Question

Select a company (Online Article) you want to learn more about, fill out the following external environment worksheet for that company. you may chose diferent company for each question (5-7 sentences)

1)Competitors: What companies compete with the firm you have selected? Do they compete on price, on quality, or on other factors?)

2)New entrants: Are new competitors to the company likely? Possible?

3)Substitutes and complements: Is there a threat of substitutes for the industry’s existing products? Are there complementary products that suggest an opportunity for collaboration?

4)Customers: What characteristics of the company’s customer base influence the company’s competitiveness?

Answer 1

!) Facebook is an online social networking service and media company based in California. Its advent revolutionised online social interaction by rewriting communication styles and guidelines making relationships and socialising public was the new drug. Other players jumped onto the bandwagon to get a piece of the pie and presently Instagram, Google Plus, Snapchat, LinkedIn (Professional network) and to a lesser extent Twitter which is hindered by its minimalistic posts and thrives on advertisements.

2) New entrants are swarming the social networking market but Facebook utilised its lead very effectively and its mass appeal led to huge following. Its acquisition of budding competitor Whats App on the messaging front strenthened its market lead and also helped it curtail snapchat through Whats App. Facebook is presently having a big enough lead to not be facing any threat from competitors Alphabets Google plus and Yahoo's Tumblr tried to compete but could not make a dent in the success of Facebook. Its sheer user database size is almost like a Goliath for competitors.

3) Substitutes are not a threat to the industry as all forms of networking are already included in Facebook. Complementary products are instant messengers which became a huge hit due to ease of use small size of the applications and accessibility of design. Facebook was quick to act when its messenger addition could not compete with Whats App and snapchat it went in for acquisition of Whats App the instant messenger success story and once again destroyed competition effectively and safeguarded its position at the top.

4) Facebooks customer base is very varied spanning continents, nations, religions, genders, ethnicities and ages. However the main requirement is the users need to be connected to feel a sense of belonging and never feel alone again. Facebook realises this and satisfies this need to be connected and be appreciated, to announce achievements and to draw sympathy during loss by catering to these very needs by personalising the pages as much as possible. The simple option of likes or a thums up has been replaced by so many options including hearts. It's express emotions with a button syndrome which makes it simpler for a user to convey their opinion without resorting to text. Time is a precious commodity on social networking sites as well, looks like it. Facebook is in no hurry to have competition top five slots are booked looks like.