Meta's Vision and Mission Statements Analysis
Meta's Vision and Mission Statements Analysis
Comprehensive Exam
INTRODUCTION 4
VISION 6
CURRENT VISION STATEMENT: (META, 2021)........................................................................................................................................6
SUGGESTED VISION STATEMENT: ......................................................................................................................................................... 6
MISSION 6
ORIGINAL MISSION STATEMENT:.......................................................................................................................................................... 6
PROPOSED MISSION STATEMENT.........................................................................................................................................................6
SITUATIONAL ANALYSIS 8
EXTERNAL ENVIRONMENT ASSESSMENT................................................................................................................................................. 8
OPPORTUNITIES:............................................................................................................................................................................... 8
THREATS:........................................................................................................................................................................................ 9
EFAS........................................................................................................................................................................................... 10
PESTEL ANALYSIS.......................................................................................................................................................................... 12
PORTER’S FIVE FORCES (EXTERNAL MICRO-ENVIRONMENT).....................................................................................................................15
STRATEGIC ANALYSIS 24
SFAS ANALYSIS.............................................................................................................................................................................. 24
SWAT MATRIX.............................................................................................................................................................................. 25
TOWS ANALYSIS............................................................................................................................................................................ 26
QSPM......................................................................................................................................................................................... 28
IMPLEMENTATION 31
1- INNOVATION STRATEGY.........................................................................................................................................................32
Strategic objective: 32
Tactical (annual) objective: 32
IMPLEMENTATION MATRIX FOR INNOVATION STRATEGY.........................................................................................................................33
2- PRODUCT/SERVICE DEVELOPMENT STRATEGY............................................................................................................................36
Strategic objective 36
Tactical (annual) objective 36
IMPLEMENTATION MATRIX FOR PRODUCT/SERVICE DEVELOPMENT STRATEGY............................................................................................37
EXECUTIVE SUMMARY 44
REFERENCES 46
3
Introduction
Meta (previously known as Facebook Inc.) is the global social media giant. It is one of the
Big Five global technology companies among Amazon, Apple, Google, and Microsoft. Meta
is the world’s largest social media company with over 2.91 billion monthly active users as
per the last media release for Q3 2021. Besides its huge social media platforms, Meta owns
and operates several other big-name companies, such as Instagram, WhatsApp, and Oculus,
under it as a parent company.
Meta also has an amazing work environment, known by its strong culture where game days,
weekly Q&A sessions with CEO Mark Zuckerberg, and chocolate fountains are the norm.
Despite the COVID-19 pandemic, in 2020, the company grew its workforce to more than
50,000 about 25% increase.
Supporting this workforce is a matrix organizational structure that has been adapted to suit
the needs of the company’s varied information technology and Internet operations.
In late October 2021, Facebook Inc., the parent company of the social media website that
shares the same name, announced that it would be rebranding with immediate effect to
‘Meta’.
According to Mark Zuckerberg, Meta brings together Facebook Inc’s entire family of apps
and technologies under a new brand. Meta will focus on bringing the so-called “metaverse”
to life and help people connect within it.
It’s worth noting that this rebrand is just that–a rebrand. While Facebook Inc. has changed its
name to Meta, everything else is staying the same; the company has reported that there will
be no changes to its operations or organizational structure except for how its financials are
[Link] only change besides the name is that beginning from the fourth quarter of 2021,
the company will implement a new financial reporting structure with the following
segments:
Family of Apps (FoA), which includes Facebook, Instagram, Messenger, WhatsApp
and other services.
4
Facebook Reality Labs (FRL), which includes augmented and virtual reality related
consumer hardware, software and content.
5
Vision & Mission Statements
Vision
Current vision statement: (Meta, 2021)
The company’s vision is good since it is futuristic and inspiring. we also suggest a new
vision statement:
“To give people the power to build community and bring the world closer together” (Meta,
2021)
Proposed Mission Statement
The mission statement must include as much as possible of the following components to be
effective:
1. Customers.
2. Products or services.
3. Markets.
4. Technology.
5. Concern for survival.
6. Philosophy.
7. Self-concept.
8. Concern for public image
9. Employees.
The current mission statement includes only three components of the nine which the ideal
corporate mission statement should include. It includes the customers however it did not
mention the businesses. It also mentioned the intended target market and the service it
provides but did not include the rest.
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The suggested mission statement is rephrased to include all the nine components as
following:
“To give people and businesses (1) the power to build community (2) and bring the world
closer together (3) in socially responsible way (8), believing in everybody’s right to freely
express himself (6). And to be the world’s most profitable multinational social service
provider (5), utilizing the latest innovative technology, research and development (4), by
the help of our highly skilled team members (9) to make the best use of our unprecedented
reach and our huge members base (7).”
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Situational Analysis
External environment assessment
Opportunities:
8
Threats:
1- Privacy Violation and Cybercrime: Data breaches, security failures and fake identities
if not treated and contained will make the users distrust the company’s security
measures and eventually will stop using the platforms.
2- In 2019, about 267 million Facebook user’s data (addresses, names and mobile
numbers) was was breached in 2019.
