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Marketing and sales expenses of Facebook

Marketing and sales expenses of Facebook 2010-2019

Amounts are in millions.

YearMarketing Expenses in $Mn
2019$ 9,876
2018$ 7,846
2017 $       4,725 
2016 $       3,772 
2015 $       2,725 
2014 $       1,680 
2013 $          997 
2012 $          896 
2011 $          393 
2010 $          167 

Facebook spent $9.9 billion on marketing and sales in 2019 compared to $7.85 billion in 2018.

About Facebook:

 Facebook is one of the leading social media platforms with an active user base that runs in billions. The company was incorporated in Delaware in July 2004. It has its headquarters at Menlo Park, California. Apart from Facebook, the company also owns Messenger, Instagram, Whatsapp, and Oculus. Substantially all of facebook’s revenue comes from advertising. The social media platform of Facebook provides attractive features for building communities and connecting with others as well as advertising and promotions. 

Research and Development Expenses of Facebook and Google compared

A Comparison of the R&D Expenses of Facebook and Google

YearFacebook R&D Expenses (Mn)Google R&D Expenses
2019$13,600 $ 26,018
2018$10,273 $21,419
2017$7,754 $ 16,625 
2016$5,919 $13,948 
2015$4,816 $12,282 

The leading tech businesses invest a heavy sum each year in research and development. Whether it is Apple, Google, Microsoft or Facebook, each company spends a fortune each year on research and development to improve its existing product range or to bring new services to the market. 

Facebook is the leading social media brand. However, in recent years, YouTube has grown its user base faster to scale past Facebook.

Facebook invests a large sum each year in R&D. Its investment in research and development has continued to grow year over year very fast. In 2019, the company spent $13.6 billion on research and development which was around 32% higher than previous year. In 2018, the company had spent $10.3 billion on research and development. Google on the other hand spent nearly double what Facebook did on research and development. Its R&D expenditure in 2019 was $26 billion which was around 21.5% higher than the previous year. In 2018, Google had spent $21.42 billion on research and development. 

The tech industry has experienced a lot of growth and expansion in recent years and the tech giants are making heavy investments in research and development to improve their products and grow their customer bases. 

SWOT Analysis of Hewlett Packard (HP)

Hewlett Packard (HP) SWOT Analysis 2019.

Table of Contents

Name of the companyHewlett Packard (HP)
Year Established1939.
President & CEODion Weisler.
HeadquartersPalo Alto, California, United States.
Number of Employees55,000.
Net Revenue$ 58,472 Million.
Net Income$5,327 Million.
CompetitorsDell, Apple, Microsoft, Acer, Asus.
HP SWOT ANALYSIS 2019.
HP ZBooks G4 Full Performance; img src= HP Press Gallery.

HP is a leading brand of PCs and laptops. In 2015, HP and HPE became two separate divisions. HP became the division that runs the PC and printer businesses. It has been leading the PC industry for years with the highest sales in the market. Apart from being an innovative brand of PCs tablets and printers, the company is known for its focus on product quality and customer experience. This swot analysis lists its strengths, weaknesses, and challenges.

Strengths:-

Leadership position:-

 HP is among the strongest PC brands which have successfully retained its leadership position in the market. A sizeable chunk of its revenue comes from notebooks and desktops. However, in the printer market too, it has maintained its strong position. This has led to stronger financial performance. Its revenue has climbed steadily over the past three years having reached 58.5 Billion dollars in 2018.

Product innovation:-

One important reason behind HP’s leadership position in the market is its consistent focus on research and innovation. Its products are the most popular because of their productivity and performance. The company invests a significant sum each year in research and innovation. In 2018, it invested around $1.4 Billion in R&D.

Brand equity:-

Brand equity or how customers overall perceive a brand which includes its image and customer experience as well as the level of trust and loyalty it enjoys, is also an important strength of HP. Due to its focus on product quality as well as customer experience and brand image, the company is among the most trusted PC and laptop brands.

Strong portfolio of computing products:-

HP offers a large range of laptops, desktops, and related peripherals. The company has brought products to the market at varying price ranges. This has helped the brand tap into both the lower and higher-end segments. From affordable to premium, it has brought models of laptops in all ranges. A large product portfolio is also a key strength of Hewlett Packard.

