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Product cover image for Facebook to Meta: Trouble in the Transformation

Facebook to Meta: Trouble in the Transformation

Bikramjit Rishi, Rajkumari Mittal, Parul Sinha

Product #:W32670
Supplier:Ivey
Discipline:Entrepreneurship, General Management
Setting:United States, 2022
Details:Case (PDF) • 9 pages • 2023-10-25

Subjects:

Competitive advantageCompetitive strategyInnovationEntrepreneurship

Industries:

Information technology and telecom sector

Geography:

North AmericaUnited States
Your Price:$9.71

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Facebook Inc. (Facebook) rebranded to Meta Platforms Inc. (Meta) in October 2021, intending to break into the virtual world of immersive technologies. However, Meta soon found itself in trouble after an eventful year in the virtual reality industry. The number of Meta users was declining, and first-time Meta users were not coming back. Users were complaining about underdeveloped graphics, programming troubles, instability, and overall poor user experience. Meta’s struggle with technological glitches, disengaged users, and an unclear vision resulted in a sharp decline in its financial performance. The company was also attracting negative comments on social media platforms. What should Meta do moving forward? Should it continue spending on innovative technology and hiring additional talent, return to its roots as a social media platform (Facebook), or consider its competitive advantage via collaboration?

Learning Objectives

This case may be used for senior undergraduate courses on digital platform businesses, innovation management, and entrepreneurship management. The case provides opportunities for teaching how a digital platform-based business manages transformation situations through innovation management for user acceptance. Students should be able to understand topics such as innovation types, different schools of thought for innovation, innovation dilemmas, and innovation adoption.

After working through the case and assignment questions, students will be able to do the following:

  • Identify the issues associated with any innovation mechanism while following the transformation of a digital platform business.
  • Identify the various levers of innovation and highlight which ones are critical to a digital platform business.
  • Explain the need for an organization’s competitive advantage and evaluate suitable opportunities in a tough time.
  • Define the critical factors that add to the challenges of a digital platform business.
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Case Study: Facebook to Meta: Trouble in the Transformation (English version) | Ivey Publishing