Acquisition of Instagram by Facebook Essay Example | Topics and Well Written Essays - 1500 words

Acquisition of Instagram by Facebook - search ExampleA comprehension of the strategical reasons behind this acquisition is a critical aspect to cypher the long-term motives of the companies. Facebook is a social networking platform that helps to connect with family as intimately as friends along with facilitating in sharing own views and opinions, sending messages, sharing images and videos and playing games among others. On the other hand, Instagram Inc. founded in 2010, is a relieve photo sharing employment software company. It provides a very beautiful, fast as well as amusing way of sharing photos with the family and friends. The company has become very popular with its photo sharing application but the acquisition of Instagram by Facebook at a valuation of $1 billon is really impress for the total industry because since the establishment of Instagram the company has no turnover up to now. It has lone(prenominal) 35 million users of the application especially the Apple Smartphone users as well as other Android smartphone users. It is also very surprising for all because there are a lot of blog sites that are already accumulated with Facebook, notwithstanding this it has acquired such as a small application based company (Gavaghan & Warren, 2013). In this context, it is definitely demand to be pointed out that understanding the strategies of the big companies is at times really quite complex. The term strategic management describes the process of analysing decisions as well as actions taken by an organisation in rate to create and derive actualiseable competitive advantages. Therefore, it is look intod that managing the strategy of an organisation effectively as well as efficiently is the essence of organisational growth (The Social Media Guys, 2010). This essay intends to critically discuss the strategic opportunities and threats liner Facebook. Moreover, the different methods of strategic development that can be used by the companies get o ut be identified. Consequently, amid these methods, the set aside method applicable in case of Facebooks acquisition of Instagram will be evaluated. In addition, with the forethought of the TOWS matrix, a critical analysis would be made of the strategic decision taken by Instagrams management to join forces with Facebook. Strategic Opportunities and Threats Facing Facebook In the global business world, every organisation has to agglomerate with two types of environment i.e. internal environment as well as external environment. In this context, the parameters that will be described comprise the opportunities as well as the threats faced by Facebook by taking concern the external environment (Thompson & et. al., 2005). In the context of strategic opportunities for Facebook, firstly there is a enquire to highlight the acceptance of the global people of this innovative idea. The audience size of this social networking media and the talents who are associated with this concept is t he significant strength as well as opportunity of this organisation for dealing with any overleap coming from the global competitors. The term strategic opportunity is a broad concept because it is not only defined by the present business scenario simultaneously it also dedicatedly focuses on the sustainability as well as future prospects (Jeffs, 2008). In order to address the varied strategic opportunities, there is a need to determine the core strategic causes behind the acquisition of Instagram by Facebook. Behind this strategy, unquestionably it can be verbalise that Facebook acquired this company not because of the turnover generated by it but owing to the user acceptance related to the application. Facebook seeks to sustain in the global market through continuously providing innovative