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Home » SWOT articles » SWOT of Facebook

SWOT of Facebook

May 4, 2019 By Hitesh Bhasin Tagged With: SWOT articles

FACE BOOK was launched in the year 2004 by Mark Zuckerberg. It was an extension of Zuckerbergs college project. And since 2004, Facebook has managed to gain 600 million users (as per Jan 2011) and still growing. Its popularity is backed by the Web2.0 boom. The SWOT of Facebook discusses the strengths, weaknesses, opportunities and threats of the number 1 social network on the internet – Facebook.

SWOT analysis of Facebook - 2

SWOT analysis of Facebook - 1

Table of Contents

  • Strengths in the SWOT analysis of Facebook
  • Weaknesses in the SWOT analysis of Facebook
  • Opportunities  in the SWOT analysis of Facebook
  • Threats in the SWOT analysis of Facebook
    • Related posts:

Strengths in the SWOT analysis of Facebook

“All the integrated features of Web2.0 in one roof” is the most strengthening factor for Facebook. The huge fan base for Facebook and the migrating users of other social networking sites like orkut etc has proved that Facebook has more nutrients needed for “YOUTH”. The LIKE button is one feature which makes people LOVE Facebook and is probably the reason why users comment and debate over status messages, photos ,videos and what not! Its active integration of Facebook app with almost all websites and mobile applications makes it stronger and feels the user to have more bonding to Facebook than other sites. With the developers options and Facebook pages, it becomes a perfect marketing platform for both small as well as large businesses.

Weaknesses in the SWOT analysis of Facebook

Authentication of users is a real problem with respect to any social network sites, and Facebook is not an exemption. There are more fake users in Facebook and the fact that users must be aware of managing his/her contents from hackers. Cyber crimes are of serious threats to the user as well as it might result in fading popularity of FB. The minimum joining age is just 13 yrs which is not an optimum age for students to join Facebook. Of course, the birthdate can always be manipulated. Something which all sites lack.

Also Read  SWOT analysis of Huggies

Opportunities  in the SWOT analysis of Facebook

The revenue of sales has increased as per statistical report released by Facebook to 158% growth in 2010. Facebook has collaborated with Microsoft for serving banner advertising, and apart from it, there are several ads being showcased on Facebook. Lot of companies which have understood the increasing impact of Facebook on internet users have decided to allocate marketing budget for internet marketing. In that Facebook shares the top priority compared to other networking sites. Making parallel side by side business lines such as linkedin / Afaqs can become a very good opportunity for Facebook. However, making such changes might also affect the overall positioning and therefore any opportunity for Facebook needs to be planned and any new internet technology needs to be updated on Facebook.

Threats in the SWOT analysis of Facebook

As already said increasing cyber crime and impersonation has increased because of user’s negligence in managing their contents. Anything in market is subjected to change and users will naturally lose interest and some other technology or social site may take over Facebook. So Facebook has to overlook itself in near future as explained by Theodore Levit in “Marketing Myopia”.

