Examining the Downfall of Facebook (Meta): A Business Case Study on Why it is Failing

Remember that day when you created a Facebook account with the wrong date of birth. Time passed, and time changed, the company whose product was successful for us, its secrets began to appear in front of all of us! Such secrets, that no one knows. Facebook - a trillion dollar technology company, with 2. 9 billion active users, is the largest social media website in the world. The company is growing, making a lot of money, the profits are increasing

every year and the investors are extremely happy! Mark Zuckerberg. Age - 28 years old. Net worth - 98 billion dollars. The third richest man in this world. But today, in just one year, Mark Zuckerberg's net worth has shrunk to $46 billion. Facebook is now Meta. And Meta's valuation has gone from $1. 17 trillion to $560 billion! And just days ago, Facebook laid off more than 11,000 employees. It 's all over in a

pinch of time. What will happen to these people? Why did Facebook take such a terrible step? What happens in the company, nobody knows. Will Facebook shut down? It's the ultimate rise and fall of Facebook! The company that indirectly controls the world. Facebook is constantly losing money! Even to such an extent, that Facebook has no money to pay its employees. Investors, instead of investing, withdraw their investments. And the

most interesting part is, from July 2021 to July 2022, Facebook 's monthly active users grew by 40 million. But, still profit is down 30%. But how? What is happening in the company, which despite the increase in users, the company is sitting on losses. Because, as awesome as things look on the outside in this company, they're even more terrifying on the inside! This story begins on October 28, 2003. When the 2nd year Harvard computer science student created a social media site

named "facemash" for students studying at his university. The idea becomes a success. And within two weeks, 430 students visit this site. But, the saddest thing was, the Harvard administration had his website banned! Because according to them, all the photos that have been uploaded to facemash have been hacked from the university's data center. At that time, three students who were studying at this university, Cameron Winklevoss, Taylor Winklevoss and Divya Narendra, together created a social media site named “HarvardConnection”. And who was coding the website?

Victor Gao. But due to financial problems, he had to stop. But, before leaving, Victor suggested to the team that he knows someone who can do it. He was none other than Mr. Mark Zuckerberg. The HarvardConnection team shares their idea with Mark. The idea was to create a social media website, which could be used by all school and college students. This meeting takes place at the end of October 2003. And after that, on December 1st, Mark sent two emails to HarvardConnection,

which stated that he was very interested in the idea, but due to some work, he is busy  . December 4, 2003, The HarvardConnection team reconnects with Mark. And the answer came, I'm solving a problem, I'll be back soon. And things continued. The team continued to follow and Mark continued to ignore. On January 14, 2004, a new meeting took place between Mark Zuckerberg and the HarvardConnection team. In which Mark doubts the viability of the HarvardConnection team. He says this idea might not work, and I'm too busy to work on it.

I have many projects. But curiously, just after a month, Mark Zuckerberg launched the website named 'thefacebook'. The idea was the same, only the name was different. February 10, 2004, Cameron Winklevoss sends a letter to Mark Zuckerberg, in which it is written, that he is accused of breach of contract and theft of idea. A few months later, on May 21, 2004, the HarvardConnection team launched their website under the name ConnectU. And, shortly after, in September 2004, ConenctU filed a complaint on facebook and Mark Zuckerberg.

When the investigation took place, it came to know, that there was no signed contract between Mark Zuckerberg and Winklevoss. But, the question is when Facebook was launched, around that time Friendster, MySpace, ConenctU, and many other similar websites were also launched. But what Facebook made so special, because of what, today, none of us even know the name of these sites! Well. . . three things! Number 1 Combat population restrictions. Friendster was designed on the premise

of dominating the Asian market. But the problem was, at that time, there was not much internet penetration in Asian countries. On the other hand, Facebook targeted Western countries, where in 2004 Internet penetration came, and because of which Facebook was rapidly gaining users. 2. Security and User Interface. Friendster 's security was very weak. And the UI was filled with different colors which made it very difficult to use. Facebook, on the other hand,

was comparatively less cluttered, and was very simple to use. And third and most importantly, Stay away from anonymity and diversification. Where, sites like MySpace use nicknames, and have done everything to boost their income. But Facebook allowed you to keep your own name. This creates a network effect. You want to join Facebook, because you know, your classmates are on Facebook. Year 2008, Facebook bought ConnectU for 65 million dollars. And from there begins, the real story of Facebook.

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you can certainly exchange your opinions on Probo Download now and you will get 25 rupees in welcome bonus. Buy, copy and destroy! In 2008, Facebook was so big that they used to acquire their competitor, and if that's not possible, they copy their key features. By 2012, Facebook had one billion users. And everything was going so well, but in 2016, Facebook started

having big problems. The platform had become so crowded that people started leaving the platform. Tons of fake accounts. And the scariest part, fake news. Facebook regularly received summonses from the authorities. To counter fake news, Facebook has launched a fake post reporting feature. In the same year, Facebook also launched reactions, in which you can use various emojis with a like button. It was an initiative by Facebook to understand human behavior, in a much better way.

