David’s Forceful Blow: What’s Your SnapChat?

(http://www.ideatoappster.com/why-no-one-cares-that-you-can-save-snapchat-photos/)

Rejecting the powerful social media company, Facebook, is unheard of…unless you’re Snapchat.  I recently read Jennifer Zhen’s blog, “Snapchat on Facebook’s Wishlist,” and I strongly agreed with her opinions on the topic, and was therefore inspired to publish my own reasons for why I also believe that Snapchat should remain a separate entity.  Snapchat refused Facebook’s offer worth billions of dollars because the company feels as if in the future, they could be worth even more than the billions offered.  Their major backer, Benchmark Capital, was especially happy about this decision because of their previous disappoint with their investment in Instagram, who decided to sell to Facebook for a mere one billion last year.  Benchmark believes that SnapChat can survive as a stand-alone company and therefore should maintain its independence.

SnapChat started in 2011 by Evan Spiegel and Bobby Murphy, and is a service that lets users send videos and pictures that disappear after a certain length of viewing time.  This service looks to have a bright future as it offers a new, fun way for people to communicate with each other.  Spiegel and Murphy are entrepreneurs that have created a “vitamin” product that adds enjoyment to consumer’s lives (as opposed to alleviating a need as “painkillers” would).  They have also discovered an innovative way for users to maintain privacy in their communication, by allowing the pictures and videos to disappear.  Rejecting Facebook was a big, intelligent step towards establishing their autonomy in the social communication market.  David (Snapchat) seemingly showed Goliath (Facebook) who’s boss… yet again!

(https://www.youtube.com/watch?v=N2frdBhxdIk)

Sources:

http://www.nytimes.com/2013/11/14/technology/rejecting-billions-snapchat-expects-a-better-offer.html?_r=1&

http://www.businessinsider.com/snapchat-early-and-first-employees-2013-11

http://www.cbc.ca/news/technology/snapchat-rejects-facebook-s-3b-buyout-offer-report-1.2426180

https://blogs.ubc.ca/jenniferzhen/

Soaring to Dublin & Trans-Atlantic Heights

West-Jet, an airline more commonly known for its trans-America flights, is on track to land some flights in Ireland.  The airline is planning to add four hour and fifteen minute-connecting flights to Dublin from Ottawa, Halifax, Montreal, Vancouver, Calgary, Edmonton, Winnipeg and other cities in the airline’s network.  The non-stop flights will begin next June and will run on a seasonal basis from June to October.  Their measured venture into trans-Atlantic flights allows them to step-outside of their niche and explore possibilities for longer flights, especially endeavors into the European air space.

 

“ [This] is an opportunity for us to gain a better understanding of what it’s like to operate in Europe,” said WestJet spokesperson Robert Palmer.

 

(http://smartcanucks.ca/westjet-save-25-off-econo-fare-category-flights/)

Airline companies run the risk of bankruptcy if they become too ambitious and attempt to provide long-haul flights through the purchase of bigger planes, as we learned in Class 5, so West-Jet’s subtle and strategic approach to ease into these European flights is clever.  The key to their previous success lay in their ability to specialize in trans-America flights but by slowly expanding their niche they allow themselves to test their ability to gain profit from these new trans-Atlantic flights.  If this venture fails, the risk is not as great compared to if they hastily jumped into broadening their flight plans.  In the future, if all goes well, providing direct flights from Canada to Europe would definitely bring in more customers as it allows passengers to access Europe without having to go through major cities such as Toronto.

 

Sources:

http://www.cbc.ca/news/canada/calgary/westjet-to-go-transatlantic-with-flights-to-dublin-1.2427850

http://search.proquest.com.ezproxy.library.ubc.ca/docview/864615241