Entrepreneurial Venture: A Case Study of Snapchat's Success

This case study examines the entrepreneurial journey of Snapchat, founded by Evan Spiegel, Reggie Brown, and Bobby Murphy. It highlights the company's background, its position in the social networking market, and the development of its value proposition, which focuses on fleeting, optical messaging. The study details Snapchat's market strategies, including product, place, price, and promotion, as well as its financial strategies for managing resources. It emphasizes the importance of the entrepreneurial team in the company's growth and success, noting Spiegel's focus on quality and innovation. The analysis reveals how Snapchat differentiated itself through unique features and effective marketing, ultimately becoming a leading social media platform with a significant market share and global presence. Desklib provides a platform to access more case studies and assignments for students.

Running Head: Process by which an Entrepreneur builds Venture 0
snapchat
Process by which an Entrepreneur builds Venture
(Student Name)
2/11/2019

Process by which an Entrepreneur builds Venture 1
Table of Contents
Introduction................................................................................................................................2
Background of the company......................................................................................................2
Position of the company.............................................................................................................3
Development of the Value proposition......................................................................................5
Market Strategies.......................................................................................................................6
Finance strategies.......................................................................................................................8
Operational Work.......................................................................................................................9
Importance of Entrepreneurial team.........................................................................................10
Conclusion................................................................................................................................12
References................................................................................................................................13

Process by which an Entrepreneur builds Venture 2
Introduction
The victorious tycoon does not occur by the misfortune or by the change. It is the extended
procedure which includes a variety of strategies, characteristics, as well as the quality of the
person who wanted to become a successful entrepreneur (Drucker 2014). An entrepreneur is
an individual who undertakes as well as operated a new enterprise or venture and assumes
some accountability for the inherent risks (Burns 2017). The entrepreneur is one of the
individuals who creates as well as manage the changes by the reorganization of the
opportunities that help in creating the venture in the market. Successful entrepreneurs can be
founded all over the world (Kuratko 2016). They create a new venture, innovative products,
make changes everywhere, and initiate the opportunities of a job for others (Storey 2016).
One of the recent examples of a successful entrepreneur is Evan Spiegel; he is one the
successful entrepreneur which is not an easy task in such a competitive market. There are
certain qualities as well as strategies which are required if anyone is required to become
successful in the business venture (Dutot and Castellano 2017). The example of Evan Spiegel
represents that how some characteristics, strategies, as well as qualities, assist to become a
successful entrepreneur. He strongly believes in quality rather than on quantity (Sussan and
Zoltan 2017).
In the following part, there will be a detailed discussion on the process through which the
company has developed the value proportion in the business and the strategies adopted by the
company that makes them successful in such competitive market and the importance of the
team in the growth and success of the business.

Process by which an Entrepreneur builds Venture 3
Background of the company
Snapchat Inc is founded by Evan Spiegel, Reggie Brown as well as Bobby Murphy in the
year 2011. They are the students at Stanford University. The Snapchat is a videotape
messaging function that allows the users to click the pictures, documentation video, add
messages as well as drawing and can send them to the selected list of recipients. After a
limited period of time, these pictures, videos, drawing, and text are deleted from the service
of the company. The company is initially focused on the private, person to person sharing
that made the company more successful. It is one of the most popular social media platforms
at the global level (Piwek and Joinson 2016). It was initially launched as an app with the
name of Picaboo in July 2011, but after few months it was rebranded as Snapchat, due to the
reason, Spiegel and Murphy determined to take away Brown as of the partnership among
them that led to a court case and succeeding $150 million conclusion. The Snapchat become
extremely admired with the kinds and increased 100,000 users by April 2012 mostly from
side to side the publicity of word-to-mouth. The company has expanded its existence at a
global level. The thought of films not permanent eternally was a idea individuals were
actually not recognizable with and once everybody unspoken the idea, it became an
immediate accomplishment. Yet following facing challenges of failure and mishap, the
company came to turn out to be one of the for the most part victorious businesses in the
humankind of start-up (Perkovic, Lane and Miller 2018).
Position of the company
The company is considered as one of the most leading company in the social networking site.
In recent, around 200 million users are available on Snapchat among which most of the
population are from the United States (Bayer, Elison and Schoenebeck 2016). Using the

Process by which an Entrepreneur builds Venture 4
rough idea, this amounts to a 23% market share among the chat apps listed in the below
diagram:
Source: (Statista 2018)
It is one of the most unique apps for sharing of the photo, and it is currently prized at a
astounding $ 24 billion. In the year 2015, Snapchat raised $ 538 million in financial support
rounds and it is supposed to contain mutual additional than 15 billion descriptions during the
period of the previous three years (Verstraete 2016)). By means of such rapid success and
growth, the company stands at organism the third largely appreciated start-up at the global
level. Snapchat has more users as a comparison to Twitter and grew in the market as much in
one year as Twitter did in four years in total. 76 percent of the users in Snapchat is also online
shoppers that provided an opportunity for the company to target them in a more effective

