Snapchat, a multimedia messaging app by Snap Inc., was developed by three young students of Stanford University in 2011. Within these 9 years of journey, Snapchat has become one of the most used social media apps for instant messaging and multimedia sharing. Having 265 million daily users in December 2020, it’s getting more and more popular every day. But some particular issues regarding the users have raised a storm of controversy regarding the company.
Snapchat – At A Glance
|Headquarter||Santa Monica, California, U.S.|
|Annual Revenue||$2.507 Billion (FY 2020)|
Snapchat SWOT Analysis
SWOT analysis is a strategic planning frame that can be used by the company managers to get a successful situation analysis of the company. The SWOT Analysis matrix helps to figure out the position of a company in the marketplace from both ins and outs. It is an excellent tool for the policymakers of companies to find room for improvement. As an emerging tech company, Snap Inc. can use this analysis to point out newer opportunities along with threats. By taking good care of them, the company can progress even better. So, this framework will help the management to explore its strategic factors, both from an internal and external view.
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Snapchat SWOT analysis can be used to sharpen their strengths and also overcome their weaknesses. Similarly, they can exploit their opportunities and avoid threats.
Since SWOT analysis gives a complete picture of the state of the company, its significance for the company needs no telling.
Strengths of Snapchat in SWOT Analysis
There was no magic or fairy tale behind the success of Snap Inc. But still, three young minds successfully developed an app for messaging and now it’s expanding in every moment. Every day on average, there are 4 billion snaps. So, let’s explore the strengths in Snapchat SWOT analysis that have made Snapchat today’s Snapchat.
Unique Innovation: The idea of Snapchat was catchy and out of the box. From the very beginning, its features were different from its competitors which seemed to be a bit odd then. But later those functionalities and ideas have made it unique and more acceptable to the users. These eccentric features are the ones that caught the eyes of the trendy rebellious teens and became their favorite. This also gave them something fresh and new. The unique features are the core strength of Snapchat.
Mobile-ready design: Recent research shows that the user interface of Snapchat is simple and user-friendly which enables it to reach more and more users. These easy-to-use functionalities and designs attract more users and thus Snapchat surpasses its competitors in the market. It also makes it appear as a “fashion-friendly yet minimalistic” app which appeals to the young generation.
Strong Brand Image: Snap Inc. has already become a highly acceptable brand in the realm of tech companies. Being one of the most popular social media platforms, its name is now a brand itself which makes the growth higher. This brand image makes it easy for Snapchat as it does not need to spend additional money on spending promotional activities.
Skilled Workforce: The employees of this company are highly skilled tech enthusiasts who are tested in several steps before joining the team. Not just that. These members have also trained vigorously to meet up the company’s standards. Thus, the young professionals with greater potential are making Snapchat even a better app.
Weaknesses of Snapchat in SWOT Analysis
The Snapchat is emerging as a promising name in social media platforms. But there are certain areas where they should focus so that they can improve themselves. Thus, they can raise their growth and take their business to the next level. Here are some of the major weaknesses that came to light during Snapchat SWOT analysis
Controversy: From the beginning of its journey, controversy has never stopped following Snapchat. In 2013, it was hacked which made their position a bit vulnerable. Also, there were allegations that it would only be used for offensive purposes. Another important fact is, the Snapchat is very popular with teenagers, their parents often think of it as a threat to their privacy. This makes team Snapchat rethink its approach to the market of teenagers. Because if the parents are not satisfied with their services, they would try to ban it to their children. This will be bad for Snapchat. Because a considerable amount of their user community is made by teenagers.
Diversification: Snapchat could hardly find any success outside its core field. So their business has failed to diversify into different areas. These attempts cause not only a major monetary loss for the company, but also hurts the brand image which doesn’t let them explore again. The lack of diversification is causing the company to fall behind.
Poor Financial Planning: Snapchat has not been very successful in planning quality financial plans. They are very much dependent on the advertisements for revenue, which was 96% of their total revenue in 2020. Also, while planning to expand the business, their economic approach was not very promising.
Lack of professionalism: As a tech company, Snapchat has failed to show professionalism in the marketplace. They had to go through a lot of troubles that they could have prevented, but their policymakers were not capable of doing so. This gives them a hard time coming off as a serious company. Many of their suggestions are now not considered seriously as a result.
Opportunities for Snapchat in SWOT Analysis
The opportunities are outside factors of a company that they can exploit for profit and benefits for themselves. Opportunities should be handled with care while wisely choosing them. It may happen that while seeking opportunities, Snapchat might have to sacrifice something to achieve success in the long run of its journey. Some notable opportunities for Snapchat Swot Analysis are mentioned below:
Expansion: Snapchat is very popular among teenagers and youths; Its growth is expanding at a very large scale. This phenomenon is giving investors the chance to reach a huge user base through advertisements. At the same time, since the number of smartphones is increasing, there is a higher probability that Snapchat will reach even billions of users in the upcoming years.
New Features: Over time, the Snapchat has developed many features that have made them attractive to users. So new features can be a magical turning point for the company.
Customer Engagement: The more people can be engaged, the more growth the company will be – and that can be one of the biggest opportunities for Snapchat. Nowadays, hashtags can play a vital role in engaging people. So thus, the user base can be expanded exponentially.
Threats for Snapchat in SWOT Analysis
Snapchat Swot analysis has brought about some threats in their present situation. They are discussed below:
High competition for similar products: Snapchat is an instant messaging app with vibrant functionalities to share photos and videos. But similar types of products are emerging in the marketplace which is trying to surpass Snapchat. And tech giants are always trying to develop similar products of other companies which should also be taken under consideration.
Customer behavior: What is new for today, may lose its glamour tomorrow and this is very true in cyberspace. Customers change their mindset within the glimpse of an eye and move to something else. So, Snapchat should work smartly in a way so that its users don’t lose interest in it.
Negative feedback: A lot of users and their relatives have raised voices over the vulgar content shared through Snapchat which even includes cyberbullying and harassment. These threats should be solved so that it doesn’t become a fatal one.
Legality: Since its journey in 2011, Snap Inc. has faced several challenges with legal problems. Also, many countries have banned the app so that it can’t directly be accessed from there.
Snapchat SWOT Analysis Overview Template
Recommendations & Conclusion for Snapchat
With the tagline- ‘The fastest way to share a moment Snapchat is leading the way of visual conversations on social media platforms. But there are threats of breaking down of the whole system due to controversies, high market competitions, and last but not the least, the customer demands and choices. So, to reach the global audience on a larger scale, they should keep these things in mind. They should focus on research and development. At the same time, they should notice other small changes in technology which can become a great opportunity within the next few years.
In conclusion, this Snapchat SWOT analysis focuses on the overall scenario of Snapchat while figuring out the threats and opportunities for the company which can be utilized properly with their strength and overcoming the weaknesses.