COMPETITIVE ANALYSIS & BUSINESS INTELLIGENCE
UniVIBE - Competitive Analysis & Business Intelligence
Natasha Wu
Rebecca (Xiuyi) Zhao
Boya Zhang
USC Annenberg
DSM 596 Final Project Capstone
Professor: Aaron D. Settipane
September 26, 2023
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SWOT Analysis
Part one: Reddit
Strength
● Open platform for idea-sharing; best
posts highlighted
● Equal voice for all users, irrespective
of background
● Large global presence with half of the
visitors from the U.S. (Dean, 2023)
● Offer a wide range of specialty forums
(subreddits) and posts (Dean, 2023)
Weakness
● Openness can lead to potential
conflicts or cyberbullying
● Outdated user interface
● Users can be distracted by the vast
content variety
● Inconsistent moderation across the
platform
● Potential server issues with high traffic
● Effective voting system filters content
● Anonymity might promote
● Moderators ensure respectful, relevant
irresponsible behavior
discussions
Opportunity
● Potential for increased ad revenue and
brand partnerships
● Implementing new features like
improved search and app functions
● Enhanced user customization features
● Opportunity to re-introduce successful
events like r/Place
Threats
● Competition from newer, betterdesigned platforms
● Potential limitations due to censorship
and regional restrictions
● Risk of unverified content popularity
through upvotes
● Possible reputational harm due to
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oversight inconsistencies
Part two: Facebook
Strength
● 3.03+ billion monthly users spanning
the globe (Shewale, 2023)
● Synonymous with social networking
and trusted worldwide
● Acquisitions of platforms like
Instagram and WhatsApp enhance user
engagement
● Offers targeted, personalized
advertising backed by in-depth
Weakness
● Mistrust due to the handling of user
data and privacy breaches
● Challenges in moderating harmful
content, especially misinformation
● Damaged reputation from ongoing
controversies
● Struggles with adapting to stricter data
and content regulations like GDPR
and CCPA
analytics
Opportunity
● Further integrate online shopping
Threats
● Competitors like Twitter, Snapchat,
within the platform to capitalize on
and LinkedIn are always coming up
increasing e-commerce trends
with new ideas and gaining market
● Use Oculus investments to offer
share
immersive virtual and augmented
● Challenges include a surge in ad-block
reality experiences, enriching user
usage and issues monetizing mobile
interactions
customers
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● Foster collaborations with other tech
● Opportunities for expansion are
giants and renowned brands to
restricted by shifting user preferences
enhance market reach and feature
as well as international prohibitions
offerings
and limitations
● Expand into untapped markets like
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● User confidence has been damaged by
China, taking advantage of possible
past data breaches like the Cambridge
easing regulations
Analytica scandal
● Risks include an over-reliance on
advertising revenue and potential
difficulties in diversifying sources of
income
Start, Stop, Continue Analysis
Part one: Reddit
Start
Platform Modernization. Reddit should consider spending money on a redesign in light
of the quick change of internet platforms and user expectations. Enhancing the user
experience and modernizing the user interface might draw in new users and keep current
ones. The industry today considers a modern, responsive design with an enhanced mobile
experience to be standard. Reddit runs the danger of being seen as out-of-date if this isn't
fixed because many more recent platforms have contemporary looks.
Enhanced Content Verification. Platforms have an obligation to their users in the age of
fake news. While preserving the right to free expression is fundamental, tools for
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highlighting possibly erroneous or deceptive information may also be quite useful. The
goal here is to help consumers make educated decisions, not to censor them.
Collaborations with groups that do fact-checking or AI-driven content monitoring may be
solutions worth considering.
Stop
Inconsistent Moderation. The decentralized nature of Reddit's moderation, while
offering community autonomy, also leads to inconsistencies. These inconsistencies can
cause confusion, frustration, or feelings of bias among users. A more standardized
approach or clearer guidelines, perhaps with periodic reviews, could make the platform
more user-friendly and fair
Sole Reliance on Upvotes for Content Verification. The upvote system, although
democratic in spirit, might sometimes prioritize popular opinions over factual ones.
While it's crucial to maintain this core feature, additional layers of content validation
should be considered. For instance, features that allow expert comments to be highlighted
or a mechanism for users to flag misleading content can be valuable.
Continue
Community Engagement & Democracy. The democratic spirit of Reddit, where every
voice has the potential to be heard, is one of its greatest strengths. Ensuring that users
from all backgrounds continue to have an equal opportunity to share, be recognized, and
engage in meaningful discussions is essential. This open dialogue environment has given
Reddit a unique identity in the vast digital ecosystem.