3- Strong Competition: Despite the fact that the Meta is a social media king, but it has
very strong competitor in the advertising business from many sources and alternatives
such as the technology giant Google with YouTube. And, TikTok with its increasing
popularity, besides other online streaming companies like Netflix. The gaming business
also consider a strong competitor as an alternative for business advertising.
4- Imitation: The company’s platforms and business model are easy to be imitated by
other companies and developers.
5- Increasingly saturated market may lead to the plateau of market growth. So that will
affect the company’s revenue if no products are added or diversifying its portfolio with
other businesses.
6- Slow growth rate of social media advertising. Despite the relative increase than the
expected rate affected by. The Covid-19 pandemic, it decreased from 26.9% in 2019 to
18.3% in 2021 till ow and expected to decrease to 16.6% in 2022 (Businessofapps,
2021)
7- Increasing internet regulation and online data, where governments are increasingly
working to limit online data collection, sharing, and processing. This resulted from the
data scandal of the Cambridge Analytica and related issues in 2018. Meta’s platforms
face an increasingly strict level of regulations in many areas such US, Canda, Australia
and E. This regulatory pressure can hinder the company’s growth.
8- Bans in conservative countries such as China and North Korea and Iran, these bans are
limiting the company’s reach to these areas.
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9- Increasing digital taxes and tolls: UK and Europe are imposing these taxes wich will
affect the company’s profit. And more countries will join the club, where Canada will
apply digital taxes on Facebook starting from 2022
10- Image and reputation crisis, increasing pressure and rumors around the unethical usage
of the collected data, such directing or promoting for one political party or movement
on the cost of the others and manipulate people perception. If this issue escalated, it
would lead into millions of users stop using Meta platforms.
EFAS
The weight is ranging from 0.0 (low importance) to 1.0 (high importance). While the rating
is ranging from 4 to 1, where 4 for (superior response), 3 (above average response), 2
(average response) and 1 (poor response).
EFAS
Weighted
Factors Weight Rating
Score
Opportunities
Increasing the advertising revenue by
enhancing mobile based advertising and 0.1 4 0.40
marketing
Expansion to China by negotiating with the
0.07 2 0.14
new elected government
10
Privacy Violation and Cybercrime 0.08 3 0.24
Strong Competition 0.07 4 0.28
Imitation of the company’s platforms and
0.05 3 0.15
business model platforms and business model
Increasingly saturated market may lead to the
0.06 2 0.12
plateau of market growth
Slow growth rate of social media advertising 0.02 2 0.04
Increasing internet regulation and online data 0.03 1 0.03
Bans in conservative countries such as China
0.04 2 0.08
and North Korea and Iran
Increasing digital taxes and tolls 0.03 2 0.06
Image and reputation crisis 0.05 3 0.15
Sub Total 0.43 1.15
Total 1 3.01
The company’s total score is 3.01 which is above average indicates that the company is in
good position to catch the opportunities and avoid the threats and reflect the company’s
ability to respond to the external factors.
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PESTEL Analysis
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patented services from
imitation with the expectation
of legal protection.
Increasing regulatory support
for free Wi-Fi, as the
regulations is encouraging for
the company’s reach to these
more access to internet. Where
areas.
the worldwide number of
Increasing internet regulation on
internet users continue to
online data, where governments
grow. And the internet
are increasingly working to limit
penetration in the developed
online data collection, sharing,
countries is above 90 percent
and processing. This resulted
(Statista, 2021).
from the data scandal of the
Internet regulation in China
Cambridge Analytica and related
and North Korea, is consider
issues in 2018.
an opportunity and threat,
where if it resolved by
negotiation with these
governments will open a
massive market for the
company.
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Porter’s Five Forces (external micro-environment)
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Competition is not only from social platforms that compete over attracting users, but
also from companies that offer the same targeted advertising and also from app
developers who allow apps on their apps and gamming sites and applications.
The social networking market is very competitive. Meta, has many other players such
as Twitter, Google (YouTube) , LinkedIn, Snapchat, Tik-Tok, Yammer, Myspace, etc.
There are variety of competitors who are focusing on niche markets as hundreds of
niche social networking sites and mobile apps which could strongly affect Meta’s
platforms user base growth and revenues. For example, LinkedIn which focusing on a
professional network and becoming the go-to place for professionals, job seekers and
employers with millions of members.
There are also competition from regional social networks, such as, Mixi in Japan,
vKontakte in Russia, etc., these platforms compete with FB for user attractions in their
respective geographies.
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Threat Of New Entrants: (Moderate)
However the barriers to enter the social networking market are low and relatively easy
to build an online site or application, Meta company has an advantage of its huge users
base which is also not easy to be mimicked unless the new company has the marketing
ability and recourses required to attract users and build brand image and for that
reason the barrier is increased a little bit.
The continuously increasing niche-focused social networking sites is threatening the
company’s growth.
