Facebook Privacy:

What Privacy?
 I. Problem Definition
Case Study Questions:

1. Perform an ethical analysis of Facebook. What is the ethical dilemma presented by

this case?
2. What is the relationship of privacy to Facebook’s business model?
3. Describe the weaknesses of Facebook’s privacy policies and features. What people,
organization, and technology factors have contributed to those weaknesses?
4. Will Facebook be able to have a successful business model without invading
privacy? Explain your answer. Could Facebook take any measures to make this
possible?

I. Review of background information

1. Perform an ethical analysis of Facebook. What is the ethical dilemma
presented by the case?
Facebook uses highly specific details such as relationship status, location,
employment status and other demographic information, as well as user's online
activity to develop an incredibly accurate picture of your life. The purpose of
Facebook doing so is to serve more relevant advertisements to the users than
anywhere else on the Web. However, the personal information gathered by Facebook
can also be used against the users in other ways both with and without the consent of
the users.
The stakeholders involved in an ethical analysis of Facebook include Facebook
(obviously), advertisers, data collecting agencies, Electronic Privacy Information
Center (EPIC), and individual users. Facebook collects an incredible amount of
personal data on its users. It is using its ability to track online activity of its members
to develop a frighteningly accurate picture of their lives. It gathers personal
information about users, both with and without their consent, which can be used
against them in other ways. Facebook’s goal is to get its users to share as much data as
possible because the more Facebook knows, the more accurately it can serve relevant
advertisements and thus, charge higher fees to advertisers and Facebook servers
would keep user information permanently whenever the user has deleted their
account.
The ethical dilemma in this case study is Facebook monitors its subscribers and then
sells the information to advertisers and app developers hence the Facebook’s critics
are concerned that the repository of personal data of the size that Facebook has
amassed requires protections and privacy controls that extend far beyond those that
Facebook currently offers.
Facebook, the largest and most popular online social network, has become a
significant part of daily life for over 2 billion people around the world (Facebook Inc.,
2017). To most, Facebook is just a “free” social networking service provider that
allows you to create profiles, and keep in touch with friends. Little do people realize,
each time you click to a new site or like something, Facebook gathers detailed
information about your interests, opinions, and associations. Through the use of third-
party services, and big-data mining programs, shared information is aggregated to
build a profile about each user. In theory, this seems like a great way to make what
you see more relevant, but the problem with all of this customization is the detailed
profile Facebook has of you and your habits, without legal obligation to keep it
private. This often leads to unintended consequences, such as threats to privacy and
changes in the relationship between public and private domain. Whom has access to
one’s personal information, how it is being used, and the unethical profiling strategies
violate an individual right to privacy. Specific privacy concerns of online social
networking include inadvertent disclosure of personal information, damaged
reputation due to rumors and gossip, unwanted contact and harassment or stalking,
surveillance-like structures due to backtracking functions, use of personal data by
third-parties, and identity theft (Boyd & Ellison, 2008). This right of privacy is further
threatened by lack of clear guidelines and absence of oversight regarding when, why,
and how government agencies, businesses, and people gain access to personal
information that is collected, retained, used, or shared. The trail of data a person
leaves behind about themselves while using the internet, such as; websites you visit,
the information you submit to online services, or the things you post to Facebook is
being misused for financial, political, or personal gain. Currently, there is no single
federal standard for data protection that enforces fair information practices. Fair
information practices regulate and enforce consumer privacy rights regarding data
collection, retention, use, and sharing of personal information. The federal approach
does not focus on the protection of personal information, but on the purpose of the
information collection.
The Facebook team faces controversy regarding the information and data they collect
from their Users and clients. The Users at Facebook have greater concern regarding
their personal information being used for advertisement and shared with other parties
without their knowledge or consent. The Users are also concerned regarding the Users
control features that allow them to keep their information in check which is obviously
not functioning effectively as Users do not have control over the information
Facebook shares. While all these are unethical, Facebook’s value and growth potential
are determined by how effectively it can leverage the personal data it aggregates about
its Users to attract advertisers. The ethical dilemma Facebook faces are presented in
these two situations: a. using the personal information of Users for advertisements
without their prior consent to generate huge sums of revenue, which is highly
unethical. b. if Facebook decides to be ethical by not using the personal information of
Users for advertisements, they stand to lose huge sums of revenue.
Facebook is one of the largest social media sites with 1.28 billion users. There are
50.3 million Facebook users in Africa and 5.5 million users in South Africa - making
South Africa the second largest nation of Facebook users in Africa after Egypt (with
13 million users). The site operates by getting users to connect to each other based on
their background or shared interests. It also allows them to join groups that have the
same likes. Each user signs up for an online profile which contains personal data on
the user such as their name and email address. Part of being on Facebook involves
users posting status updates which inform others about what they are doing. These
updates then appear on their friends' newsfeeds as well as atop the user's feed. These
data are available to anyone and are considered to be in the public domain. Because of
the type of information posted, it is possible for an attacker to collect and target users
based on the personal information they share.
The creator of Facebook has in the past expressed that privacy is not as important as
the value that the site offers. Personalized services and targeted advertising on
Facebook rely on users' personal information. Tailoring services based on personal
information allows companies to segment potential customers and advertise their
products.
Previous studies have focused on the usage patterns of university students on
Facebook and did not examine the privacy issues faced by these students on
Facebook.9 In this study, we highlight the online privacy issues that users of Facebook
encounter and we suggest how these issues may be mitigated.
Student life without Facebook is almost unthinkable. Since its inception in 2004, this
popular social network service has quickly become both a basic tool for and a mirror
of social interaction, personal identity, and network building among students. Social
network sites deeply penetrate their users’ everyday life and, as pervasive technology,
tend to become invisible once they are widely adopted, ubiquitous, and taken for
granted (Luedtke, 2003, para 1).
Coupled with a rise in privacy concerns is the call to increase our understanding of the
attitudes and behaviors toward ‘‘privacy-affecting systems’’ (Iachello & Hong, 2007,
p. 100). This paper investigates privacy violations on Facebook and how users
understand the potential threat to their privacy. In particular, it explores Facebook
users’ awareness of privacy issues, their coping strategies, their experiences, and their
