ipl-logo

Whatsapp Case Study

1253 Words6 Pages

The rationale for acquisition
1. Shared Mission: Facebook’s acquisition of WhatsApp on 19th February is in line with its mission to make the world more connected; more open and give more power to people
2. Increasing smartphone penetration Figure 1: Increasing smarphone penetration
The PC market is saturating and the smartphone penetration is increasing at a rapid pace. More and more people are now accessing the Internet over their mobile phones. Smartphones play an important role in connecting people. People socialize through smart phones. As a result, many new applications have come up to take advantage of this trend. These include social networking apps, virtual calling, etc. Facebook’s acquisition of WhatsApp gives it the opportunity …show more content…

More than 500 million people use WhatsApp and more than 1 million people join WhatsApp everyday. It is growing in popularity and is on its way to have 1 billion users. WhatsApp is fast and reliable and integrates the exiting contacts in the smartphone.WhatsApp charges a modest price of $0.99 per year as the subscription fee. It does not show any advertisements. The user base has grown faster than any other company.
Another interesting fact is that WhatsApp has about an average of 72% active users every day. The industry average is between 10 and 20% and only a few companies have active users greater than 50%. WhatsApp has dominant position in many markets – India and in Europe. WhatsApp has more than 35 million active users in India.
WhatsApp is a lean organization. It has less than 50 employees, each supporting millions of users. They have successfully maintained a high uptime (of 99.9%) of a platform, which processes billions of messages everyday. (Goetz, 2014)
4. Gives access to China: Facebook is banned in China, primarily due to the concerns regarding sensitive content being shared on the social networking site. It has been trying to gain entry in the fast growing Chinese market. Unlike Facebook, WhatsApp faces less scrutiny and is used in China. However, WhatsApp lags another messaging application, WeChat. Given the popularity of Facebook, WhatsApp will gain more users in the competitive …show more content…

Different models are available to explain the Internet value chain. AT Kearny in one of their articles developed the following framework. (Page & Firth, 2010)
1. Content: The content can be provided either by some media companies or can be user generated. User generated content can be seen on social networking sites like Facebook. Itunes is an example of media companies owning the content rights
2. Online Services: Various services are available on the internet
a. Communications: Includes messaging, email and voice over Internet protocol. These services are usually free of charge and generate revenues through advertisements
b. Content portals: Includes news, politics, finance, etc. Some of these services carry a subscription fee
c. Entertainment: Includes music, video, gaming, etc. Here revenues come from the end users and through advertisement
d. Ecommerce: Includes websites like flipkart.com, amazon.com, irctc.co.in, makemytrip.com, etc. These websites generate revenue through transaction fees and advertising

Show More
Related

  • Nt1310 Unit 3 Research Paper

    512 Words  | 3 Pages

    Popularity of Phone is seeing a steep rise. It is a communication gadget which can be used for different purposes. One basic reason is that iPhone has a huge storage capacity which allows storage of audio, contacts, photos, videos, and all other important information. Further it can be connected to the internet too. With all these features iPhone has gained prominence globally as a hi-tech mobile phone.

    Read More

  • Eharmony Case Analysis

    1352 Words  | 6 Pages

    b. Technological Advancements Technological advancement has been key to growth of eHarmony. The expansion of its TV and radio offering enabled eHarmony hit 3 million registrations by early spring 2004. Social media acts as a medium that allows the company to reach more potential users through advertisements and awareness campaigns. This lowers eHarmony’s advertising costs due to the fact that placing adverts on the social media is cheap and expands coverage of the advertisements. Today, a large number of people have access to smartphones and tables which

    Read More

  • Nt1310 Unit 3

    1153 Words  | 5 Pages

    1. Network and trust are availed to everyone-There is the allowance to edit, share, reuse… of data. Content sourcing-Users are motivated and encouraged to update data; the better it gets. Trust-Workers and clients can gain access and use web tools on their own.

    Read More

  • Three Pillars Model Of Authoritarian Stability

    1609 Words  | 7 Pages

    Huge numbers of websites are blocked, more than 2701 to be precise in mainland China not including Macau and Hong Kong in

    Read More

  • Sainsbury's Social Media Case Study

    2692 Words  | 11 Pages

    Researches of the past years shows- In Europe and America over 80% of teens and young adults are using social media of different types. Soft drink giant Coca-Cola is already integrating Facebook as a part of their marketing plans with 20 million of Facebook fans. Those kinds of changes indicate to significance of social media marketing for present world.

