The Ultimate Rise & Fall of Facebook (Meta) | Why Facebook is Failing? | Case Study

There was the time when having an account on Facebook used to be a big deal for us, remember that day when you created Facebook account by telling wrong birth date. Time passed and changed, the company whose product used to be an achievement for us, its secrets started appearing in front of all of us! such secrets which no one knows. Facebook a Trillion $ Tech company with 2.9 billion active users, is the world's biggest social media website. company is growing constantly and his founder Mark Zuckerberg.

age -28 years. Net Worth-$98 billions. The Third Richest man in the world. But in the last one year his net worth reduced to $46 billion, Facebook is now Meta, and Meta's valuation has come down from 1.17 trillion$ to just $560 billions! and just a few days back Meta fired 11000 employees. what is going on in the company that no one knows. This is the Ultimate Rise and Fall of the Facebook.

On 4 February 2004 Mark Zuckerberg launches the website named 'The Facebook'. what was the reason for the success of Facebook. There were many other competitors from Asia but due to lack of internet penetration in 2004. They had a slow growth and Facebook was launched in America having an access of high-quality data connection and as a result, Facebook bought all his competitors. on the other hand, Facebook had better user experience which was simple to use apart from this the platform was away from fake profiles and great security, by 2012 Facebook had 1 billion users and everything was going very well, but by 2016 there were many fake profiles and fake news which resulted in user- disengagement eventually Facebook survived and in the same year emojis were launched in the same year. From now the bad days of Facebook started!

Year 2018, a massive data was breached in management consulting firm Cambridge Analytica which got the personal data of 87 million users, used to promote Trump in 2016 American Presidential Elections. when the scandal broke out the share price went down by 40%. Even after all this Facebook survived.

If you look very closely there are 3 main reasons for the decline of Facebook: -

1. lack of quality users: - As of July 2022 the world population was 8 billion in countries like Russia, China, Iran and North Korea Facebook is completely banned. Total population of these countries is 1.7 billion so Facebook can't cater these people on top of that 1.1 billion are those people, who are 13 years or less and 37% of world population is non internet users so Facebook have not user left.

2.loss of youth Appeal: - Having so many things in the interface it has lost its quick responsiveness so that is the reason for children's having lost their faith in Facebook and shifting to Instagram or Snapchat as these platforms are comparatively speedier. Most of the young adults are considering Facebook for the age limit of 40 - 50 years of age.

3.False Marketing: - In October 2021 when Mark Zuckerberg made announcements of Meta, everyone was shocked because everyone was thought Meta is going to be Future. But, the level of Graphics, user interface, compatibility and connectivity that Mark had promised, at the time of launch it didn't turn out even 1/4 of that. In USA 58% - 60% people invest in stock market therefore when its expectation failed

that resulted in direct stock price of Meta. Just because of overcommitment and under delivery the market capitalization has dropped from $1 trillion to $256 billions.