Weaknesses:

Declining PC market:-

The PC market has kept declining over recent years. Rising sales of smartphones and mobile devices have led to reduced sales of PCs and laptops. After having declined for several years, the PC market is seeing stagnant growth. This is affecting the sales and revenue of leading PC brands like HP negatively.

Growing operational costs:-

With time the operational costs of HP have also kept growing fast. In 2018, the total costs & expenses of HP grew to $54.4 Billion from $48.5 Billion in 2017. (HP Annual Report 2018).

Opportunities:-

Diversification:-

Diversification can help HP find faster growth and grow its sales and revenue.  By entering new businesses and markets, the company can grow its sales and revenue as well as the customer base globally.

Marketing and customer engagement:-

The rise of new technologies like digital technology and AI has brought fresh opportunities for large and global brands like HP in terms of marketing and customer engagement. HP can use these opportunities for connecting with its users and to grow its customer connection stronger.

Threats:-

Competition:-

The level of competition in the PC industry is high. There are several major rivals of HP in the market including Lenovo, Dell, and Apple which are also intensely focused on innovation. Overall due to the high level of rivalry, the battle for market share is intense leading to higher costs of research and development as well as marketing.

Regulatory pressures:-

Like the entire technology industry, the PC industry is also facing higher government control and regulatory pressure. Apart from the rising compliance-related costs, the level of oversight is also making it difficult for businesses to find faster growth or to diversify. Regulatory pressures add to operating costs of HP and can have a negative impact on bottom-line performance.

Rising costs of raw materials and labor:-

The costs of labor and raw material have continued to grow rapidly leading to higher operational costs. This creates pressure on the profits and profit margins of brands like HP.

Sources:

https://www.businessinsider.in/even-after-six-years-of-decline-theres-no-growth-in-sight-for-the-pc-market/articleshow/64968455.cms

Research and development expenses of Amazon and Google compared

A Comparison of the R&D Expenses of Amazon and Google

YearAmazon R&D Expenses (Mn)Google R&D Expenses
2019$35,931 $ 26,018
2018$28,837 $21,419
2017$22,620 $ 16,625 
2016$16,085 $13,948 
2015$12,540 $12,282 

The leading tech brands spend a large fortune each year on ersearch and development to find faster growth and improve their products and services. from Apple to GoogleMicrosoftAmazon and Facebook, all the tech giants have experieenced a sharp increase in their research and development expenses during recent years. Apart from increased competition, growing market demand and user base are the leading factors driving the fast growth in R&D related costs.

Amazon is the leading e-commerce and cloud technology brand in the world. The cloud and e-retail industries both are experiencing increased competition in recent years. As a result Amazon has continued to grow its research and development expenses year over year faster. In 2019, the research and development expenses of Amazon reached $35.9 billion, which was around 24.5% higher than the previous year. For several years continuously, Amazon has remained the largest R&D spender in the entire business industry followed by Alphabet, the parent company of Google.  In the previous year (2018), Amazon had spent around $28.8 billion on research and development. 

Compared to Amazon, Google (Alphabet) invested less in research and development. However, it is still the second-largest R&D spender in the entire industry. The R&D expenses of Alphabet were $26 billion in 2019 compared to $21.42 billion in 2018, 21.5% growth year over year. Google enjoys the largest market share in online search and advertising. Most of its revenue is generated from digital advertising. However, the research and development expenses of Google have also grown very fast during the last five years. Its 2019 R&D expenses were more than double that of its investment in research and development during fiscal 2015, when it spent $12.3 billion on R&D.

Research and Development expenses of Amazon and Microsoft compared

Comparing the Research and Development Expenses of Amazon and Microsoft

Amazon and Microsoft are the two leading players in the technology industry. The tech industry is seeing higher competition in recent years which is driving operating expenses for the businesses higher. The research and development expenses of these companies now form a sizeable part of their overall operating expenses. While Amazon is the largest R&D spender in the entire industry, followed by Alphabet, the parent company of Google, Microsoft’s spending on research and development has been comparatively lower. However, both Amazon and Microsoft have continued to grow their revenue from cloud-based services. AWS accounted for more than 12% of the net revenue of Amazon in 2019. The table below shows the net spending by each brand on research and development during the past five years.

