Recently, snapchat turned down a 3-billion cash offer from facebook. A lot of people think Evan Spiegel made a dumb decision to turn it down. However, I think Spiegel’s decision actually makes sense. Messaging service market is definitely competitive, which can be assumed as one of threats of snapchat. It, however, has an extremely strong strength which can help it overcome those competitions, which is uniqueness.
The technology snapchat uses is not the most advanced one in the whole market but the ephemeral way it deals with all those messages attract already millions of users that share 350 million snap chats per day.
Messaging service is not a blank market. Ephemeral messaging service, however, is. These kinds of messages encourage people to be themselves since they are not permanent. Sometimes people post on facebook and twitter to only show people the stuff they “want” others to see but not who they really are. With such a strong POD, snapchat definitely has great opportunities and potential. As known, the customer base of snapchat keeps growing faster and faster. Evan Spiegel came up with an idea which nobody had ever thought before and it values not only 3 billion.
http://www.foxbusiness.com/technology/2013/11/13/report-snapchat-turned-down-3b-offer-from-facebook/
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