Recommendation

Recommendation
Facebook Inc. has greatly benefited from its market position within the social media
business. Nevertheless, this analysis has highlighted numerous challenges that the firm must
address to maintain its profitability and growth in the industry. For instance, the issue of
privacy that has led to data leak of confidential information of the users and its over reliance
on advertising revenue. These challenges need strategic management initiatives to sustain the
organization’s status as attractive venue for the online communication and information
dissemination. Thus, the company should diversify its business to reduce the market risk
exposure while fully exploiting the plausible additional sources of revenues to ensure the
growth of its revenue. Also, Facebook should continue its research and development
investments
Another recommendation is that the company must continue its research and development
(R&D) investments to increase its capabilities in counteracting cybercrime that victimizes
users of social media services. The business must also continue its efforts in negotiating with
governments to open up markets where it currently has minimal or no presence.
1. I recommend that Facebook must diversify its business to minimize market risk
exposure while exploiting possible additional sources of revenues to keep the
organization growing.
2. Another recommendation is for Facebook Inc. to continue its research and
development (R&D) investments to increase its capabilities in counteracting
cybercrime that victimizes users of its social media services.
3. The company must also continue its efforts in negotiating with governments to open
up markets where it currently has minimal or no presence (China).
4. Optimization of Ads: Facebook has to give much time in testing the methods,
tweaking as well as for changing the functions in their commercial websites as well as
in the application. Analyzing the ads and providing these ads into the demographic
area based on preference Facebook can attract more attention of their customers. In
order to optimizing the ads, Facebook has to maintain some criteria such as Use of
accurate representation with image for drawing outline of products and service.
5. Campaigns Scheduling: Facebook has to setup their campaigning based on day or
week or month because time is the bug matter for people’s life. It will help in creating
biggest difference to Facebook Inc.
6. Budget Management: Facebook has to collaborate with their advertiser for bid or buy
per click during optimization of ads. This type of official statement for the maximum
bid will allows Facebook in managing their budget in other purpose because it the free
access site.
7. Result Tracking: Facebook has to measure the result with the Return on Investment
method and tracking the result. The solution of conversion tracking service helps in
recording information of each sale.
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