PESTEL Analysis - Facebook

Extract

[...] PESTEL Analysis - Facebook I. Introduction A. Presentation of Facebook What started out as a small Harvard School social-networking platform has turned into what we know as Facebook today, who could have predicted what a global phenomena Mark Zuckerberg had created back in February 2004. At the age of just 23, Mr Zuckerberg was attending Harvard University studying psychology. Having developed a number of social networking websites such as Coursematch, which matched students taking the same degree, to Facemash which rated the attractiveness of people, he wanted to create a platform where people could stay connected. [...]

[...] With many countries being locked down for a period of time, these social networking platforms have enabled friends, families and businesses to stay connected. As lockdowns are lifted around the world, the new digital behaviours which have been adopted by many people may endure. This PESTEL analysis has shown that there are many areas in which the company can improve its performance, particularly in terms of its political and environmental factors failure to do so could come at a great cost. [...]

[...] Legal Mark Zuckerberg attended Harvard University with Divya Narendra, Cameron and Tyler Winklevoss. In September 2004 Narendra and the Winklevoss brothers founded ConnectU, a social networking website. Zuckerberg worked for them as a programmer and they later accused him of using their idea and copying their coding. In 2007 due to a technicality, the case was dismissed without a ruling. Data breaches are also a major issue for the company, the European Union has recently implemented heavy fines for companies who cannot comply with the new general data protection regulations or GDPR. [...]

[...] Economic Facebook has also become a business platform where companies are able to promote their products through paid-for Facebook adverts. The strong USD has, however, hindered the company, they have lost around $100 million in foreign currency exchanges over the past few years. Some countries with a large number of Facebook subscribers want the company to set up sub- offices. If the company does that it will have to hire local employees and, of course, then pay taxes in that country, which could amount to 100's of millions of additional costs for the company. [...]

[...] The report focuses on external variables such as political, economic, social or social-cultural, technological, legal and environmental factors which may influence their performance and brand image. II. PESTEL Analysis - Facebook A. Political Although this site was originally intended as a social media platform for family and friends to stay in touch, it has evolved and has become more and more political and offers a platform where government policies and corrupt practices can be discussed. Facebook has created a Political Action Committee which has connected millions of users around the world. [...]