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Case Study On Creative Entrepreneurship: Snapchat

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What makes this company/ entrepreneur special?

Snapchat is a unique social media plat form launch end in September 2011 by Evan Spiegel, Bobby Murphy and Reggie Brown, former students at Stanford University that allows people to send videos, pictures with a specified amount of time (ten seconds) for the receiver to view the “Snap” before it becomes deleted and inaccessible to view again for the receiver. What motivates them and drives the business is to create a growing social media platform that creates a real life vibe to it as possible. What drives them is they can see how much more people are connected with each other creatively, personally and securely every day.

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Was there a gap in the market? Or what was the unique opportunity? What did they do address this?

The 3 Stanford University students saw how technology was rapidly evolving in our generation. As a result of this they saw the shifts in the social media world and online communication and knew new social media marketing strategies were needed. Firstly, they noticed what every social media platform was doing and found the norm of social media platforms / apps followed is that everything gets saved, downloaded or documented digitally. This is when they created the idea of disappearing messages that allow the users to only view photo message for a maximum duration of ten seconds and then it deleted forever. “Teens were looking to leave and looking for somewhere to go. And, the disappearing photos function was essentially the same thing as a “do not disturb” sign on your door, except much more effective” . When a friend first explained to me the concept to me I thought “what would be the point of a messaging/communication app that you could only view the photo message or videos for such a short time and then they are gone forever?”. The idea of disappearing photo messages is so it almost gives real physical conversation feel e.g. when somebody tells you something you there’s nothing to document what they have just told you but you just have to remember it in your head which gives the users a sense of security and personal vibe to the conversation. “In many ways Snapchat imitates the liveness of the old television format, prior to the Internet, with no opportunity for replay”.

Do they have an interesting background? Were there any challenges?

Snapchat started with Spiegel and Bobby Murphy when they met at Stanford University and created an app similar to snap chat called Pica boo were they faced a huge challenge that ultimately ended their app due to issues with people screenshotting photos which made it no point of the app because people could still save and see the photo. In September 2011 they fixed this issue launching an app called snapchat with a built in notification that notifies the users would be able to see who took a screenshot of their photo. “although receivers can save content through screenshots, senders are notified; this selective saving with notification supports complex information norms that preserve the feel of ephemeral communication while supporting the capture of meaningful content”. Facebook offered Snapchat a $3 billion bid in December 2013 which CEA Evan Speigel declined. He did this because he knew the app would grow and if he could create captaincy of more users and snap he could eventually sell it for a lot more.

What motivates them and drives the business is to create a growing social media platform that creates a real life vibe to it as possible. What drives them is they can see how much more people are connected with each other creatively, personally and securely every day.

What did the company/ entrepreneur do that that could be described as innovative?

What they did that could be described as innovative is the skill in identifying the potential of ideas that could be game changers. The three entrepreneurs created this innovative idea of disappearing photo messages is the question you ask “How does Snapchat make money?”. The way they make money off the app is super unsuspected things like the user barely notices or doesn’t know they are engaging with. An example of this is geo filters they overlay your photo with a cool design, color, quote, time or location that is paying Snapchat huge amounts of money to advertise themselves. I believe this is also a key aspect in their business model when they were a start-up company thinking how they could increase revenue but still include the user experience because adds are such are such degrading aspect of any app in my opinion.

What social or economic value has the company generated? How does the business function?

Snapchat has a simple way and easy way of functioning and by doing this in their business model we see Snapchat using its key partners in Snap adds, Geo filters, Discover and stories. On Snapchat’s home screen you have an option to swipe up to a “stories” menu witch you can view a short video clip or a ten second photo of your friends, Celebrity’s, business, Athletes Snapchat which they pay for which drives huge revenue for Snapchat.

Once the user has taken a photo they have the option to swipe across giving them a large range of geo filters to overlay their photo. Snap Chat charges $5 for a coverage of 20,000 square feet. Geo filters can stay live from anywhere from one hour to a total of 30 days. Apart from big companies, individuals can also pay for temporary Geo filters on events such as birthdays and weddings. “Snapchat makes money from the users however the users can’t even tell or don’t even know they the app is making money. Snap chat uses a unique way “Create Capacity Allow and recognize serendipity Democratize innovation I am creative and self-standing individual Excited and always observant thinking with an eye to detail. I have a lot of experience with the design layout of case studies or and formal documents. My friendly approachable nature has always helped me work well in a team environment and a group assignment like this gives me more of an insight on how a design process would occur in the workplace (e.g. with employees or clients).

The reason I chose to do my case study on Snapchat was because personally myself I use Snapchat every day to communicate creatively and effectively with my friends and I wanted to see how an innovate idea I engage with and use daily along with millions of other users across the globe can change the way we live in a world of communication and social media. Using in depth research about how this company functions gives me a clear insight in innovation and entrepreneurs skill identifying throughout their business model the potential of ideas that could be game changers and how the execute it. Something That could be aspiration to start-up company’s snaps chats allowing and recognizing serendipity from finding what other platforms have and don’t have to branching itself out away from the norm platforms to become more unique.


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