The Success of Facebook in China … Research Paper
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Marketing Audit and Competitive Market Analysis About Facebook In China
Facebook is the biggest international online social network, concentrating on features that assist customers in enhancing their offline connections (Lee, 2014). It differentiates itself from other social networking sites by giving its members comprehensive controls over who could view different pieces of their information. Facebook integrates photo sharing, blogging, and instant messaging services. Facebook appears as the biggest and the quickest growing online social network. Facebook is also the most technically advanced system, launching new social features every few months, and offering two application systems for others to build on. Despite its popularity with investors and users, Facebook has been less successful at making money. Facebook's biggest problem is monetization of its offerings to generate more earnings from the new and current advertisers and subscriber base. The other concern is about users turning to opponents.
The overall number of social networking customers in China increased slowly than was anticipated over the past year. This trend is attributable to a change in behavior, rather than a decline of interest in social media. It' is also important to note that social networking utilization in China is already at a very advanced level, with the figures indicating that 99% (Friedrichsen, 2012) of China's Internet community uses social media of some description. The figures for individual channels tell a more interesting tale, though. QQ, Tencent's ever-popular instant messaging service, still dominates the country's top position in terms of monthly active users (MAUs), and despite the great majority of its customers living in China, it also holds the second-place spot in the world positions behind Facebook. This suggests a positive reception of Facebook in China.
The product as an innovation
This section uses SWOT framework to analyze the perceived innovation of Facebook.
Facebook has a huge number of subscribers and holds a top spot in market share for all social media channels. They are also in almost every country and 70 'languages'. As of July 2014, Facebook had over 1.3 billion (Lee, 2014) monthly active users (MAUs). In Dec 2013, Facebook announced having 201 million MAUs in Canada and U.S., 282 million in European countries, 368 million in Asia, and 376 million elsewhere (Friedrichsen, 2012). Facebook has a great deal of details on customers that can be sold to developers and advertisers who evaluate it to provide more customized services for customers. Facebook itself uses these details to understand their users' needs and behaviors and to match these with appropriate service promotions. Facebook provides a quality consumer experience. They have been developing new programs and adding to what the consumer can do. Recent enhancements include the Facebook hashtags and graph search.
Facebook has been involved in several legal cases. They have been distressed as a result of ongoing court proceedings and have had to pay charges based on decisions. One such court action mentioned that Facebook had damaged security rules, which features the benefits of their functions. A major source of Facebook's income comes from advertisers, which can be dangerous. Advertisers do not make long lasting marketing commitments. Many only spend a small part of their advertising costs with Facebook. Facebook does not allow for personalization by the user. Many users want to be able to change their user profile to indicate their character and choices but cannot do so. On the other hand, opponents such as Google+ do allow a certain amount of personalization (Wankel et al. 2010).
The marketing industry risk of Facebook is significant. United States advertisers invested $18 billion on digital display ads in 2013, a rise of 20.8% in comparison to 2012 (Wankel et al. 2010). The mobile marketing companies are also growing. It produced a total income of $11 billion in 2013, a hike of $1.3 billion dollars from 2012 (Lee, 2014). Diversification will also open possibilities. Facebook's current major income is advertising; yet, their top position in the market means they have the sources to manipulate other ventures. The Chinese government has just lifted the ban on Facebook. The easing of government regulations in China makes it possible for Facebook to get in this large industry. As the country with the world's biggest population, Facebook has certainly welcomed this
Levels of competition are Facebook's main risk. Other social media systems, such as Google+ and Twitter, attract potential market share away from Facebook. They also have to contest with local social networking sites such as China's Weibo and… [END OF PREVIEW]
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