What challenges does Facebook face in maintaining its user base growth?

Facebook faces several challenges in maintaining its user base growth. Firstly, there is intense competitive rivalry within the industry. Many industry players, from full-featured platforms like Google+ to niche social networking sites and new mobile apps, can affect Facebook's user base growth. The social networking space is prone to innovation and the introduction of new tech, so Facebook's massive user base can never be taken for granted. Secondly, providing a satisfying user experience is key for gaining and retaining a customer base on social networking platforms. Issues like personal data safety, fake news, and trolling have been hurting the platform user experience in recent years. Lastly, with the mobile landscape rapidly evolving, the threat of new entrants is always present.

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Competitive Rivalry Within The Industry – many industry players from full-featured platforms, such as Google+ to niche social networking sites and new mobile apps can affect Facebook's user base growth. Also, as the social networking space is prone to innovation and the introduction of new tech, Facebook's massive user base can never be taken for granted. Plus, companies that allow marketers with targeted advertising and new development platforms for application developers should be considered competition as well. Bargaining Power of Customers – providing a satisfying user experience is key for gaining and retaining customer base on social networking platforms because while users of social networking platforms hold high bargaining leverage, the same is limited for marketers (personal data safety, fake news and trolling has been hurting the platform user experience the most in the recent years). Threat of New Entrants – with mobile landscape rapidly evolving, new players will be enterin...

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Porter's Five Forces Analysis

Competition management is at the core of strategy formulation and an understanding of the underlying sources of competitive pressure provides the grou...

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