Unlike its competitors such as Facebook or Twitter, Snapchat is not going for worldwide coverage. They believe a focus on high tech countries and fast internet will result in growth. Snapchat already lost around 2.2 billion on its 142 million revenue from costs.
Facebook and Twitter both have ambitions to be out in their world and be the app that everyone uses. One reason behind Snapchat's choice of a focus on first worlds countries rather than a broader worldwide usage is because with the introduction of advance additions like augmented reality, simpler and less sophisticated phones will not be able to work properly. Eventually Snapchat must cave in to the pressure of not trying to globalize, and international users are not going to wait but simply look for another outlet. Facebook has been trying to imitate some of Snapchats features such as stories and filters to countries like China, where Snapchat has neglected to influence with.
By trying to globalize, companies like Facebook and Twitter are losing out on a more specific piece of the market. The target market seems to be good in countries that have the money to spend on highly advanced phones. Eventually similar apps are going to overtake Snapchat because of a bigger market. Although globalizing might not seem like a good idea for Snapchat, in the long run, it might be the better choice for the company to remain competitive.
Linh Tran
MKGT 3343
No comments:
Post a Comment