When new products are launched in existing markets, it is called product development. These efforts help the company gain more revenue. It also offers different pricing policies for corporate users to motivate them to use Facebook ads for their business marketing needs. It offers various apps, online features, and other functions that make it attractive for new segments. It works with governments to help more people gain access to the services of Facebook. Facebook develops its markets by launching new products that target new market segments in its existing markets. Therefore, geographic expansion into new markets is not an option for Facebook. Facebook is already being used in almost every country in the world. Market development is done through the introduction of existing products in new markets. All of these market penetration strategies work to increase the dominance of Facebook in the social media industry. The leadership of Facebook also actively participates in social activities to improve company reputation. It also offers various discounts to business users that use Facebook ads services. The company also works to improve the services it offers on its social media platform to motivate current users to increase their use.

As it acquires these fellow companies, its number of users also increases along with profits. Another strategy that Facebook uses is that it acquires various other social media platforms to gain greater market share. The various functions and services of Facebook are also shared through ads in front of current users while they are online. The first strategy that Facebook uses is strategic alliances with telecom companies across the globe to provide data packages that motivate their users to increase their use of Facebook. Current markets hold great value for Facebook. Market penetration strategies aim at promoting current products in current markets. In 2018, the company earned a revenue of $55.838 billion and had more than 43000 employees (Facebook, 2019)įollowing are the four dimensions of the Ansoff Matrix for Facebook: Market Penetration Over the years, the company has acquired various other social media platforms such as WhatsApp, Instagram, and others. It is also one of the world’s most valuable companies (Facebook, 2018). Facebook is one of the four large technology companies in the world.

The social media website was initially launched on the campus only and slowly spread into other colleges, outside of colleges, across the United States, and then into other nations. It was found in 2004 by Mark Zuckerberg while he was studying at Harvard along with a few other friends. Its headquarters are in Menlo Park, California. is an American multinational company that focuses on social media and technology.

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