Meta's Vision for the Metaverse and Growth Strategies

Examining Meta's vision, mission, strategic planning, SWOT analysis, Porter's Five Forces, and recommendations to sustain market position.

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Introduction of Report on Global Strategic Management Assignment

The CEO of Facebook introduced Meta in 2021 that bring all technologiesand apps of the company together under a new company brand name. Meta’s concentration shall be to fetch the metaverse to the life and aid to find people, grow industries, and to connect people (Jougleux, 2022). That is the reason why Zuckerberg changed the company’s name from Facebook to Meta. The term Meta refers to a combined virtual common space, made by the conjunction of effectively enhanced digital and physical reality (Sparkes, 2021). Afterwards, the vision of a company was set-up that is "To fetch the metaverse in the life and help find communities, grow businesses, and help people to connect." And the mission conveys that strategic aim of company is to raise global market share by working activities in the Metaverse (Facebook, 2022).

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The report highlights the various effective points related to the Meta Company that are divided into six task. The task A contains both corporate and business strategies used by the CEO of Meta. Along with the strategies the first task also includes elements of that business strategies. According to the vision and mission statement of a company, the CEO of Meta plans the useful strategies that are also mentioned in the task B of a study. Talking about the task C it includes external and internal environment analysis of Meta. Different strategies used by the CEO of Meta are also discussed in the report in the heading of task D. Task E of the report involves different strategic tools used in Meta to improve organizational performance of the CEO. And at last, the task F comprises Recommendations for Meta to sustain its position in market.

Facebook logo

Figure 1: Facebook logo

(Source: Funess, 2015)

TASK- A

The corporate and business strategies

A corporate strategy denotes to a strategy allied with a company’s vision and purposes, aiming to generate value and raise profit. It reflectsthe company’s overall ecosystem, nature, and ambition (Wadström, 2018). This strategy is anapproach used by the company to show its vision and mission and methods toachieve them. A corporate strategy is prepared while undertaking the size and the nature of acompany. In simple words, the corporate strategy is one of the long-term strategy to accomplisha company’sobjectives and goals along with it also focuses on an achievement of the company.

Meta's Vision for the Metaverse and Growth Strategies

Here are primarily four types of the corporate strategies that are clarified below:

  • Growth strategy- These strategies focuses on an overall growth or perhaps specific parts of growth like sales, size, revenue of the company, etc. The growth strategies are contains two activities that are diversification and concentration (Yaymond, et. al. 2022). Concentration in the growth strategy defines as the company concentrates on its main business and whereas the diversification defines the company concentrates on expanding its business in the new market.
  • Stability strategy–Stability strategy is used when the company is subsequent in its existing market and in an industry. This strategy helps a company to maintain its position in the market (Funari, et. al. 2019). The company should focus in more investing in the well-performed areas.
  • Retrenchment strategy – In retrenchment strategy the company decreases the portions that are not operational for the overall business. This strategy can be used in the changing corporate markets or its models.
  • Reinvention strategy–This strategy is used to modernize the different current aspects of the business like design, technologies, or product. Reinvention strategy aids businesses to continue their operations in competitive environment by accepting innovations in their internal environment of a company.

Components of Meta’s business strategy

  • Revenue strategy- Facebook’s revenue originates from numerous sources but the majority part of its revenueis originated from the sale of an ads on social networking platforms. The Meta’s social network locations are Instagram, Facebook, and some other sub-platforms as well. The Facebook Company delivers diverse types of advertisement spaces to its customers; these advertisement spaces contain the news feed, the messages, and a section in a sidebar, thevideo contents, and the section in the different stories. There is the part of income strategy which is more significant, the pricing method of a company. Facebook or also called Meta does not track the static pricing policy; its pricing method is based on the auction bids and also on the level of consumer’sengagement in an advertisement. Meta is focusing on exploring new means to earn, one of the means Metafound is vending consumers electronic goods by the portal brands. The company is also looking for the opportunities to make another basis of income from the block chain and crypto currency.
  • Technology strategy - This strategy of a company helped it to achieve the competitive advantage over its opponents. Meta is a technology company and its business strategy mostly focuses on innovative solutions. The Company has started a 10-year-long plan in 2016, to develop the use of its flagship social networking site and improve its presence in the technology industry (Astuti, and Rahayu, 2018). The technology strategy of a company mostly depends on 3 technologies that are artificialintelligence (AI), drones, and the virtual reality. Artificial intelligence (AI) is a vital partof the technology strategy of the Meta platforms, whereas artificial intelligence is that intelligence presented bythe machines, not by the human beings or animals. AI contains self-decision-making, web search engines, automated driving cars, personal assistants, direction systems, etc. The company is making AIaptitudes to better the content delivery on its digital platforms.
  • Expansion strategy - This strategy is one of the key elements of the business strategy of Meta, the company has done development by obtaining supplement technologies and companies. As a part of its growth strategy, Meta has learned social media sites like WhatsApp and Instagram. The company attained Instagram in year 2012 for USD of 1 billion and WhatsApp in the year 2014 for USD of 19 billion. Other than these two big overthrows, Meta also acquired the technology stack of Facebook lite and the Israeli mobile app Snaptu.

