The lost tech…
Most of the people on my circle love using Snapchat and they’ve been doing this for years. At the prime of this app it looked very promising to the users as it was completely different from Facebook, Twitter, and so on.
Communicating via photos and short clips was creating the waves that could openly challenge the lone ruler- Facebook. One of my friend gave me a brief introduction of Snapchat where i managed to grasp the effectiveness of this app. It looked good and very effective.
Soon after the Snapchat went public (SNAP) there came the problem with the company not being effective enough to generate the money from what it has been since its inception. Instagram, with around 700 million monthly active users continues to clearly challenge Snapchat with every similar function it has in its system so far.
Facebook, with cash around $9 billion in its pocket being able to compete for a long period is the key leverage.
I am not saying Snapchat is out of the options to rise and shine. There’s many effective ways to make it good. It has to avoid a direct confrontation with the rich giants and has to be careful what it has to introduce. For sure, Management effectiveness is another issue for not being able to capture healthy long term investments. Transformation is another path which this company has to think about. Expanding the products by partnering with other players as a long term player.
I’d seen the twitter getting into the situation of lost tech. Snapchat can avoid it. :-)