meaning-making processes. To this end, we will first take a look at research on
Facebook’s privacy flaws and at existing studies of user behavior and privacy;
thereafter, we will lay out our conceptual background and hypotheses, and present
findings from our both quantitative and qualitative empirical research. Finally, we will
draw some conclusions from our research. The privacy concerns delineated above are
confirmed by several reports and studies on Facebook. In a report on 23 Internet
service companies, the watchdog organization Privacy International charged
Facebook with severe privacy flaws and put it in the second lowest category for
‘‘substantial and comprehensive privacy threats’’ (‘‘A Race to the Bottom,’’ 2007).
Only Google scored worse; Facebook tied with six other companies. This rating was
based on concerns about data matching, data mining, transfers to other companies,
and in particular Facebook’s curious policy that it ‘‘may also collect information
about [its users] other sources, such as newspapers, blogs, instant messaging services,
and other users of the Facebook service’’ (‘‘Facebook Principles,’’ 2007, Information
We Collect section, para. 8).
We will use The Code of Fair Information Practices to analyze the ethical standards of
today, and explore how these principles are no longer protecting the privacy and
security of people in a rapidly evolving global technology environment. Fair
Information Practices are a set of principles and practices that describe how an
information-based society may approach information handling, storage, and
management of information. In 1972, the Department of Health, Education, and
Welfare set out to create principles to be used in the evaluation and consideration of
systems, processes, or programs that impact individual privacy. The Code of fair
information practices became the framework and Privacy Act of 1974, a
comprehensive regime limiting the collection, use, and dissemination of personal
information held by government agencies. The Privacy act also established penalties
for improper disclosure of personal information and gave individuals the right to gain
access to their personal information held by Federal agencies. Due to the rapid
advancements in technology and the impact of digitalization on data flows, many of
these principles are outdated, and vaguely protect individuals’ information
appropriately. The relation between users’ privacy and Facebook business model is
very important because advertising is the main revenue of Facebook. Facebook wants
the world to be more open and connected because it stands to make more money in
that world stated by the Facebook’s CEO Mark Zuckerberg. 70% of its five million
users log in every day and it is between 18 and 24 that advertisers want to collaborate
with Facebook to make profits for both.
2. What is the relationship of privacy to Facebook’s business model?
The less privacy Facebook offers to its users, the more valuable and useful its
business model becomes. By providing more privacy to its users, the less data it
collects, stores, and provides to advertisers. That makes its business model less
valuable because advertisements cannot be as fully developed for individual users
hence talking about privacy to Facebook is a bit ironic so for Facebook wanting to
make more money is not a bad thing, in 2013, Facebook approximately made $55
billion in advertising thus Facebook’s entire business model is based on aggregation
and sharing user information. They give people a free social media platform to use
and in turn sell advertising and insights based on what they learn about the user. This
allows Facebook to sell much-targeted advertising. Therefore, privacy is the Facebook
business model.
Relating this in mathematical terms, we can say that Privacy has an inverse
relationship with the Facebook business model. As the case implies, the more control
Facebook gives its Users over their privacy, the less revenue it tends to generate and
hence the weaker its revenue model becomes. In simple terms, the higher the privacy
among Users, the lower or weaker Facebook’s business model and vice versa. Privacy
is the right to be left alone, or freedom from interference or intrusion. Information
privacy is the right to have some control over how your personal information is
collected and used. As technology gets more sophisticated, the more complex
information privacy becomes by the minute and the more data is being collected and
exchanged. Facebook’s business model is quite simple and is based on advertising.
Facebook enables people to connect, share, discover, and communicate with each
other on mobile devices and personal computers. There are several different ways to
engage with people on Facebook, the most important of which is News Feed which
displays an algorithmically ranked series of stories and advertisements individualized
for each person. Almost all the revenue comes from targeted advertising. In 2015,
Facebook generated $17.9 billion in revenue, 94 percent of which ($16.8billion) was
from selling ads and the remainder from selling games and virtual goods. Facebook’s
revenues in 2015 grew by 43 percent over the previous year, driven mostly by adding
new Users and showing 40 percent more ads than a year earlier.
A major contributor to revenue growth in 2015 is ads sold in the mobile News Feed
Advertising primarily consists of displaying ad products on Facebook, Instagram,
Messenger and third-party whiles payments and other fees consists of the net fee
received from developers using Payment's infrastructure or revenue from the delivery
of virtual reality platform devices and others. Facebook’s entire business model is
based on the unconstrained use of its user’s personal private information. Facebook
accumulates all this information about Users every time they react to a post by
clicking "like", adding an emoji, posting something themselves or launching a search
on the site. This raises an ethical concern of privacy protection. It must be noted that
the company has a history of privacy violations and slip-ups that raise doubts about
whether the personal information of Users is truly protected.
The relation between users’ privacy and Facebook business model is very important
because advertising is the main revenue of Facebook. 70% of its five million users log
in every day and it is between 18 and 24 that advertisers want to collaborate with
Facebook to make profits for both. Talking privacy to Facebook is a bit ironic.
Facebook’s entire business model is based on aggregation and sharing user
information. They give people a free social media platform to use and in turn sell
advertising and insights based on what they learn about the user. Facebook has
massive capabilities to collect, store, and analyze data. This allows Facebook to sell
much targeted advertising. Therefore, privacy is the Facebook business model.
Facebook states its regulations concerning to the rights and responsibilities derive
from the Facebook principles, and govern the relationship with users and others who
interact with Facebook. Privacy is the claim of individuals to be left alone, free from
surveillance or interference from other individuals or organizations, including the
state. In terms of Facebook, the privacy of the individual is how much information,
personal or not, is seen by other users than the creator or provider of that information.
Internet technology has posed new challenges for the protection of individual privacy.
Facebook wants the world to be more open and connected, because it stands to make
more money in that world. Facebook wanting to make more money is not a bad thing,
but the company has a checkered past of privacy violations and missteps that raise
doubts about whether it should be responsible for the personal data of hundreds of
millions of people (Lauder & Lauder, 2016).
The Eight Fair Information Practices (From the OECD Guidelines on the Protection
of Privacy)
 Collection Limitation Principle. There should be limits to the gathering of
private data and any such data should be obtained by lawful and fair means
and, where appropriate, with the knowledge or consent of the information
subject.
 Data Quality Principle. Personal data should be relevant to the needs that
they're to be used, and, to the extent necessary for those purposes, should be
accurate, complete and kept up-to-date.

