Sheryl Sandberg's Case Analysis Of Facebook

Sheryl Sandberg, the chief operating officer is looking at a well-founded and healthy company. However, some poor acknowledgment of the importance of mobile advertising has set the company on a path dependent route. Sheryl, Zuckerberg, and the entire Facebook team now must compress time to capture the value of this market. While doing this, they are also focused on international productivity. Sheryl needs to have a theory to compete to gain and sustain competitive advantage. Facebook has many competitors such as Google, Twitter, and Microsoft. These are very formidable opponents with a dedication to acquiring and sustaining their market share. Applications like Google + have the ability to capture market shares away from Facebook. Sheryl can

The first strength is over all positive margin growth, quite large to be exact. 531% sales increase from 2010 to 2014. This of course leads to a relatively healthy ROI or return on investment and net revenues. This margin growth is a consequence of the next strength of Facebook. An element of their product that not many other competitors have. That is the unlimited marketing and advertising space that is available via news feeds and timelines. Many companies such as google and Microsoft are limited to advertising using their search engines whether it is on the top or bottom it is limited space. Thus, giving Facebook a large advantage. Facebook’s third strength is its large user amount in varying countries. This provides a large network or pool of information that marketers or advertisers would pay to get their hands on. People put a lot of information about their likes, dislikes, and personalities on Facebook which could help in market research. Last but certainly not least despite Zuckerberg’s feeling, Facebook makes crucial acquisitions when it comes to opportunities to acquire market share. This was apparent in Facebooks acquisition of Instagram as well as the possibility to acquire

Despite one of the worst initial IPO offerings in history, Facebook managed to rise above it. Face book reported a steady increase in both DAU, MAU’s and global usage from 2010 to 2014. From 2010 to 2014 Facebook reported a change in sales from 531%. This is an astronomical number and extremely impressive from a company in just four years. As a business grows so do the cost of a business as expected Facebook also realized a change in costs to be around 167%. In 2014, Facebook also reported a healthy ROI or return on investments of 8%. This isn’t an extremely high ROI but it is the best way to identify profitability. It would be very healthy if it was anywhere between 10-15%. However, for how well Facebook is doing a conservative ROI is feasible. The most interesting financial factor is Facebook’s long term debt. It was at an all-time high of 1,991 million in 2012 but reduced it down to 119 million in 2014, this is a change of -94%. Facebook has proven to manage its cost as well as show extremely high increases in profit and ROI. Financial statistics like those