TASK- B

Strategic planning for Meta by the CEO

Strategic planning is way of making particular corporate strategies, executing those strategies, and then assessing all results of implementation of that plan, in respect to an organization’s total long-term desires or goals (L’Héritier, et. al. 2018).

Strategic planning of organization

Figure 2 Strategic planning of organization

(Source: Wars, 2022)

The strategic planning method requires substantial planning on the portion of an organization’s upper-level management. All the three stages in the strategic developmentarise within 3 hierarchical levels that are higher management, middle level management, and the functioning levels. The growth and implementation of strategic development are normally observed as comprising of being accomplished in below 3 critical stages:

  1. Strategy Formulation- In this procedure of framing the strategy, the firm will first measure its present condition by acting the interior and an exterior audit.
  2. Strategy Execution- After the policy is framed, the firm needs to found particular goals or targets related to driving that strategy into an action, and assign resources for those strategies’s performance.
  3. Plan Evaluation- Plan evaluation contains 3 crucial activities such as reviewing an interior and exterior elements affecting an execution of that strategy, computing presentation, and taking helpful stages to make a policy more effectively.

Meta’s CEO improves the strategic formation in the following ways:

Technological innovation- Meta has sustained to participate in refining the consumer experience to involve the users and initiatechange rates greater for the advertisers that place ads on the platform (Bitencourt, et. al. 2020). The greater concentration of Facebook on the technological modernization is also as of the better rivalry from other internet brands and social media brands that are mainly Google, YouTube, Twitter, and other digital entertaining networks such as Hotstar andNetflix .

A complementary product range- Meta’s corporate also originate growth over acquisitions. Though its emissary and WhatsApp do not create income, they are quiet asignificant part of the product range that has aided the firm expands its consumer base and arrangement rates. The firm has extended its product range a lot overbig and small acquisitions.

Greater penetration of current markets- Facebook’s focus has similarly remained on deeper perception of the current markets where it haskey presence. The US, Indonesia, and Brazil also have further of 100 million Facebook consumers. With momentary time, Facebook has sustained to increase its social media sites and its facilities to involve the consumers more and obtain more consumers. The corporation has also been promotion its facilities to achieve more consumers. Over the time, its perceptionamongst the internet-using middle-aged and seniorresidents has moreover grown.

Mobile first- The immoral of smartphone consumers has developed a lot in past few years. It is nowadays at nearby 3.5 billion and is predictable toupswing to 3.8 billion in the upcoming years. Though, with better entrance to smartphones and internet, consumersglobal are also retrieving a large network of facilities online. Meta Company has showed highly hostile at obtaining smartphone consumers.

Targeting the developing markets- The Establishment has located a strong concentration on the developing markets that account for the considerable part of a corporation’s consumer base internationally. With time, an internet superiority in developing markets has upgraded a lot and has likewiseextended Facebook’s customer base nearby(Kraus, et. al. 2022). Though, the firm also enhanced its advertisementknowledge for the evolving markets to raise the income it created from these marketplaces. The Company’s policy worked after all, and the firmreachedto the strong development in income and customer base from these areas.

Marketing- This is also a serioussupport of Meta’s business tactic. Whereas the firmenlarged strong product recognition in just a few years next its underpinning, it could not realize faster progress without capitalizing in the marketing. Facebook has attentive on reinforcement its brand appreciation and gaining consumer loyalty by concentrating on the superior buyer experience.