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1. Large active users base: Meta has unprecedented users base with a 3.51 billion users
which increase its appeal to the businesses and marketers. Meta’s social platforms has an
active users reach of 2.91 billion monthly as of the third quarter of 2021 making it the
biggest social network worldwide( (Statista, 2021)
2. Massive database which provides value to the advertising business. This data is crucial
for advertising since it can show user preferences and behaviors which give Meta a
competitive advantage that is hard to replicate.
3. Powerful advertising and marketing approach: Due to the massive data base it has and its
unique ability in customer targeting the company attracts a very large number of
advertisers. The major income source for Meta is advertising, with 28.2 billion dollars of
revenue came from advertising in the third quarter of 2021 which is 56% higher
comparing to the same period last year with gross profit margin if 81% (Statista, 2021)
(WSJ, 2021).
4. Strong market position: As of 2020, Meta had 59% of all the social media users which
puts it as the leading social platform (emarketer, 2021), the large popularity of the social
network of Meta with nearly 3.51 billion people using Facebook, gives it a strong
competitive position in the advertising industry.
5. Focus on R&D and technological innovation: The company has a strong technical
research and development team and it focus on technologivcal innovation and spend
most of the revenue on r&d. In 2020,Meat increased its investment in R&D from $13.6
in 2019 to 18.45 billion (Statstic, 2021)
6. High revenues, fast revenue growth and high profit margin: Driven by the increase in the
users base and technological innovation, the company has a solid growth in revenues in
recent years. Meta revenue has more than trebled increase in the last five years from
27.54 billion dollars in 2016 to $85.97 billion dollars in 2020. With an increase in the
revenue in 2020 by 22% comparing to the previous year with a net income of 29.15
million dollars in 2020 comparing to 18.5 billion dollars in the previous year. (Statista,
2021)
7. Imaginative Leadership: Mark Zuckerberg is a visionary leader with an imaginative
mindset, unlimited ambition and great management and leadership style
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8. Innovative workforce and workplace culture: Meta has a globally appreciated HR polices
and workplace environment which help attracting calipers and best professionals in the
industry and contribute to the innovativeness of the company.
9. Expanded advertising portfolio: Meta company diversified its advertising portfolio
where it extended away from Meta platform to own many popular applications and
platforms and companies such as Instagram, WhatsApp, Messenger, Workplace, Calibra,
Portal and Oculus. Which some of them can be added to the advertising business and
some can be integrated with the social networking to create new innovations.
[Link] user experience and understanding: due to the integration between applications
and website and the integration between some of its plateforms like Facebook
WhatsApp, and Instagram, which enrich the user experience.
Weaknesses:
1- Weak protection of user’s data: Meta has been struggling with user privacy related issues
for years. And despite the company’s announcements that these problems are tackled,
data breaches and information leakage incidents keep happening. Many users stop using
the platforms each time new scandal go public, for example the company lost 15 million
users in 2017 due to privacy issues related scandal.
2- Low business diversification: Meta company’s revenue is mainly depending on
advertising with 97.9 % of its revenue from advertising which increase market risk
exposure. In 2020, its advertising revenue was 84.2 billion dollars out of 86 billion
dollars of total revenue (Fortune, 2021).
3- Impacted brand image due to the attitude and practices towards users’ privacy: The Meta
is accused of collecting users’ privet information and storing it and using it for its own
purposes or sells it. Such speculations draw negative attention that damage the brand
image and decreases popularity of Meta’s platforms. The users are much more skeptical
as to which privacy policies they agree with.
IFAS:
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The weight is ranging from 0.0 (low importance) to 1.0 (high importance). While the Rating
is ranging from 1 to 4 where 4 means (major strength), 3 (minor strength), 2 (minor
weakness) and 1 (major weakness).
IFAS
Weighted
Factors Weight Rating
Score
Strengths
Large active users base 0.1 3 0.3
Massive database which provides value to the
0.1 4 0.4
advertising business
Powerful advertising and Marketing Approach 0.06 3 0.18
Strong market position 0.09 3 0.27
The company’s score is 2.85 which is above the average score of 2.5 meaning that company
is strong against its competitors.
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The inbound logistics of Meta include technologies, hardware/equipment, and office
supplies. The online content is the main resource to attract customers this content includes
the personal information and activity uploaded and shared by the users. Regarding the
company’s operations, it owned30 offices around the world. The use the local language for
each country for communication with users. Meta’s outbound logistics focus on content or
information creation via different sources and platforms. For sales and marketing, Meta has a
powerful mix to attract more customers and meet the needs of users. Regarding to service,
the company has a Customer Support team that analyze and respond to the needs of diverse
customers.
The abovementioned value chain analysis showed that the company can use its capabilities
(human, financial, technological resources) to create value through different activities. By
acquiring Whatsapp and Instagram company’s ability to provide the “service” and
“Marketing and sales” functions has been improved. Also, its ability to analyze user’s
information and preferences to make money support its outbound logistics and operations.
Meta’s assets can also be used to support its inbound logistics. Its ability to design
competitive models and acquire the right advertisers and marketers can improved to enhance
its marketing and sales operations, improve its services, and eventually increase profitability.
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Meat uses a matrix org structure. Which is characterized by its ability to facilitate a creative,
innovative environment and provide the ability for organizational expansion and diversity.
