skilled personnel to uphold the company’s capabilities
What are the distinctive features of the company?
With every unique aspect of the company, it brings along substantial amounts of customers
Internal and external strategy analysis
What are the internal aspect affecting the company? What are the external features affecting the company?
By utilizing the SWOT mechanism, it is easier to elaborate the internal aspects of the company.
PEST is also utilized to determine the external aspects of the company
By effectively analyzing both, it is easier to determine where improvements can be done
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