TASK-C

Internal and external environment analysis of Meta

SWOT analysis

This SWOT analysis of Meta Platforms, Inc. (formerly known as Facebook, Inc.) considers the company's internal strengths and weaknesses (internal strategic elements) as well as external opportunities and threats in the business environment (external strategic factors). This SWOT analysis also emphasizes how Meta (Facebook corporate's) purpose and vision statements have influenced the way the firm approaches the SWOT variables (Teoli, et. al. 2019). This type of strategic approach helps in tackling the difficulties and possibilities identified in this SWOT analysis which is reflected in Meta's (Facebook's) general strategy for competitive advantage and its intensive expansion tactics (Gaikwad, and Rao, 2021).

  • Strengths of Meta (Internal Strategic Elements) - The corporate capabilities, its resources, and the competitive advantages that assist the success and development of an information technology corporation are recognized in the section of SWOT analysis. The business's brands and products, such as Facebook and Instagram are the company’s strongest points. Amongst Meta's crucial inside advantages are as following ones:
  1. Some of the most powerful internet service and information technology brands
  2. A significant worldwide user base and related network effect
  3. A growing ecosystem of items related to information technology.
  • Weaknesses (Internal Strategic Factors) – Meta's weaknesses provide challenges or confuse growth for the company. These internal factors can forbid the digital advertising and social networking company from rising its profitability and revenues, according to the SWOT analysis. Below are some of Meta's greatest significant defects:
  1. Limited multiplicity, with a heavy dependence on the social media.
  2. High vulnerability to the trends in an online advertising.
  3. Duplicate services and products.
  • Facebook opportunities (Strategic External Elements) - In this part of SWOT analysis, the industrial and market environment of the social media and metaverse firm are observed though taking into an account the outside components that foster growth and achievement. One of the Meta's primary opportunities is the following exterior planned issue:
  1. Variation of businesses to diminish reliance on the digital advertising.
  2. Market extension and development to uplift sales.
  3. Establishing fresh associations and alliances with outside parties to support a greater metaverse occurrence.
  • Threats (External Strategic Factors) - The threats to Meta Platforms, Inc. can delay expansion and reduce industry abundance. In the SWOT analysis model, these external factors come from a diversity of source, together with other communal media companies and information technology platform. The following are the major threats to Meta:
  1. Opposition, especially in the online promotion space
  2. Socio cultural trend that diminish Facebook usage
  3. Cybercrime

Porter’s five forces analysis of Meta

Issues that have an impact on Facebook Inc.'s prestige as one of the foremost players in the global social media market are exposed through a Five Forces analysis of a company (Bruijl, and Gerard, 2018). Such outside components in this corporate research case have an influence on the level of aggressive competition that businesses like Facebook meet in the global social networking marketplace and an environment of the online marketing sector. The accomplishment of Facebook's mission and vision statements is supported by this perspective.

  1. Wide availability of substitutes (strong force)
  2. Low switching expenses (strong force)
  3. Strong demand from consumers (weak force)

Suppliers are one of the aspects that affect Facebook Inc.'s display advertising and social network services. Their negotiating power is a weak force. The contractors at Facebook Inc. have restricted selling power as of the following outside issues:

  1. Small to medium-sized suppliers (reasonable force)
  2. There are many suppliers (weak force)
  3. Large overall supply (weak force)

Substitution or Threat of Substitution (Strong Force) -Substitutes can negatively impact Facebook's business outcomes and provide problems for the social media business in its rivalry environment. Below are the greatest prominent exterior causes that pose a serious danger of substitutes to Facebook Inc.

The Porter's Five Forces Analysis model's Competitive Rivalry or Opposition with Facebook Inc. (Moderate Strength) component examines how rivals impact the market environment for the organization (First, 2021). The following exterior components fuel the firm's competitive rivalry to the moderate extent:

  1. Limited array of companies (weak power)
  2. Moderately varied companies (moderate force)
  3. Minimal switch costs (strong force)

Customers put pressure on Facebook Inc. to provide them with what they want, which is a powerful force in the company's negotiations. Buyers' significant bartering power on the corporation's social network and linked facilities is a result of the following outer factors:

  1. Low swapping expenses (strong force)
  2. High accessibility of alternates (strong force)
  3. Reasonable cost of alternatives (moderate power)

Threat against Facebook Inc. from New Applicants or New Entry (Weak Power) - The social media considerable must contend with adverse belongings of new competitors entering the market (Khan, et. al. 2022). The following exterior factors subsidize to the minimal hazard of the new entry in the external analysis case study of Facebook Inc. and its social web and related goods includes:

  1. Short switching expenses (strong power).
  2. Exorbitant price of brand expansion.
  3. High rate of retaining customers.

