Not an external competitor, it is the internal applications that threaten Facebook’s survival

Tram Ho

Becoming the largest social networking company on the planet with about 2.7 billion users on all of their most popular applications seems to make Facebook an inviolable position. Despite the threat to the company’s business, even a $ 5 billion penalty from the US Trade Commission FTC due to user privacy scandals, company revenue still grew by 26%. last year and the number of active users increased by 8%.

However, according to sources from The Information, an internal report from Facebook showed that their biggest threat now comes from within the company itself. More specifically, these are social networking applications acquired by Facebook since they were not profitable startups, including Instagram and WhatsApp.

Không phải đối thủ bên ngoài, chính các ứng dụng nội bộ mới là mối đe dọa đến sự sinh tồn của Facebook - Ảnh 1.

Tipping point

The report was made by a secret group in Facebook, headed by a senior data scientist named Tom Cunningham. The team spent nearly a year tracking Facebook user trends and from there giving a complete picture of this application to CEO Mark Zuckerberg.

The time of the study is also when Facebook sees more and more users sharing on Instagram and WhatsApp, instead of on Facebook application (also known as Blue App – because of its characteristic blue color).

Mr. Cunningham’s report further underscores this threat when he warns that if enough users switch to sharing Instagram or WhatsApp, instead of Facebook, this core application can enter a self-degradation phase. use, a very difficult thing to reverse. Although it is difficult to predict, this “critical” point (or Tipping-Point) will be the biggest threat to Facebook.

The irony is that Facebook has long recognized the threat from these fledgling social networks, and so they quickly acquired those applications into their companies, with Instagram in 2012 and WhatsApp. 2014. But although these deals temporarily eliminate the threat at the time, the user growth of the two applications remains competitive risks for the core and most lucrative application of company.

Không phải đối thủ bên ngoài, chính các ứng dụng nội bộ mới là mối đe dọa đến sự sinh tồn của Facebook - Ảnh 2.

Competition between the Facebook application itself

In research, Facebook recognizes two of their main messaging apps, WhatsApp and Messenger, are facing each other directly in almost every market and almost have a dominant messaging app in each market. .

For example, in the North American market, Messenger apps dominate against WhatsApp in terms of accessibility, but the opposite is true for Western Europe. Competition also appears among the features of each application. Facebook noticed when people started sharing via WhatsApp Status, a copy of the Stories feature on Snapchat, the amount of messages sent through Messenger dropped significantly.

Instagram itself is directly eating into the growth of Facebook applications, while being the fastest growing app and there is no sign of slowing down. Meanwhile, the overall level of interaction with Facebook applications is moving sideways after a drop in the previous year.

Researchers realized that eventually this would lead to a decline in the number of Facebook users only while Instagram users increased, as it was difficult for people to maintain interaction at both applications at the same time. . Finally this will lead to Instagram users surpassing Facebook.

Không phải đối thủ bên ngoài, chính các ứng dụng nội bộ mới là mối đe dọa đến sự sinh tồn của Facebook - Ảnh 3.

User overlap between applications in Facebook, only a small number of users use only one company application.

Even so, the overall user interaction with the company’s applications still shows no signs of decline, so in the earnings report for the fourth quarter of last year, Facebook CFO, David Wehner said. Now, the company will announce the number of users using at least one company’s application, rather than the user for the Facebook application.

Notably, Facebook’s main source of revenue is still coming from advertising on its core applications, Facebook and Messenger, while revenue from applications like Instagram and WhatsApp are often not shared with other users. Investors.

Merge applications

In the long term, research reports warn that reducing interaction with Facebook applications can cause negative impacts on the network, and it is difficult to identify.

Không phải đối thủ bên ngoài, chính các ứng dụng nội bộ mới là mối đe dọa đến sự sinh tồn của Facebook - Ảnh 4.

More notably, this report came at a time when Facebook began the process of consolidating its messaging systems, allowing users to message between applications within the company.

Obviously, the risk from child applications overwhelming the company’s core application made Facebook determine that connecting these applications together would help strengthen the growth of Instagram and WhatsApp as well as mitigate termites. worry about growth for the main application.

The connection between applications and the integration of Facebook’s messaging system also aims to increase the ability to compete with Apple’s iMessage service for iPhone. According to Facebook’s research report, this is also one of the potential threats to the dominance of the instant messaging company.

Refer to The Information

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Source : Trí Thức Trẻ