Facebook Crisis: What's going on with the brand?

25 Oct 2021  Read 1821 Views

Do you remember a few days ago when your WhatsApp & Instagram was not working and you were blaming Jio & Airtel for that, how funny! But the actual culprit was social media itself. So, we will call it the Facebook crisis due to various reasons such as sudden name change plans, the news of leaks, and all of this in a month along with the crashed server. A very valid question is arising in our minds, What is happening with Facebook? 

This is not the first time the social media giant has been in limelight for all the bad reasons. Allegations of privacy issues, tax avoidance, misleading campaigns against competitors, security bugs, and whatnot, the company has faced it all. 

It would be a very long conversation between us if we looked into all the matters listed above. So, let's just take a look at the name change plans the company has for itself, what change it might bring and how is this going to impact us, i.e the daily users.

Facebook Rebranding

Basically, the company is planning to rebrand itself to build its focus on metaverse.  

Do you think changing the name will solve the problems of Facebook? We don’t know, let's wait and watch how things play out in the future. 

The rebranding for Facebook is more than simply a name change; it's a reflection of the company's expanding goals and concentration on a new area: the metaverse. Now the question that must be popping out in your mind is what this “metaverse” is all about? Continue reading and you will find out!

What is Metaverse?

Talking about the metaverse in simple language, it is the extension of the internet. The term "metaverse" refers to a collection of virtual reality rooms that are connected to a perceived virtual universe similar to the internet. Where Meta means BEYOND and verse means UNIVERSE. Thus, think of it in a sense that instead of looking at it you are in it! In a way, you are virtually surrounded by the environment instead of just looking at it on your device.

One quick question: are you a fiction novel freak? Do you know the word “metaverse” first appeared in the novel “Snow Crash” in 1992? The metaverse is a parallel, virtual universe in which people can assume various identities, belongings, and personalities. 

It is not that Facebook is the first one to talk about this or to do something like that. There are other companies entering into this domain as well.

Fun Fact: Facebook’s efforts to build a responsible metaverse, It has already announced plans to contribute $50 million. As part of its metaverse goals, it also expects to create roughly 10,000 new employment in Europe.

The Concern of Facebook

We spend the majority of our time engaged on the internet. This technology will provide all of us with a new digital world that would be revolutionary. Thus, There is no rocket science to guess why it is so important for Facebook.

Facebook is concerned about implementing it because they believe that it is the future of the world and they do not want to leave behind in terms of technology at all. Through this technology, their existence will be far more deeply and intricately intertwined with the digital world. Furthermore, Facebook has its own virtual reality game platform, Oculus, which might serve as a portal into this metaverse.

This technology may prove to be beneficial for us as well. As said by Facebook in one of its news announcements, This technology will allow users to socialize with folks who aren't in the same physical space as them.

The company has decided to develop it responsibly. It has started the XR Programs and Research Fund, a two-year $50 million "investment in programs and external research" in which it will collaborate with "industry civil rights groups, governments, nonprofits, and academic institutions to identify how to build these technologies responsibly." 

BUT, It would take a rewrite of the current regulations, as they are for most internet services and operations, to ensure that the metaverse runs properly. Let’s see how things will plan out in the future and will it be a successful move for the company.

The impact on Brand

Metaverse is the extension of the internet that can be used with the help of VR. The Virtual reality market is growing at a massive speed every year. Just take a look at the data below how the value of VR in mobile, Console, and PC has increased over the years. 

This is basically a signal to showcase that Facebook doesn't want to be just a social media brand, it wants more. It is also expected that the company is taking these steps to bring itself in some positive light. 

Currently, the company is under multiple regulatory scanners in various countries including the US. The issues are being exacerbated by the latest whistleblower revelations regarding Facebook. 

Although Facebook has not confirmed the allegation, many believe the company is seeking to stem the tide of bad press that has followed misinformation on its platforms, content moderation failures, and discoveries regarding its products' negative impact on users' mental health.

The makeover move would help the FB app to position it as one of many products managed by a parent business that would also control Facebook-owned brands such as Instagram, WhatsApp, Oculus, and Giphy. 

It is also being said that renaming a subsidiary brand can be a successful technique for preserving its own reputation. The media and regulators, on the other hand, are not going to stop scrutinizing or enacting reforms just because you changed your name. Let’s see what has been stored for this company. 

Will the user experience differ after the name change?

Talking about the user experience, in recent terms there will be no major impact on the user experience. Though if we look at a broader horizon, there are some concerns raised by many people. It is being said that many people are doubtful that Facebook will not be able to protect users in these experimental times due to its current methods & reputation. Several legislators are working hard to break up Facebook, alleging that it is a monopoly that affects consumers. 

 The recent congressional testimony of a whistleblower has made it quite evident that Facebook has always placed profit over the safety of its users. 

Companies aim to restore their brand equity with their present and prospective future user base as they develop beyond their original objective and respond to a new market and technological realities, such as the Metaverse. 

 A rebranding like this can help organizations claim the leadership role in new disruptive technology, among other reasons.

Conclusion

Do you think changing the name will be a good idea or proves to be a terrible one? We are reading the mixed reviews from the experts. 

The company has always been surrounded by crises since its inception but it is also a fact that Facebook Corporation is one of the biggest names in the world, they are powerful! It’s said that With great power comes great responsibility. Facebook understands this as they always look ahead & think big.

Curious to know what the new name of your favorite app will be? What’s your guess. Tell us in the comment box! If you liked our findings & opinions, share the blog with your friends :)

About the Author: Kanishka Tayal | 18 Post(s)

Kanishka is a finance enthusiast, currently pursuing her master's in Banking and financial services domain. She loves to doodle in her spare time. She is a keen learner and is willing to pursue her career as a financial analyst.

Liked What You Just Read? Share this Post:

Finology Blog / Entrepreneurship / Facebook Crisis: What's going on with the brand?

Wanna Share your Views on this? Comment here: