Facebook SWOT Analysis | Business Study of Facebook

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SWOT Analysis of Facebook
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Facebook SWOT Analysis | Business Study of Facebook


SWOT analysis of Facebook helps us to understand the working strengths, weaknesses, available opportunities, and possible threats of the company.

Facebook is one of the biggest social websites in the world. It was founded in 2004 and its current CEO is Mark Zuckerberg. Fb is an engaging social site and very popular among people. It is still growing very rapidly in the presence of heavyweights such as Twitter, Pinterest, and many more. In this post, we will talk about the Facebook SWOT Analysis (strengths, weaknesses, opportunities, and threats of Facebook). Let’s start.


Company Name: Facebook, Inc.

Founded by:   Mark Zuckerberg | Andrew McCollumEduardo SaverinDustin MoskovitzChris Hughes

 CEO:  Mark Zuckerberg (Feb 4, 2004–)

 Year established:  February 2004, Cambridge, Massachusetts, United States

 Headquarter:  Menlo Park, California, United States

 Number of Employees (June 2020):  52,534

Type:  Social networking service

Service available in 111 languages – Worldwide

Symbol: FB

Monthly active users (31 June 2020): 2.70 billion

Annual Revenue (2019):  US$ 70.7 billion

Net income | Profit (2019):  US$ 18.48 billion

Subsidiaries:   WhatsApp | Oculus | PrivateCore | Onavo | LiveRailMORE



Facebook SWOT Analysis | Business Study of Facebook

 Strengths of Facebook:


  • Dynamic Brand:

For ultimate stability and enduring sustainability, it is necessary that your brand should be strong. The major strength of Facebook is that it is a valuable and dynamic brand. It stands at the 5th position by Forbes in the most valuable brand list. In the social media industry, Facebook is considered one of the strongest brands with 88 billion dollars of brand value.

  • Expanded Portfolio:

It is another factor that ensures long-term stability. Facebook clearly understands this factor that’s why they extended its portfolios in different areas. Most of the big names such as Instagram, WhatsApp, Messenger, Workplace, Calibra, and Portal are working under its supervision. That’s why we can say that Facebook has the strongest diversification.

  • Market Control:

It is imperative to dominate the market in order to get a prominent position. Facebook and its relative products such as Messenger, WhatsApp, and Instagram are leading the chart with monthly active users of 2.8 billion.

  • True Customer Base:

The company’s stability and success are determined by the people who followed it. Facebook has strong fan-following and loyal consumers. Nearly 40 percent of the world people use Facebook and its relative apps. That’s why it is undoubtedly difficult to compete with Facebook.

  • World’s Greatest Worker:

The HR policies of Facebook are globally appreciated in the social media industry. They are best known to attract people due to their effective policies.

  • Imaginative Leadership:

The visionary leadership of Mark Zuckerberg is the major strength of Facebook. This kind of vision has proven beneficial in terms of culture, sustainability, and innovation. That’s why they always hold a good position in management and leadership.

  • Focus on R&D:

The main success of a company is dependent on its initiatives for technological advancement and innovation. Facebook is one of the leading social media sites that invest most of its revenue in R&D. They also increased the investment amount from 4.8 billion dollars to 13.6 billion dollars.

  • Powerful Marketing Business:

Facebook is a big name in the industry, but its major source of income depends on advertisements. Approximately 69.66 billion dollars came from advertising in 2019.

  • Valuable Marketing Approach:

Facebook’s marketing strategy is very simple. Nearly 2 billion users use their apps every day that makes it a strong and valuable brand in the social media industry.


Facebook SWOT Analysis | Business Study of Facebook

Weaknesses of Facebook:


  • Consumer’s Privacy Concerns:

Facebook faces huge backlash and criticism over its ignorance in the mishandling of customer’s privacy. In 2017, they lost approximately 15 million users due to this factor. It is really important to address these concerns in order to improve its stability and popularity.

  • Overreliance on Publicity:

Facebook heavily depends on its advertising. They earn approximately 98 percent of their annual revenue from advertising and promotion. In 2019, its advertising revenue was 69.66 billion dollars out of 70.70 billion dollars.

  • Scattering False Information:

Facebook also faces huge backlash and protests due to spreading false and fake information. It is really crucial to control these fake news and information in order to improve its brand image.

  • Resistance in Management:

Continuous controversies and scandals created a bad impact on the management of Facebook. They also need to figure out these issues in order to enhance their working and operations. This weakness also needs a proper solution.


Facebook SWOT Analysis | Business Study of Facebook

Opportunities for Facebook:


  • Expand Its Approach:

As Facebook also owns Messenger, WhatsApp, and Instagram, they earn a big portion of their revenue from these portions. It is really imperative for Facebook to diversify its portfolio beyond social sites. They have the ability and potential to do this task.

  • Enhancement in Existing Platforms:

Facebook has the ability to diversify its existing platforms such as online dating and online video streaming in order to compete with heavyweights like YouTube, Tinder, Netflix, and etc.

  • Expanding Integration to other Apps:

As technology is increasing day by day, it is necessary for Facebook to improve its working through advancement in different forms such as e-commerce surveys, blogs, games, and many more.

  • Target Audience and Users:

As we know that Facebook is a famous and leading social media site in the world, but it is really imperative to target new audiences and users. Facebook has the ability to attract new users with unique features such as LinkedIn and many other apps.

  • Development Through Different Acquisitions:

Facebook is already in lead with the acquisition of Instagram, Messenger, and WhatsApp, but they also need to diversify their portfolio with different acquisitions. They recently obtained CTRL-Labs that are very beneficial for Facebook.

  • Take Advantages of Changing Advertising Trends:

It is really vital to introduce the latest trends to target new people. According to a study, the majority of people are using Facebook via a mobile app. They need to enhance their mobile-based marketing and advertising in order to generate more revenue and profit.


Facebook SWOT Analysis | Business Study of Facebook

Threats of Facebook:


  • Competition:

The competition between Facebook and many other apps is really stiff. With the entrance of TikTok, it looks like the future of Facebook is in little danger. TikTok has gained huge popularity among youngsters in just a few periods of time. To counter TikTok, Facebook has launched a similar video platform in the form of ‘’Lasso’’.

  • Increased Regulations:

Due to an increase in unfavorable laws and regulations, Facebook is facing huge restrictions in major parts of the world. They need to address these problems with proper management and transparency to gain popularity.

  • Bans in Different Regions:

Most countries such as Russia, North Korea, Iran, and China banned Facebook. The reason behind this is political disputes and unethical content. It can damage Facebook’s popularity in front of its fans and users.

  • Data Violate:

In 2019, nearly 267 million Facebook user’s data was leaked including their name, address, and mobile numbers. Due to this reason, Facebook experienced huge backlash from the users which results in the loss of millions of customers.

  • Latest Digital Toll:

Europe and the UK imposed new digital taxes which can affect Facebook’s revenue system. In this way, most of its profits go in the form of these taxes and tariffs.

  • Spoiled Status:

Cambridge Analytica and New Zealand’s terror live stream scandals, Facebook’s reputation was badly affected. This is a major threat for Facebook if this kind of scandal and controversies happen on regular basis.

  • Fake and Duplicate Accounts:

Facebook reported 11 percent of duplicate and 5 percent false accounts. These fake accounts are originated mostly from Indonesia, Vietnam, and the Philippines.


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