    Read More

  • Facebook's Impact On Global Economy

    1064 Words  | 5 Pages

    Facebook was started by Mark Zuckerberg in February 2004. It is said that facebook connects more than 1.35 billion people around the world. Facebook created more than 4.5 million jobs and more than $227 billion of economic activity in the year 2014 (Anadolu Agency, 2015). Deloitte (2015) states that facebook's current target on improving the experience on promoting connectivity and mobile platform has helped the businesses grow in developing countries such as Brazil, India and Indonesia. Facebook's entry into new markets has unlock new chance to enable economic impact within and outside of its platform.

    Read More

  • Political Factors Affecting Microsoft

    1172 Words  | 5 Pages

    Management can be defined as getting the maximum efficiency and effectiveness out of a set of activities. A manager carries out this process. My chosen company for this project is Microsoft.

    Read More

  • Informative Speech Outline

    472 Words  | 2 Pages

    If social media companies were countries: Followed by China, Facebook would be the world’s most populous country with over 1.1 billion users. Google Plus (693 million active users) would be third and Twitter (554 million users) would be fourth. That’s ahead both India and the U.S. (Insane Social Media Facts) d.

    Read More

  • The Pros And Cons Of Facebook Privacy

    855 Words  | 4 Pages

    Facebook is a company and an online social networking service and it functions as a mobile application and website that allows people to connect, share, discover, and communicate with each other on mobile devices and personal computers all around the world. Its services also contain Instagram, a mobile application that permits people to take pictures or videos, modify them with filter effects, and distribute them with friends and followers in a photo feed or even directly send them to friends; Messenger, which is a messaging application for mobile and also Web on numerous stages and devices, which permits people to attain others promptly, as well as allow businesses to involve with customers; and WhatsApp Messenger, a mobile messaging application.

    Read More

  • Facebook Big Brother Likes Us Case Analysis

    1150 Words  | 5 Pages

    Being publicly traded company leads earning much more money than other social media network, worth a lot with fewer employees, a stronger management team and a clear target market in display advertising. However, by time Facebook will be challenging to maintain engaging users and not alienate them as Facebook users will face significant pressure to grow quarter over quarter that may degrade the user experience if the way to achieve that is to blast more useless ads to. So, it’s important for Facebook to maintain the alignment between the needs of their shareholders and their customers (Users) because of the accountability earned, making big mistakes will not be affordable in future. 3. It appears that FB operates with an "oops, I did it again" philosophy.

    Read More

  • Informative Speech On Social Media

    1948 Words  | 8 Pages

    INFORMATION Social media has to be one of the greatest developments of human history. It has connected humanity like never before. It has changed the way that people do business, with companies providing their own social media accounts to interact in real time with customers. We can quickly see what’s going on in our communities and around the world.

    Read More

  • Critical Analysis Of Facebook: The Rise Of Social Media

    1712 Words  | 7 Pages

    The rise of social networking has been a hallmark of the early 21st century. In the past decade, sites such as Facebook and Twitter grew to become not only a tool for building personal connections, but also a powerful platform for spreading ideas and broadcasting expressions. Coinciding with this explosion of online social activities, meanwhile, is the public’s growing detachment from traditional corporate media. In a 2017 study, Pew Research Center found that two-thirds of Americans now access news from social media, a significant increase from just one year ago (Shearer). Given the key role Facebook plays in delivering information and shaping the perspective of its users, it is important for the company to develop a cohesive framework that

    Read More

  • Mcdonald's Social Media Analysis

    1208 Words  | 5 Pages

    They prefer using Facebook it is more convenient as a social media website it overall has all the requirements any company would need. There are about 1.11 billion people using Facebook every day and everyone of them gets informed about the new products they launched, the services seen on the sites and can solve their doubts about the product by posting it on their walls. Social media like Facebook not only helps the company to reach its target but also uses social media as a marketing tool it is a cheaper way and also has many more advantages. Social media is tool in future to expand and target more consumers. McDonalds is well recognized by all the social media networks but mainly prefers Facebook and shows that how social media has helped them reach to their goal and made them one of the top 10 global fast food chain industry and 1st on the social media

    Read More

  • Persuasive Essay On Social Media

    1142 Words  | 5 Pages

    Facebook’s entire business model revolves around them being able to share your information (Anderson 1). Typically, if companies were caught doing this there would be an outrage. However, everybody seems perfectly fine with it. A few years ago, Facebook introduced the Open Graph Protocol. The Open Graphs Protocol allows Facebook

    Read More

  • Essay On Instagram

    1137 Words  | 5 Pages

    People love to be in the virtual world of internet. Because they can do whatever they want in the virtual world and the fun part is that the real world never changes by the actions of the virtual world. Today, there are over 150 million people online every minute and over 3 billion people are online every day. So it is very easy to say that so many people uses internet. Social media are the door to open up the virtual world.

    Read More

More about Whatsapp Case Study

Open Document