YearAmazon R&D Expenses ($Mn)Microsoft R&D Expenses ($mn)
2019$35,931$16,876
2018$28,837$14,726
2017$22,620 $13,037
2016$16,085 $11,988
2015$12,540 $12,046

 The research and development expenses of Amazon have grown at a very fast rate since 2015 when its R&D expenses were close to that of Microsoft. In 2019, its R&D expenses grew close to treble what it had spent in 2015. However, Microsoft’s R&D spending has grown comparatively slower and remained nearly stagnant compared to Amazon. Microsoft has seen only a 40% growth in its R&D expenses from 2015 to 2019.

In 2019, the research and development expenses of Amazon were around $36 billion compared to $16.9 billion of Microsoft. Amazon’s R&D expenses were more than double that of Microsoft in 2019. 

About Amazon:

Amazon (NASDAQ: AMZN) is the largest ecommerce brand as well as one of the leading cloud services player adn a leading competitor of Microsoft and Google in the cloud industry. The company was founded in 1994 and has seen enormous growth over the last five years. It has greatly extended its range of cloud-based services. Amazon has its headquarters in Seattle, Washington, United States. The CEO of Amazon is Jeff Bezos. Amazon Web Services (AWS) is the cloud services platform of Amazon. The e-commerce giant is also the largest R&D spender in the entire industry. The company has divided its business into three main segments that include Amazon North America, Amazon International, and AWS. 

About Microsoft:

Microsoft is a leading player in the computing and cloud industry which has seen enormous growth during recent years led by Satya Nadella. Microsoft Chairman Bill Gates recently stepped down from his position to focus on his philanthropic activities. The company was founded in 1975. It has its headquarters in Redmund, Washington, United States. The company has experienced sharp growth in its revenue from Cloud-based services. Intelligent Cloud revenue of the company in 2019 reached around $39 billion, YoY growth of 21%. Microsoft Azure experienced revenue growth of around 72% in 2019 compared to the previous year. Microsoft has acquired many businesses over time.

Research and Development Expenses of Microsoft and Google Compared

Comparing the Research and Development Expenses of Microsoft and Google.

Both Microsoft and Google are leading players in the cloud industry. However, compared to Google, Mocrosoft has been able to grow the range of its cloud services faster. Alphabet (parent company of Google) is also expanding its cloud services faster. The main source of Google’s revenue is advertising. It is the market leader in search and digital advertising. Meanwhile Microsoft’s revenue from intelligent cloud has grown very fast. Both the companies invest large sums in research and development to grow their service range and improve their existing services. Amazon is currently the largest spender in terms of research and development followed by Alphabet, the parent company of Google. Microsoft and Apple are comparatively lagging when it comes to investment in research and development. The table below shows the investment by each of the two giants in research and development over the last five years.

YearGoogle R&D Expenses ($Mn)Microsoft R&D Expenses ($mn)
2019  $ 26,018$16,876
2018 $ 21,419$14,726
2017 $ 16,625 $13,037
2016 $ 13,948 $11,988
2015 $ 12,282  $12,046

 As you can see from the above table, the research and development expenses of Google have more than doubled during these five years while that of Microsoft have increased only 40%. In 2019, Google spent $26 billion on research and development which was around 21% higher than the previous year when it spent $21.42 billion on research and development. On the other hand, Microsoft spent $16.9 billion on research and development, which was around 15% higher than the previous year. In 2019, Microsoft’s research and development expenses increased $2.2 billion or 15%, driven by investments in cloud and artificial intelligence (“AI”) engineering, Gaming, LinkedIn, and GitHub.

About Microsoft:

Microsoft (NASDAQ: MSFT) is a leading player in the computing and cloud industry which has seen enormous growth during recent years led by Satya Nadella. Microsoft Chairman Bill Gates recently stepped down from his position to focus on his philanthropic activities. The company was founded in 1975. It has its headquarters in Redmund, Washington, United States. The company has experienced sharp growth in its revenue from the Cloud based services. Intelligent Cloud revenue of the company in 2019 reached around $39 billion, yoy growth of 21%. Microsoft Azure experienced revenue growth of around 72% in 2019 compared to the previous year. Microsoft has acquired a very large number of business over time.

About Google:

Google (Parent company Alphabet), the search engine giant relies mainly on digital advertising as its main source of revenue. The company was founded in 1998 by Larry Page and Sergey Brin who has stepped down from the leadership positions and the company (including the parent company) is led by Sunder Pichai. Apart from search and advertising as well as social media (YouTube), the company has also brought a large range of cloud computing products for use by individuals and enterprises. The headquarters of Google (Googleplex) are located in Mountain View, California, United States. Apart from its core business which is Google, Alphabet, the parent company also owns several smaller companies which are collectively called other bets.  

