Snapchat | Historique | Technologie | Marché | Résumé Financier

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FINANCIAL SUM UP

2014 : The firm has a value of 10 billion of dollars but does not have revenue yet.

End 2013 : Facebook wants to buy Snapchat for 3 billion of dollars but the start-up declined the offer.

June 22, 2013 : With this investment the value of the firm worth $800M

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PERSONAL JUDJMENT

STRATEGY/EVOLUTION :

We noticed that Snapchat expands itself, has chosen an innovation strategy then a differentiation strategy.

Moreover, it refused extraordinary opportunities : in 2012, Snapchat declined an offer from Facebook (3 billion of dollars) and even from Tencent (4 billion of dollars).

Nowadays, the firm worth 10 billion of dollars, so we reckon that the choices were the good ones, the founders were right !!

There are still a lot of challenges for Snapchat :

- Firsly, the system of security of the application has to be improved. Indeed if there are other scandals like the hacking of january 2014, Snapchat will lost the confidence of users.

- Secondly, now Snapchat has enough users to begin to make money (indeed for the moment, Snapchat earnings are almost zero). That’s why ads will be added on the application. However they have to be careful, users could be disgusted of the application if there are too many ads suddenly.

Also in June 2013, Snapchat introduced Snapkidz for users under 13 years of age. Snapkidz is part of the original Snapchat application and is activated when the user provides a date of birth to verify his/her age. Snapkidz allows children to take snaps and draw on them, but they cannot send snaps to other users and can only save snaps locally on the device being used.[15]