Snapchat is a popular messaging app that is used by individuals to exchange videos and pictures called ‘snaps’ which disappear once they are viewed. It is one of the most used social media platforms for instant messaging and sharing of multimedia. By August 2021, Snapchat had 293 million users and increasingly getting more popular among users.
SWOT analysis is a strategic analytical tool that businesses use to conduct a situational analysis for the business. With SWOT analysis, companies are able to know the position of the brand in the market place; both the ins and outs of the brands. With such pertinent insights, the company is able to identify areas of improvement particularly with regards to the company’s weaknesses, and in its exploring of opportunities present in the marketplace and as well the threats therein that face the company. This article takes a look at SnapChat’s SWOT analysis.
- 1 Snapchat – At a Glance
- 2 Strengths of Snapchat
- 3 Weaknesses of Snapchat
- 4 Opportunities of Snapchat
- 5 Threats of Snapchat
- 6 Conclusion
Snapchat – At a Glance
|Founders||Evan Spiegel, Bobby Murphy, and Reggie Brown|
|Chief Executive Officer (C.E.O.)||Evan Spiegel|
|Headquarters||Santa Monica, California, U.S.|
|Year Founded||September 2011|
|Revenues (FY 2020)||$2.507 Billion|
|Key Products/Services||Photo sharing; Instant messaging; Video chat Multimedia|
|Key Competitors||Meetup Pro. Pinterest. Facebook. reddit.Twitter. Instagram. Tumblr. LinkedIn Premium.|
Strengths of Snapchat
SnapChat is a strong innovation; the idea was out of the box and catchy. SnapChat’s features and functionalities have helped differentiate the product from competitors’ products in the market. It is these functionalities that have made SnapChat more appealing to customers. SnapChat appeals to the young teen generation that has photos as a part of their socialization. This innovation therefore blended well with this generation.
A strong user base
As of August 2021, SnapChat had more than 293 million users globally. Given the brand targets the millennial generation and teens that are the largest demographic when compared to the elderly and children, this user base is likely to grow. Additionally, given Snapchat is a social media platform, the brand is likely to reap heavily from the network effects that will increase the brand’s value and as well increase more members using the platform. This is a sure strength that will increase the brand’s share in the market.
Among technological companies, SnapChat has positioned itself as a formidable force to reckon with in the industry. As a strong social media platform, the company has earned itself a strong name in the industry that ensures more brand familiarity and awareness in the market: people buy brands and not necessarily a product. With a strong brand image, the brand does not need to necessarily spend on promotional activities.
A good user-interface
SnapChat’s user interface is simple and easy to use. This enables users with very basic skills in technology to enjoy using the platform. This easy-to-use functionality, designs, and features differentiate the brand from other competitor platforms in the market. The brand is therefore perceived as minimalistic and fashion-friendly which seriously appeals to the young generation.
Employees of SnapChat are tech enthusiasts, highly skilled, and highly trained. They are tested every step of the way before being admitted to the team. It is this team that enables the brand to offer superior innovation and customer experience on the platform. With such great potential, the brand is able to realize its dream.
Weaknesses of Snapchat
Weaknesses consist of areas that diminish a brand’s ability to effectively compete in the market place. They are internal factors that weaken the brand’s cutting edge and therefore a brand needs to identify them so that they focus on them to sharpen a competitive edge in the market.
Not good reputation
The brand enables for sharing of photos, videos, and other multimedia content. There have been criticisms leveled at the brand for facilitating sharing of vulgar content, enhancing cyberbullying, and harassment on the social media platforms. SnapChat should increase the platform’s sensitivity to such content and be able to flag it down immediately it is posted to avoid any such uncouth behavior on the platform.
Lack of diversification
The world today has undergone a paradigm shift with regards to socialization and in working spaces. There is therefore a call for technologies that enable and enhance this paradigm shift that was strengthened more by the advent of COVID 19. SnapChat lacks features like video conferencing among others that are critical for a virtual workspace and even for meetings. The brand would do well to enhance its features in line with the market needs for virtual workspaces.
Opportunities of Snapchat
Technological advances are the reason for the existence of SnapChat among other tech companies. There are numerous and inexhaustible opportunities in this regard. Technology has enhanced the effectiveness and efficiencies of brands in the market place thus giving them more competitive power in the marketplace. The brand needs to heavily invest in strategic technology to ensure more innovation, efficiency, and effectiveness for growth.
Growth in demography and users
While it is true that the young demographic/population is growing at a significant rate, more and more people are accepting the use of SnapChat among other social media platforms for social interactions. This will ensure more growth opportunities for SnapChat.
Threats of Snapchat
SnapChat offers instant messaging, photo and video sharing among other multimedia services. Unfortunately, in this digital edge, numerous other companies are offering similar products with others giving much more than SnapChat is offering. With globalization, every consumer can easily evaluate the best platform that will best serve the consumer’s needs. This exposes SnapChat to competition. There is every need for SnapChat to up its game in technology and innovation so as to differentiate itself more from the competition and offer superior services to its customers.
Customer dissatisfaction and concerns
There is a negative perception of the brand particularly from parents who think the platform has a negative influence on young minds. For some parents, it could mean prohibiting their children from accessing Snapchat. If such a trend would grow some more, it could threaten the brand’s market share and diminish its growth. The brand needs to rebrand itself as a safe haven for the youth so that parents are comfortable with its usage.
Different countries are enacting laws to govern the social media space. There are even countries that have prohibited access to SnapChat in their countries. Laws that would restrict usage of SnapChat are a potential threat that could see the brand out of the market.
SnapChat has grown so fast to be a strong brand in the market with a strong customer base and great innovations. The brand however needs to continuously innovate to beat the competition and provide superior customer service to its users and to all its stakeholders.