Coin-Based Reward System. Gamification through the coin system has shown to foster
user engagement and content quality. It serves as both an intrinsic and extrinsic
COMPETITIVE ANALYSIS & BUSINESS INTELLIGENCE
motivation tool. Maintaining this system, perhaps even enhancing it with additional
rewards or recognition tiers, can further encourage users to contribute high-quality
content and stay active on the platform.
Part two: Facebook
Start
Diversify Revenue Streams. Currently, Facebook's primary source of revenue is
advertising. While this model has proven lucrative, the digital landscape is evolving.
Users are adopting ad-blockers, and the saturation of ads can deter engagement. By
diversifying revenue streams, Facebook can mitigate potential financial
vulnerabilities.Facebook should delve deeper into e-commerce, virtual events, and
subscription-based models. Leveraging its vast user base, Facebook can provide an
integrated online shopping experience. Virtual events can be monetized through ticket
sales, and a premium subscription model could offer ad-free experiences or exclusive
content.
Enhance Data Security Protocols. Recent events, such as the Cambridge Analytica
scandal, have highlighted vulnerabilities in Facebook's data protection mechanisms.
These events not only threaten user trust but also expose Facebook to legal and financial
repercussions. Facebook needs to undertake a comprehensive overhaul of its data
protection mechanisms. Investing in state-of-the-art cybersecurity infrastructure and
routinely conducting third-party audits can reassure users and stakeholders.
Stop
Complacency in Innovation. Facebook's early success was attributed to its innovation.
However, as the platform matures, there's a perceivable trend of integrating features
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popularized by competitors rather than pioneering novel concepts. Rather than merely
following trends set by competitors like Snapchat or TikTok, Facebook should invest
more heavily in its R&D department, possibly establishing innovation hubs or
collaborating with tech startups.
Ignoring Regulatory Concerns. Facebook faces regulatory challenges in various
countries. Disregarding or undermining these issues can lead to bans or restrictions,
limiting Facebook's global reach and potential. Facebook should establish a dedicated
global policy and regulatory affairs team. This team could engage with policymakers,
understand regional nuances, and collaboratively shape a compliant and locally relevant
strategy.
Continue
Investing in VR and AR. Virtual and Augmented Reality sectors are rapidly growing,
and Facebook, through its ownership of Oculus VR, has shown its interest. These
technologies can redefine social interactions and create immersive user experiences.
Facebook should continue its investment in these sectors, possibly introducing AR/VR
integrations within the main platform. Collaborations with gaming companies or
educational platforms could also be explored.
Focusing on User Experience. User experience is paramount for any platform's success.
Facebook's constant interface refinements and feature additions aim to enhance user
engagement, making the platform more intuitive and user-friendly. User feedback loops
should be continuously maintained. Facebook can consider running beta tests for new
features, allowing a segment of users to provide feedback before a global rollout. This
iterative approach ensures that the changes align with user preferences.
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VISOR Analysis
The following part will cover the VISOR framework for Reddit and Facebook, our main
competitors.
Part one: Reddit
Value Proposition
Problem Solved. Reddit provides a platform for users to discover, share, and discuss
content on a wide range of topics. It solves the problem of information overload by
allowing users to curate and customize their content feed based on their interests.
Benefits for users. Users benefit from diverse perspectives, information, and
entertainment. They can participate in discussions, seek advice, and share their
knowledge and experiences with a global community.
Interfaces
User Interface. Reddit offers a user-friendly web and mobile interface. It uses a system
of subreddits (topic-specific communities) to organize content. Users can easily browse,
comment, upvote, or downvote posts and engage in discussions.
Community Engagement. Interfaces encourage community engagement through
features like commenting, posting, and direct messaging. Reddit's karma system
incentivizes positive contributions and participation.
Service Platforms
Technology Stack. Reddit uses a complex technology stack, including Python,
PostgreSQL, and various front-end technologies. Its infrastructure is designed to handle a
massive amount of user-generated content and traffic.
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Mobile Apps. Reddit offers official mobile apps for iOS and Android, ensuring
accessibility across different devices.
Organizing Model
Community Moderation. Reddit relies heavily on volunteer community moderators who
enforce rules within individual subreddits. This decentralized approach helps maintain
order and relevance within communities.
Administrative Structure. Reddit has a team of administrators who oversee site-wide
policies and address issues like content policy violations and harassment.
Revenue
Revenue Streams & monetization. Reddit generates revenue primarily through
advertising, including display ads, promoted posts, and sponsored content. It also offers
premium memberships (Reddit Premium) and awards (Reddit Coins) for users. (Tristan
Rose, 2021)
Costs. Costs include server infrastructure, employee salaries, content moderation, and
development. Reddit has faced challenges related to content moderation costs and
maintaining a balance between user-generated content and advertiser-friendly content.
