Facebook over the years has sorted out ways in which they can improve on satisfying their users need and at the same time generating revenues. By improving how businesses are done on the social media platform with some key features like the business model, advertising and promoting, business manager and so on, Facebook has not only created a means of generating revenue but a way to make business activities easy to manage and comprehend.
The Facebook business model canvas is a strategic management feature that helps communicate or help comprehend the idea, concept, and aspects of businesses. It justifies and creates a plan for the successful operation of a business by identifying all sources of revenue, potential customers for that business, the business goods and services, workforce, capital, and its targeted profit. This feature is used by Facebook to uniquely generate revenue and at the same time also ease their user’s activities on Facebook, it can also be taken advantage of by business personnel who is looking to inform people in a comprehensive way about how his or her business is conducted.
The business model canvas of Facebook explains the different parts of a business model like;
- Customer section; customers preference, advertisers and marketers, people who promote their businesses through Facebook and so on.
- The issues Facebook has created solutions to i.e its Value proposition.
- The ways in which Facebook has and can connect with its users.
- Features Facebook has created to improve itself as a social media and a business platform as well, its relationship with customers and users i.e its key resources.
- Key activities
- Main revenue source.
- What it has to offer as a business platform to business personnel
- Its key partners i.e. partnership with other firms that have improved its works.
- The application Facebook has acquired to make it experience fantastic and smooth.
- The cost of its operation.
All these are the key strategic planning Facebook uses to improve their business model thus making them more effective in terms of communication. Using Facebook is almost free but with tools and features that help developers, advertisers, business personnel and promoters easily integrate with Facebook, there is surely going to be an increase in revenue generation especially with advertisements being its main source of revenue.
This strategy of Facebook could be assimilated by users as a means to improve their own business and create a respective business model canvas. Follow these easy steps;
- A one-page document that contains the primary elements of the business in a related way.
- The right side should contain or focus on the customer side i.e. your customer preference, ideas and use of your business products and the left side should contain and focus on the business on what it has to offer, its revenue source, workforce, capital and profit and so on.
- In the middle where your customer relationship and business meeting is called the value proposition, which is where the exchange occurs between your business and its customer.
This would help you understand and verify these questions
- What your business is solving?
- The effectiveness of your business?
- The potential customers of your business?
- And probably help improve your business strategically.