Facebook is the biggest and most powerful social media company in the world and to remain on top, the company has adopted a very brutal strategy to achieve that goal. Over the years we’ve seen new social media companies emerge out of nowhere to threaten that dominance of Facebook and Mark Zuckerberg. Some of the companies actually put up a really good fight. While others are just sitting there, fighting for attention and survival. In this post, TechCapon will tell you how Facebook fights of any competition that tries to challenge its dominance.
According to CNN, these are the most popular social media companies in the US, (of course China has very powerful social media companies as well but we won’t mention them here because they’re not so popular outside China or Asia)
One thing you’ll notice is that Facebook owns 4 out of the top 10 popular social media companies. This shows that FB is the most powerful and also it knows how to crush an emerging competitor right in its track. This is how Mark Zuckerberg does it.
Number one: Buy the company
Facebook has spent billions and billions of dollars buying up companies that try to threaten its dominance. It’s biggest acquisitions includes Instagram and Whatsapp. Facebook bought Instagram for $1 billion and 2 years later, the company bought Whatsapp for $22 billion. At the time people don’t understand why Whatsapp was worth that much amount of money. This is an app that runs no ads whatsoever. The fact is that Whatsapp is NOT worth that money and will never make that amount of money for Facebook in terms of profit and revenue. But the thing is Zuckerberg was not interested in the money. All he wants is to get rid of a fast emerging competitor that’s coming to steal its users away. Facebook has also tried to buy up other companies like Snapchat and Twitter. The founders of those companies refused to sell. So when buying doesn’t work, that brings us to number two option.
Number two: Deny access
When Zuckerberg fails to buy the company, he uses another strategy which is to deny access to that company from its data. What this means is that you cannot be able to invite your Facebook friend to use that app. Facebook did it to “Vine”, a fast-growing video-sharing app owned by Twitter. The company died. Not only that, Facebook and Instagram has done it to other companies and denied them access to their APIs. Most of those companies died and don’t exist anymore because of the move.
Number three: Copy and Paste
When buying and denying access doesn’t work, what Zuckerberg does is to copy and paste. What this means is to look for the best feature of that new app, copy it and paste it in its own apps. For example, when Facebook tried to buy Snapchat for $3 billion, Snapchat CEO turned down the offer. What Zuckerberg did next was surprising, he copied Snapchat “stories feature” and applied it on Facebook and Instagram. That move effectively took away that unique shine from Snapchat and the company has not recovered from that move ever since. So whenever you use Facebook stories or Instagram stories, remember that Zuckerberg actually stole the feature from Snapchat. After that happened Snapchat shares fell drastically and have continued to fall as their daily user base declined.
That is how Facebook has succeeded in staying on top and it has been a brilliant business strategy for the company. But now the table is turning and it could bring trouble for the company. That’s because regulators and politicians are now speaking up against these brutal dishonest strategies of Facebook. Also, a big anti-trust investigation is looming. Recently a female US presidential candidate, Elizabeth Warren vowed to break up Facebook if she wins the presidential election accusing the company of having too much power. That means it’s not only competitors Zuckerberg has to worry about as politicians are now becoming interested in what they are doing. When Facebook bought Instagram, it has just 30 million users. Today, it has over 1 billion users. Considering what FB is doing, do you think Snapchat and Twitter should have sold their companies to Zuckerberg? Tell us in the comment section.