Process by which an Entrepreneur builds Venture 5
manner. The company has reaches 11 percent of the entire digital population of the United
States and come among the top 13 apps downloaded throughout the full year of 2015 (Patel,
Bewley and Hodson 2016).
Development of the Value proposition
Value Proposition is the first phase of effective market opportunities assessment. It is one
essential part of the process. In justice to Snapchat, it did not obtain extended for the observer
to appreciate the possible of fleeting, optical messaging to unsettled the hyper-curated and
bellicose globe of the societal media along with the insecure and tedious practice provided by
SMS as well as vanilla messaging apps (Van Le and Suh 2018). Snapchat offers three main
compensation over competing for the medium for digital communication:
 They have managed the uppermost bandwidth channels that are obtainable for
appealing with the humankind external their heads. Evan has used their skills and
provides a variety of features to their consumers that made them unique in the market.
From sketch equipment to AR lenses, Snapchat offers consumers an additional multi-
dimensional knowledge than rival mode of announcement.
 Evan Spiegel had the dream as well as the aptitude to draw and keep the correct
persons as well as grown the right partnership for the Snapchat. Spiegel used the
power of simplicity that exactly consumers wanted. He reminds the true principles
through which they have started their corporation. He did not himself let to be lured
and there losing intelligence of his ground-breaking main beliefs (Veszelszki 2018).
 Evan has a concept in the Snapchat to allow the people to easily communicate with
each other that made them more successful. They provide a platform for the
communication with a variety of features according to the comfort of users that help
them in developing the value proportion for their business.

Process by which an Entrepreneur builds Venture 6
 The value proportion of the Snapchat center for innovation. They differentiate their
app from others by adding new features in the app that gives more attraction value to
the consumers. It makes them unique from the market and makes them more attractive
to the consumers (Chiaroni, et al. 2016).
Market Strategies
Market strategies involve:
 The relationship of the company with their existing as well as potential consumers,
 Their knowledge of changing their requirements as well as opportunity in the
marketplace
 The technique of identifying and getting its consumers.
Therefore, Evan Spiegel has introduced various strategies in their products, price, and
promotion to target their consumers in an effective manner. According to the Spiegel, the
main strategies that are required for achieving success and growth in the market is “attract the
market towards us.” Examine the perception, predispositions, as well as assumption of
management about the market as well as determine to what extent they are valid (Vugec,
Spremic and Pejic Bach 2018). The strategies adopted by Spiegel are explained in the below
points as they are:
Product Strategies
Spiegel has launched multimedia as well as picture messaging function which makes a
influential force on the supporters. It also helps in strengthening the position of its users in an
effective manner. They allow the advertisers and media companies to create the stories of the

Process by which an Entrepreneur builds Venture 7
individual through their feature of titled Discover. It is incessantly developing to the most
excellent likely grades. Evan Spiegel has also added new features that include the video as
well as auditory messaging, GIFs, sticker, and video recorder. The feature is merged in such a
way through which the consumer can with no trouble able to control stuck between the video
and audio, and can able to sketch on mutual photos and post little comments (Kuchinke and
Miguel 2016).
Place Strategies
Evan Spiegel has provided an authentic platform that can be used in the laptops, mobile as
well as on PCs. It is available in 20 international languages as well as their operating system
includes IOS and Android. Evan Spiegel has gained their reorganization worldwide. They
have covered their business at a global level that made them more successful in the market.
At the end of the year 2016, approximately 10 million consumers are inactive form in the
United Kingdom. It is the strategy of Evan Spiegel to reach out to maximum consumers at a
global level that make a great contribution to the growth and success of the business (Jung, et
al. 2016).
Price
Evan Spiegel has introduced one of the popular as well as the fastest growing apps at the
global level. Evan Spiegel target majorly era cluster of 18-34, although they have gained
sluggish as well as stable receipt in the middle of former sections of the civilization. Evan
Spiegel majorly adopted a Freemium pricing strategy as well as hence they able to uphold a
influential grasp in such manufacturing. Evan Spiegel has offer variety of discounts as well as
preview code to their consumers who vision the whole Snapchat narrative. For the
monetization, they have also additional particular description and launched the waged

