Facebook Finally Acknowledges That It Faces Competition: But Who Has Better Advantage Of Them All?

Facebook is ready to make history with the biggest ever IPO in American history. Interestingly, while filing the paperwork with the SEC, Facebook acknowledged some other tech heavyweights as its competitors. And who are these competitors? Google, Microsoft and Twitter. Nothing surprising. Facebook clearly has an advantage over these other companies in terms of social networking.
While filing with SEC, Facebook released the following statement:“We face significant competition in almost every aspect of our business, including from companies such as Google, Microsoft, and Twitter, which offer a variety of Internet products, services, content, and online advertising offerings, as well as from mobile companies and smaller Internet companies that offer products and services that may compete with specific Facebook features.”

As expected, Facebook singled out Google as it main competitor.
“We compete broadly with Google’s social networking offerings, including Google+, which it has integrated with certain products, including search and Android”.

It also said that some its rivals have significantly better resources and dominating positions in certain markets when compared to Facebook. They are obviously talking about Google here.

“Certain competitors, including Google, could use strong or dominant positions in one or more markets to gain competitive advantage against us in areas where we operate including: by integrating competing social networking platforms or features into products they control such as search engines, web browsers, or mobile device operating systems; by making acquisitions; or by making access to Facebook more difficult. As a result, our competitors may acquire and engage users at the expense of the growth or engagement of our user base, which may negatively affect our business and financial results.”

Facebook is also monitoring start-ups and upcoming social networks that happen to provide the same offerings as Facebook. This includes Social start-ups like Path and Pinterest. Facebook is also looking at local social networks in countries like India, China, Japan and Korea.

How Microsoft would be listed as a competitor is still not clear. Facebook faces competition from traditional media and online media businesses in terms of Ad-serving platforms and Ad budgets. Well, that is a lot of competition but then Facebook is that huge a company. We are waiting anxiously for this IPO to unfold. We will keep you updated.

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