But, it failed. After that, you can think about what happened with Facebook. In 2018, a massive amount of data was breached at management consulting firm Cambridge Analytica. This firm, through the application 'This is your digital life', by recovering the personal data of 87 million users, used to promote Trump during the 2016 US presidential elections. When the scandal broke, the whole world was  was shocked. #deletefacebook started trending on twitter. And Facebook's stock price is down 40%. But oddly enough,

even after all that, Facebook survived, but if you look very closely today, Facebook's state is very bad. And this happens for three reasons. #1 - Lack of quality users. Now watch this very very carefully! According to July 2022, the world population was 8 billion. In countries like Russia, China, Iran, and North Korea, Facebook is completely banned. So the total population of all these countries is 1. 7 billion. Facebook cannot respond to these people.

On top of that, 1. 1 billion are those people, who are under the age of 13. Facebook cannot respond to these people either. And icing on the cake, 37% of the world's population does not have access to the Internet. Thus, the total of Facebook non-users is 5. 1 billion. And currently, Facebook has 2. 9 billion active users. So Facebook technically has no more new users. Take a look, Facebook user growth,

hardly growing. In fact, its users dwindled in 2022. After this news hit the market, its stock price started to decline. Because it was the first time in history that there was a drop in revenue and active users. 2nd reason - Loss of attraction for young people. 20s love speed. When we're in our twenties, we like things fast. But if you look at Facebook 's UI , because there's so much in one place, it's lost its quick responsiveness. So it slows you down. This is the reason why most

users are not on Facebook. They are either on Instagram or Snapchat as these platforms are comparatively faster. The average age of Facebook users is 38 years old, about 7 to 9 years older than that of Instagram, and Snapchat. According to the Pew Research Center study, in 2014-2015, 71% of American teenagers used Facebook. But by 2021, 32% of American teens are using Facebook. In the United States, most young adults agreed that, is for people in their 40s and 50s,

not for the 20s and 30s. For most adults, Facebook is boring, misleading, and negative. In 2019, after the spread of fake news, people lost trust in Facebook. According to Forbes, this time the data of 267 million users has been leaked. In which their mobile phone numbers and email addresses have been included. In February 2021, changes were made to WhatsApp's privacy policy! Who says that Facebook will now share its

data with Whatsapp. And Whatsapp has a completely different story filled with lots of lies and betrayals. And sadly today most Facebook users are turning to Tiktok and Snapchat, and icing on the cake, if you look very very carefully, out of India, in most countries, the majority of the population uses iPhones. Under Apple's new privacy policy, it has become much more difficult for Facebook to use people's data and display ads.

Because logically, Apple is expensive, the number of people who have iPhones, they all have high purchasing power. So if you lose Apple user data, you are missing inventory of an expensive product! And that's exactly what happened with Facebook. Because of this privacy policy , in February 2022, Facebook's revenue dropped by more than $10 billion. And that brings us to the third most important reason! And that's "false marketing". Simply put, over-commitment and under-delivery. In October 2021, when Mark

Zuckerberg made announcements on Meta, everyone was shocked, because everyone thought that would be the future. But, the level of graphics, user interface, compatibility and connectivity that the Brand promised, at launch, it turned out not even 1/4 of that. And it backfired on us! I'll tell you how? In India, 5% of people actively invest in the stock market. But on the other hand, In the United States, 58-60% of people actively invest in the stock market. So you see, in countries like India,

retail investors cannot allow any stock to move too much! So in India, until institutional investors pull their money out of a stock, there would be no massive change in the stock price. But in America, most US retail investors own Facebook shares. And due to the amount and volume of trading by retail investors, stocks have fallen rapidly! And of course, when so many retail investors are taking money out, then even the mutual fund companies, where the public money is invested, they are taking

their money out of it as well. Because, Mutual funds have people's money, and mutual fund managers, do n't want to lose people's money! So, in very simple terms, as soon as Facebook announced its results, retail investors and institutional investors launched their Facebook shares. And that's why there's such a big drop in stock prices. And, if you look

very closely, revenue is also down. Due to which most investors do not trust Facebook. This is why, due to over-engagement and under-delivery, people have lost faith in Facebook. As a result, the company's actual market capitalization fell from $1 trillion to $256 billion. But you know what, there is such an industry, where over-delivery and under-delivery happens the most! The fitness industry! And the sad thing is, in this case,

you are putting your life at risk, not just money! You won't even know how duped you were! You will think that the body is being built, the career is being built but, in reality, your life is wasted at this level, which you cannot even think of. This industry is full of dirty secrets. Such secrets, which most people do not know! If you read the next article, you'll know!