Sustainable competitive advantages of Facebook
1. The size of their social network, is huge, known and used all over the world by different people hence giving them and advantage than the others.
2. They have their trusted managers and software engineers who are capable of reading the market trends and then putting together new and innovative ideas and services which their customers find more appealing than those of other social media networks, through this they maintain a competitive advantage.
3. They constantly have innovations of new and interactive sections such as those to upload photos, send pokes virtually to another person, their walls and the position they hold in the market, all these when added together give them a competitive edge. When and where it adds value These advantages add value to their customer base and contribute to them making profits annually, the customers are able to be retained through Facebook continuously improving itself.
Do you think Facebook’s strategy is sustainable over time? Yes it is sustainable over time because with new developments in the world they also come up with new and innovative ways of maintaining their customers through researching on the market trends and allowing their software engineers put together new and innovative services to retain their customers and keep them attracted to their network. What would you do next if you were responsible for Facebook? I would invest in finding out what my customers want from me and then come up with ways of giving them the same.
I would put much effort in market research and find out of the consumer preferences then work with my technical team to deliver the same to them so that we can be able to stay relevant and up to date with our services. I would also look at my competitors and find out what they have that I don’t then work towards achieving the same. What lessons can other companies learn from recent strategies?
1. They can learn that to stay relevant you have to come up with strategies that help you to achieve and maintain a competitive advantage in the market.
2. They can also learn that the customer is the sole reason for a business and therefore whatever the business does should be centered around them and ensure that they have the best experience.
3. They can also learn to be innovative and creative in their endeavor to maintain their customers and keep themselves from making losses. Would you invest in developing a new social network? Yes I would because with a social network you can be sure to make money since people are constantly interacting with each other and coming up with a way to ensure they continue doing that is a yes for me. Step-by-step explanation
Do you think Facebook’s strategy is sustainable over time?