Business Model Canvas of Snap Chat-Free-Samples for Students

Question: You are required to prepare a business report that deconstructs an organisation's business model and identifies the critical success factors that make the business sustainable. To undertake this analysis, you will need to explore different business models, including those that are frequently seen to achieve sustainable success and high levels of profitability. Your analysis will demonstrate your critical thinking skills and your ability to professionally articulate your findings. Answer: Description of the business and the service offered Snap Chat refers to a multimedia messaging app which is popular in the regions of North America along with that of Europe. Evan Spiegel, Reggie Brown and Bobby Murphy were responsible for creating this popular app. Principle feature pertaining to Snap Chat is that the pictures along with messages can be visible only for a short amount of time and then they become inaccessible. The app has undergone evolution from that of person-to-person photo sharing to that of featuring stories based on 24 hour chronological content. Snap Chat has become popular because it represents an innovative mobile-first direct ion pertaining to social media (Piwek Joinson, 2016). It lays stress on the aspect of the users interacting by taking recourse to virtual stickers. The users can interact by the help of augmented reality object. Snap Chat is renowned for having 187 million users who use it on every day basis. In the month of September of the year 2016, it was renamed as that of Snap Inc. The first har dware gadget by the name of Spectacles which was a sunglass having an in-built camera was launched in the year 2016 (Vugec, Spremi? Bach, 2018). Snap Chat is mainly used for the creation of multimedia message and it consists of a photo or that of a short video. The snaps can be modified by including different kinds of filters, text captions along with that of drawings. This report focuses on the business model by making use of the nine building blocks. It also discusses about the relationships between the building blocks and discusses the factors that will help the business in attaining competitive advantage. It also expounds on the factors that can lead to the downside risk of the company. Business Model Canvas of Snap Chat The nine building blocks of pertaining to the business model of Snap Chat are that of customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and that of cost structure. The customer segment mainly comprises of the demography who are between 13 and 34 year old. The young group of people who are very impulsive are the major users of this service. The young demography wants to communicate with the help of different social platforms and Snap chat proves to be the ideal platform with the help of which they can maintain communication. They key partners of Snap Chat comprise the investors, snap chat community, audience match API partners, Ads API Partners, Creative API Partners and the Creative Partner (Xu et al., 2016). The key activities of Snap Chat relates to R D, product roadmap, software development, IT Operation, customer service, m arketing and the public relations. They key resources comprise of Sna p Chat that is a photo messaging app and Spectacle that acts as a video sharing sunglass. There are around 150 millon daily users of the Snap Chat service. It has got features that can enhance the images and it is also capable of stringing different chats together. The publisher tools of the app make it viable among the young population (Makki et al., 2017). The value propositions of Snap Chat are provided y the fact that reinvention of camera can act as a great opportunity and it can help in improving te manner in which people communicate. Snap Chat helps in knowing the world so that the people can indulge in pleasure. Customer Relationships are provide owing to the fact that the user can choose to add different snaps in order to make a story that can be viewed by the public who is following the particular user. The users can also send the private snaps to that of other users. The photos along with videos can be seen for 10 seconds before they disappear. Snap Chat can delete the pr ivate snaps just after when they are opened (Browne, OReilly Hutchinson, 2017). The different channels are Snap Chat app, Spectacles, Vending machines, Advertising and the partners. The parent of Snap Chat can make money by the selling of access from the users to the advertisers. The advertising products of the company includes that of Snap Ads along with Sponsored Creative Tools. Key Relationships between the Building Blocks The value propositions of Snap Chat like the innovative camera endear it to the young demography who can derive entertainment from the exclusive features of Snap Chat. The young demography who are impulsive can enjoy the features of the messaging app and the research and development wing of Snap Chat caters to the demands of the new age consumer. The value propositions of Snap Chat are maintained with the help of sales channels like API Partners and Creative Partners (DuFour et al., 2017). In is latest strategy of moving towards automation Snap Chat has made the marketing API available to all kinds of agencies and the developers. The Snap Chat Partners Programme helped the companies in making use of API that can provide satisfaction to the largest advertisers in the world. Snap Chat has