Stakeholder Analysis of Snap Inc. and Strategic Program

This report provides a stakeholder analysis of Snap Inc. and their strategic program. It includes recommendations for each stakeholder group and an understanding of the Porter's generic model. The report also discusses the importance of customers, investors, suppliers, and government as the four pillars of Snap Inc. Find subject study material, solved assignments, essays, and dissertations on Desklib.

Running head: DYNAMIC STRATEGY AND DISRUPTIVE INNOVATION 0
DYNAMIC STRATEGY AND DISRUPTIVE INNOVATION

DYNAMIC STRATEGY AND DISRUPTIVE INNOVATION 1
Executive summary
Stakeholder analysis is the process in which probable changes are seen that are related to the
interested parties such as customers, government, investors and suppliers. This analysis is
used while making the plan of the company. In order to maintain the stakeholders delighted,
company need to make changes according to the needs of the customers as well as
government. In this report, stakeholder analysis of Snap Inc. and their strategic programme is
explained. Additionally, recommendations are provided for the strategic program for each
stakeholder.

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Contents
Executive summary...............................................................................................................................3
Introduction of the Company................................................................................................................5
Organizational Model............................................................................................................................5
Customers.........................................................................................................................................6
Investors............................................................................................................................................6
Suppliers............................................................................................................................................6
Government......................................................................................................................................6
Differentiation of Stakeholders.............................................................................................................7
Identification of stakeholder’s categories.............................................................................................8
Primary..............................................................................................................................................8
Tertiary..............................................................................................................................................8
Key stakeholders...............................................................................................................................8
Porter’s generic model..........................................................................................................................9
Recommendations for each of the stakeholders group.......................................................................10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12

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Introduction of the Company
Snap Inc. is a camera company based on American technology, which offers one of the most
popular application used as a social media to connect with each other in an attractive manner.
It allows the users to communicate through videos and pictures. It is also engaged in
providing spectacles in form of sunglasses that helps the customers in capturing the video
from human perspective. The images and snaps shared through on the application disappears
after sometime to maintain the level of user’s privacy (Missonier and Loufrani-Fedida, 2014).
Snap Inc. was founded by Evan Spiegel and Bobby Murphy in 2011 with the name of
Snapchat but was rebranded as snap Inc. in 2016 (Linked In, 2018). The report describes the
analysis of the main stakeholder’s of the organization in a precise manner. The analysis
includes defining the organizational model from the stakeholders view, selection of four main
stakeholder’s, identification of the category of each of the stakeholder and then provide
recommendations on the basis of the Porter’s generic strategies. At the end of the report, a
conclusion has been drawn to provide an overview to the report which can help the reader to
understand the concept in an effective manner.
Organizational Model
Snap Inc.
Customers
Suppliers Government
Investors

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Customers
 The Snapchat application provided by the company is one of the most popular way to
interact with the each other. The application consists a lot of features and filters which
makes the snaps more attractive and easy to share with the friends and the other users
of the application.
 The feature of sharing the live location is very useful by the individuals which makes
the application more popular at the social level.
Investors
 The main investors are the shareholders of the company along with the employees
who invest their efforts and talent for the growth and profitability of the business
organization as a whole.
 Advertisers are also major investors of Snap Inc. who advertise about their products
and services at the main page of the application. These advertisers pay to the
organization with having the interest of getting popularity to their products
(Mukhopadhyay and Ye, 2016).
Suppliers
 The companies providing artificial intelligence services to the Snap Inc. are
considered as the major suppliers of the company. Their availability at all-time
provide immediate satisfaction to the customers in from of resolving their queries
immediately (Hernández-Perlines, Moreno-García and Yañez-Araque, 2016).

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Government
 The government is the most important stakeholders of the company as it provides the
feasibility to the organization to launch its products and updates in the existing
products.
 The earnings of the company directly impact the tax recovery by the government, thus
government works as an active stakeholders.
 The company is performs technology based operations which improves the
technological environment of the economy and also helps the government to improve
the GDP of the country.
Task 2
Differentiation of Stakeholders
Keep Satisfied
Investors
Manage Closely
Customers/users
Monitor
Suppliers
Keep Informed
Government
Keep satisfied
These are the people who are required to get informed adequately at the right time at the time
of arising even a small issue so that the corrective steps can be taken at the right time. The
investors in case of Snap Inc. fill this category because investors are required to get informed
about the market shares of the company, current position, revenue, threats and opportunities
existed in the internal and external environment to avoid any type of financial or positional
loss to the company. The stakeholders who are helpful in nature are placed in this category
and this the investors are placed because at the time of any type of financial and strategic
crises, the investors tend to be very helpful (Grant, 2016).
Manage Closely

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An organization must make great efforts to satisfy the stakeholders existing in this category.
These factors are the one, who provides maximum revenue to the business and thus,
customers of the company are placed in this category. Individuals are main and only users of
the products provided by the company and thus is it necessary to kepp them satisfied by
providing regular innovation in the products and services. Along with this, it is also important
to solve the problems and queries of the customers in a quick manner.
In case of customer’s privacy of data shared by individuals is a major concern in case of
social media. Thus, the organization needs to take proactive measures to secure the private
data of the users to keep them satisfy.
Monitor
The stakeholders falling in this category needs to be monitored up to an extent. This means
the organization needs to monitor the stakeholders but should maintain limited
communication to avoid any mind of misunderstanding. In case of Snap Inc., suppliers are
placed in this category as suppliers are the one who bears the main responsibility for the
accuracy of the products and services provided to the organization. Thus, it is necessary to
monitor the activities of the suppliers in from of the technology provided to the company.
The organizations should monitor that either the suppliers are supplying same technology and
ideas to the other competitors operating in the market.
As suppliers are the persons who remains well aware about the bugs and the loopholes in case
of information technology industry. Thus, the organization should also take care that the IT
personnel providing professional services to the company cannot do any misuse of the data
(Cuppen, 2016).
Keep Informed
These people are required to be keep informed about all the ethical, financial and social
working about the organization. The Government, who is one of the major external
stakeholders, has filled this category as the decision of the government can have major and
direct impact on the organizational performance and revenue (Hoberg and Phillips, 2016).
Thus, it is required to publish all the financial statements at the end of the year to provide
report about the financial sustainability of the organization.

