This website uses cookies to ensure you have the best experience. Learn more

Facebook Pestel Essay

1130 words - 5 pages

PESTEL
Facebook Inc. (Facebook or “the company”) is a social network platform which enables users to share ideas, opinions, pictures and activities.
Political Factor
Users and governments have been expressing privacy concerns which could harm the company’s strategy to use user information to deliver effective advertisement. While the class action law suit filed against the company could potentially imply damages of more than $15 billion if successful, the claimants could stifle Facebook’s ability to collect data about its users and hinder its ability to grow advertising revenues. Similar concerns were expressed in other countries as well. For instance, German data protection official also ...view middle of the document...

4% and net profit margins were at 18%. Comparatively, Google’s operating margins during FY2011 were 30.9% and net profit margin was 25.6%. High margins compared to peers indicate better aligned cost structure at Facebook. The company will be well positioned to sustain low advertising rates due to its low expense base which will provide competitive advantage. This is of particular importance amid the doubts of effectiveness of social media ads. The company will be able to compete better given its low price.
Facebook also enjoys strong cash flows. The company’s operating cash flow margin in FY2011 was 41.7% which is higher than 38.4% in Google during the same year. High operating cash flow margin at Facebook reinforces the earnings quality as it indicates that the company is able to effectively convert sales into cash. Furthermore, the company converted 12.6% of its sales into free cash flow. The ratio of free cash flow to sales is a measure of how much of a company’s revenue is transformed into cash. The company’s high cash flow generation capability indicates that the company enjoys high financial flexibility. Facebook faces several challenges in terms of monetizing its reach and drive revenues. The company’s free cash flow position enables it to invest in expansion inorganically. Facebook will be able to fund its expansion plans at feasible rates.
Social Factor
Facebook forayed into mobile application market with the launch of App Center and thereby took the first step into monetizing the mobile user base. App Center is a new place for people to find social apps. The App Center gives developers an additional way to grow their apps and Facebook provides the insights that facilitate apps to be successful. The App Center can be accessed on the web and in the iOS and Android Facebook apps. The App Center does not sell these mobile apps but rather directs users to apps on Android and iOS stores. Facebook does not earn revenues as the operating system owners are the only players that can sell apps. However, Facebook will promote social apps that use Facebook login which is a requirement to be listed on the App Center. Consequently, Facebook has more users utilizing its network even if it is just a login feature. This further enables Facebook to collect more data on its users which in turn enables the company to further its core targeted marketing proposition. In addition, Facebook also...

Other Essays Like Facebook Pestel

Google in China Essay

2357 words - 10 pages to gain information required to customers’ requirements. Worldwide information is stored in such search engines and is constantly updated with latest information in detail. Think of anything and you will be able to get information in depth. Thus these search engines are the store house of information and is knowledgeable in every aspect. The market leaders in this field are Apple, Microsoft, Google, Amazon, Facebook, Twitter, Mozilla, Yahoo

Starbucks Marketing Plan Essay

3452 words - 14 pages , Starbucks has an opportunity to expand their business due to their pastries and other food which are low in calories and healthy | Technological * Technology advancement has given Starbucks a favorable impact by sharing and relating ideas with their customers using various social networks such as Facebook and forums that enable Starbucks to engage and communicate with their customers | Legal * There are legal issues that will affect Starbucks

Consumer Behaviour in the Uk Tablet Computer Market

4377 words - 18 pages responses. Belief is a descriptive thought that a person holds about something. Attitude has three components: cognitive (person’s knowledge of a situation), affective (feelings about a product) and conative (resultant behaviour). 1.1.1. PESTEL 1.1.2. Political Issues The European Telecommunications Standards Institute (ETSI) produces globally applicable standards for Information and Communications Technologies (ICT

New Strategy for Birchbox - Business Plan

4282 words - 18 pages MySweetieBox: beauty products, lifestyle accessorize, tutorials, targets women, price: €15 / 1 month, €33 / 3 months But also: My little superbox, Dream box, Provence box, etc. Indirect competitors in France Other non-beauty boxes (i.e.: wine, jewelry, fashion, etc.) Beauty shops (i.e.: Sephora, Beauty Success, Nocibé, etc.) II. Situation Analysis PESTEL - Political and Legal: nothing particular in France as it is the same as

