Comprehensive SWOT Analysis For Facebook

In this article, we’ll do a SWOT analysis of Facebook to help you better understand the pros, cons, opportunities, and threats of using Facebook for business.

Here is a summary table for Facebook’s SWOT analysis:

Topic Key Points
Facebook’s Strengths
  • Strong brand recognition
  • Diverse product portfolio
  • Massive user base and market control
  • High customer retention
  • Leading employer brand
  • Visionary leadership
  • Heavy R&D investment
  • Powerful advertising platform
Facebook’s Weaknesses
  • Reliance on advertising revenue
  • Low ad click-through rates
  • Missing some key features
  • Privacy concerns
  • Lack of customization
  • Weak security of user data
Facebook’s Opportunities
  • Increasing mobile usage
  • Expansion into China
  • Diversifying revenue streams
  • Launching a Facebook marketplace
Facebook’s Threats
  • Competition from new platforms
  • Duplicate and fake accounts
  • Regulatory pressures
  • Bans in some countries


Overview Of Facebook

Facebook was established on February 4, 2004. It is a social networking website and a technology corporation with over 2.89 billion members around the globe. Mark Zuckerberg, Eduardo Saverin, Chris Hughes, and Dustin Moskovitz are the founding members of this popular social media platform. Facebook is a publicly traded corporation with 44,942 employees. The firm’s headquarters are situated in Menlo Park, California. Its total annual revenue is $70.7 billion US dollars. the company’s net income is $18.5 billion US dollars.

Facebook provides Messenger, Whatsapp, Lasso, Instagram, Facebook Dating, Oculus, newsfeed, Workplace, Calibra, Watch, Portal, Marketplace, and a social networking platform.

For the purpose of this short article, we are going to discuss the detailed analysis of Facebook’s strengths, weaknesses, opportunities, threats, and other internal factors that have contributed to the development of the social platform. Kindly stay tuned and read through this article.

SWOT Analysis of Facebook

 Facebook SWOT Analysis

Facebook’s Strengths

A Reputable Name

It is essential to have a strong identity for both stability and development. For the year 2019, Forbes recognized Facebook as one of the top 5 most valuable brands. As the most valuable social media brand in the world, Right now, Facebook is worth $88.9 billion in brand value.

Diversified Portfolio

In the event that revenues in one area fall, a company’s main financial assets are safeguarded by diversification. In order to avoid bankruptcy, Facebook has decided to invest in a variety of sectors.
The breadth of Facebook’s offerings, including WhatsApp, Instagram, Oculus, Workplace, Portal, Messenger, and Calibra, are all big alternatives to the company.

The Market’s Control

It is possible for market leaders to take advantage of their position of power. There are 2.89 billion active monthly users on Facebook, including other platforms from this firm (WhatsApp, Instagram, Messenger).

Customer Retention

A company’s strength, consistency, and success are best conveyed by a broad and ever-expanding client base that is exceedingly loyal. When it comes to social media, 40 percent of the world’s population relies on Facebook and other platforms. (WhatsApp, Instagram, and Messenger).

World’s Top Employers

Among all other businesses, including those outside of social media, Facebook’s HR standards are widely recognized as among the top ones. It is well known in business for attracting and retaining the best workers.

Visionary Management

It’s impossible for any other company in the world to match Mark Zuckerberg’s flawless and visionary leadership. When it comes to business culture and sustainability, Zuckerberg’s strategic vision has resulted in fewer internal wranglings among its ranks and management than most other organizations.

Emphasis on research and development

Success in the digital age necessitates technical advancement via research and development, irrespective of the industry. Facebook has boosted its R&D investment from $4.8 billion in 2015 to approximately $13.6 billion in 2019, which is 19 percent of its yearly sales. This makes it one of the world’s leading R&D spenders.

Exceptional Marketing Firm

Despite the fact that Facebook is the most well-known of the social media platforms, it makes the majority of its money through advertising. In 2019, the company made $69.66 billion, 98.5 percent of which came from advertising.

