After Snapchat rejected Facebook, everyone was shocked by this 2-year-old new business. After Facebook, Google and Tencent are all attracted by the idea of merging Snapchat. All of these companies provided a high prediction of the value of Snapchat. There is a rumor saying that Google is willing to spend $4 billion on Snapchat. After analyzing the business model of it, I found something interesting.
From my prospective, the main difference between Snapchat and Facebook or Twitter is that Snapchat protects the privacy of their customers. This can definitely be the reason why young people prefer Snapchat rather than Facebook. They do not have to delete all their ‘interesting’ photos before they have an interview. Their special technology allows the photos automatically to be disappeared within 10 minuets. They created point of difference, as we learned in Comm101 class. Snapchat found a new market segment in ‘read and disappear’. It aims to young teenagers who like social networking and required the privacy to be protected, this is a new and small market segment. The secret of its success is Snapchat captured the demand of typical group of customers (young people). My suggestion is that Snapchat should keep focusing on the demand and likes from young people because their likes could change everyday.