 Purpose Specification Principle. the needs that personal data are collected
should be specified not later than at the time of information collection and also
the subsequent use limited to the fulfillment of these purposes or such others as
don't seem to be incompatible with those purposes and as are specified on each
occasion of change of purpose.
 Use Limitation Principle. Personal data shouldn't be disclosed, made available
or otherwise used for purposes aside from those per accordance with Paragraph
9
 Security Safeguards Principle. Personal data should be protected by reasonable
security safeguards against such risks as loss or unauthorized access,
destruction, use, modification or disclosure of information.
 Openness Principle. There should be a general policy of openness about
developments, practices and policies with reference to personal data. Means
should be readily available of building the existence and nature of private data,
and therefore the main purposes of their use, still because the identity and usual
residence of the info controller.

 Individual Participation Principle. a personal should have the right:

 to obtain from an information controller, or otherwise, confirmation of whether
or not the information controller has data regarding him;
 to have communicated to him, data regarding him within an inexpensive time;
at a charge, if any, that's not excessive; in a very reasonable manner; and in a
very form that's readily intelligible to him;
 to incline reasons if missive of invitation made under subparagraphs(a) and (b)
is denied, and to be able to challenge such denial; and
 to challenge data referring to him and, if the challenge is successful to possess
the info erased, rectified, completed or amended.
  Accountability Principle. an information controller should be in command of
complying with measures which give effect to the principles stated above.
3. Describe the weaknesses of Facebook’s privacy policies and features. What
management, organization, and technology factors have contributed to those
weaknesses?
The weakness behind Facebook’s privacy issues was a lack of communication
between Facebook and its users. Users were not aware that they were able to control
what information was being shared with external parties. The introduction of the
“news feed” was met with opposition from users because they felt it was too invasive.
Instead of only sharing status updates, the news feed shared additional information
such as profile updates, adding new friends, and adding new applications. Facebook
incorrectly handling user information when deleting their accounts also caused a
backlash for Facebook. Facebook servers would keep user information permanently,
with the reasoning that it would be easier for the users to reactivate their accounts if
they chose to. Facebook states its regulations concerning to the rights and
responsibilities derive from the Facebook Principles, and govern the relationship with
users and others who interact with Facebook. There are no laws in the United States
that give consumers the right to know what data companies like Facebook have
compiled. It is different in Europe where users can request Facebook to turn over a
report of all the information it has about users. Law enforcement agencies use social
networks to gather evidence on tax evaders, and other criminals; as well as employers
use social networks to make decisions about prospective candidates for jobs. In
August 2012, Facebook settled a lawsuit with the FTC in which they were barred
from misrepresenting the privacy or security of users’ personal information. Facebook
was charged with deceiving its users by telling them they could keep their information
on Facebook private, but then repeatedly allowing it to be shared and made public.
Privacy advocate groups like the Electronic Privacy Information Center (EPIC) want
Facebook to restore its more robust privacy settings from 2009, as well as to offer
complete access to all data it keeps about its users (Lauder & Lauder, 2016)
Weaknesses of privacy policies and features:
 Poor protection and privacy control - – Facebook does not grant Users proper
control and protection of their private information as their policy even declares
very openly that; Users of Facebook do not have any privacy with respect to
any data they provide to it.
 User’s activities are trespassed by other parties - As part of the business model
Facebook runs, it allows outside entities to assess your interests and behavior
 and then pitch you an ad based on your every move and your every click on
social networks.
 Allows third parties to collect user's private information without permission -
Whenever a user logs onto a website using Facebook, Facebook shares some
personal information with that website and tracks the user’s movement on that
website. Facebook also keeps track of activities of internet Users on sites that
have like buttons or recommendation widgets and their IP addresses whenever
they visit sites with those features, regardless of whether they click them.
 Exposure of user’s biometric database without user's acceptance = Facebook’s
newest privacy issue involves its facial recognition software used for photo
tagging of Users. This “tag suggestions” feature is automatically on when you
sign up, and there is no user consent. For example, if Rashida takes a picture
with Elizabeth and tags Elizabeth, the “tag suggestion” feature automatically
recognizes Elizabeth’s face and links it to her account, so that all viewers of
Elizabeth’s account can also view this post by Rashida though Rashida did not
intend to share the picture with Elizabeth’s viewers. This feature is in violation
of several American state laws that seek to secure the privacy of biometric data.
 Unequal privacy protection standards in different countries
Management:
 Facebook assumed it had the consent of users to share information about them
that is collected through the Beacon advertising service if they did not use the
opt-out feature. Facebook changed Beacon to be an “opt-in” service and gave
users the ability to disable it completely.
 The company utterly failed to grasp the extent to which the service violated its
users’ privacy as well as the uproar such a service was likely to cause. The
same thing occurred when Facebook introduced its News Feed feature.
 Generally, it is a strategic management of FBs to get its user to share as much
data as possible so that FB can serve a relevant advertisement to users. This is
because FB revenue comes almost entirely from advertising.
Organization:
 The personal information collected on the site represents a mother lode to
advertisers, but one that will remain largely untapped if Facebook users do not
feel comfortable enough or have sufficient incentive to share it.
 Users that attempted to delete their accounts were met with resistance and often
required outside assistance from watchdog groups.
  FB wants the world to be more open and connected because it stands to make
more money. However, the privacy controls over the personal data are far from
what FB currently offers. Moreover, most of the users are not really aware of
the privacy setting in their FB’s account.
Organization refers to the Facebook entity, its policies and procedures. The
Organization’s policies on privacy do not seek to protect User's information. For
instance, in 2009, Facebook sought to change its information retention and collection
policy (Terms of Service), granting Facebook unlimited data collection and control
over user-generated information forever, without redress. Management acted without
warning, provided no opportunity for public comment, and applied the new policy to
personal information that had been collected under the old policy. Over 100,000
people joined various blog sites and privacy groups to protest, believing that their
information belonged to them and not Facebook. Within days the firm retreated to the
old policy and set up user forums to discuss the Terms of Service and user attitudes
about personal information. Facebook has also been scrutinized for the handling of
personal information of people who attempt to remove their profiles from the site.
Also, Facebook’s privacy policy is more difficult to comprehend. Users do not often
understand the options available to them. As a result, it discourages Users to read and
adjust their privacy control settings.

