Business Model of Snap Chat

Running head: BUSINESS MODEL OF SNAP CHAT
Business Model of Snap Chat
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Running head: BUSINESS MODEL OF SNAP CHAT
Executive Summary
This report throws light on the description of business of Snap Chat and the services that are
provided by Snap Chat. It also elaborates on the business model of Snap Chat by making use of
the nine building blocks. It explains the relationships that exists between these and the success
factors that can help the company in attaining competitive advantage. It also expounds on the
factors that can contribute to its downside risk and the changes that can be made to the business
model so that it can succeed in the long run.

Running head: BUSINESS MODEL OF SNAP CHAT
Table of Contents
Description of the business and the service offered........................................................................4
Business Model Canvas of Snap Chat.............................................................................................4
Key Relationships between the Building Blocks.............................................................................6
Critical Success Factors that can help in its competitive advantage...............................................6
Factors contributing to downside Risk............................................................................................7
Recommendations for the business model of Snap Chat.................................................................8
References:......................................................................................................................................9

Running head: BUSINESS MODEL OF SNAP CHAT
Description of the business and the service offered
Snap Chat refers to a multimedia messaging app which is popular in the regions of North
America along with that of Europe. Evan Spiegel, Reggie Brown and Bobby Murphy were
responsible for creating this popular app. Principle feature pertaining to Snap Chat is that the
pictures along with messages can be visible only for a short amount of time and then they
become inaccessible. The app has undergone evolution from that of person-to-person photo
sharing to that of featuring stories based on 24 hour chronological content. Snap Chat has
become popular because it represents an innovative mobile-first direct ion pertaining to social
media (Piwek & Joinson, 2016). It lays stress on the aspect of the users interacting by taking
recourse to virtual stickers. The users can interact by the help of augmented reality object. Snap
Chat is renowned for having 187 million users who use it on every day basis. In the month of
September of the year 2016, it was renamed as that of Snap Inc. The first hardware gadget by the
name of Spectacles which was a sunglass having an in-built camera was launched in the year
2016 (Vugec, Spremić & Bach, 2018). Snap Chat is mainly used for the creation of multimedia
message and it consists of a photo or that of a short video. The snaps can be modified by
including different kinds of filters, text captions along with that of drawings. This report focuses
on the business model by making use of the nine building blocks. It also discusses about the
relationships between the building blocks and discusses the factors that will help the business in
attaining competitive advantage. It also expounds on the factors that can lead to the downside
risk of the company.
Business Model Canvas of Snap Chat
The nine building blocks of pertaining to the business model of Snap Chat are that of
customer segments, value propositions, channels, customer relationships, revenue streams, key