The Separation Of Capital Ownership And Control

1577 words - 7 pages The argument of whether the separation of capital ownership and control is an efficient form of organization has constantly been a controversial issue. The criticism whether the controllers’ act is in the best interest of the owners’ wills never end as long as hired managers operate management. As the number of public companies has been increasing over the course of this century, meanwhile the American style of contact based corporation has

The Versatility And Flexibility Of OLED's

1014 words - 5 pages In April 1, 2002, organic light emitting diodes gain rise in the scientific community with their published, more practical form at Ames Laboratory. “Scientists at the U.S. Department of Energy's Ames Laboratory, in collaboration with scientists at the University of Michigan, Ann Arbor, have developed and demonstrated a novel, fluorescence-based chemical sensor that is more compact, versatile and less expensive than existing technology of its

Comparing The Moral Virtues Of Antony And Julian The Apostate

1103 words - 5 pages Roman emperor Julian the Apostate and Christian leader Antony both exhibited many qualities of character during their existence. Both of them led very distinctive lives although shared several ethical values. Book 25 of “The Later Roman Empire” and the book “Early Christian Lives” show concrete evidence of this. In the following essay, I will argue how both leaders’ lives were devoted to their religious beliefs and their mutual cardinal virtues

Living In A Cashless Society

1637 words - 7 pages Money in a traditional sense no longer exists. Money is becoming much of a concept than a physical material, and most ordinary bitter have not see the reality of the switch. People today are using credit and debit cards on a regular basis and in everyday situations such as meal purchased at fast food, highway tolls, clothing, groceries, gas stations, etc. all of these means of systems could be regarded as a cashless society or world. The question

The French And Indian War: The "Real" First World War

1955 words - 8 pages The Seven Years War, or more commonly referred to as “The French and Indian War”, has been called the true First World War. In this book The French and Indian War: Deciding the Fate of North America, the author and historian Walter R. Borneman paints a detailed and elaborate picture that justifies the claim of it being the first true war of global proportions. If ever there truly was a climax to the never ending feud of the European powers

Is The Use Of Animals In Medical Research A Necessary Measure?

1513 words - 7 pages Throughout history, animals have been used in experiments to test product safety and obtain medical knowledge that benefits both humans and animals alike. Every year there are numerous medical breakthroughs, such as medications and surgical instruments, which are tested on animals to insure their safety before they are deemed acceptable for human use. Even though the results of the experiments saved millions of human lives, they are also

Education And The Evolving Job Market

2363 words - 10 pages The lives of students today are changing. They are preparing for lives and jobs that have never before existed. If teachers hope to have a significant and worthwhile impact on these quickly changing lives, they must change the way they think, prepare, and instruct our future generations. Children cannot afford to have teachers who remain stagnant in their methods and ideals. Students crave instructors that are willing to allow them to tap

Related Papers

Pestel Analysis For Wonga

806 words - 4 pages Pestel analysis for Wonga …POLITICALConservative ministers agreed to hold meetings with the controversial payday loans company Wonga in exchange for payments to the party.Wonga was censured for employing "aggressive and misleading" debt collection practices by the Office of Fair Trading earlier this year.http://www.telegraph.co.uk/finance/personalfinance/borrowing/loans/9613729/Loan-firms-wonga-buys-the-ears-of-ministers.htmlECONMICEd

Term Paper

3059 words - 13 pages This essay will examine the current business environment McDonald’s operates in through a PESTEL analysis, to examine the general external business environment and the specific industry factors that may affect the business. The results of this essay can then be used as the background for a SWOT analysis to highlight the specific strengths and weaknesses of the McDonald’s business model and its potential future opportunities and threat, which

Marketing Plan Essay

4728 words - 19 pages within each category of the target market in the hospitality industry, especially the budget hotels and those considered to be ‘Inns at law’ under the UK 1956 Innkeepers Liability Act. Section 3: Marketing Plan You can get expert help with your essays right now. Find out more... 3.1. Marketing Analysis 3.1.1. Environmental Analysis The application of acknowledged and appropriate marketing tools like PESTEL and SWOT analysis facilitates the

Walmart Global Discount Retailer Moves From Brink And Mortar To Click And Mortar

3995 words - 16 pages . Walmart is not alone in adapting this strategy; Amazon is also using this in order to get orders into the hands of its customers more quickly, however Walmart will be able to leverage the over 10,000 stores globally to place lockers which are close to customers. In order to understand Walmart, it is important to look at its review its Value Chain in Annex A, in conjunction with Porter’s Five Forces Analysis in Annex B, PESTEL Analysis in