Part two: Facebook (Mainly focus on the functionality of marketplace, group, messenger,
and general posts)
Value Proposition
We focus on the functions that our platform-UniVIBE has, which are marketplace,
groups, and messenger.
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Marketplace. Facebook Marketplace serves as an online platform for buying and selling
products within local communities. It addresses the need for a convenient, user-friendly
marketplace for individuals and small businesses to connect and transact locally.
Groups. Facebook Groups provide a space for like-minded individuals to connect,
discuss, and share information about specific interests or topics. The value proposition
lies in fostering community engagement and enabling niche discussions.
Messenger. Facebook Messenger offers a convenient and versatile messaging platform
for private conversations, voice and video calls, and group chats. It solves the problem of
instant communication and staying connected with friends and family.
Interfaces
Marketplace. The Marketplace interface is designed for easy browsing and searching of
local products and services. Users can filter by category, location, and price range.
Groups. Facebook Groups have a dedicated interface where members can post and
interact with discussions, files, and events. Notifications keep members engaged.
Messenger. Facebook Messenger offers a user-friendly interface for instant messaging,
calls, and group chats. It's accessible through both the Facebook app and standalone
Messenger app.
Service Platforms
Marketplace. Facebook Marketplace relies on a platform that integrates with user
profiles, allowing them to list items for sale and connect with potential buyers or sellers.
Groups. Groups operate as communities within the Facebook platform, with dedicated
spaces for discussions, events, and files. Moderators manage group activity.
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Messenger. Facebook Messenger functions on a platform that enables real-time text,
voice, and video communication, both one-on-one and in group chats.
Organizing Model
Marketplace. Marketplace is organized by location and categories, making it easy for
users to discover products and services nearby.
Groups. Groups are organized around specific interests or themes, and they can be
public, private, or secret. Moderators and administrators help maintain the group's focus
and rules.
Messenger. Messenger conversations are organized by contacts and groups. It offers
features like message reactions, threads, and message requests for organization.
Revenue
Marketplace. Facebook generates revenue from Marketplace by allowing businesses to
promote listings through paid advertising.
Groups. Groups don't have direct revenue streams; however, they contribute to user
engagement, which indirectly benefits Facebook's advertising revenue.
Messenger. While Messenger itself is not a significant revenue source, it enhances user
engagement on Facebook, indirectly contributing to the platform's overall advertising
revenue.
Other: Facebook generates the majority of its revenue from advertising displayed within
the News Feed and other areas of the platform. Users can also promote their posts through paid
advertising/Facebook Ads.
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Service Analysis of the Existing Environment
Part One: Reddit
Cracks in the Environment
For platforms that rely on user-generated content, they often face three major challenges
due to the nature of their services. Firstly, it is very hard to regulate the content even with the
help of Section 230 (Morrison, 2023). While Reddit is allowed to delete harmful content on the
page without any punishment, sometimes it is challenging to identify the exact boundary of
offensive content and regulate a large amount of content regularly (Mir, 2023). Some content
cannot rely solely on AI and requires manual screening. Therefore, ensuring the healthiness of
the content on Reddit can be difficult. Negative content can be harmful, and offensive content
can be toxic, negatively impacting the user's experience and even their mental state. Besides
aggressive content, misinformation easily spreads on Reddit. It is challenging to recognize fake
news or misinformation. At the same time, Reddit is not immune to spreading this false
information, which can erode trust and the platform's reliability.
What is Not Being Served to the Consumer
Unlike social media platforms, Reddit's users have less control over their data and
privacy settings (Mir, 2023). User-generated content is always published for everyone to see.
While this is advantageous as a forum, it can make building a close-knit community more
challenging. Additionally, Reddit users' profiles lack personalization. While you can customize
your own avatar, that's the extent of personalization available. It is relatively basic and plain,
lacking the personalization and customization options seen on other social media platforms.
Having more customizable profiles might enhance the stickiness of the product and add some
personal style to people's posts. Furthermore, Reddit's search function is simple and could be
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improved with more advanced filters and sorting options. If the keyword you are searching for
doesn't match exactly, users might miss out on a lot of great content on the platform. Lastly,
Reddit lacks a recommendation feature like Instagram or Twitter, which could help users
discover trending posts and topics, making the forum more engaging and extending website
usage duration.
