Acquisition Case Study: This Presentation Is Created by

ACQUISITION CASE STUDY
MANAGEMENT INNOVATION AND TECHNOLOGY
This presentation is created by:
Mikhael John (014201800044)

Rifky Diaz Farhan Pakaya (014201800118)
DECISION TREE IN ACQUISITION TECH
Strategic Diagnosis Will it create value?

Facebook made acquisitions with the aim
of increasing and enlarging the company. Yes, it will.
Formulation of Technology
Strategy Type of Partner Needed
Implement the strategy
Facebook is increasingly observant of
Suitability (objective, system, culture)
technological advances because it
collaborates with other companies
Determination of Strategic
Need Design of Alliance
• increased revenue • Objectives
• Reduction of Competitors • Future Prospect
• User Growth
STRATEGIC DIAGNOSIS
A strategic diagnosis is a review of the complete

What is range of a company's resources that can get accessed by
its company, including financial resources, human
Strategic resources, industry base, and technical expertise of the

company. Strategic diagnosis aims to grow the business,
restructure, merge a project with another company, and
Diagnosis? improve the economic performance of the business to

generate value for the organization, the shareholders,
and the employees.
Strategic diagnosis includes both internal and external diagnosis. Internal diagnosis identifies the strengths and weaknesses of a
business while dissecting the business model and cost and revenue structure of the business by analyzing human resources, tangible and
intangible resources, including a company's reputation and reputation. External diagnostics determine the product or service life cycle of
a company based on customer segments in understanding the expectations and criteria for selecting current and prospective customers,
as well as to identify opportunities and threats that exist in the business environment.
STRATEGIC DIAGNOSIS
On the internal side, Facebook has experienced a decline

in the value of shares on the stock exchange due to a
failed debut, mired in technical problems, and the stock
barely ended above its offering price on September 2-21.
The lackluster performance was fueled by concerns that
Facebook was not ready for the switch to mobile.
However, the diagnosis was corrected with Facebook's
success in converting its desktop version to a mobile
version of the app in 2014.
STRATEGIC DIAGNOSIS
If we look at the case of Facebook's acquisition of

Instagram and WhatsApp, let's look back together in
2014, where a research study stated that teenagers had
lost their enthusiasm for social media using Facebook and
switched to other platforms such as Snapchat (a mobile
photo- messaging app that deleted photos immediately),
Instagram (a mobile photo-sharing app), Tumblr (a
microblogging platform and social networking website),
Pinterest (a web and mobile app where users stored,
shared, and collected images), and WhatsApp ( a mobile
text and voice message app). In terms of the distribution
of photos and images, WhatsApp distributes images of
more than 400 million images per day, while Facebook is
below that which is around 350 million images per day.
This shows that it is the external problems facing
Facebook that prompted it to make its way out of
disruption.
FORMULATION OF TECHNOLOGY STRATEGIC
Facebook uses computing technology to maximize the

efficiency of its social networking websites. The online
nature of this business allows Facebook to easily reach
Internet users across international markets, thus meeting
the broad competitive scope of its generic strategy cost.
Facebook additional features when it went public, they

developed such as messaging, groups, discussion boards,
video sharing, news feed as the major updates, crowd-
sourced translations when they started to launch
internationally, improving a mobile app, mobile
advertising, and games (both mobile advertising and
games is used for monetizing.
FORMULATION OF TECHNOLOGY STRATEGIC
When Facebook was primarily a desktop application, many people communicated on the website by sending
messages or chatting with friends. Within Facebook's mobile app, users were still able to message and chat with
each other. The app allowed users to send messages, voice recordings, photos, and stickers. But, Facebook
discontinued messaging with its main mobile app and forced users to download the separate Facebook
messenger app in 2011. The move sparked controversy because users did not want to download another app, so
that's why people choose another lighter application and easy to use app, mostly WhatsApp.
WhatsApp reached 600 million MAUs in August 2014 and it has

got 70% of users engagement compared to 61% of Facebook
users. This cause Facebook acquired WhatsApp as its own app
and Facebook also do this to improve WhatsApp technology
(features) such us its new features those were voice call
develop under Facebook in 2015, and WA Story in the couple of
years ago.
DETERMINATION OF STRATEGIC NEED
When Facebook wants to acquire WhatsApp, our general

opinion is that Facebook is looking for a value proposition from
the company it wishes to acquire.
DETERMINATION OF STRATEGIC NEED
 WhatsApp is a fast and effective and efficient text-based SMS replacement

application that can easily share photos and videos anywhere, anytime, for free.
 WhatsApp is a real cross-platform by making it work on every mobile platform,

from iOS and Android smartphones to feature phones coupled with those running
on Symbian and other operating systems.
 The founders' absurd approach creates such as benefits that WhatsApp itself uses
only a small amount of data only for sending and receiving messages and does not
serve any advertisements or tricks.
Will it
Create Yes. Facebook's opportunity to achieve its mission is

getting closer since they have acquired WhatsApp.
Value?
TYPE OF PARTNER NEEDED
SUITABILITY (OBJECTIVE, SYSTEM, CULTURE)
Objectives (Purpose) Culture

 Facebook's main objective is to open up the world  Facebook Inc. describes its corporate culture in the
to one another. form of an image as a hacker culture, which
 The main objective of WhatsApp is to stay in close motivates its employees to advance it with all its
contact with friends and family anytime and struggles. The upgrade focuses on Facebook's vision
anywhere. and mission statement. They apply the
organizational culture as a medium to support
business resilience and competitiveness.
 WhatsApp culture tends to be open, and
confidentiality of information is often not equal to
System other competitors.
WhatsApp and Facebook both provide messaging platform services, but what distinguishes them is a feature that
using the Facebook application can share posts, post news feeds, comment on news feeds, upload photos/videos on
a large scale. Both applications can run on the iOS and Android operating systems with their mobile access feature,
besides that we can also access them on a web browser for the desktop version.
DESIGN OF ALLIANCE
Objectives
In order to create a more open and connected world, Facebook
and its acquired companies remain focused on developing their
respective products.
Future Prospect
Facebook group has grown more comprehensive in terms of
the portfolio such as revenue (monetize) and user growth
(MAU).

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ACQUISITION CASE STUDY

MANAGEMENT INNOVATION AND TECHNOLOGY

This presentation is created by:

Mikhael John (014201800044)

Strategic Diagnosis Will it create value?

A strategic diagnosis is a review of the complete

Strategic resources, industry base, and technical expertise of the

Diagnosis? improve the economic performance of the business to

On the internal side, Facebook has experienced a decline

If we look at the case of Facebook's acquisition of

Facebook uses computing technology to maximize the

Facebook additional features when it went public, they

WhatsApp reached 600 million MAUs in August 2014 and it has

When Facebook wants to acquire WhatsApp, our general

 WhatsApp is a fast and effective and efficient text-based SMS replacement

 WhatsApp is a real cross-platform by making it work on every mobile platform,

Create Yes. Facebook's opportunity to achieve its mission is

Objectives (Purpose) Culture

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