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OLX is a leading online platform to buy, sell, and exchange various products like electronics, apparel, household goods, cars, bikes, etc. During the year 2014, the OLX platform has about 11 billion-page views; it sees about 200 million active users per month, 8.5 million transactions per month, and 25 million listings. OLX is a platform where the buyer and seller of an exchange item come on a common platform to buy and sell. For this, each of them should be a registered user of this platform. Once they are registered on this platform, the seller can place their products with its features. Once the seller posts their products, people who are registered on this platform can view the details shared by the buyer. This platform has a unique feature wherein the search is tuned as per the location. Buyers and sellers in the nearby area can see each other on the platform and communicate using messaging services. The SWOT analysis of OLX differentiates all the main strengths, weaknesses, opportunities, and threats that give guidance to the company to scale up more. Readout this article, to get an understanding of where OLX stands. The SWOT analysis of OLX indicates the strengths of the brand in which the brand is good and what differentiates it from its competitors, its weakness that stops the brand from performing well and should focus on to improve. It lists its opportunities that the brand can use to increase its market share and brand value. It also throws light on the threat that has the potential to harm the brand. To make sure that OLX meets the long-term competitive advantage, it must address the various concerns highlighted in the SWOT analysis of OLX. Let us discuss on the SWOT analysis of OLX. Strengths in the SWOT Analysis of OLX 1) Large Presence – OLX has its presence in more than 100 countries. This is an excellent strength for the brand. Having a significant presence in many countries would see many users created on the platform. When there are more users on the platform, it means that people make use of this platform to buy and sell. 2) Brand Image – OLX has a strong brand image and has about 11 billion page views. Also, it sees about 200 million active users per month, 8.5 million transactions per month, and 25 million listings. This shows that the brand is visible across the country, and it is known to many people. Having a strong brand image is the main strength of the brand. 3) Strong Backup – OLX sees a strong back up by Naspers. It has a lot of experience in working with various eCommerce giants. Because of this, there can be a lot of input from the backup. This is the main strength of the brand. 4) Strong Advertising Campaign – Yet another strength of the brand is its strong marketing efforts. It has an excellent marketing strategy, and its advertisements are popular on television, radios, many online channels, etc. Due to its marketing efforts, its brand value has increased. Many people are aware of this online platform and use it. Its advertisement is quite popular in online media. 5) Strong Vehicle Category – OLX has a strong place in the vehicle category. It sees many sellers placing ads to sell their vehicle, and there are many buyers to purchase as well. The vehicle category alone sees around 850 million page views per month. This is indeed a vast data and the main strength to highlight the brand. 6) C2C Market Leader – OLX seems to be India’s market leader in the C2C business. This is also the main strength of the brand. It has fewer competitors and one reason to have many users on its platform. 7) No Specific Product – OLX has no limitations with regards to products. It has a massive portfolio of products where users can place their advertisements. 8) Business Model – OLX is one of the biggest free online classified platforms. Its business model is unique and presents it finely. It has an online platform where people buy or sell products. It is spread across many cities in India. 9) Many Functions – On the OLX platform, a user can easily design many rich advertisements with beautiful images. A user can also control the buying and selling activities in the OLX platform. It also has a feature where a user can display their ads on any social networking platforms. Users can access the OLX website from anywhere, and it also has an app to support. 10) Easy Availability of Products – This platform gives easy access to customers to get any products at less cost. Customers can access their beautiful websites with rich and featured listing. 11) Huge Market Share – OLX has managed to get about 60% of the online classified market share. This is a significant strength to the brand, and its traffic has also grown to 55 times over the past few months. Even, the OLX app has exceeded 3.2 million downloads in India. Weaknesses in the SWOT Analysis of OLX 1) Technology-oriented – OLX is heavily dependent on technology, and it lacks features to convert non-internet users as potential customers. This is a great weakness for the brand because the number of users would reduce. 2) Competition – There are many competitors from the offline mode as well. Many people try to sell their products using many other ways like WhatsApp, word of mouth, etc. This is also a weakness for the brand because the users would reduce. 3) No Quality Assurance – As many buyers and sellers meet online, and various discussions take place online, there are chances that the quality would go off. Till the buyer sees the product and understands its features and use it, there is no guarantee on the product. This is also a weakness for the brand. 4) Online Fraud – As OLX is entirely an online platform where many people meet online and discuss their sale and purchase, there is a chance that it can enter fraudulent activity as well. 5) Fake Ads - As OLX is entirely an online platform where many sellers post many ads, there are chances that people post fake ads as well. 6) Delay in Response – As OLX is entirely an online platform, it is dependent on people to log in to check for an update on their products. There would be a delay in response and for the product to be sold. Opportunities in the SWOT Analysis of OLX 1) Increasing Products – OLX sees more opportunity if they diversify on its products listing. It could have many subcategories of products, and this would bring more opportunity for sellers and buyers to glance through their requirements. 2) Increase in Offline Channel to Advertise – OLX can increase on its advertising channel by setting up an offline channel so that it could bring more brand awareness about its platform. This would also get more customers to get into their platform. The brand can brief the audience about its features and ways to use it. 3) People Choice – This platform is ideal for users who can wish to purchase their products as per their wish at less cost. So, there is a lot of opportunity for this platform. 4) Many Sellers – This platform brings a lot of opportunity for the sellers as they can sell their products and benefit out of it. With this, the online platform also sees more users using it, ultimately leading to huge traffic. 5) OLX Jobs – This online platform can increase its offering by listing job opportunities as well. This would see more chances of its business and improve the user count as well. 6) Real Estate Property – OLX has also entered listing of real estate and sees many opportunities to expand. Threats in the SWOT Analysis of OLX 1) Competitors – OLX sees many competitors at a similar domain, and this is a big threat for the brand. Investors have funded its competitor Quickr. So, OLX is at threat. 2) Offline Stores – Many offline stores sell second-hand products at a discounted price. This is also a threat to the brand. People would prefer to visit the offline store so that they could see and feel the product before purchase. Conclusion The SWOT analysis of OLX mentioned in this article has highlighted the main strengths of the brand that comes up from its brand value, having a significant presence in the country, having a strong backup, excellent marketing efforts, a strong presence in the vehicle category, being a market leader in C2C, availability of many products, having a unique business model, easy accessibility, and a considerable market share. The weakness of the brand is its technology-oriented platform where it is tough to get many non-internet users to the platform, having many competitions from the online and offline mode, no quality assurance, online fraudulent, fake ads, and delay in response. Its opportunities are seen on increasing its product listing, entering the offline mode to raise its brand awareness, having many sellers, allowing people to select their products, OLX jobs, and entering real estate business. It sees a threat from its many competitors like quickr, eBay, and many more, and many of the offline stores that sell second-hand products.SWOT Analysis of OLX
Also Read  SWOT Analysis of GAP
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About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. You can follow me on Facebook. Let's stay in touch :)

Comments

  1. Azam Khan says

    it was nice to read and more knowledgable …
    i want to subscribe but there no option only i can fallow .
    sir guide me how to subscribe …

    Reply
    • Hitesh Bhasin says

      There is an email subscription form below.

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