Openings in the Environment
Influencer marketing is a crucial component of many marketing strategies today, with
brands relying on influencers to build brand awareness and increase exposure. Reddit should
consider creating a concept for Reddit influencers, known as "Redditors," to build a closer
community and provide monetization opportunities for creators (Bigcommerce, n.d.). Once the
concept of Reddit influencers is established, it can offer more advertising opportunities to
businesses. Reddit needs to convince people that when you create valuable content, Reddit can
be a platform to share your ideas and insights, potentially gaining a following and making an
impact in the community. Additionally, Reddit can attract more users to its mobile app since
most people spend a significant amount of time on their cell phones every day. Enhancements to
the mobile app would require Reddit to guide users in establishing new usage habits. Tactics
such as adding more educational content to the platform could be employed because Reddit has a
significant potential to serve as a platform for structured educational content, similar to forums
and Q&A platforms.
What is Not Working or Could Work Better
As mentioned earlier, the search function on Reddit is limited, despite the platform's vast
amount of content. The discovery process can be overwhelming, and valuable information might
be overlooked. Users could benefit from improved content recommendation algorithms.
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Additionally, Reddit can provide more robust tools for moderators to assist with community
management, as they often face challenges in managing large communities.
In summary, Reddit is a dynamic platform with strengths and weaknesses. There are
opportunities for improvement in content moderation, user experience, and monetization.
Additionally, areas like mental health and user privacy could benefit from further research and
attention.
Part Two: Facebook (Mainly focus on the functionality of marketplace, clubs, message, and
general posts)
Cracks in the Environment
Similar to Reddit, Facebook faces ongoing challenges with content moderation,
particularly in preventing the spread of misinformation, hate speech, and harmful content within
posts and comments. Also, the platform has been criticized for its data privacy practices, and
there are ongoing concerns about the protection of user data. Facebook user’s data often is being
sold to businesses for advertising purposes or research. One of the famous cases on Facebook is
that people have used Facebook to run ads to try to influence people’s emotion. The algorithm
can analyze your opinion and push your different ads to manipulate your emotions toward certain
issues (Hill, 2014). If two groups with opposite opinions and their viewpoints are being validated
by the ad, it might increase hateful comments and fight online. Furthermore, despite efforts to
enhance safety in Facebook Marketplace, there have been incidents of scams, counterfeit
products, and unsafe transactions (Le, 2023). Therefore, having a trading group in the Facebook
market can be a potential risk to the platform. Last but not least, while Facebook Groups serve as
a valuable community-building tool, there can be issues with spam, harassment, and the
difficulty of managing large clubs.
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What is Not Being Served to the Consumer
To improve the credibility and reliability of Facebook, they should enhance privacy
controls. Users often express the desire for more comprehensive and user-friendly privacy
settings, allowing them to have greater control over their data and personal information. What’s
more, improvements could be made to enhance the trustworthiness and safety of Facebook
Marketplace, including more robust seller verification and dispute resolution mechanisms.
Openings in the Environment
E-commerce is unstoppable at the moment especially after the impact of Covid-19. The
potential of the market is huge. Facebook has the opportunity to further integrate e-commerce
and payment processing into the Marketplace, providing a seamless shopping experience and
monetization opportunities (Roggio, 2021). Besides e-commerce opportunities, Facebook can
explore monetization options for clubs, such as premium memberships, sponsored content, or
advertising opportunities for club owners. Also, it can strengthen content moderation
mechanisms through AI and human review could make the platform safer and more userfriendly. It can help to reduce aggressive content on the platform providing a positive platform to
users and protecting user’s mental health.
What is Not Working or Could Work Better
Facebook is already a very well established and well-known platform in the market. It’s
people’s go to place when they think of second-hand markets, group findings, etc. However,
there’s still an area that can be improved. Most importantly, Facebook could work on providing
users with more straightforward and accessible tools to control their data and privacy settings. It
can improve the brand image among the public and potentially attract new users and enhance
users’ loyalty. Reporting mechanisms in Facebook Marketplace could be improved to ensure
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swift resolution of disputes, scams, or other issues. Last but not least, Facebook should enhance
the tools available to club admins to facilitate better management, content moderation, and
engagement within clubs which can provide a healthier community within the group
In summary, Facebook is a multifaceted platform with both strengths and weaknesses.
There are opportunities for improvement in content moderation, privacy controls, e-commerce
integration, and club management.
Barriers to Entry
Established platforms like Reddit and Facebook benefit from strong network effects,
where the value of the platform increases as more users join. Breaking into the market requires
attracting a critical mass of users, which can be difficult. A new platform should focus on niche
communities or unique features that appeal to a specific audience and provide incentives for
early adopters to join and engage to kickstart network effects.
Additionally, new platforms will face technology barriers since Reddit and Facebook are
both very well-established platforms and have many advanced functions. Behind the scenes, they
have a strong tech team to maintain server infrastructure and invent new functions continuously.