Facebook’s Weaknesses

Reliance on one source of income

Almost all of Facebook’s earnings are generated from advertising on its network. The number of new users is directly proportional to the increase in income. So, the company is vulnerable and depends on user growth, which will eventually be small because there are already so many people on the social network.

Low click-through rate (CTR) for advertisements.

In comparison to an ordinary website, Facebook’s CTR is only 0.05 percent and roughly 4 percent. Advertisements on wall postings have a CTR of more than 6%, so Facebook has to adjust the way it shows them in order to make more money from them.

Some features are missing

In some ways, social media is missing out on features. Video chats, group chats, hate buttons, and the option to unsubscribe from notifications are just a few of the things that Facebook does not yet offer that other social media sites have.

Attitude towards users’ privacy

Facebook obtains personal user information and then keeps, uses, or sells it for its own purposes or for the benefit of other businesses. Facebook’s popularity suffers as a result of this handling of users’ personal data.

Lack of website customization

To the extent that many people use Facebook frequently, they want the site to reflect their personalities. But they can’t alter it because Facebook uses a single design for all users. Google+, on the other hand, provides a great deal more customization of your social network profile than Facebook offers.

Weak protection of users’ information

Because of the large number of people who use Facebook to share details, the social media platform is frequently the target of cyberattacks aimed at stealing their passwords and other login credentials. Every day, hundreds of credentials are taken in these kinds of assaults. Facebook, on the other hand, isn’t doing enough to safeguard its users from identity theft.

Facebook’s Opportunities

The number of Facebook users who use social networks on their mobile phones and tablets is steadily rising.
Currently, the social media site has over 600 million monthly active users who access the social network via their mobile phones. Despite the fact that this demographic accounts for 60% of all users on Facebook, mobile advertising generates just 14% of the company’s revenue. In order to improve the revenue of the company, Facebook might build a platform for displaying advertisements to mobile users.

China’s expansion

As rules change and a new administration takes office, Facebook’s entry into China’s social media business may be easier. Facebook should be ready for such an entrance by then.

Expand sources of revenue

Despite the fact that Facebook is the second most popular website in the world and has more than a billion users worldwide, the company relies primarily on advertising to generate revenue.

Open the Facebook marketplace

Because of its massive user base and global reach, Facebook is in a good position to launch a Facebook marketplace. Success in this endeavour would generate more money than advertising, enhancing the growth of the business and its prospects for the foreseeable future.

Facebook’s Threats


Facebook’s user base is being threatened by rivalry from both established and emerging platforms. For Facebook, the future seems less and less bright as more innovators like TikTok offer specialized platforms aimed at younger generations. In order to compete with TikTok, it has introduced “Lasso,” a short, amusing video platform that lets users create and share films.

Duplicate & False Accounts

According to Facebook’s estimations, out of its 2.5 billion (December 2019) users, 11 percent may be duplicate accounts and 5 percent may be fraudulent accounts. Developing nations like the Philippines, Vietnam, and Indonesia are the primary sources of fake and counterfeit accounts.

Concerning data security, offensive content, and violation of intellectual property rights have caused the Department of Commerce’s several regulatory agencies to establish laws requiring Facebook to comply with new accountability and transparency standards. Facebook’s user base might shrink as a result of these regulations, since some of its consumers may decide to go to another social media network.

Apart from that, more than a few countries have implemented bans on this social medium. Regulations are being introduced in democracies to curtail the spread of false information that threatens democracy. Some authoritarian nations restrict Facebook access in an effort to curtail free expression.


Facebook’s SWOT analysis reveals that the firm is functioning well and has captured a substantial market share. However, leadership should think about things like the new regulation, hackers’ threats, data protection, and rivals like TikTok. The company’s performance could be in grave risk if it did not implement some brilliant changes.


Wikipedia (2013). Facebook, Inc. Accessible @:,_Inc.

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