Meta’s organizational structure consists of three divisions:
1- Corporate function-based division/teams
2- Geographic divisions
3- Product divisions
1- Corporate function-based divisions/teams
Meta has many divisions and teams specialized in main critical functions through the
organization based on the business need.
The matrix structure of Meta makes the function teams to crossover with the product and
geographic teams. So for example, the finance team will work with the product divisions and
their own finance managers.
Here are Meta’s function-based teams:
C-level executives
Finance
Operations
Information
Technology
Accounting
Privacy
Security
Marketing
Legal
Business & Marketing
Global Public Policy
Investor Relations
Product Management
Human Resources
2- Geographic divisions
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Another major element of Meta’s organizational structure are the geographic divisions. It’s
divided into four divisions to consider the different social media attitudes and cultures.
Which enable it to address the behavioral differences in its vast and diverse users. Also it
decentralize some functions to be performed regionally rather than globally such as human
recourses and accounting.
Four geographic divisions are included in Meta’s organizational structure:
North America
Latin America
Europe, Middle East & Africa
Asia & South Pacific
The geographic divisions are managed by a regional management team reporting to the
corporate operations and executive teams.
3- Product divisions
Despite that Meta’s operations are focused on social networking service in its core, however
the company incorporates product divisions into its organizational structure.
Meta has three product divisions:
Family of social platforms and Apps (Instagram, WhatsApp, Messenger, etc.)
New Platforms and Infrastructure (AI, virtual/augmented reality, blockchain)
Central Product Services (ads, security, growth)
Strategic Analysis
SFAS Analysis
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SFAS
Weighted
Factors Weight Rating
Score
Opportunities
Increasing the advertising revenue by enhancing
0.04 4 0.16
mobile based advertising and marketing
Increasing preference and need for higher quality 0.04 4 0.16
Increasing in the global technological advancement,
innovation, and technological knowledge among 0.065 4 0.26
people.
Economic stability increase and rapid economic
growth and disposable incomes increase in developing 0.05 3 0.15
countries
Improving patent and product protection laws
0.05 2 0.1
worldwide
Threats
Strong Competition 0.065 4 0.26
Privacy Violation and Cybercrime 0.065 3 0.195
Imitation of the company’s platforms and business
0.05 3 0.15
model platforms and business model
Image and reputation crisis 0.065 3 0.195
Increasingly saturated market may lead to the plateau
0.04 2 0.08
of market growth
Strengths
Massive database which provides value to the
0.06 4 0.24
advertising business
Focus on R&D and technological innovation
0.065 4 0.26
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Impacted brand image due to the attitude and practices
towards users’ privacy 0.06 2 0.12
Total 1 3.01
SWAT Matrix
Strengths Weaknesses
High revenues, fast revenue growth and
high profit margin • Impacted brand image due to the
Focus on R&D and technological attitude and practices towards users’
innovation privacy
Massive database which provides value • Weak protection of user’s data
to the advertising business • Low business diversification
Strong market position
Large active users base
Opportunities Threats
Increasing in the global technological Strong Competition
advancement, innovation, and Privacy Violation and Cybercrime
technological knowledge among Imitation of the company’s platforms
people. and business model platforms and
Increasing the advertising revenue by business model
enhancing mobile based advertising Image and reputation crisis
and marketing Increasingly saturated market may lead
Increasing preference and need for to the plateau of market growth
higher quality
Economic stability increase and rapid
economic growth and disposable
incomes increase in developing
countries
Improving patent and product
protection laws worldwidel
TOWS Analysis
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Strengths Weaknesses
S1- High revenues, fast revenue W1- Low business diversification
Internal factors growth and high profit margin W2- Weak protection of user’s
S2- Focus on R&D and data
technological innovation W3- Impacted brand image due to
S3- Massive database which the attitude and practices towards
External Factors provides value to the advertising users’ privacy
business
S4- Strong market position
S5- Large active users base
technological advancement, (S1, S2, S3, S4, S5, O1, Q2, O3) (W1, O1, O3, O4, O5)
Product/Service Development Innovation Strategies
innovation, and technological
By using the R&D and financial Providing new innovations of
knowledge among people. product/service where the
capabilities to add new features to
O2- Increasing the advertising company will take advantage of
the platforms to satisfy the
being the first mover and place the
revenue by enhancing mobile
increasing need for higher quality company within the current
based advertising and marketing innovation trends of the industry.
services and to upgrade the
O3- Increasing preference and And will help in removing the
application to increase the mobile-
obstacles that the bad brand image
need for higher quality
based advertising revenues. is putting in the way of exploiting
O4- Economic stability increase the opportunity of technological
and rapid economic growth and advancement, the increasing
(S1, S3, S4, S5, O4 O5)
disposable incomes increase in Market Penetration preference for higher quality,
improving patent laws and
developing countries By using the financial capabilities,
financial capabilities in
O5- Improving patent and product R&D and database in promoting developing countries.
protection laws worldwide to increase our market share in the (W1, W3, O1, O2, O3, O4, O5)
developing countries. Related diversifications
Providing new product/service
related to the main industry to
diversify the business portfolio
and reduce the risk of exposure
and also to enhance the reputation
by the introduction of the new
product/service which will enable
the company to exploit all the
opportunity.
