Facebook (fb) Stock Research
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Company Description: Facebook is a social network that helps people and enterprises to connect through the web. Vision is to connect the world. Update
Industry Sub Sector: . Facebook is a dominant industry leader due to its personnel, experience and financial strengths. Industry leaders are difficult to compete against, which decreases business and investor risks. The market is quickly expanding. This lowers the threat of direct competition and increases Facebook's profits.
Market Challenges: Connect people in different countries, languages, and cultures. Connect people with limited or slow access to the internet. Privacy issues and competition, especially from Google. Opportunities: Social networks benefit from the network affect, which means that the more people that connect to a network, the more people will want to connect to that network. Solutions: Fast growth and better service.
Facebook's business strategy is to keep things simple. Clearly-defined strategies lower business risks by staying within their areas of expertise. Facebook possesses significant barriers to entry that slows competitive threats and increases profits. Facebook's strategy is to accomplish clear, attainable, and challenging goals. This focus increases company value and long-term investor returns. A culture that experiments produces better long term value. Facebook's experimentations yield new products and services that outpace competitive threats. Facebook's strategy is to continuously improve. This helps to fend against competitive threats and increases shareholder returns.
Strategy: Facebook has a narrow focus that serves a particular customer niche with either a unique product or with a low cost advantage over competitors. (read more). Grow the Facebook network as fast as possible. Allow App builders to create new and engaging apps for the network. Competitive Advantages: Large size of the social network is the biggest competitive advantage.
Facebook has consistent operating results. This lowers the risk that Facebook will suddenly have difficulty and it increases investor confidence in the value they place on each share. Complicated financial statements lower Facebook's value, because it increases the risk of fraud and lowers investor confidence.
Current Revenue Sources: Advertising revenue Future Revenue Sources: Advertising revenue should grow further.