Furthermore, established platforms have well-developed monetization strategies, such as
advertising and premium features. New entrants may struggle to generate revenue, which might
hinder businesses from paying for paid ad space on the platform. Businesses won't believe in the
potential of the ad space until they see the platform consistently have a large number of daily
active users. To solve the monetization problem, Univibe can explore alternative revenue streams
like premium subscriptions, virtual goods, or partnerships, focusing on building a loyal user base
before aggressive monetization.
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Barriers to Elevation (Scaling)
People often resist making changes in their lives. Therefore, standing out and gaining
user attention in a crowded market can be challenging, especially with the dominance of major
players. As mentioned above, Univibe will face technical barriers. This can also impact platform
scalability. As the platform grows, maintaining server infrastructure and ensuring scalability can
become complex and costly, making it challenging for the business to operate without a solid
monetization plan.
Barriers to Entry for New Thought Ideas
People often resist making changes in their lives. Therefore, standing out and gaining
user attention in a crowded market can be challenging, especially with the dominance of major
players. This is because users may be resistant to switching to a new platform or adopting new
ideas if they are already accustomed to existing platforms.
Major Players/Thought Leaders
There are two major competitors that exist in the market for Univibe. The first one is
Reddit, a major player in the forum and community space. It hosts a wide range of communities
and discussions, making it a dominant force. Secondly, Facebook's Groups and Marketplace
features are popular for both community-building and e-commerce, respectively, with a massive
user base.
Breaking Barriers
To break through these barriers and establish a successful forum platform, here are a few
strategies we can use:
Differentiation. Clearly define what makes your platform unique. Identify a specific
niche or community that isn't well-served by existing platforms and cater to their needs.
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Community Building. Invest in building and nurturing your community. Engage with
early users, respond to their needs, and foster a sense of belonging.
Monetization Flexibility. Be flexible with monetization strategies. Consider a mix of
advertising, premium features, and creative revenue streams that align with your user
base.
Marketing. Develop a comprehensive marketing strategy to raise awareness about your
platform. Utilize social media, content marketing, and advertising to reach potential
users.
Technical Excellence. Ensure your platform is technically robust, secure, and scalable.
Invest in regular maintenance and updates.
Breaking into the forum market, especially in the presence of major competitors, will
require persistence, innovation, and a deep understanding of your target audience's needs and
preferences. Building a passionate and engaged user community will be key to your success.
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References
Dean, B. (2023). Reddit User and Growth Stats (Updated March 2023). Backlinko.
https://backlinko.com/reddit-users#reddit-statistics
Hill, K. (2014). Facebook Manipulated 689,003 Users’ Emotions For Science. Retrieved from
https://www.forbes.com/sites/kashmirhill/2014/06/28/facebook-manipulated-689003-user
s-emotions-for-science/?sh=4495ef07197c
How can Reddit help ecommerce businesses? | BigCommerce. (n.d.). Retrieved September 25,
2023, from
https://www.bigcommerce.com/ecommerce-answers/how-can-reddit-help-ecommerce-bu
sinesses/
Le, J. (2023). The In-Depth Facebook Marketplace Reviews. LitCommerce. Retrieved September
25, 2023, from https://litcommerce.com/blog/facebook-marketplace-reviews/
Mir, R. (2023). What Reddit Got Wrong | Electronic Frontier Foundation. Electronic Frontier
Foundation. Retrieved from:
https://www.eff.org/deeplinks/2023/06/what-reddit-got-wrong
Morrison, S. (2023). What is Section 230? The internet free speech law before the Supreme
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https://www.vox.com/recode/2020/5/28/21273241/section-230-explained-supreme-courtsocial-media
Pahwa, A. (2023). How Does Reddit Make Money? Reddit Business Model.
FeeDough. https://www.feedough.com/reddit-make-money-reddit-business-model/
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Pereira, D. (2023). Reddit Business Model - How Reddit Makes Money?
https://businessmodelanalyst.com/reddit-business-model/
Roggio, A. (2021). Facebook Could Dominate Ecommerce - Practical Ecommerce.
https://www.practicalecommerce.com/facebook-could-dominate-ecommerce
Rose, T. (2021). How Reddit Makes Money ($170 Million in Revenue) - Business Model.
Entrepreneur360. https://entrepreneur-360.com/how-does-reddit-make-money-14822
Shewale, R. (2023). 68 Facebook Statistics - Users, Revenue & AI Usage (2023).
https://www.demandsage.com/facebook-statistics/
Zuckerberg, M. (2019). Understanding Facebook’s Business Model | Meta. Meta.
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