Technology:
 Privacy and user controls over the information granted to Facebook are the
biggest concerns most users have with the site. Facebook grossly miscalculated
user privacy demands when it launched the company’s Beacon advertising
service because it shared information about users that they had not explicitly
intended or agreed to share.
 The service originally began as an “opt-out” feature. Even after users opted-
out, the service continued to send information to Facebook regardless of
whether or not the user was logged into Facebook at the time. The company’s
servers maintain copies of information indefinitely in accounts that have been
deactivated.
 An FB user’s friends are not notified if information about them is collected by
that user’s application. Many of FB’s features and services are enabled by
default when they are launched without notifying users.
Facebook offers Users the ability to deactivate their accounts, but the company’s
servers maintain copies of the information contained in those accounts indefinitely.
Users who attempted to delete their accounts were met with resistance and often
required outside assistance from watchdog groups. In August 2009, Facebook
announced a simplification of its privacy policy in response to a Canadian ruling that
the site was unlawfully retaining information from deleted accounts. They will now
require third-party application developers to conform to a more rigid set of rules
regarding the use of Users’ information andwill reach out to Users to better
communicate its simplified privacy options. In 2007, Facebook introduced Beacon
Program, designed to track what Facebook members purchased at their corporate
sites, send the information to Facebook, who would then share that information with
their friends without asking for permission. Facebook has also admitted that it uses a
software bug or code to track users across the internet even if they are not using
Facebook. These instances confirm the role of technology in the privacy weaknesses
of Facebook policies and features.