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(W2, W3, O1, O2, O3, O4, O5)
Product/Service Development
By enhancing the protection and
security features of the platforms
will help in enhancing the brand
image and these two factors are
negatively affecting the ability of
the company to exploit any of the
available opportunities.
T2- Privacy Violation and (S1, S2, S3, S4, S5, T1, T3, T5) (W1, W3, T1, T3, T4, T5)
Related diversifications Related diversifications
Cybercrime
By using the financial capabilities, Providing new product/service
T3- Imitation of the company’s R&D and database to introduce new related to the main industry to
platforms and business model product/service related to the main diversify the business portfolio
T4- Image and reputation crisis industry which will reduce the
and reduce the risk of exposure
T5- Increasingly saturated market imitation risk, give the company
and also to enhance the reputation
may lead to the plateau of market chance to avoid the damage of bad
by the introduction of the new
growth reputation, and will be the first
product/service and strengthen the
mover in this area which will avoid
the market saturation threat.
company’s position against threat
of competition, imitation, future
(S1, S2, S3, T1, T2, T3)
reputation damage and market
Product/ Service Development
saturation.
To use the R&D and financial
capabilities to add new features that
will give the company a competitive
advantage over the competitors and
make it harder for newcomers to
imitate the service. And also to
upgrade the security measures of the
platforms against cyberattacks which
will protect the company from future
reputation damage.
QSPM
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Product/Service Market Related
Development Penetration Diversifications Innovation
Key Factors Weight
A TA A TA A TA A TA
Strength
Focus on R&D and technological innovation 0.1 3 0.3 2 0.2 3 0.3 4 0.4
High revenues, fast revenue growth and high
0.1 2 0.2 3 0.3 4 0.4 3 0.3
profit margin
Imaginative Leadership 0.04 1 0.04 2 0.08 3 0.12 3 0.12
Innovative workforce and workplace culture 0.03 3 0.09 2 0.06 2 0.06 4 0.12
Excellent user experience and understanding 0.08 4 0.32 3 0.24 3 0.24 3 0.24
Weakness
Sum Weight 1
Opportunities
Increasing the advertising revenue by
enhancing mobile based advertising and 0.1 4 0.4 3 0.3 1 0.1 1 0.1
marketing
Expansion to China by negotiating with the
0.07 2 0.14 1 0.07 1 0.07 1 0.07
new elected government
Economic stability increase and rapid 0.08 2 0.16 3 0.24 2 0.16 3 0.24
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economic growth and disposable incomes
increase in developing countries
Increasing preference and need for higher
0.1 3 0.3 1 0.1 2 0.2 3 0.3
quality services
Improving patent and product protection laws
0.08 1 0.08 1 0.08 2 0.16 1 0.08
worldwide
Increasing in the global technological
advancement, innovation, and technological 0.1 3 0.3 1 0.1 2 0.2 4 0.4
knowledge among people.
Threats
Increasing internet regulation and online data 0.03 1 0.03 1 0.03 2 0.06 1 0.03
Bans in conservative countries such as China
0.04 1 0.04 1 0.04 1 0.04 1 0.04
and North Korea and Iran
Increasing digital taxes and tolls 0.03 1 0.03 1 0.03 3 0.09 1 0.03
Sum Weight 1
Based on total attractiveness score: Innovation strategy has the highest score (5.75) followed
by Product/service Development (4.99), Related Diversification (4.94), then Market
Penetration (3.88).
Our strategic mix will consist of the two strategies with the highest attractiveness score which
is Innovation strategy (5.75) as a priority followed by Product/service Development (4.99).
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Innovation Strategy is an intensive strategy to grow market share or profits through product
and service innovation. And for the company to implement this strategy, it must focus heavily
on research and development.
Providing new innovations of product/service the company will take advantage of being the
first mover and place the company within the current innovation trends of the industry using its
R&D capabilities and competencies. And also, will help in removing the obstacles that the bad
brand image is putting in the way of exploiting the opportunity of technological advancement,
the increasing preference for higher quality, improving patent laws and financial capabilities in
developing countries.
Our second strategy is Product Development Strategy which is an intensive strategy refers to
the methods and actions used to bring new products to a market or modify existing products to
create new value. And the company should focus on market research and careful product
concept planning. By using the R&D and financial capabilities to add new features to the
platforms to satisfy the increasing need for higher quality services and to upgrade the
application to increase the mobile-based advertising revenues. And, by enhancing the
protection and security features of the platforms will help in enhancing the brand image and
these two factors are negatively affecting the ability of the company to exploit any of the
available opportunities. And, to upgrade the security measures of the platforms against
cyberattacks which will protect the company from future reputation damage.
Implementation
To guarantee a higher possibility of organization’s success and to make sure that our strategic
mix is properly implemented, each strategy should be translated and deescalated to firstly
strategic objective, tactical objective, then operational objectives and should be clearly
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communicated among involved stakeholders.