opened up the marketing API that can provide the developer with tools that can help in building the ad solutions of Snap chat (Heider, Simes Gram 2017). It can prove to be a great step for providing the customers with best solutions. It can help n the process of strengthening the relationship with the customer. The revenue is earned with the help of value proposition that is delivered to the customers of Snap Chat. Different channels pertaining to Snap Chat like Spectacles and Vending Machines help n earning profit for the messaging app. Critical Success Factors that can help in its competitive advantage Snap Chat mainly calls itself a company camera and it has done great amount of innovations on the piece of hardware. It ca however be said that it is an app that can be thrown way on one day. The platforms should have a longer life because there are switching costs that are involved. They should continue to build new technologies so that the competitors cannot replicate their particular business idea. Snap Chat should focus on the aspect of building of technology in relation to the underlying filters. They should make it the core of their business strategy. A synergy with the Android can help in the development of the messaging app. Making Android the default camera application on the smart phones can help in ensuring that the app reaches billion of deice throughout the world (Anderson, 2015). They can also license the software in order to include Canon and Nikon. It can help them in harnessing their own ecosystem (Coffman, 2017). They can also turn the filters into that of a market place which can help in allowing te developers. It can provide opportunities to the creators so that they can build innovative fascinating new filter for the app of the camera. They can innovate it in such a manner that it cannot be replaced and the customers would be attracted towards the app. The revenue of Snap Chat comes from the arena of advertising and it was recorded that Snap Chat was able to generate around $ 182 million in terms of revenue whereas on the other hand Face Book was able to garner over $ 9.3 billion (Johnson, 2015). Snap Chat can create something that is not related with anything of sharing they can create a niche market of its own. In the future Snap Chat can be made use of to see what the other friends are doing. Snap Chat in the future can make referrals to different restaurants and bars with the help of the app (Rs, 2016). Factors contributing to downside Risk Snap Chat has to operate with the help of mobile operating systems and networks that they cannot control. Changes with the products or the operating system can harm the user growth of Snap Chat app. Snap Chat boasts by calling itself a camera company but it does not own the camera. Snap Chat is dependent on Google Android for hosting the app. Snap Chat is dependent on Google Cloud for different kinds of services like computing and bandwidth. Disruption pertaining to Google Cloud Operation can harm the business of Snap Chat (Brisco, Whitfield Grierson 2016). Snap Chat is surrounded by powerful competitors and if they are not able to improve the market share then their business would suffer. Snap Chat is surrounded by enemies like that of Apple, Face Book, Twitter and You tube. Snap Chat is also competing with companies in the arena of print and radio for underlying technologies like messaging. The loss of key personnel of Snap Chat and the failure to retain qualified personnel can se riously harm the business of the company (Billings et al., 2017). Snap Chat has an operating history that is short and this makes it difficult for them to evaluate the prospects along with future financial result. Snap Chat has been in the business for around five years and there are plenty of chances that this thing may not work. Recommendations for the business model of Snap Chat Snap Chat has spent many years shunning the influence of social media inspite of huge amount of interest from these people. The new business model of Snap Chat hat will focus on the field of distribution along with monetization opportunities in relation to these creators. Development of the eco system can allow the artists in transitioning from communicating with friends to that of creating stories for serving a broad audience (Alyahya Kausar, 2017). It can monetize the stories and make use of professional tools for creating premium content. Snap Chat is dependent on high-bandwidth video that does not load easily within the developing world. Snap Chat wants to enhance the network effect and provide foundation for the future by creating more users inspite of the challenges. Snap Chat has decided to increase the user base and it wants the Android users to adopt the product more readily. Product improvements can be made by streaming the architecture for the Story play back. References: Alyahya, T., Kausar, F. (2017). Snapchat Analysis to Discover Digital Forensic Artifacts on Android Smartphone.Procedia Computer Science,109, 1035-1040. Anderson, K. E. (2015). Getting acquainted with social networks and apps: Snapchat and the rise of ephemeral communication.Library Hi Tech News,32(10), 6-10. Billings, A. C., Qiao, F., Conlin, L., Nie, T. (2017). Permanently desiring the temporary? Snapchat, social media, and the shifting motivations of sports fans.Communication Sport,5(1), 10-26. Brisco, R., Whitfield, R., Grierson, H. (2016, April). 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