Ah yes, Snapchat. The go-to mobile application for sending short-lived “snaps” of photos, 
videos, and of course embarrassing selfies. Since its inception of 2011, the photo app has grown to become an essential to many users (including myself) and there are numbers to back that up – more than 26 million US users and 350 million “snaps”sent per day. In just two years, the simple one-button app has become a serious threat to social media companies as it shares the same user demographic of young teenagers.
In fact, social media giant Facebook recently tried to acquire Snapchat for a whooping $3 billion, but to no 
avail. In Gracia’s blogpost, she explains that the alternative to beating a competitor isn’t always acquisition as Snapchat is not a sustainable business. While it is true that Snapchat doesn’t make any money, I believe that it has insurmountable potential for it.
For one thing, the company possesses the first-mover effect, with a loyal customer base and strong brand recognition. In fact, in June 2013 investors valued the company at $800 million, and raised $60 million in funds. There exists numerous opportunities to open up revenue streams, such as capitalizing on its popularity by introducing ads to generate money. Was the rejection of Facebook’s offer smart for the company? Only time will tell.