The implementation stage starts with setting a SMART objective and should be represented in
the normal hierarchy of objectives. Our objectives will be divided into three levels as
mentioned before which are strategical objectives, tactical objectives (annual) and operational
objectives. Identifying SMART objectives to ensure that the objectives are doable and not
exceeding the organization’s capabilities.
1- Innovation Strategy
Our first strategy in our strategical mix is innovation strategy where we use product and service innovation to
grow market share or profits:
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Strategic objective: Creating 30% increase in the company’s net profit from new innovative
products/services by 2024.
Tactical (annual) objective: Creating 10% increase in the company’s net profit from new
innovative products/services per year.
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Strategy 1: Innovation Strategy
Strategic Objective: Creating 30% increase in the company’s net profit from new innovative products/services
by 2024.
Tactical (annual) objective: Creating 10% increase in the company’s net profit from new innovative
products/services per year.
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• Perform two market survey • Effectiveness of market
campaigns to constantly follow up research to identify
the customer needs and find any customer segments and
• Study and analyze the
unmet needs and customer needs
customers unmet needs.
preferences • How many markets survey
and what segments of
• Conduct five marketing campaigns campaigns has been
customers exist with
to promote for the new products performed?
different unmet needs.
and enhance the company’s market • How many marketing
Business & • Accomplish 50% sales
position, two of them will use campaigns to promote for
Marketing revenues of the total
celebrities. the new products?
company’s revenue from
• Developing short attractive videos to • The percentage of the sales
the innovative products.
formalize the users of the new revenue caused by the new
• Rebrand Meta as an
products and their advantages products.
integrated social
• Performance tracking of the ongoing • Effectiveness of developing
networking company
campaigns to ensure that any a good brand image and
correction action is taken properly. reputation
• Customers’ loyalty
• Market position
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• Number of research and
• Ensure a robust and effective
development activities
communication with the marketing
leads to product and
• Develop and create new and operations teams
process innovations
breakthrough ideas and • Conduct regular brainstorming
• Communication and
products to contribute by meeting to suggest new ideas to
relationships quality
Technology 10% of the total work on
between R&D personnel
(R&D) company’s portfolio • Develop and support a creative
and other departments
• Develop and improve the workplace and healthy culture that
• Quality of laboratories and
current services and encourage cooperation and
other facilities
products creativity and innovation
• How experienced and
• Implement the latest scientific
qualified is the R&D
research techniques
laboratory technicians and
scientists
• Assure on following the
privacy policies and
• Conduct regular meeting to discuss
procedures agreed on
the reported issues and propose • Number of complains
with both users and
ways to fix them about privacy or security
Privacy & clients
• Review the existing polices and issues
Security • Develop and update more
security measures for any possible • Number of cyberattacks
secured and strict
breaches • Number of fixed issues.
measures and procedures
•
to protect users from
cybercrime and attacks
35
2- Product/service Development Strategy
Our second strategy in our strategical mix is Product/survive Development strategy which is an
intensive strategy refers to the methods and actions used to bring new products to a market or
modify existing products to create new value. And the company should focus on market
research and careful product concept planning.
Strategic objective: 21% increase of the company’s market share by developing and
modifying the current products/services by 2024.
Tactical (annual) objective: 7% annual increase of the company’s market share by developing
and modifying the current products/services.
36
Implementation Matrix for Product/service Development Strategy
37
• Reduce the stakeholders’ dividends
and giveaways to reassign it for R&D
• Increase the budget of the • Update a budget proposal and
marketing department by financial plan for the Marketing and
• The percentage of
35% Technology (R&D) department
Marketing budget increase.
• Increase the financial • Develop the financial policies and
Finance • Percentage of increase
allocation of the regulations to ensure budgetary
of Technology (R&D)
Technology (R&D) modification are applied and
departments’ budget.
department by 10 % of tracked.
their current budget. • Measure and track the current
budget effectiveness to spot any gap
in need for modification.
• Perform three market research • The percentage increase of
projects to decided which the market share.
product/service need to be • Number of market
• Research the market to developed research projects
decides which products • Conduct three marketing campaigns performed
and services need to be to promote for the new products/ • Number of markets survey
modified services updates to increase the campaigns has been
• Market and promote for company’s reach by 15% of the performed
the updated market and enhance the company’s • Number of marketing
Business & products/services to market position will use celebrities campaigns to promote for
Marketing increase the market share in the promotion campaigns. the new features.
by 7%. • Perform two market survey • Customers’ loyalty
• Study and analyze the campaigns to constantly follow up • Market position
customers unmet needs. the customer feedback and find any • Effectiveness of enhancing
and what segments of unmet needs and customer a good brand image and
customers exist with preferences reputation
different unmet needs. • Developing short attractive videos to • Effectiveness of market
formalize the users of the new research to identify
updates and added features and customer needs
their advantages. •
• Performance tracking of the ongoing
38
• Recruit new employees
• Recruit 5 new calipers to join
and calipers for the
marketing team
Marketing and
• Conduct 2 training programs for the
(Technology) R&D
marketing department
departments • Number of training
• Conduct four meeting to assess and
• Train the Marketing team programs
propose modifications in the
for latest marketing • Number of new recruited
Marketing and Technology (R&D)
research tools and employees
departments to adapt with the new
techniques • How appropriate the
strategy
• Reassess the reward system in
Human • Modify the current organizational
organizational design of motivating employees?