4. Will Facebook be able to have a successful business model without invading

privacy? Explain your answer. Could Facebook take any measures to make this
possible?
If Facebook would make active changes to improve users’ privacy, then yes, I believe
they would have a chance at a successful business model. If Facebook continues to
wish to use the information that people post on their accounts, a clear distinction must
be made to the users about what they are using the information for, and what
information they will be using, in order to reduce the legal risks and solidify the
legality of their advertising. Once the Facebook management can do this then a
broader, more organized, and more successful advertising campaign can be launched.
Facebook is it is one of the largest social networking sites in the world and is growing.
Their interface is simplistic, clean, and tends to attract those looking for a crisp, more
structured, social networking environment. It represents a unique opportunity for
advertisers to reach highly targeted audiences based on their demographic information
and narrowly specified criteria. It is a gold mine of opportunity because of the
information the site has gathered and because of the richness of the social networking
environment. Part of its status as a first-mover in the social networking marketplace
helps attract more users. But on the other hand, Facebook has created large numbers
of hostile users because of its privacy violations. Facebook’s own popularity will
injure its chances to attract advertisers to its site, claiming that the engaging and
immersive environment that draws visitors to the site makes users less likely to click
on the ads. Skeptics also believe that the current application system, where
applications tend to support one another via advertising through other applications
without the aid of extensive outside advertising, is an unsustainable model over the
long term. Personally, I do not think Facebook can have a successful business model
without invading privacy (Lauder & Lauder, 2016).
We believe Facebook would have a chance at a successful business model without
invading privacy. Facebook can make active changes to improve Users’ privacy.
Facebook should make clear distinction to Users about what they are using the
information for, and what information they will be using, in order to reduce the legal
risks and solidify the legality of their advertising. Once the Facebook management
can do this then a broader, more organized, and more successful advertising campaign
can be launched. For example, in 2012, Facebook agreed to allow Users to opt in to its
sponsored stories service which serves advertisements and highlights products and
businesses that other Facebook friends are using. This indicates that Facebook can
affect privacy policies that allows Users to receive a prompt to either accept or reject
the use of the personal information by third parties. Beyond this Facebook can
implement a system of rewarding Users with points that allocates vouchers for
shopping on e-commerce sites. This would encourage Users to share their
information, which presents a win-win situation.
Opinions will vary on this question based on these elements:
Positive indicators:
 It’s one of the largest social networking sites in the world and is growing
 Facebook’s interface is simplistic and clean and tends to attract those looking
for a crisp, more structured social networking environment
 It represents a unique opportunity for advertisers to reach highly targeted
audiences based on their demographic information and narrowly specified
criteria
 It represents a gold mine of opportunity because of the information the site has
gathered and because of the richness of the social networking environment.
 Part of its status as a first-mover in the social networking marketplace helps
attract more users
Negative indicators:
 It has created large numbers of hostile users because of its privacy violations
  Facebook’s own popularity will injure its chances to attract advertisers to its
site, claiming that the engaging and immersive environment that draws visitors
to the site makes users less likely to click on ads
 Skeptics also believe that the current application system, where applications
tend to support one another via advertising through other applications without
the aid of extensive outside advertising, is an unsustainable model over the long
term. So far, only 200 Facebook applications have attracted more than 10,000
users per day and 60 percent failed to attract even 100 daily users.
 It remains to be seen whether or not the company can turn its heavy site traffic
and trove of personal information into new revenue streams

Therefore, in my opinion, I don’t think Facebook will be able to have a successful

model without invading privacy because Facebook is currently serving as much to
advertise and reach people as it earns from those advertisements. There are no fees
that are to be paid to join FB or for its use, it all seems like they threw in a few
advertisements and hoped that its exposure would bring in consumers. Obviously, the
backbone of FB’s business model is advertisement. As a result, FB needs more users’
data to customize its ads and indirectly invading individual privacy. It is a critical
challenge for FB to avoid offends user’s privacy but yes measures can be taken by
making active changes to improve users’ privacy such as:
 To alert all the members of FB with an electronic detailed letter stating that for
advertising purpose information that is submitted to your information pages
will be used by Fb company.
 To give the users the options to either accepts or reject this offer in order to
install a legal standing that with the users of the site as well as protect the
integrity of the company.
 To offer applications that could be put on their pages in terms of interactive
games and trivia, in return for allowing FB to access users account for
advertising purposes.
Once the Facebook management can do this then a broader, more organized and more
successful advertising campaigns can be launched.
III. Facebook Privacy: What Privacy? SWOT Analysis

Strengths
 Diversified Portfolio
In case of decline in revenues in one in every of the sectors, diversified portfolio can
help the company to boost the corporate’s stability by protecting their core financial
assets. Some under its portfolio are WhatsApp, Instagram, Messenger which is
Facebook’s major strength. Diversification enhances the stability of companies by
protecting their core financial assets just in case of revenues decline in one sector.
Facebook clearly understands that you simply shouldn’t put all of your eggs in one
basket, opting instead to spread its investment across different areas. With WhatsApp,
Instagram, Messenger, Oculus (virtual reality device), Workplace (business tool),
Portal (video calling device), and Calibra (electronic payment system) under its
portfolio, Facebook’s diversification could be a major strength.

 Strong Brand
Strong brand is very important for each business long run success and stability.
Having these, Facebook remains very talked-about that contributes to their long-term
sustainability. Having a high brand is significant both for stability and long-term
sustainability. In 2019, Facebook was ranked #5 most dear brand by Forbes. With
$88.9 billion in brand value, Facebook is that the strongest brand within the social
media industry globally.

 Multi-app Strategy
This strategy provided users an "something for any and each individual" approach
which attracted more users to use Facebook. the primary move was the acquisition of
Instagram which made a stronger user base for Facebook. Facebook’s marketing is
straightforward. the actual fact that over 2 billion people use their applications on a
daily basis makes it a really powerful and effective marketing tool.

 Free Access
Providing a social network that's accessible to anyone or everyone free makes it more
attractive to users.
 Loyal Customer Base
Facebook’s strength, stability, and success is achieved through a large and ever-
growing number of extremely loyal customers. Nothing communicates a company’s
strength, stability, and success quite an outsized and ever-growing number of
extremely loyal customers. About 40% of the planet population uses Facebook and its
family products (Instagram, WhatsApp, Messenger), putting Facebook in an
irreplaceable position.

