Facebook and the lean start-up Instagram

Instagram, a super hot online photo sharing social networking app is a great example of lean-startup business. By the end of 2011, there were only seven people working for it. Just over one year, the users grow to 30 million. In April 2012, Facebook acquired Instagram for $1 billion in cash and stock. Yet people ask “does it worth it”? Well, there’s large amount of uploading and sharing going on Instagram. And Facebook is an advertising platform, to advertise, they need things to catch people’s eyes. Right now, Instagram is getting a lot of attention. Instagram sharing now can be seen on Facebook, it is a good marketing strategy especially when Facebook is have a declining active users.

This strategy might seem good, but is it really useful? There are 55 million photos uploaded on Instagram everyday, and 0.45 billion on Facebook. At the same time, there are also 0.45 billion photos uploaded to Snapchat and 0.4 billion to Whatsapp. Though Instagram is a hit, but it is not the sole platform for such service. It’s just one of the major social networking app, not the biggest. Which means the help to Facebook may not be as significant.

Cited:
1.”FacebookInstagram无助于_科技_腾讯.” FacebookInstagram无助于_科技_腾讯. N.p., n.d. Web. 16 Nov. 2013. <http://tech.qq.com/a/20131112/001095.htm>.
2.”Why Would Facebook Pay $1bn for Instagram, a Company with No Revenue?”Technology Why Would Facebook Pay 1bn for Instagram a Company with No Revenue Comments. N.p., n.d. Web. 16 Nov. 2013. <http://blogs.telegraph.co.uk/technology/alexisdormandy/100007240/why-would-facebook-pay-1bn-for-instagram-a-company-with-no-revenue/>.

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