Netflix Global Streaming Paid Memberships (Annual)

Number of Netflix Global Streaming Paid Memberships 2014-2019

Number of members are in thousands.

YearPaid Memberships (000s)
2019167,090
2018139,259
2017110,644
201689,090
201570,839
201454,576

The number of Netflix streaming paid memberships globally grew to 167.1 million in 2019 from 139.26 million in 2018.

About Netflix:

Netflix is the world’s leading subscription streaming entertainment service with more than 167 million subscribers. Users across 190 countries enjoy TV series, documentaries, and feature films offered by Netflix in a wide variety of genres and several languages. The company was founded in 1997. However, it launched its streaming services in 2007. Previously, the company operated its business as three different segments – Netflix US Streaming, Netflix International Streaming, and DVD. However, starting in 2019, Netflix operates its global business as one segment. The headquarters of Netflix is located at Los Gatos, California, United States.

Net Revenue of Netflix

Net Revenue of Netflix 2007-2019.

Amounts are in $billion.

YearNet Revenue ($bn)
2019$20.16
2018$15.8
2017$11.70 
2016$ 8.80 
2015$6.80 
2014$ 5.50 
2013$4.40 
2012$3.60 
2011$3.20 
2010$2.20 
2009$1.70 
2008$1.40 
2007$1.20 

The net revenue of Netflix in 2019 grew to $20,156 million in 2019 from $15,794 million in 2018 driven mainly by a 23% growth in average paying memberships and a 5% increase in the average monthly revenue per paid memberships. 

About Netflix:-

Netflix is the world’s leading subscription streaming entertainment service with more than 167 million subscribers. Users across 190 countries enjoy TV series, documentaries, and feature films offered by Netflix in a wide variety of genres and several languages. The company was founded in 1997. However, it launched its streaming services in 2007. Previously, the company operated its business as three different segments – Netflix US Streaming, Netflix International Streaming, and DVD. However, starting in 2019, Netflix operates its global business as one segment. The headquarters of Netflix is located at Los Gatos, California, United States.

Net Income of Netflix

Netflix Net Income 2014-2019

Amounts are in $million.

YearNet Income/loss (Millions USD)
2019$1,866.92
2018$1211.24
2017$558.93
2016$186.7
2015$122.6
2014$266.8
2013$112.4
2012$17.15
2011$226.13
2010$160.85
2009$115.9
2008$83
2007$66.6
2006$48.8
2005$41.9
2004$21.4
2003$6.5
2002-21
2001-39
2000-58
1999-30

The net income of Netflix in 2019 climbed to $1,866.92 million from $1211.24 million in 2018.

About Netflix:

Netflix is the world’s leading subscription streaming entertainment service with more than 167 million subscribers. Users across 190 countries enjoy TV series, documentaries, and feature films offered by Netflix in a wide variety of genres and several languages. The company was founded in 1997. However, it launched its streaming services in 2007. Previously, the company operated its business as three different segments – Netflix US Streaming, Netflix International Streaming, and DVD. However, starting in 2019, Netflix operates its global business as one segment. The headquarters of Netflix is located at Los Gatos, California, United States.

Research and Development Expenses of Netflix

Netflix Research and Development Expenses 2014-2019

Amounts are in $million.

YEARR&D Expenses ($MN)
2019$1,673
2018$1,218
2017$ 981.3
2016$ 768.3
2015$ 570
2014$ 398.2

The research and development expenses of Netflix grew to $1,673 million in 2019 from $1,218 milllion in 2018. The research and development expenses of Netflix mainly include the payroll and related costs incurred in making improvements to its service offerings.

About Netflix:

Netflix is the world’s leading subscription streaming entertainment service with more than 167 million subscribers. User across 190 countries enjoy TV series, documentaries and feature films offered by Netflix in a wide variety of genres and several languages. The company was founded in 1997. However, it launched its streaming services in 2007. Previously, the company operated its business as three different segments – Netflix US Streaming, Netflix International Streaming and DVD. However, starting 2019, Netflix operates its global business as one segment. The headquarters of Netflix are located at Los Gatos, California, United States.