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The strategic management of Facebook Inc involves diversification of applications through the company’s online services in order to attract more advertisement. The company has continued to invest in research to come up with creative and innovative applications aimed at attracting customers to its services. As revealed in its 2012 annual report, the main competitive advantage of Facebook is the large number of people who are signing up each year.  As of September 2012, Facebook had over one billion active users.  This is indeed a competitive advantage, because the large number of active users means that advertisers will keep utilizing the company to advertise their products. The key strategists at Facebook Inc are led by the CEO and chairman of the company, Michael Zuckerberg, COO Sheryl Sandberg, and CFO Mike Ebersman. The three managers are in charge of the major operations at the company. The company’s mission statement is, “to give people the power to share and make the world more open and connected" (Facebook Inc.,2013).

One of the internal strengths of Facebook is that it has completely redefined the meaning of sharing by making it easier for people to share information at a quicker rate and connecting more and more people through sharing. The user base will therefore continue growing through sharing of information. The major threat to the company is the increasing competition from companies like Twitter Inc, MySpace Inc, LinkedIn Corporation, Google Inc, Baidu, and Gowalla Inc.  An internal weakness is that Facebook has failed to make a first impression to potential advertisers. This is because Facebook page does not reveal directly how an advertiser can get customers by placing their adverts on Facebook. The external opportunity is that Facebook still has a high number of people who are yet to join it. By the end of 2012, the company had slightly above 1 billion users, yet there are over 3 billion potential Facebook users to be connected(Forbes, 2012). In conclusion, it is therefore likely that the social network will continue enjoying its competitive advantage especially through its customer-focused policies.

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