3. Threat
Imitators
Emerging Competition
Going Public
SWOT ANALYSIS FOR SNAPCHAT
Opportunity
§ Expansion
§ Going Public
Weakness
Controversy
Loss of Historic Data
Smaller and Fickle User Base
Strength
Innovation
Privacy
Mobile-friendly Design
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4. PORTER’S FIVE FORCES
Threat of New Entrants
§ Low time & cost of entry
§ Snapchat’s features can be easily copied
§ Minimal technology protection
= Medium Pressure
Bargaining Power of Suppliers
§ Snapchat does not require suppliers to
provide its service
= Low Pressure
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5. Bargaining Power of Buyers
§ 158M of daily active users
§ Instagram Stories: 150M of daily active
users (within 5 months)
§ Low switching cost
§ When existing social media giants copy
Snapchat’s features
§ X create new profile
§ X convince peers to use it
= High pressure
PORTER’S FIVE FORCES
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6. Threat of Substitute Products
§ Privacy
§ Convenience
§ Knowing the content will be deleted within 24 hours and that it is treated casually
§ Less effort needed to put into posting
§ e.g. Facebook,Whatsapp, Squawk Messenger, email, text messaging, etc.
= Low Pressure
PORTER’S FIVE FORCES
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7. Rivalry among Competitors
§ Strong emotional appeal
§ Constantly updated filters
§ Situation-specific snaps
§ Recent acquisition of Bitstrips
§ Bitmoji integration
§ Brand loyalty
§ Out of parents’ reach
§ e.g. Snow, Instagram, Clipchat
= Medium Pressure
PORTER’S FIVE FORCES
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8. BUSINESS MODEL CANVAS
- Young people
aged from 13 to
34 (especially
female)
- Advertiser
- Acquisition &
Retention
- Create a
friendly, funny,
interactive with
customers
- Online channels:
social media,
news apps, video
platforms
- KOLs (especially
celebrities)
- Advertising (sponsored geofilters and lenses,
“discover”)
- User purchase
- Self-destructing
messages: content
deleted
immediately after
reading without
privacy concerns
- Unique filters and
lenses to make
pictures & videos
fun and creative
- Fixed cost: app construction and maintenance,
personnel etc.
- Variable cost: marketing and promotion etc.
- Publishers, media
companies
- Bitstrips
- Investors
(e.g.,Alibaba)
- Provide a
platform for users
to communicate
and tell stories
through pictures
& videos
- Lenses and
geofilters
- Millions of DAU
(daily active
users)
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9. BLUE OCEAN STRATEGY CANVAS
Speed of
multimedia
content
creation/
viewing
Digital effects
creation
Fun of
multimedia
content
creation/
viewing
Keep parents
out
Ease of UI
learning
View past
content
Discover
what’s going
on in the
world
High
Low
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10. BLUE OCEAN STRATEGY CANVAS
§ View past content
Eliminate
§ Discover what’s going on in
the world
§ Ease of use
Reduce
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11. BLUE OCEAN STRATEGY CANVAS
§ Digital effects creation
§ Speed (Content creation/ content
viewing)
§ Fun (Content creation & viewing)
Raise
§ Content deleted immediately after sending
§ Collaborative content creation (uploading
location-specific snaps to be shared across
the world)
§ Fun filters (Geolocation/ Time/
Temperature/ Speed / Altitude / Lenses /
Motion stickers)
§ Marketing Use
Create
Lens:
Snapchat uses
AR to create
many attractive
lenses.
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