Throughout the paper theoretical frameworks discussed during the course "Innovation in Services" at Bocconi University will be applied to describe and analyse the development of Snapchat as an innovative service. In the following the characteristics of Snapchat, its innovative features and evolution are introduced. The paper includes an analysis of the sectoral competitive environment, the demand and how it has influenced diffusion of innovation as well as prospects.
The company Snapchat Inc. was founded by Evan Spiegel and co-founders Robert Murphy and Reggie Brown in September 2011. Today, it delivers the most popular app among teenagers in the United States, and was valued by investors at $18 billion. In 2016, Snapchat Inc. changed its name to Snap Inc.. The evolution of Snapchat has gone from an instant photo messaging app to becoming a brand network, a marketing platform, as well as live stream media. In short, the platform has morphed into combining the best of social networks, magazines and television in an omni-entertainment app.
Table of Contents
1. Introduction
2. Characteristics of Snapchat
2.1 Definition of the service
2.2 Main features
2.3 Market-creating capacity
2.4 Successfulness of the innovation
3. Business model evolution
3.1 Snapchat 1.0
3.2 Snapchat 2.0
3.3 Snap Inc. and the years to come
3.4 Novel dimensions of the service
4. Sectoral competitive environment
4.1 Means of appropriation
4.2 Existing competitors in the market
5. The demand
5.1 Diffusion rate
5.2 Target market and current and future customers
5.3 Perceived service quality
6. Concluding remarks
Objectives and Core Topics
This project aims to analyze the development of Snapchat as an innovative service by applying theoretical frameworks from the course "Innovation in Services." The primary research focus lies on characterizing Snapchat's evolution, its business model, its competitive environment, and the factors driving its diffusion and market success.
- Evolution of Snapchat from an instant messaging app to an omni-entertainment platform.
- Analysis of the business model stages (Snapchat 1.0 and 2.0) and strategic shifts.
- Evaluation of the sectoral competitive landscape and technological trajectories.
- Assessment of market-creating capacity and service innovation through theoretical frameworks.
- Examination of diffusion rates, user demographics, and perceived service quality.
Excerpt from the Book
Main features
Snapchat has elements of a personal service; it delivers a recreational amusement to the users of the app. One could argue that it also has elements of the distributive service category as it has a communicative element and the app is used as a mean of communicating instant moments. However, as these two services require a network, we categorise it as a network-based service (Vargo & Lusch, 2004). Snapchat’s business model developed into the capitalisation of its network, which presents us with evidence of this, as well as the diversification of activities done with the curated media content and the Spectacles (glasses launched by Snapchat, red.), only possible due to the power of the network in place.
First, intangibility is referred to as the lack of palpable or tactile quality of goods (Vargo & Lusch, 2004); services cannot be touched. However, many services does have a tangible result. In the case of Snapchat, the app is the most tangible feature of the entirety of the service but can hardly be defined as tangible. The app functions as it is the distributor/user interface of the service. Second, heterogeneity is described as the relative inability to standardise the output of a service in comparison to goods (ibid). Snapchat is homogeneous in the company’s perspective, as the service provided is scalable and the same to all users, but somewhat heterogenous on the user side, as each user has the ability to personalise his or her own experience and produce somewhat original output.
Summary of Chapters
Introduction: Provides an overview of the project's goal to analyze Snapchat's service innovation using theoretical frameworks.
Characteristics of Snapchat: Defines the service, its core features, and its capability to create new markets while analyzing its success.
Business model evolution: Examines the developmental stages of the company, from the initial messaging app to future hardware-oriented strategies.
Sectoral competitive environment: Analyzes the competitive landscape, technological trajectories, and the company's patent-based appropriation strategies.
The demand: Evaluates the exponential network growth, user demographics, and perceived quality that drive the service's adoption.
Concluding remarks: Summarizes the transformation of Snapchat into a branding platform and highlights future strategic challenges.
Keywords
Snapchat, Snap Inc., Service Innovation, Business Model, Network Effect, Radical Innovation, Digital Platform, User Behavior, Market Creation, Monetization, Social Media, Competitive Environment, Spectacles, Diffusion Rate, Perceived Service Quality
Frequently Asked Questions
What is the primary focus of this paper?
The paper provides an academic analysis of Snapchat's development as an innovative service, utilizing theoretical frameworks to explain its business growth and market position.
What are the central themes of the analysis?
The study focuses on service characteristics, business model evolution, competitive dynamics in the social media sector, and the factors driving user demand.
What is the core objective of the research?
The objective is to understand how Snapchat evolved from an instant photo messaging app into a complex branding and entertainment platform through continuous service innovation.
Which scientific methodology is applied?
The authors apply the "integrative characteristics approach" by Gallouj and Weinstein (1997) and Castellacci’s (2008) framework to assess service novelty and technological trajectories.
What does the main body cover?
It covers the definition and features of Snapchat, the phases of its business model, the competitive environment including rivals like Facebook and Twitter, and the dynamics of its user demand.
Which keywords best describe this study?
Key terms include service innovation, network effect, digital platform, radical innovation, and business model evolution.
How does Snapchat differentiate itself from competitors?
Snapchat differentiates itself through high perceived service quality, unique privacy features, the "fun factor," and its ability to act as both a social network and an entertainment platform.
What role does the "Spectacles" project play in the business model?
The introduction of Spectacles marks a strategic shift from a purely digital, highly perishable service model toward physical hardware, aimed at reinforcing the brand's identity as a "camera company."
Why does the paper classify Snapchat as a radical innovation?
It is classified as a radical innovation because its initial offering—self-deleting, user-produced content—created a new way of communicating that was unconnected to existing product characteristics at the time.
- Quote paper
- Benyi Heider (Author), Carla Sofia Simões (Author), Caroline Gram (Author), 2017, Snapchat as an innovative service, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/355189
