It gives users greater control over their data and give pressure to company to give better protection on personal user’s data (Albrecht, 2016). GDPR is a new policy concerning data privacy user. To handle this problem, Europe has constructed the European Area’s General Data Protection Regulation (GDPR). The issue with Facebook about the data breaches can affect Facebook’s reputation or it may also land them in the court as it breaches data protection laws. When Facebook start to enter into worldwide market, they have comply with specific regulation of a certain country such as copyright laws and data protection laws. In the future, if Facebook does not make any real changes regarding trust issue, people may totally lose their trust and will move to another social media. However, based on the survey, nearly everyone have the same answer that the quality of Facebook has decreased since it was started (Liu, Gummadi, Krishnamurthy & Mislove. Yet, many people still log in to Facebook every time even though they complain about their privacy issue. ![]() This means that the majority of people have loose trust on Facebook and no longer believe that Facebook is committed to user privacy protection. Nowadays, based on the exhibit 6 in the case, people are more suspicious and careful about attaching his/her accounts to Facebook as there is a huge drop after 2017. For instance, when people no longer have trust or secure in giving their private information on public platform like social media, it will affect the existence of Facebook as people will stay away from Facebook (Debatin, Lovejoy, Horn & Hughes. Other than that, people’s mindset against the acknowledgement of social network may also affects the business. One of the factor that affect the usage of Facebook is the educational level of the country. The most relevant factors for Facebook that relates to the scandal are social and legal. External Analysisīased on the PESTLE analysis, there are six factors that affect the external of the company: political, economic, social, technology, legal and environment. This strategy report examines the external analysis of the company relates to the scandal which include the strategy making process and core competencies of Facebook, mentions six-point plan including dynamic capability about the firm’s responses to the scandal, address SWOT analysis of the company due to the scandal, and finally discuss about strategic leadership role of top executive in Facebook and give recommendation. As Facebook use this kind of business model, they should more concern about the privacy of users, and do not just focus on generating revenue from the ads. As Facebook has all the user’s data, they use them to target ads to the right users. In the case of corporate accountability, Facebook is an advertising business model, with over 98% of their revenues are from advertisement (Yaakop, Anuar & Omar, 2013). ![]() This problem will not be exist if Facebook did not launched Open Graph API which gave the third parties have an access to user data. Then, GSR share it with Cambridge Analytica, and they sold those data to advertisers who work for presidential campaign. The problem with the app is that the app has the ability to access other people who do not fill the survey which up to 87 million people. However, there was a scandal started in 2015 when the Global Science Research (GSR) design Facebook app called “This is Your Digital Life”. ![]() In that time, almost every people left Myspace and use Facebook instead. Facebook use this competitive advantage to create unique competence, as their networking site has better options and more capabilities compare to their competitors. Facebook also has a strong knowledge of society and networking. In the recent years, Facebook discover many products and features to the platform such as adding timeline stories, adding photo filter edit, and deleting trending topics. One of the core competencies of Facebook is the ability to move fast and add new features. Facebook is the largest social media company worldwide with 1.13billion daily active users in the mid of 2019.
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