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Unformatted text preview: 1. What is strategy? What is not strategy? Utilize course readings in your response and also detail how Facebooks experience exemplifies strategy and how their strategy has evolved over time. According to Mintzbergs words, strategy does not include planning, analysis and calculation, prediction, detachment, formalization. Also depending on Porters ideas, operational effectiveness, imitation, competitive convergence are not strategies, either. If none of above contents is strategies, what is strategy? Actually, it is the creation of a unique and valuable positioning involving a different set of activities, making trade-offs in competing or creating fit among a companys activities. Thus, generally speaking, strategy is the process of using existing resources and capabilities to create and leverage a sustainable competitive advantage relative to industry rivals. For example, Facebooks experience has well exemplified strategy. With the development of the social networks, using existing resources and capabilities, Facebook created its business model including connection, communication, web-stocking, etc. and gradually improved it. Meanwhile, it sells Ads, impressions, sponsored groups, and some applications as well. Due to the technology and some other strength, from 2004 till now, Facebook started out as a college re- union social network with games and has evolved into an all-purpose destination to do various tasks such as emailing, instant messaging, video sharing, gaming, write articles or notes, forums or discussions and blog posts. And that process should be strategy. Facebook has a large market share and over 500 million users in the world which is not only the largest social network in the U.S but in the world. The continued success of Facebook is a result of creating diversity and convenience of peoples online needs and activities in the one place and this is what will drive its long term use as its members age. After that, Facebook creates diversification of advertising methods for businesses to choose from to meet businesses different needs. And it will also in time help most users to find information or links to products and services. Therefore, Facebook's strategy is based on improving online activities first, and then combining word-of-mouth marketing with e-commerce as well as always promoting brands at the same time. Nowadays, moving forward Facebook is focusing on a few different global arenas. First, Acquisitions will be a large part of Facebooks future, in order to acquire both talent and technology. Next, overall global growth is aiming at the rest of the internet users in the world. Third, Facebook is rightfully seeking increased avenues for revenue from its various technologies, including from advertisements and Facebook Credits. And only monetization can greatly help to realize the maximizing of shareholders value. Last but not least, huge expansion via a new search tool may challenge Googles position a lot. To sum up, finishing globalization is the biggest goal for Facebook and also a good opportunity, too. 2.2....
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- Spring '11