Dating site market analysis

reveals issues that affect the company’s position as one of the top players in the international social media market.Michael Porter developed the Five Forces Analysis model to evaluate the external factors that influence companies’ industry environment.This position helps ensure the fulfillment of Facebook’s vision and mission statements.However, to keep this market position, the company must counteract the negative effects of external factors shown in this Five Forces analysis of the business and the online display advertising industry environment.Nonetheless, all external factors in the Internet advertising industry environment are significant in affecting the company’s business performance relative to the performance of competitors like Google LLC, Twitter Inc., and Snap Inc. Facebook’s market position as one of the world’s leading online social media businesses provides a variety of benefits.However, this Five Forces analysis shows that the company must keep satisfying customers to reduce the potential negative effects of competition and substitution against its social networking website, mobile apps, and related offerings.In this business analysis case, such external factors influence the level of competitive rivalry that firms like Facebook experience in the global social networking market and the online advertising industry environment.

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The high demand for online advertising buffers the potential shift of advertisers and slightly weakens the bargaining power of customers.This element of the Five Forces analysis shows that Facebook Inc.must prioritize its customers to ensure competitive advantage.In this Five Forces analysis, such a condition exerts a strong force against the business, despite the social network’s strong popularity (see SWOT analysis of Facebook Inc.).In addition, low switching costs are an external factor that makes it easy for customers to shift away from the company’s social networking website, mobile apps, and advertising services.

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