Facebook’s growth has been tremendous over the years, making its internal and external factors to change rapidly. As an online company, Facebook has been responding in various ways to its fast changing environment to fit and operate without any limitations. Facebook has portrayed its strong leadership skills to counter the harsh responses and accusations it receives from some of its users. The strong leadership base enables Facebook to respond swiftly with proven ideas that it does not intend to go against its users (Leitch 65). Since Facebook is an online platform, its management has enhanced the need to adapt to new communities. This ensures that Facebook will fit in new market segments by introducing the local language of a place and showcase the culture of the people in the area, introducing a new online culture to its users.
As an online platform, Facebook experiences risks that could prohibit its growth. The first risk is a case from the European Union privacy rules. Facebook experienced a third party data intervention that revealed it was not in full control of its users’ data. The Cambridge Analytica scenario revealed that the data protection regulation was not fully utilized. Such risks of the third-party access to private data can lead to Facebook paying up to 4 percent of its annual revenues as leverage (Reeder 10). Secondly, Facebook faces competition risks from Google Inc. Google Inc. has grown close to 360 million active users and 500 million registered users occupying the social network. This poses as a challenge to Facebook because Google Inc. seeks to increase its promotion levels and integrate with other services such as YouTube to enable it to control the social network platform.
Leitch, Thomas. “Adaptation studies at a crossroads.” Adaptation 1.1 (2008): 63-77.
Reeder, Ryan. “Mormons and YouTube.” (2017).