13 business strategy competitive strategy cost

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13 Business Strategy Competitive Strategy Cost Leadership Differentiation Focus Cooperative Strategy Collusion Strategic Alliance
FACEBOOK AUDIT REPORT Competitive Strategy: The matrix below represents Porter’s generic strategies matrix. Facebook uses both cost leadership and differentiation in its competitive strategies. Facebook has achieved its cost leadership position by using computing technologies that allowed it to maximize the efficiency of its website and the websites of its subsidiaries [CITATION Gre18 \l 1033 ]. Facebook created a programming language that handles communications between apps and servers that is now used by many companies [CITATION Fin19 \l 1033 ]. Also, Facebook had contributions in big data management as it created a database system called Cassandra that is capable of scaling across hundreds or thousands of servers and it is considered today the 11 th most popular open-source database in the world used by huge corporations such as Uber and Instagram [CITATION Fin19 \l 1033 ]. Moreover, Facebook uses Hadoop which is an open-source data preparing, processing, and modelling platform that has been quite synonymous with the concept of big data [CITATION Fin19 \l 1033 ]. Finally, it is also worth mentioning that Facebook has established its own data center, and has come up with the idea of cooling its servers with open air rather than industrial cooling systems [CITATION Fin19 \l 1033 ]. Through its wide range of applications and hardware products, Facebook strives to enter new markets and serve all tastes. The field of Social Media for Facebook has not been limited to serving people’s social interactions, it has also entered into the field of serving professionals and 14 Costs Markets Where Business Competes Broad Narrow Source of Competitive Advantage Differentiation Cost Leadership Cost Focus Differentiation Leadership Differentiation Focus
FACEBOOK AUDIT REPORT entrepreneurs by generating tools for advertising, payments, business meetings, and other office related tools, and that constitutes the essence of its differentiation strategy. Cooperative Strategy: As mentioned earlier, Facebook did for a strategic alliance with six telecommunication and phone companies; Qualcomm, Samsung, Ericson, MediaTek, Nokia, and Opera to form Internet. Org, a company that strives to bring affordable internet access to those who do not have it in the world, that is five billion people around the world [CITATION Con13 \l 1033 ]. As Facebook is facing a state of market saturation, it has been looking for solutions to open new markets and acquire new users, and is by connecting more people to the internet [CITATION Ant13 \l 1033 ]. The ultimate goal of this group alliance is to reduce the cost of internet to 1% its current price so that more people are connected and thus can join the social media network [CITATION Ant13 \l 1033 ].

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