Facebook is an enormous company, and its success has made it a household name, even turned into a movie. Although large, they’re not exempt from failure; a quick look at the past will show that even a monolithic company may one day find itself at the bottom of the barrel. We’ve taken a quick look at five of the reasons a company, such as Facebook, may one day fall.
- The tastes of consumers change.
- Advancements in technology.
- Economic situations and corporate dealings.
- Disliked changes to Facebook features and technology.
- The rise of competitors.
Consumer viewpoints, especially when it comes to their choices in social media tools, are “fickle.” For no readily identifiable reason, consumer opinion may shift to other social media outlets. Such an effect can easily begin to snowball into a mass exodus of users due to the aspect of community the largest driving force in social media.
Technology has been described in some reports as a giant killer, especially in reference to corporations. A sudden technological revolution can make an established company scramble. Even though large companies would be the ones most likely to discover technological innovations, failure to take advantage of these advancements can provide opportunities for others to achieve the same and surpass them. Facebook in particular is not a technological forerunner; some say their lacking significantly behind competitors like Google+.
The economy is a complex beast that often avoids predictions by even the most intelligent minds. One truism in economic dealings is that a company in the lead will not remain there indefinitely. With this in mind, it is not a question of if Facebook will fail, but rather it is one of when and how it will.
In attempts to innovate and keep up with trends, some companies will find themselves inevitably making changes that their user base dislikes. A comparison of the results of ‘facebook layout good’ and ‘facebook layout bad’ had 25% of the results for the latter. Other reports pose figures that show downward trends in Facebook popularity.
As with any avenue of business, other businesses will begin to find their way into the market. These companies bring about most of the scenarios listed above. For example, one competitor provided an innovative technology that forced Facebook to buy the company out in fear of future issues. Google+ and Twitter are seen as two of the main social media competitors, but Google+ offers a more similar product.