Taking A Look At Facebook's Sustainable Competitive Advantage

Facebook’s competitive advantage lies within its ability to advertise with unlimited space. Companies like Google and Microsoft have limited advertising space, often at the top or sides of browsing. Facebook can implement their advertising and marketing outreach within its news feed which users can scroll through infinitely. Facebook also has an extremely large user base. Which means the advertising that Facebooks client pay for reaches a much larger pool of individuals. Also, Facebook can link likes and characteristics of users to advertising meaning that overall effectiveness of the advertising employed will be greatly increased. Plus, Users of Facebook have a wide variety of consumer-facing products provided by Facebook. This includes things such as pages, video calling, and gifts. Facebook’s competitors just don’t have the same abilities that Facebook has because of the difference in number of users and information gathered on those users.
Sustainable Competitive Advantage: Key …show more content…
Facebook has a core capability and product that is valuable and in some aspects, rare. Its only flaw is causal ambiguity. It doesn’t take much for a company like Twitter to sit down and try to unravel Facebooks core capabilities. if they continue to develop their three pillars to serve advertisers and marketers they will create value for not only marketers but for users as well. Innovation is a crucial tool for Sustainable advantage. If they don’t innovate their mobile applications and their advertising ability Facebook’s application will become a standard and not an advantage. Facebook’s success branches out from it VRIO framework which is the foundation for its innovation in the applications it provides its users. Facebook has created value because of good strategy and providing a product to consumers that has changed the way they live their life for the