 Strong Advertising Business

Big or small businesses round the world use social networking sites to market their
products and services. Considering Facebook with billions of users, major source of
its revenue came from advertisements. Even though Facebook is synonymous with
social media networks, the foremost source of its revenue is from the advertisement.
In 2019, $69.66 billion (98.5% of its $70.70 billion annual revenue) came from
advertising.
 Specialize in R&D
Regardless of the industry, success within the digital age requires technological
innovation through research and development. Facebook is one among the worldwide
leaders in R&D spending and has increased investment in R&D from $4.8 Billion in
2015 to $13.6 Billion in 2019, which is about 19% of its annual revenue.
 Visionary Leadership
The impeccable and visionary leadership of Mark Zuckerberg could be a strength that
almost all companies within the world can only dream of. The fruits of Zuckerberg’s
strong visionary leadership include company culture, stability, increased profitability,
innovation, and sustainability with minimum internal wrangles within its ranks and
management, unlike most other companies.
 World’s Best Employer
Facebook’s excellent HR policies are thought to be one in every of the simplest not
only within the social media industry but also globally across all other industries. it's
known to draw in and retain top talent within the industry. Forbes ranked Facebook
within the following categories:
#147 Best Employers for Diversity 2020,
#144 World’s Best Employers 2019, and
#71 America’s Best Employers 2019
 Market Dominance
Companies that dominate the market can leverage their elevated positions to their
advantage. The leading social network of the globe, Facebook and its family products
(Instagram, WhatsApp, Messenger), have Monthly Active People (MAP) value of
two.89 billion (Dec 31, 2019).

Weakness
  Privacy Issues Privacy and data breaches
Privacy Issues Privacy and data breaches are a number of the issues of technology-
based companies. Since Facebook is extremely accessible to each user it would risk
privacy of the users using the appliance. Facebook’s negligence within the protection
of user’s privacy might risks losing its popularity and decline in its users. to deal with
this, Facebook management should provide lots of safeguards to secure the private
data and monitor quickly whether there are potential threats to the account of the
users.
 User’s Privacy Concerns
Facebook is facing backlash over its negligence within the protection of user’s
privacy, with the corporate experiencing a decline in popularity in some regions
across the planet. If the corporate doesn't address users’ privacy concerns promptly
and effectively, it risks losing its popularity.
 Overdependence on Advertising
Facebook business model relies heavily on advertising for its revenues. About 98.5
you look after its annual revenue comes from advertising. In 2019, Out of $70.70
billion annual revenue, $69.66 billion was its advertising revenue.
 Spread of False News Facebook
Spread of False News Facebook has been under plenty of criticism for spreading false
and misleading information that's unable to regulate and might be very destructive to
society. Facebook has been under lots of criticism for spreading fake and misleading
information. Fakebook’s inability to manage misleading information are often very
detrimental to society at large.
 Friction in Management
Consecutive scandals are disintegrating the harmony that existed between top-level
management since the corporate was founded. the necessity for accountability is
popping into a weakness as top executives point fingers and seek to distance
themselves from major scandals like the Russia meddling scandal.

Opportunities
 More and Diversified audience
Facebook is investing in diversifying its user based, as they collect Instagram and
WhatsApp. this implies Facebook has a chance to achieve various audiences in
different forms through introducing new features and new platforms. Even though
Facebook Inc. owns WhatsApp, Instagram, Messenger, and other platforms, the bulk
of its business revenue depends on social media and advertising. Facebook has the
chance to increase its portfolio beyond the social media industry. For example,
develop a business model with additional paid services like online dating, peer to look
marketplace, hardware devices, e-wallet, news subscription, etc.
 Increasing Integration to other Applications
This integration allows Facebook to be connected with the opposite apps. Users can
open different platforms to integrate with a range of other applications like e-
commerce, surveys, blogs, podcasts, videos, contests, reviews, games, etc. As
technology advances, more and more applications and websites are integrated,
allowing users to attach via other platforms. Facebook can open its platform to
integrate with a range of other applications like e-commerce, surveys, blogs, podcasts,
videos, contests, reviews, games, etc.
 Acquisition of other Social Media App
Continuous acquisition of several apps makes the user base of Facebook stronger. It
provides kinds of platforms that the user can use in reference to Facebook.
 Existing Program Development and Expansion
Considering billions of users, Facebook can expand its existing services like
marketplace, online video streaming, online dating, business tools, e-wallet and more
to compete with the massive ones. With billions of users, Facebook can expand its
existing services like marketplace, online video streaming, online dating, business
tools, e-wallet, etc. to compete with giants like Amazon, eBay, YouTube, Netflix,
Apple, Tinder, PayPal, etc.
 Utilize Changes in Advertisement
Access via mobile application is what a majority of Facebook users do. Facebook
users do. Facebook has an invaluable opportunity to improve its mobile-based
advertising to take advantage of increasing mobile in-app ads.
 Target Different Audience
Although Facebook is popular, the drivers of its popularity is principally tech-savvy
and younger demographic. By introducing new features, Facebook can attract other
target segments like older generations or high-end business platforms like LinkedIn.
 Expansion through New Acquisitions
Facebook has financial resources to expand its portfolio by acquiring established
entities. Also, it can acquire promising technology start-ups with the potential to
revolutionize the planet, a bit like Facebook did.
For example, In Oct 2019, Facebook acquired a brain computing start-up “CTRL –
Labs” that makes a specialty of sending brain signals to a computer and use these
signals to perform various tasks.
 Exploit Changes in Advertising Trends
A majority of Facebook users access their accounts via mobile app. Facebook has a
useful opportunity to boost its mobile-based advertising to require advantage of a 26%
increase in mobile in-app ads. has a useful opportunity to enhance its mobile-based
advertising to require advantage of increasing mobile in-app ads.