Resources chart to accommodate the proposed
the Marketing and • Recruiting, training, and
changes in Marketing and
Technology (R&D) promoting process
Technology (R&D) departments
departments. effectiveness.
• Design a set of reward programs to
• Attract and calipers to join • Absenteeism and turnover
encourage employees to meet their
different department to rate.
targets
assist in innovative • Employee motivation and
• Asses the employees’ need for
strategy implementation job satisfaction
training on areas of creative thinking
• Encourage and reward for
and idea creation and provide
creativity and new
training as needed.
accomplishments
• Increase the effectiveness
• Conduct regular performance
of information collecting • Number and quality of the
tracing meeting to discuss current
Information and analyzing to provide reports to the operations
performance and ways to enhance it
the customer with a and Technology
• Buy the latest data analysis tools in
precise and more effective departments
the market
add targeting mechanism
• Study and analyze the current • Number of research and
product/services and modify and development activities
• Update and modify the upgrade them leads to product and
current products/services • Conduct regular brainstorming process modifications or
to fix any reported meeting to suggest new ideas to feature release
problems work on • Communication and
• Update and add new • Ensure a robust and effective relationships quality
Technology
features to the existing communication with the marketing between R&D personnel
(R&D)
products/services to keep and operations teams and other departments
the user engaged • Develop and support a creative • Quality of laboratories and
• Develop and improve the workplace and healthy culture that other facilities
current services and encourage cooperation and • How experienced and
products creativity and innovation qualified is the R&D
• Implement the latest scientific laboratory technicians and
research techniques scientists
39
• Develop and update more
• Upgrade the security of the current
secured and strict
products/services
measures and procedures
• Conduct regular meeting to discuss • Number of complains
to protect users from
the reported issues and propose about privacy or security
Privacy & cybercrime and attacks
ways to fix them issues
Security • Ensuring on following the
• Review the existing polices and • Number of fixed issues.
privacy policies and
security measures for any possible • Number of cyberattacks
procedures agreed on
breaches
with both users and
•
clients
40
Evaluation and control mechanisms
Evaluation and control are very critical processes to be performed. To guarantee that our suggested strategic
mix is implemented properly, we should control and evaluate the implementation process.
And to strategically control the implementation processes we should keep tracking and comparing or actual
performance with the planned objectives to spot and detected any deviations then assess if it is within the
allowed deviation limit or not. After that, any deviations outside the allowable limit should be investigated
to know the root causes for such deviations and suggest correction actions to prevent repeating it in the
future. While in the evaluation process we compare our performance with the industry standards, but in our
case, we are the market leader so we will compare our performance with the targets we set.
To control and evaluate the performance, we should keep an eye on the KPIs mentioned beside each
operational objective and compare the actual performance to the planned objectives in terms of the
prementioned KPIs. We also suggest using the following balance score cards to evaluate the organization’s
performance:
41
Increase
operational
and R&D Number
staff Training 9 of
programs training 3 3 3
Programs
program
Learning
&
Growth To
support at
To have least 6
extremely members Number of
knowledgeabl of R&D employees
e and skilled departmen supported
employees 2 2 2
t to to acquire
and scientists acquire the next
in research their next degree.
and degree
development MSc or
PhD.
42
Superior number of
Product New
features new
Functionality 3 3 3
Process features
and continuous offered
product/service offered
9
s development
Increase
Learning Marketing Number
& staff 6 of
Growth Training programs training 2 2 2
Programs program
43
Executive summary
This study started by stating and criticizing the old vision and mission of Meta then
suggesting new vision, mission. Then the external macro environment analysis was
performed using PESTEL tool to state the opportunities and threats regarding each of the
following categories: Political, Economic, Societal, Technological, Environmental and
Legal. Then EFAS tool was used to give the pre stated opportunity and threats rate and
weight to give them a relative importance. Then the external micro environment was
analyzed using Porter’s five forces model. And finally, the internal environment was
analyzed by stating the strengths and weaknesses of Meta and using IFAS tool to give
weights and rating to prioritize and recognize the most important or key strengths and
weakneses, then the value chain analysis was performed. And to wrap up the external and
internal analysis SFAS was used to highlight the most important factors of EFAS & IFAS
and paving the way for the Strategical analysis. According to EFAS and IFAS, the most
important factors were as follows:
(S) High revenues, fast revenue growth and high profit margin
(S) Focus on R&D and technological innovation
(S) Massive database which provides value to the advertising business
(S) Strong market position
(S) Large active users base
(W) Impacted brand image due to the attitude and practices towards users’ privacy
(W) Weak protection of user’s data
(W) Low business diversification
(O) Increasing in the global technological advancement, innovation, and technological
knowledge among people.
