New Business Model for Snapchat- myassignmenthelp.com

Question: Discuss about theNew Business Model for Snapchat. Answer: Introduction Snapchat is an American technology and social media company founded on September 2011 by Evan Spigel and Bobby Murphy in Venice. The company currently has 4 in house products namely: Snapchat, Spectacles, and Bitmoji Zenly. The company has been in discussion since its inception. The company was initially founded as a camera company, due to its gaining popularity; it earned its reputation as a social media company, giving companies like instagram, Facebook and watsapp a run for its money. Mark Zuckerberg, Founder CEO of Facebook wanted to acquire Snapchat, but the owners were aware of its popularity and thus declined the offer at a very nascent stage. Since then, the company has been just gaining uncontested popularity, forcing many social media giants to follow footsteps of snapchat.[1] From Capital to Value design: Snapchat was funded by Bridge funding and light speed ventures as seed funding, post that the company raised some $ 13.5 MN in Series a funding round which made the valuation of the company to $ 70 MN. By 2016 the company has completed 4 rounds of funding at was sitting at a figure of $ 1.2 Billion. Facebook at that time offered Snapchat $ 3 Billion, it was a good amount, considering the valuation, but the owners denied it and now they are sitting at a valuation of $ 22 Billion. The company never showed the signs of defeat or giving up to the pressures of Silicon Valley and are going strong with 173 Million daily active users. The owners believed in the business model and its target audience, they knew with the positioning, they are sure to succeed, and money will come eventually, this led them to work on value designing and move forward from capital.[2] From Value chain to network: Snapchat describes itself as a fun messaging app which is target to the youth, the chosen demographics is for the age bracket of 16 to 40, and the company has penetrated the market excessively well, with youth using Snap as a daily jargon among friends. Snap me, add me on Snap are some of the common phrases the youth is using, Snap streak, snap filters are some of the most popular features which the audience is connected to, hence building a network amongst its users. Collaborating different features in one single product, packaging and giving the solution to the audience is the differentiating factor for snapchat.[3] From Having to Being: Snapchat has changed the entire landscape of social media, by introducing its revolutionizing features. The predominant idea behind snapchat was to maintain the privacy, a user once views a picture or a video, and it gets automatically deleted and is not stored even in the cloud. This idea stuck with the youth and thus people started using Snapchat. Later the company kept on innovating new product and features to engage the audience. Brands, seeing the youth moving onto Snapachat, diverted their branding strategy towards Snapchat, and now its like mayhem, every brand is advertising on Snapchat. Thus the company gradually moved from just having to being the leader in innovation. Instagram, Facebook and watsapp are taking inspiration from Snapchat these days and are copying its product to keep up with the growth trajectory of snapchat.[4]