Needless to say, social media (Facebook, Snapchat, Instagram) has truly taken over my life to the level that I would feel “insecure” for not being able to go on either one of them for a day or even shorter. In Cynthia’s blog post, she mentioned about Snapchat’s rejection to Facebook’s $3 billion turnover. Today, Snapchat turns down another $4 billions offer from Google because the Co-Founder of Snapchat, Evan Spiegel, sees his company’s potential value and growth to be even higher.
I agree with what Cynthia said, “I think it was a smart decision of Snapchat as they will eventually want an IPO to further expand their company.” For sure, Snapchat can receive more users and the company still have a plenty of room to expand. However, will it last long? To answer this question, we need to look at several different aspects including the future demand trend and the threat of new entrants. Snapchat has became teenagers’ favourite. However, will this current trend subject to change? Moreover, with the low entry barrier, there will be more potential competitors to share the market in the future.
Whether or not Snapchat has made a bright decision to turn down two humongous offers depends on how this market trend flow. However, it is definitely sure that Snapchat has taken the first step to accept the risk and challenge.
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