Snapchat Case Study

1297 Words6 Pages
Snapchat is an application where you can take pictures and add comments to it almost like a text message. Snapchat has been a hit for kids because it allows kids to speak freely without a permanent record with the individual or group of individuals they wish to speak with. It puts people in control of the message and delivery, and allows them to do so without the watchful eyes of everyone within their social network. Snapchat’s emergence has made it a key social network and sharing application and that has rapidly diminished the importance of Instagram and Facebook, which owns Instagram. Facebook has made attempts at duplicating Snapchat by adding similar features such as Instagram direct. Instagram direct is where users can send private photos to one or more friends. These attempts were popular at first but users quickly recognized Snapchat as the application to still have. Recently, Facebook tendered Snapchat a three billion dollar buyout. Evan Spiegel and Bobby Murphy, Snapchat’s 23 and 25 year old co-founders and chief executives, said in 2013 that they are reportedly waiting until early 2014 to consider offers. The question is, should Snapchat take the money and run with the offer? By means of business tools and techniques, a recommendation will be put forth to answer the question of whether Snapchat should accept Facebook’s offer. SWOT analysis: Strengths/benefits for Snapchat if they accept offer: • Snapchat would receive large cash infusion from Facebook Weaknesses of accepting the offer: • Snapchat can receive a higher offer as value increases Opportunities for Snapchat: • Snapchat is a young company and has room to grow • Focused on exclusively mobile and users are regularly engaged with mobile phones • Adver... ... middle of paper ... ...s already have shown they can do better than Facebook's three billion dollar offer. Looking at the competition between social networks, social networking sites are constantly trying to keep its users engaged. Snapchat has the full attention of consumers. Snapchat has seen a lot of growth with the number of users using the application and this growth is shown in the increased use of mobile devices. Facebook is trying to make their network site more mobile. Facebook's problems could be the reason their trying to buy Snapchat out. Snapchat on the other hand is growing organically with no clear plans for future acquisitions. The company is growing very rapidly and the end is not yet in sight. Snapchat appears to be poised for a long, profitable run of growth in this market. In conclusion, Snapchat should officially decline the offer based on the evidence considered.
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