Threats
 Increased Regulations
Due to issues with insensitive content, and data safety, several regulatory bodies
adhere new transparency and accountability requirements of Facebook. These laws
threaten to scale back the amount of Facebook users, as a number of its customers can
take other platforms. the number of unfavorable regulations to Facebook is being
passed and adopted at an alarming rate, fueled by recent scandals like Cambridge
Analytica.
In addition, issues with data safety, insensitive content, and infringement of material
possession rights have prompted several regulatory bodies within the department of
commerce to enact regulations that may force Facebook to stick to new transparency
and accountability requirements.
These laws threaten to cut back the quantity of Facebook users, as a number of its
customers can migrate to other platforms.
 Competing Social Networks
Users might find better social networks which will leave Facebook behind. Some
users might find other interesting features than what Facebook offers. Competition
from both old and new platforms is threatening to cut back Facebook users. As new
entrants to the sector, like TikTok, provide customized platforms targeting younger
generations, Facebook’s future becomes dimmer and dimmer. In an effort to compete
with TikTok, Facebook has launched its own version of short, fun videos platform
“Lasso.”
 Fake and Duplicate Accounts of Users
Some accounts aren't true and profiles might be fake and misleading. One can
find beautiful girls and handsome boys in Facebook which might be not their original
appearance. It can be a ground for fraud and other issues.Facebook estimates that out
of its 2.5 billion (Dec 2019) Monthly Active Users (MAU) worldwide, St Martin's
Day may represent duplicate accounts and 5% false accounts. the bulk of the duplicate
and false accounts originate in developing countries like the Philippines, Vietnam, and
Indonesia.
 Bans in Several Countries
In democratic countries, regulations are being adopted to curb fake news want to
undermine democracy, while autocratic governments are restricting access to
Facebook to curb freedom of speech.
For example, Facebook is banned in countries like China, Iran, and DPRK.
additionally, Russia has recently banned Facebook in its country.
 Data Breach
Facebook has experienced many instances where its data was breached, affecting
innumerable its users. for instance, in December 2019, during a serious data breach,
over 267 million Facebook users’ personal information (names, user ID, phone
numbers) was exposed to the dark web.
 New Digital Tax
Recently, the United Kingdom and also the EU introduced a brand-new digital tax that
may require Facebook to pay a better tax threatening its dwindling profits. If digital
taxation is adopted by more countries, an outsized portion of Facebook’s profits are
going to be directed to paying digital taxes.
 Tainted Reputation
From New Zealand’s terror live stream to Cambridge Analytica data scandal to fake
news, to hacked accounts, just to call some, the spectacular image and reputation of
Facebook goes down the drain at a daunting rate. this can be a serious threat.

IV. Alternative Courses of Actions (ACA’s)

ACA No. 1: to possess 10,000 Aquilas flying round the planet Earth.
Facebook mission statement focused on the essential human need of connecting and
sharing round the world. Thus, Aquila, a sleek, boomerang-shaped drone wiill receive
radio
signals from a ground station and convert the signals to WIFI or 4G networks to
underserved
internet communities.
Advantages
 they're less costly than satellites.
 Facebook are more accessible to everyone.
 There'll be an increased on the expansion of the users.
 With the increased range of users, there'll be more advertisements, more
viewers, thus increased the revenues.
Disadvantages
 Aquila might result into structural failure since it had been not tested yet.
 If impractical, it'll result to losses.
ACA NO.2: Expand investments on network infrastructures
Connectivity is that the heart of Facebook's mission of giving people the facility to
make
community and convey the planet closer together. Facebook should expand Network
infrastructure
investments. It accelerates broadband coverage by reducing network total cost of
ownership
(Includes the acquisition price of a selected asset, plus operating costs over the asset's
lifespan)
through shared transport. It enables high speed bandwidth to the best possible number
of
people at low cost.
Advantages:
 it's going to reduce the prices of delivering data.
 It improves network reliability and speeds.
 It encourages open access infrastructure sharing and competition
Disadvantages:
 Network infrastructure remains a key bottleneck in many markets because it
represents an outsized portion of a telecom provider's costs.
 it's difficult to produce users with high-speed connectivity at affordable prices.
ACA No. 3: To enable better global connectivity through new partnerships and
technologies
In bringing people closer together, Facebook invested numerous dollars into
telecommunication infrastructure and partnered with big telecommunication
companies. Some
of its investments and connectivity initiatives include engaging in configuration that
supports
internet connectivity like submarine cables, edge networks and Backhaul fiber
investments
through Open Transport Networks in addition as supporting mobile operators through
facilitation
initiatives like Express Wi-Fi, rural access partnerships and Telecom Infra Project.
Thus,
collaborating with global operators to check new wireless technologies and business
models will
make the web to be accessible to any or all.
Advantages
 It improves overall user experience through Facebook's locally cached
networks and servers that may allow operators to access content at locations
closer to their own networks and reducing international connectivity and transit
cost.
 It provides people with fast, affordable, and reliable access to the net.
 it'll diminish cost of deployment in locations where current technologies are
cost prohibitive.
Disadvantages
 It requires heavy investments.
 It restricts flexibility because of conflict of interest.
 It doesn't cover some areas with lack of mobile broadband coverage.