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Along with this, the organization is also required to follow the laws related to professional
informational technology ethics and cyber laws formulated by the government of the
countries in which it is providing the services.
Identification of stakeholder’s categories
Primary – investors are the primary stakeholder in Snapchat Inc. as these have direct
relation with the organization. Investors are the major stakeholders as company depends on
them for its survival. Investors are the persons who directly affected by the profit or loss of
company. Advertisers the crucial component in the company as it directly influence the
financial status of the company. These investors pay to the organization in order to get the
popularity of their products (Yang, 2014).
Secondary- These are the person who indirectly affected by the decision of the company. In
Snapchat Inc., customers are the secondary stakeholders because these indirectly affected
whenever company make any decision (Andriof, 2017). For example- if a company is taking
decision for charging some amount in order to use any feature of the app, In this case
customers suffers. Same if company is adding something extra in this app without any cost
then also customers get affected in positive way. Customers are the main stakeholder as the
reputation of the company depends on the user of the application (Salavou, 2015).
Tertiary- Government is the tertiary stakeholders in the company as it influences the
policies of the company. Snapchat Inc is required to abide the rules of every country’s
government where it is proving its services (Schutzer, 2015). Besides this, the government
handles all the cybercrime of the company. There are specific social media requirements that
are impose by the government which need to take in consideration by the company.
Key stakeholders- suppliers are the important stakeholder in the Snapchat Inc. these
provides the artificial intelligence services to the company. Suppliers are required to make
changes in application whenever any new application occurs in the outside environment.
These are responsible for the changing demand of the customers by solving the queries of
these (Tansey, Spillane and Meng, 2014).

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Porter’s generic model
 Cost leadership strategy- In this strategy, a firm seeks to become the low cost
producer in the industry. In order to become the cost effective in the industry,
company can acquire all the services from the one service provider. Company can
become the cost effective by making use of technology in an effective way. The
company is required to maintain the apps time to time as well work according to the
changes occurring in the form of changing demands of customers. If all the
responsibility will be given to one supplier, then it will reduce the cost of the
company (Poltash, 2012).
 Differentiation strategy- in the differentiation strategy, company tries to differentiate
the services of its application form other service providers. In this, users and
customers play the major role. In order to differentiate its services, company can add
some special and unique features so that the users can perceive the application
important and different from others.
 Cost focus- In these strategy companies’ charges low prices for the product. Snapchat
Inc. can charge low prices from its advertisers so that the higher brands also make
advertisement on the Snapchat Inc. application. It can adopt such strategy that will
take the lowest prices form its investors and make them affordable return in order to
keep its investors delighted,
 Differentiation focus- in this strategy, Snapchat Inc. can target the middle age
person’s person along with the youth. It is seen that it has targeted mostly the youth
for its application. The users can extend if it increases its special features and unique

DYNAMIC STRATEGY AND DISRUPTIVE INNOVATION 9
services in the application. The suppliers by offering the innovative services to the
Snapchat Inc. can differentiate it from other applications.
Recommendations for each of the stakeholders group
It is recommendation that Snapchat Inc. can add the unique features like customer feedback
feature so that it can make changes according to the demand of customers. As customers are
the major stakeholders, on which its reputation depends. In the customer feedback program,
it can take the help by asking frequent questions from the customers so that it can get the
reviews. Investors are the stakeholders who hope for the timely payment and use of its money
in its best possible manner. In order to ensure the investors regarding the safeguarding of
their money, it can show the growth blueprint so that it will keep the investors delighted.
Suppliers are responsible for delivering the best services to the company, so Snapchat Inc.
can provide the extra bonus to them in delivering the fast service in case changes occur.
Government are the major stakeholder with whom any company is required to make the
positive relation. It can fulfil all the social media rules by showing its database to the
government. The fulfilment of Corporate social responsibility helps the company to maintain
the positive relation with the government as well as customers.

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Conclusion
On the basis of above discussion it can be concluded that Snap Inc. have a number of internal
and external stakeholders out of which, the four are the most important discussed in this
report. Each stakeholders has its own importance, advantage and limitation in context to the
products and services provided by the organization. The same are shown with the help of
differentiation and categorization methods and the use of diagrams. It can also be concluded
the without emphasizing any one out of the four, the company cannot operate and even
cannot get success in long run. Further, the report analysis the best available strategies on the
basis of Porter’s generic strategies to find out the most appropriate to manage all the
stakeholders’ in an innovative way to increase the profitability of the business as well as to
take the competitive advantages and opportunities emerging in the business environment.
Customers/users, government, suppliers and investors works as the four pillars in case of
Snap Inc. The report describes the reason behind the importance of the four as well as the
recommendations to keep them well managed in effective in firm’s interest.

DYNAMIC STRATEGY AND DISRUPTIVE INNOVATION 11
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