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Facebook/Meta Economic Forces, Facebook Whistleblowing Scandal - Coggle…
Facebook/Meta Economic Forces
Facebook Whistleblowing Scandal
Economic Forces
Competition
Advertising
Google
Google and Amazon are the competitors of Facebook when it comes to advertising, and Google is the biggest competitor. These companies are known as the digital duopoly for dominating the advertising platform. According to a report in 2018, Google occupies 40% while Facebook occupies 22.7% of the UK’s ad revenue share.
Amazon
Video-sharing Industry
Youtube
It is considered the second largest search engine after Google, and the present number of active users is 2 billion making the app one of the most formidable competitors of Facebook.
User-Base
Pinterest
Snapchat
Twitter
LinkedIn
TikTok
Similar apps in different countries
WeChat
WeChat is a social media ecosystem of China - like Facebook with added features. It offers social media features and provides news and entertainment articles, acts as an eCommerce platform, and even can host mini-programs that the Facebook app does not have.
Employee
In 2006, Facebook had just 150 employee and as December 2021, they have total 71,970 full-time employees.
In June 2020, Facebook was criticized for its lack of diversity as men held majorities of tech positions and management roles. Almost 41% of US employees are white, and only 3.9% are African-American. In terms of senior-level positions, 63.2% of them are occupied by whites and only 4.3% by Hispanics. (Statista Research Department, 2022)
Performance
Facebook shares fell 5% after the whistleblower case blew up the media and society (Rodriquez, 2021).
Revenue
Meta annual revenue increase 31.96 billion US Dollars to 117.92 billion US Dollars in December 31, 2021.
Facebook's performance in 2021 contributed to major growth areas such as social media, commerce, and virtual reality (Johnston, 2022).
Users & Visits
By May 2021, Facebook accounted for 71.8% of social media visits and to September 30, 2021, despite the issue and criticisms they received, Facebook gain 6% more of its monthly users to 2.91 billion
Global impact
Facebook enables global economic activity by helping to unlock new opportunities through connecting people and businesses, lowering barriers to marketing, and stimulating innovation.
The thriving app economy in EMEA has helped to generate $13bn of economic impact for the region through the platform effects
In APAC internet uptake and purchases of devices motivated by Facebook have contributed to $13bn of economic impact
The United States is estimated to capture the largest share of economic impact enabled, $100bn
Improvement infrastructure (telecommunications)
Facebook/Meta has the opportunity to increase market penetration
Political Forces
Facebook features contribute to users’ impression formation (Walther et al. 2009), as well as participation in civic and political activities (Valenzuela et al.2009).
Influencing facebook
Popular governmental support for globalization
Political barriers in the Chinese market
political stability in developed countries
Political action on online data
Facebook is used to incite genocide against ethnic minorities in Ethiopia, promote human trafficking, and sow doubt about the threat of the COVID-19 pandemic. (Stening, 2021)
Facebook is blocked in China, and the parent company Meta's efforts to court China have been rebuffed. The 'Great Firewall' in China prevents Internet users from viewing or posting socially or politically sensitive content (Zucchi, K. 2021)
Democrats have primarily focused their criticisms on the companies’ lack of moderation of misinformation, while Republicans call attention to the problem of censorship. (Stening, 2021)
Political advertising on Facebook was being criticized for spreading misinformation and so the social media platform took the decision to prohibit political ads on its site indefinitely after the November election.
Democrats and Republicans appeared united on the need to enact reforms to protect social media users from the harmful effects of Facebook’s algorithms. (Stening, 2021).
Legal Forces
The Filter Bubble Transparency Act was established in 2019 to increase transparency by giving users the option to view content that’s not curated by a secret algorithm (Silberling, 2021).
The U.K. government is now introducing new legislation that would impose a duty of care on digital giants to make sure they watch and take action against illegal or harmful material online (Browne,2021).
Other legislative responses include passing a national privacy law and strengthening safeguards for children online (Allyn,2021)
The European Union launched the GDPR (General Data Protection Regulation) with the aim to push Facebook and other such platforms to protect the data of its users.
According to EU web search law, a website operator must be responsible for the content that appears on the website. However, the provider is not answerable for what individuals type into the site (Bertot et al.,2012)