COST LEADERSHIP: Gaining a competitive edge through reducing costs is a component of

the cost leadership approach. In a variety of consumer areas, Facebook's primary general
approach is to lead with prices. This strategy's main goal is to maintain market leadership
through effective value chain management. There are several ways how Facebook uses the cost
leadership strategy.

Targeting the middle class, which makes up the greatest section of the entire consumer market
mix in most countries, helps Facebook to increase its market share. Cost leadership is the
greatest way to meet the demands of this market segment since middle class consumers often
place a high value on the pricing aspect. Without really spending anything, we can gain access to
a sizable market of customers, advertise our product and company using the available free tools,
and interact with a significant audience of followers on social media. Facebook places a major
emphasis on the cost-effectiveness and accessibility of its products across the world, which
promotes high brand recognition, rapid sales growth, and a solid competitive edge.

Facebook regularly gives discounts and coupons in addition to charging cheap rates through
reducing manufacturing costs and optimizing supply chain efficiency to meet sales goals and
combat competition from its main opponent. These discount and promotional efforts hope to
boost brand recognition and boost consumer spending.

DIFFERENTIATION: Another generic strategy that is frequently employed to create a

competitive advantage is differentiation. To pursue its business goal, Facebook combines
differentiation with a cost leadership strategy. By highlighting the distinctive qualities of its
products, Facebook potentially increase its consumer base by using differentiation as a
supplementary generic approach that draws attention of consumers of all ages. Facebook has
huge existing customers of middle-aged adults in addition to the young. The organization also
provides a wide range of tastes to meet the diverse taste preferences of its clients. It makes use of
innovation as a tool to provide distinctive augmented services that could gratify users and
improve their preference for Facebook over competing companies.

Facebook's strategic goal in employing this tactic is to stand out by incorporating innovation and
taking care of consumers' rising health concerns. In addition to this, the brand logo is used to
establish the basis for distinctiveness. Consumers' perceptions of the brand are positively shaped
by its distinctively unique logo. Although the brand has experienced several changes, its core has
stayed constant, which also acts as a potent differentiator.

FOCUS: The third generic competitive strategy is focus, which encourages businesses to

concentrate their efforts on developing specifically particular market segments. Businesses that
use the focus approach target certain market groups and use specialized marketing to their
advantage.

Facebook uses the focus method by keeping costs low and providing the highest value. By
meeting a particular market segment's demands at the most affordable cost, the low-cost focus
method is used. While the best value focus approach emphasizes the flavor, size, and design of
the product that may most effectively meet the demands and expectations of the clients. To fulfill
consumers' psychological expectations and optimize value for money, Facebook continuously
updates its branding strategy and makes modifications to the product design and packaging by
concentrating on its product qualities.

BCG Matrix: According to the matrix, two criteria—company competitiveness and market
attractiveness—should be taken into account by businesses when determining where to invest.
The underlying drivers of both parameters are relative market share and growth rate. The
matrix's axes are made up of these two dimensions. The term "stars" refers to strategic business
units having a high relative market share and a high pace of market growth. Companies should
make investments in their stars and may put vertical integration, market penetration, product
development, market development, and horizontal integration plans into practice. The term
"question mark" is used to describe strategic business units with a high pace of market growth
and a low relative market share. In order to decide whether to keep or sell these key business
divisions, the company must provide careful attention. They are referred to as cash cows when a
strategic business unit has a high relative market share but a poor market growth rate. To
preserve their current market share, the company should make these investments. The last
category is referred to as "dogs," which refers to strategic business units with low relative market
share and market growth rates. The company needs to sell off these important business units. 

Facebook’s Star- Instagram: Along with having a large market share, Instagram is now the
Facebook SBU that is expanding the fastest. In only two years, its user base has doubled to 700
million daily active users. The 'Direct' and 'Stories' features of Instagram are mostly to
responsible for this. Instagram has successfully maintained its leadership position by remaining
firm to its roots of visual communication and deftly embracing latest innovations by investing in
product development.

Facebook’s Question Mark- Oculus: Oculus focuses in technology and software for virtual
reality (VR). Massive amounts of money must be spent on research and development, yet it is
uncertain if VR will be popular or whether Oculus will be a success. According to the NYTimes,
Zuckerberg intends to invest $3 billion over the next 10 years to make VR accessible to millions
of people, indicating Facebook's desire to make Oculus into a star. 

Facebook’s Cash Cow- WhatsApp: With a very few rivals, WhatsApp’s growth rate has
essentially reached its maximum. Therefore, investing in WhatsApp is viewed as pointless.
WhatsApp is a revenue-generating cash cow due of their large market share.

Facebook’s Dog- Messenger: Second software like Messenger seems superfluous, given that
practically majority uses WhatsApp. Due to Messenger's sluggish growth rate and low market
share, which make it a dog, Facebook may want to consider liquidating the service.