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Strategy: Facebook’s unbundling strategy makes perfect sense

Can a company built on the ideas of scale and network effects unbundle its offering into multiple brands and still thrive? Facebook is about to find out.

Unbundling has a compelling strategic and competitive rationale for Facebook. It has implications that extend far beyond the company’s stated goal to design single-purpose apps that fit mobile usage and the bottleneck of screen mobile device real estate. “Facebook is not one thing,” Mark Zuckerberg said in his recent interview in the New York Times. And clearly, the more meaningful things Facebook becomes to its customers, the less chance it has of being felled by a single savvy competitor or by the obsolescence of a single monolithic social network. But what will unbundling do to its sources of competitive advantage?


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