(O) Increasing the advertising revenue by enhancing mobile based advertising and marketing
(O) Increasing preference and need for higher quality
(O) Economic stability increase and rapid economic growth and disposable incomes increase
in developing countries
(O) Improving patent and product protection laws worldwidel
(T) Strong Competition
44
(T) Privacy Violation and Cybercrime
(T) Imitation of the company’s platforms and business model platforms and business model
(T) Image and reputation crisis
(T) Increasingly saturated market may lead to the plateau of market growth
Starting with the SWOT matrix compiling the most important external and internal factors
and TOWS analysis by paring SO, WO, ST, WT which resulted in the initial suggestion of
the strategies recommended to be used.
Finally, the QSPM was used to identify and weight the attractiveness of each suggested
strategy. Based on total attractiveness score: Innovation strategy has the highest score
(5.75) followed by Product/service Development with score of (4.99), then Related
Diversification with score of (4.94), and lastly Market Penetration with score of (3.88). Our
suggested strategic mix is to implement the highest two strategies in attractiveness score
which is Innovation Strategy and Product/service Development strategy. The proper
implementation of the chosen strategy is a success factor of the organization. So, each
strategy was translated into strategic objective with a time frame of three years and tactical
(annual) objective, then the implementation matrix was formulated to state the operational
objectives, polices and actions needed from each department. And to evaluate and control
the implementation process we recommended KPIs for each operational objective and
balanced score card for each strategy in our strategic mix.
45
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Political support for globalization provides Meta with opportunities to expand its advertising network for global businesses, enhancing revenue potential . However, political bans and restrictions in countries like China and Iran constrain growth by limiting access to large user bases, necessitating strategic flexibility and innovation in unpenetrated markets . Balancing these dynamics requires Meta to pursue diplomacy and investments in compliant technological frameworks to navigate geopolitical constraints effectively .
Technological advancement equips Meta with the tools to enhance its service offerings and operational efficiency, thus capitalizing on opportunities like improved mobile advertising and user engagement . By leveraging advanced technologies, Meta can develop new features, streamline operations, and address security concerns, reducing threats of cybercrime and imitation. Additionally, technological innovation allows Meta to diversify its service portfolio, ensuring resilience against market saturation and intense competition .
An image and reputation crisis poses a significant threat to Meta's business model due to increased scrutiny and distrust regarding the ethical use of collected data . Allegations of unethical practices, such as bias in political promotions, can provoke public backlash and result in users leaving the platform. This not only decreases user engagement and data availability for targeted advertising but also attracts regulatory interventions that could further hinder operational flexibility and profitability .
Increasing digital taxes and tolls can significantly impact Meta's financial performance by increasing the cost of doing business in affected jurisdictions . Such fiscal measures reduce profit margins and could necessitate strategic adjustments, like optimizing cost structures or shifting strategic focus to markets with less fiscal burden. This also prompts Meta to advocate for favorable policies or adjust pricing strategies to mitigate any adverse financial effects .
Meta can leverage economic growth in developing countries through strategies like market penetration and product localization to align with local user needs and preferences . By investing in marketing and developing partnerships with local businesses, Meta can tailor services that complement the digital and socioeconomic landscapes. Additionally, enhancing mobile-based advertising and introducing cost-effective solutions can entice a broader user base, increasing engagement and expanding revenue streams .
Improving patent and product protection laws worldwide can benefit companies like Meta by safeguarding their innovations and proprietary technologies from imitation . This legal protection enhances the value of Meta's R&D investments by ensuring a competitive edge in launching unique features and services without immediate duplication by competitors, thereby supporting sustained market leadership and profitability .
Privacy violations and incidents of cybercrime can severely undermine user trust in companies like Meta. Data breaches can expose sensitive user information, leading to skepticism about the company's security measures and potential user attrition. This distrust can result in users abandoning the platform, significantly impacting Meta's user engagement and advertising revenue . The repercussions can also manifest in enhanced regulatory scrutiny, necessitating increased investments in cybersecurity measures .
Economic stability and growth in developing countries increase their residents' disposable incomes, which expands the potential user base for internet services and devices . This market growth can enable businesses like Meta to enhance their market penetration and revenue by targeting these markets with localized services and advertising that cater to higher quality preferences, thus capitalizing on improvements in living conditions and infrastructure .
Strong competition from companies like Google, YouTube, and TikTok challenges Meta's dominance in the social media and advertising sectors by offering alternative platforms for advertisers and users. This competition pressures Meta to continuously innovate and optimize its advertising services to retain market share. Additionally, it exposes Meta to potential market saturation and revenue growth plateauing, stressing the need for strategic diversifications and service enhancements to sustain competitive strengths .
The high internet penetration rate of over 90% in developed countries implies a saturated market with limited room for user base expansion . Businesses like Meta need to innovate to maintain or increase engagement, focusing on service quality and new features to retain existing users and attract potential users from markets with lower penetration rates. Additionally, with a stable user base, Meta might face challenges in growth and must look towards diversifying its service offerings and finding new revenue streams in emerging markets .