V. Recommendation
After examining and comparing the various alternative courses of action, we have
chosen ACA No. 1: to own 10,000 Aquilas flying round the planet Earth. except for
the actual fact that it's less costly than satellites, if we consider Facebook’s mission in
making the planet more open and connected, having 10,000 Aquilas flying round the
planet will help people on the underserved internet communities to access Facebook.
Thus, it'll increase the general number of Facebook users which can successively
increase Facebook’s revenues. However, the downside of this action is that it's still
not tested so if flying Aquila isn't implemented properly, it might result to structural
failure and losses. Nevertheless, it's still the foremost appropriate action compared to
ACA no.2 and ACA no.3 because it solves both problems mentioned on the primary
part of the case as evidenced by the various advantages aforementioned. The
alternatives 2 and three were rejected. the explanation why we didn't accept
alternative 2, expanding investments on network infrastructures, is that although it
improves network reliability and speed, the network infrastructure remains a key
bottleneck in many markets. additionally, it is difficult to supply users with high-
speed connectivity at affordable prices. We also rejected alternative 3 because
enabling better global connectivity through new partnerships and technologies are
extremely costly. the advantages achieved through this were offset by the various
disadvantages present.
Facebook’s business model is predicated almost entirely around generating revenue
through advertising. In fact, in Q1 2017, 98% of its quarterly revenue came from
advertising while non-advertising revenue within the quarter sources fell by quite 3%
from a year earlier (Ingram, David. “Facebook nears ad-only business model as game
revenue falls” Reuters. 7, May 2017. Web. 27, Sep. 2017). Facebook is ready to come
up with income during this manner as a result of their ability to gather massive
amounts of knowledge and knowledge that their users share via its free social media
platform and aggregating that data and sell it for terribly targeted advertising.
It is this collection and use of such data that's directly associated with privacy. The
growing public concern around information sharing and therefore the heightened
sense for an increased level of privacy can have a heavy impact on Facebook’s ability
to still grow as a profitable business. If they arrange to offer more privacy options as a
way to stay current users happy and to achieve new ones who is also hesitant to sign
on for a fear of lack of privacy, they're going to not be able to continue collecting and
storing the identical types and amounts of knowledge that have proven so valuable to
their growth up until now. Without other substantial sources of revenue, taking a
success to what proportion they'll generate via advertising may end up in an
exceedingly significant decline in overall revenue growth for the corporate as a full.
Facebook cannot have a successful business model without invading privacy, because
the entire concept and triumph of Facebook has been data collection. By creating a
platform for the population to use under the guise of networking, Facebook has been
able to deceive its users by offering a concept that this suggests of communication is
“free.” Disinformation and lack of understanding amongst the population has allowed
tech companies like Facebook to gather data without giving us specifics to what, why
and where this information is being disseminated. The business model Facebook has
deployed has focused on the reselling of knowledge and allowing marketers to use
this platform. The Terms and Conditions that we sign to permit Facebook to gather
data gives it an amount of legitimacy but those practices also are coming under
intense scrutiny. “Carnegie Mellon researchers determined that it'd take the typical
American 76 work days to read all the privacy policies they agreed to every year. So,
you’re not avoiding the reading out of laziness; it’s literally an act of job preservation”
( Scherker, 2014). The Terms and Conditions of the many websites have created an
environment that creates it inconvenient for users to know, while at the at the identical
time trying to produce use convenience. In legal terms, privacy seems to own a gray
area in our society. Currently in Europe, Internet privacy has become a hot button
topic. “Facebook has been fined €150,000 ($166,400) by France’s privacy watchdog
for violating the country’s data protection rules. in an exceedingly statement released
Tuesday, the Commission National de l’Informatique et des Libertés (CNIL) said
Facebook has didn't properly inform users of how their personal data is tracked and
shared with advertisers, though it stopped in need of ordering the corporate to alter its
practices.” (Toor, 2017). this example is shedding light on an ongoing privacy
concern that's also creating questions within the us. So, Facebook must determine
other ways to supply solutions to their profit generating system.
The only solutions that we are able to see for Facebook to figure round the privacy
issue, is by continuous persuasion. We believe that society seems very willing to
allow up privacy for convenience, security for freedom. With all of the info that
Facebook and other tech firms have collected on us, they're steps sooner than us and
that we think they'll find ways to deal with the privacy concerns in a very manner that
may satisfy only the willing. Others will must put up with the ever-changing
environment of the interconnected world unfortunately.

VI. Conclusion:
The weaknesses of Facebook’s privacy policies and features are that the majority of
Facebook's revenue comes from advertising by selling the data its users provide, the
dimensions of the private data that Facebook has collected asks protections and
privacy controls which increase beyond those who Facebook currently provides, and
also the million users haven't changed Facebook’s privacy settings which permit
friends using Facebook applications to transfer users’ data unwittingly to a 3rd party
without users’ knowledge. the data 13 million users are sharing everyday might be
employed in a way. The factors to the weaknesses are coming from three of
individuals, organization and technology. Facebook people shouldn't make privacy
related issues within the future, just like the mistake of Facebook's Beacon program.
The people should take a lesson from MS; Microsoft's 90 percent share of the
software package market within the 1990s meant that the corporate could force every
kind of other crap on us that we didn't want or need. The possible disadvantage of the
organizational culture, knows as a hacker culture is that the difficulty in strictly
implementing new mandates that impose limits on employees’ activities. this can be
so because Facebook’s employees are conversant in a company culture where they're
empowered to try and do their jobs flexibly. the interior algorithms of policies and
rules, which are currently not perfect thanks to the technology and rapidly changing
online environment, might cause Facebook to become arbiters of truths.