Lack of rivalry in new technology platforms.
Customers lose passion in traditional social networking.
The ascend in potential contenders, especially oversea rivals.
Explanation of contingencies
Furthermore, statistics show that the popularity of traditional social network has decreased. For instance, young generation is not very upbeat with Facebook. Some customers are tired to interact with so many net friends and a great number of them are worried about protecting personal information. It seems that Facebook would not continue its magnificent business if this situation further deteriorates. Finally, Facebook is very successful in the oversea market; however it has several powerful competitors. Such companies as Liner, KakaoTalk and Wechat developed very quickly and gained a huge number of users in Asia. They would definitely accumulate adequate money and technology to defeat Facebook in the near future.
Preventive strategies
Predict and design future
In my humble opinion, Zuckerberg and his team should apply advanced analysis method to predict the demand of the future market. After that, they should make a great effort to develop new social networking products and profitable services based on the new technologies such as wearable or VR device.
Innovation and diversification
It is worth noting that innovating new products and putting new features and functions to existing services is helpful to improve customer’s experience and protecting personal secrets. Meanwhile, the company should explore the new business area to gain new margin and to spread the risk of losing customers’ of traditional social networking.
Enhance its own strength to defend potential competitors
I believe that Facebook should offer difference and create technology barriers to its rivals. From this way, it is difficult for competitors to duplicate its products and services. Also, aligning with a native powerful partner is a good way to develop deeply the local market. What is more, the company has to decrease the cost and increase the efficiency of primary and support activities to keep a competitive advantage.