Process by which an Entrepreneur builds Venture 8
announcement for the primary occasion as a movie trailer of twenty seconds. It is one the
major source form them through which they have earned a huge amount form the market.
Promotion
In targeting the consumers, Evan Spiegel has launched ideal communal –media advertising
tool as they offer spectators straight admission to live proceedings. It is also used for the deal
show manufactured goods launches as well as particular proceedings as they offer a genuine
as well as thrilling standpoint. Most of the companies use their platform to reach out to
maximum consumers that made the app more popular among the users or consumers that
increase the existence of consumers (Gomez, et al. 2017).
Therefore, through such manner, the entrepreneur Evan Spiegel has used their skills to target
their consumers in a more effective and efficient manner that made the company successful in
the competitive market.
Finance strategies
The financial strategies are the component that defines the manner in which the organization
manages, monitors as well as utilize the resources for the growth of their business. it includes
the system quality as well as skills for accounting, control over purchasing and inventory,
financial and budgeting administration, hard cash and credit administration as well as access
to capital in an effective and efficient manner. Evan Spiegel has started their business with a
small amount of capital. They have followed certain financial strategies to manage the
financial activities as they are explained in below points:
Cost strategy

Process by which an Entrepreneur builds Venture 9
 Determining, the steps can be taken by them in enhancing the accuracy and timeliness
of accounting that would help them to provide the information on their performance is
available.
 Determining that their company is exploring as well as taking advantage of every
conceivable source of finance to make their business grow in the market.
 Determining the key areas in which they can put aside the currency by enhancing their
presentation in a more effective manner.
 Determining how their company can utilize the information related to finance as a
optimistic gadget for tracing as well as monitoring the presentation on the key
performance.
Pricing strategy
In the recent, Evan Spiegel has the least price of their peer’s according to the 4C, a
advertising expertise company that is one of the main source of demands for advertisements
for Snapchat. In the primary quarter of the year, it price tag an typical of $2.95 per thousand
imitation compare with $4.20 at Instagram as well as $5.12 on the app of Facebook. It
represents that Evan Spiegel adopted a minimum pricing method to attract maximum
consumers towards them in a more effective manner to compete in the competitive market
While using such strategies, Evan Spiegel would able to use their sources in a more effective
manner that lead to control over their cost as well as make the prices low to the companies in
an effective manner (Mahfouz, et al. 2017).
Operational Work
The organization consist of the structure, policies, system, procedures as well as the activities
of the business, the manner in which the company operated by the author, taking a decision,

Process by which an Entrepreneur builds Venture 10
coordinates, integrates their activities and communicate. Evan Spiegel is one of the ultimate
decision-makers at Snap; he can’t pull all the cords by himself. Since he has started the
Snapchat with co-founder Bobby Murphy in the year 2011, Evan Spiegel has surrounded
himself with the team of seasoned deputies who handle and manage everything forms the
fledgling ad business of the company to swelling the engineering ranks. Evan Spiegel majorly
focuses in the innovation of products, key hires as well as acquisitions, his top lieutenants are
tasked with making the sure the newly0public entity which is Snap Inc outlives competitors
as well as meets the expectation of investors.
Evan Spiegel is credited with implementing the apps most revolutionary ideas like dispersing
messages as well as stories. He is one the effective organizer and manages the company in an
effective manner. They analyze the job of managers, executives, as well as supervisor to
recognize the task that can be delegate to the subordinate level of people. It helps them to
delegate the work according to the skills that made their business more successful (Mazzei,
Flynn and Haynie 2016).
Importance of Entrepreneurial team
the team plays a vital role in the growth and success of the business, if they perform well,
then the company will grow in the market, in the contrasts if they do not perform well that
affected the overall performance of the company at a greater level. The growth and success of
Snapchat majorly depend on the effective entrepreneurial team. Their importance is explained
in the below points as they are:
 Identify and pioneer a highly desirable feature
With the help of the entrepreneurial team, the company would able to identify an desirable
feature due to the reason they encourage spontaneity as well as reassure social network users

Process by which an Entrepreneur builds Venture 11
that are not sacrificing the long-term privacy, disappearing messaging has also been popping
up everywhere over the last couple of years but with the help of the team, the company was
recognized as one of the first social media companies to recognize the appeal of their
ephemeral posts.
 Identify the evangelists
There are many people in Snapchat who love their work. They are enthusiastic as well as
passionate for their work. They involved in their profile very deeply and wholly engaged with
their work. It helps the company to come in the market with some innovative ideas due to the
motivated employees that made them more successful in the market in a more effective and
efficient manner.
 Give brands a unique as well as an attractive manner to advertise
The Snapchat is the well-known app in social media. The team of the company helps their
clients to give the unique pattern of their brands in an advertisement that attracts maximum
clients towards such an app. It is one of the effective tools through which the company has
achieved great success and growth in the market in a more effective and efficient manner.
 Effective decision making
It is the process in which most of the companies give chance to make participation in their
decision making that helps the company to gain new ideas from them. Therefore, Snapchat is
also one of the leading companies in the global market, the team member of the company
make participation in the decision making that made the company more successful in the
competitive market.
 Assist in managing the business