Facebook Inc.:Change in online content regulation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Facebook Inc.:Change in online content regulation Case Study Solution

Business Model:

Technology

The product development at Facebook is centered on consistent innovation to create and improve the products by changing the specifics of the design. The designing of the products is to place people and their interaction experience at the core. With the growth of users, product engagement such as the video increased with the increased requirement to invest in new technological approaches,such as:artificial intelligence required for the service expansion. Facebook's high investment in research and development as it believes in continuous product improvement to improvise the experience of developers and marketers.

Sales and Operations

Self-service ad-platform is utilized for the management and launch of the advertising campaigns. The global sales force of Facebook is focused to attract and retain the advertisers for the provision of support through each phase of the marketing cycle from the pre-purchase process of decision-making to real-time optimization. Facebook maintains direct relations with resellers, advertising agencies, and advertisers. The investment in the sales and operations depends on the tools used for the self-service provision for direct customer support.

Marketing

The organic growth of the community is supported by the people who invite their friends to connect with friends and family. The support is based on the internal efforts stimulating the interest and awareness of users and advertisers. The organization continues investment in the promotion of its products and services to promote brand growth and assist the building of community throughout the world. The strong brand promotion represented68 percentof American users of Facebook and 35 percent of Instagram.

Intellectual Property:

The establishment and protection of proprietaryrights are based on the combination of trade secrets, copyrights, trademarks and patents which include license agreement, third party non-disclosure agreements, invention agreements,and other related rights to protect the products and services.

Industry:

According to the survey data, Edison Research and Triton Digital revealed the decline in the usage of Facebook as compared to other social networking platforms such as Instagram, Whatsapp, Snapchat, and Twitter. With the increased use of Instagram and Snapchat, the stronghold of Facebook faces strong competition. Since 2012, the acquisition of Instagram – the photo-sharing start-up was by paying a shocking sum of $1 billion with a total of 13 employees. Afterthe acquisition of Instagram in 2012, the growth of Facebook was driven by the strategic acquisition of leading and trending social media platforms such as Whatsapp. The notion to acquire Whatsapp at the cost of $19 billion was presented in 2014. (Rodriguez, 2019)

Among the five million advertisers of Facebook, about 70 percent of the advertisers are outside the United States such as the United Kingdom, Mexico, Thailand, and Brazil. The fastest-growing markets were Argentina, Mexico, Brazil, Thailand, and India. Despite its undisputed position in the market with approximately 2.5 billion users (see Exhibit 2), strong competition is posed by the core advertising market of small businesses. Internet penetration has increased by 27 percent providing a room full of opportunities for extended growth. (MacBride, 2017)

In the past five years, the industry grew at a rate of 12.70 as compared to 40.20 growth rate of Facebook from 2015-2019. Similarly, the company is expected to grow by 44.01 while the estimated growth of the industry is about 4.40 in 2020. Instagram represented as the key growth fixture of Facebook since its acquisition till now. The users of Instagram has now reached to about 1 billion users making up one-fifth of the total market capitalization of Facebook in 2019.

What’s Next:

The initiatives for the strategic growth of Facebook has been successful so far. The user base of Facebook has shown a rapid increase and demonstrated the highest number of users among all the social networking sites. The issues regarding the regulation of online content production had been discussed with governmental bodies. The discussion was based on the creation and adoption of new regulationsfor the production of online content. Although it is not possible to remove all the unethical content on varying internet sources. But, the use of sharing services represents the need for a standardized approach for the regulation of the content. The concerns increase overonline content regulationare:

How can the regulation of content be used for goal achievement to reduce harmful speech?
Can the internet platforms' accountability be enhanced by a change in regulations?
Is the participation of internet firms required to meet the target performance?

Should the harmful content de defined by the regulation and be restricted on internet sites................................

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