Most Facebook users now are using Instagram as well. We noticed that every time people posted something on Instagram, there is a post on Facebook “(user’s name) just posted a photo on Instagram” with a picture with it, or “(user’s name) likes (user’s name)’s photo on Instagram”. This eventually the reason why Facebook bought Instagram’s share for $1bn. Instead of adding extra value, Facebook tries to keep users’ interest in using them.

This cooperation is basically benefiting both sides. Instagram could raise their number of users and Facebook will not loose their users’ interest. This joint cooperation will also establish an extent value propositions that can satisfy users even more, which leads to increase in customers’ loyalty.

These value propositions are specifically targeting on performance of both sites, accessibility and convenience or usability. The two of them work supportively, where both of them are connected, so when a Facebook user wants to go directly to an Instagram profile user, they can just click on the availability of Instagram link on their timeline (when someone posted something on Instagram and they connect the account with Facebook), which also offer convenience.

Source: http://www.aljazeera.com/business/2012/04/201249183331607267.html