TASK-D

Critical analysis of different strategies used by the CEO of Meta

The CEO of Meta employed a variety of techniques to help the company grow, including resource-based, Blue Ocean, innovative, and technology strategies (Zaandam, et. al. 2021).

Long-Term Plans to Combat Competitors: Zuckerberg unveiled long-term goals for the business, which include further integration of the Reels platform for short video content. The goal of Zuckerberg's company, stated in his statement, is to "ensure that our apps are the best services available for young adults." By integrating eCommerce technologies, Meta claimed it was enhancing B2B features on Facebook and assisting brands in connecting with, interacting with, and selling products to Facebook users. By implementing end-to-end encrypted backups and disappearing communications on its WhatsApp platform, Meta is reportedly making "massive investments" to improve the privacy of its customers on Facebook, Instagram, WhatsApp, and Horizon. The CEO also added that Meta also intended to bring end-to-end encrypted telephony to Facebook Messenger. According to the post, the research centre will let Meta upgrade its AI infrastructure and computational power to enhance "data centre design, networking, storage, and software."

New Immersive Technology: The Company’s CEO also hinted at a significant update to Horizon Worlds, its first openly available platform for creating the Metaverse. Later this year, Meta intends to release a version of Horizon. Later on this year, Worlds will formally make the app cross-platform compatible with smartphones, tablets, and headsets. Support for Meta's other social broadcasting applications, like Facebook and Instagram, will be added to the platform's mobile-friendly design.

Resource-based approach: Meta employs a strategic management framework to determine how to make the best use of the resources at hand. This includes evaluating resources strategically in order to obtain an advantage (Collins, 2021). This tactic calls for the evaluation of both tangible and immaterial resources. Physical in nature, tangible resources may be seen and felt. Land, different kinds of equipment, materials, supplies, and infrastructure are examples of tangible resources in Meta. The land is a tangible resource that consists of properties that the Meta owns and rents out for various commercial uses.Materials for Meta platforms include raw commodities and other items used in the manufacturing process; the same materials can be purchased by rival businesses. Equipment resources include all technological upgrades and integrations, as well as equipment required for operational tasks like production and packaging.

Resources that are intangible are those that have no physical counterpart but are owned by organizations like Meta platform. These include the business's goodwill, reputation, trade name, royalties, licencing agreements, patents, and copyrights. By offering its users the highest caliber goods and services, Meta has built a solid name and goodwill throughout time. The reputation of Meta is also founded on its organizational structure and customer relationship management. In addition to having a patent for its production method, the corporation also holds one for its R&D endeavors.

Blue ocean strategy:This strategy is a plan to penetrate new markets and generate interest in the company's goods and services (Yunus, and Sijabat, 2021). The blue ocean strategy assists businesses like Meta in entering a crowded market. Only in an industry with a flexible structure is this tactic applicable. Meta was able to investigate undeveloped, uncompetitive markets with the aid of the blue ocean technique. Instead of competing for existing market space, Meta has created new market demand, which has fueled the company's explosive expansion. Under this strategy, Meta developed a six-path structure to determine an efficient expansion strategy for the company's success. The six approaches are concentrated on industry expansion, strategic group, product or service scope, buyer group, innovation, and pro-active environmental adjustments. By shifting the orientation of its current strategic group and redefining its buyers' group, Meta Platform has achieved a competitive edge.

TASK-E

Analysis of different strategic tools used in Meta to improve organizational performance the CEO

Facebook has the conventional approach and an escalated improvement techniques that keep-up with company’s upper hand in the view of usefulness and openness of an online web-based media managements (Azeem,et. al. 2021). The CEO of Meta focused on two primary strategic tools and techniques to enhance an organizational performance of the Facebook. The two strategic techniques are intensive growth strategy tool and generic strategy tool. These strategies aided the Facebook to gain its competitive advantage concerning availability and effectiveness of the services from online social networks largely.

