![]() Identifying competitors in the industry is not an easy task as it requires a clear understanding of what is meant by Social Media. The former radical change had been mostly dictated by the harsh competition against Facebook, slowly determining the impossible coexistence of two market standards. ![]() Although 98% of its revenues come from advertising, we expect a shift towards hardware investments, striving to create a new market in which the firm could eventually held a dominant position. The former poses a clear interrogative on the firm’s future direction, which seems to be far detached from its current position. Snapchat defines itself as a camera company, with the mission of reinventing the camera in order to improve the way people live and communicate. Shares are currently trading at around $13, showing that the company had mostly probably been overvalued. Despite its initial success, the value of the stock quickly started to drop until it finally went below its IPO value in July as the lock-up expiration date was approaching. The size of the offering was of 200 million shares, accounting for more than 10% of the total trading volume that day on the New York Stock Exchange. After its first day trading, its stocks soared 44% at a valuation of over $33 billion, attracting the attention of investors. The offering makes it the largest U.S tech IPO since Alibaba raised $25 billion in 2014. The company went public on March 2017, pricing its shares at $17 above the $14-$16 range. From 2014 onwards, daily active users (DAU) started increasing at an average rate of 50m per year and the application quickly became one of the most famous messaging apps among millennials. Over the years it went through substantial changes, the introduction of video messaging, smart filters and stories quickly brought the firm to obtaining a strong success. The company started off as Picaboo, a picture messaging app on iOS, it was renamed Snapchat a few months later, as its features started to be implemented. Snapchat was founded on Jby Evan Spiegel and Bobby Murphy. ![]() Finally, the study will conclude with the analysis of its current financial performance and the identification of a potential strategy for it to strive. ![]() The third step, and most crucial one, focuses on the importance of network externalities and positive feedback within communication and information markets in predicting Snapchat’s future direction. Secondly, after having identified the segment of interest for the firm, a competition analysis is needed to grasp its full potential in relation to its competitive position. To begin with, it is of utmost importance to understand who the main competitors in the social media industry are and to which branch they belong to. The goal of this study is to analyse the firm’s success factors and their future sustainability in an attempt to generate a potentially successful strategy for the firm. striving to explain what lies behind the recent success of the company’s IPO. My research aims at providing a general understanding of the competitive environment that characterizes Snap, Inc. Share this: Facebook Facebook logo Twitter Twitter logo Reddit Reddit logo LinkedIn LinkedIn logo WhatsApp WhatsApp logoĬhapter 1: Introduction goals and expectations for the study
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