The Porter’s generic model is used to identify the direction to gain a competitive advantage and business growth approaches. In this regard, the Meta CEO adopted the generic strategy that developed a new features of social network which helped a company to achieve its competitive advantage(Grandinetti, 2021). These approaches confirms easy ingress to diverse platforms for the company to capture more substantial percentage of the markets. Thus, the company was able to address a competition from businesses such as Twitter, Google, and Snapchat with a substantial position in the zone of online advertising. One of the operative generic strategies employed by the CEO of Meta is cost leadership. The cost leadership strategic tool helps the company to minimize its cost in executing the business operations. This strategy enabled Meta to provide various online services in all over the world. For instance, Facebook utilizes computing technologies to improve the performance and efficiency of its social networking websites. And at last, the company can easily reach out to the diversified internet users throughout the global market.

Furthermore, an intensive growth strategy also played an important role in enhancing the organizational performance of Meta. This strategic techniques includes market penetration which is mainly used by Zuckerberg to improve Facebook’s performance in world-wide market (Abdeen,et. al. 2022). The key aim of market infiltrationpolicy is to rise the firm’s market share. For example, Facebook’s CEO has made alliances with the various telecommunication companies to rise the number of consumers who benefited from the Meta’s services. Thus, to achieve this growth and provide a best Facebook services has been forced to boost its organizational performance.

Coming up to the next strategy that is employed by the CEO of Meta is market development. The market development strategy tools focus on the expanding business and joining new markets. For example, Facebook CEO has approached various governments for coordination to authorize their citizens to use diverse social network services provided by the Meta Company. This strategic tool enabled Facebook to enhance its organizational performance to achieve its global market needs. Zuckerberg also used diversification in the intensify growth strategic technique through incorporating new businesses. For instance, Zuckerberg bought Oculus VR to offer virtual reality technology that supplements services in the social networking. Notably, the diversification tool of intensify growth strategy had significantly upgraded an organizational performance of the Meta.

Zuckerberg has used two primary techniques, namely intensive growth and generic

strategy, to improve the organizational performance of Facebook.

Zuckerberg has used two primary techniques, namely intensive growth and generic

strategy, to improve the organizational performance of Facebook.

TASK-F

Recommendations for Meta to sustain its position in market

Some of the main concerns found in the SWOT analysis of an organization and its environments must be lectured as Meta grows and focusses on constructing the metaverse. The corporate can also hire market penetration and market expansion to increase its market share, mostly in areas or market segments where Facebook adoption amounts are quite low. Moreover, alliances and collaborations with other companies can recover Meta's business presentation (Rooney, et. al. 2022). To draw younger customers to the company's services, Meta's (Facebook) organizational culture or corporate culture can be improved. There are nine "incremental" changes that Facebook may do to make it a stronger platform for free speech and democracy are as follows:

  1. Clarify the Community Standards' language regarding hate speech
  2. Employ more qualified content reviewers with a focus on context.
  3. Improve the "transparency of decision-making"
  4. Increase and enhance the appeals procedure
  5. Give users real News Feed controls
  6. Increase facilities for context and fact-checking
  7. Create recurring auditing procedures
  8. Form a committee to advice on external content policies.
  9. Create a body for external appeals

A platform like Facebook has a lot it can do right now to relieve widespread public concerns and do more to uphold its obligations to the public interest and international human rights standards. One simple adjustment to the News Feed algorithm or content policy can have a quicker and more significant effect that is both quicker and more extensive than any one national (or even EU-wide) piece of legislation.

Conclusion

Based on the above report, it is concluded that it is very important for all company to establish strategies and after that a proper management of that strategies should be apply in the organization. In summary, this report argued that a proper strategic management of the company Meta is a key factor in its success. It is also concluded that Meta’s business strategy has different elements that play asignificant role in an organization victory in the international marketplace. The internal and external analysis of the Meta are also considered in the report with the help of the SWOT analysis and Porter’s five forces, respectively. The findings of this report can be understood as to improve organizational performance of Facebook in the market, the CEO of a company introduce different strategies like resource based strategy, blue ocean strategy etc. The critical analysis of strategic techniques recycled by the CEO of Meta to develop the company’s recital in the market are also mentioned in the report. At the end of the report, the highlighted point of recommendations for Meta to sustain the business position in the global market are briefly discussed in the report.

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