08 Oct 2018_campuscad
Snap CEO Evan Spiegel, 15 page memo leaked to Alex Heath of Cheddar mentioning how to get back to core product of Snapchat and achieving profitability by 2019.
Snap Inc, parent company of popular app Snapchat is struggling to meet the investor’s expectation along with its users as well. It is very much popular in United States and Europe but not able to crack the Asian market. Disappearing messages was the key feature in Snapchat once they viewed.
What’s in the memo?
Evan Spiegel outlined the Snapchat history how Snap became a company form the product over its 7 years of journey. Snapchat launched in 2011 to communicate with the friends around camera feature and pictures with text is the popular format across the platform.
The core of Snapchat is the message in the Image format which is far richer than only text and text-image combination helps to add emotions to the message.
Snapchat introduced new redesign of its android app and algorithm made to put the users and their friends snap messages and stories on the top of feed and making Social and Media separate to make users happy but it leads to frustration of the users. It ultimately leads slowing down of app usage and got backlash though different social media channels.
Influencer’s on the platform were also upset because the content created by them started falling back to middle of the feed and it was not reaching to its followers.
“The combination of social and media has yielded incredible business results, but has ultimately undermined our relationships with our friends and our relationships with the media. We believe that the best path forward is disentangling the two by providing a personalized content feed based on what you want to watch, not what your friends post.”
So to make happy the main Snapchat users, Snap inc. will focus on its core product in 2019, said Spiegel in the memo.
Profitability and Break Even will be achieved in 2019 through the advertisement and different product and services launched by company including its Discovery section, Maps, Original Content and shows created by Snap Inc, Snap Spectacles etc.
Snap IPO price was $18 per share in June 2017 and dropped almost to $8 on October 08, 2018 making $9.9 billion total market capital value.
CEO Evan Spiegel strategy for 2019 in short.
Snapchat founder and CEO wants its employee to be positive in 2019 with focusing on its core product development by taking the responsibility as an owner of the product and put good and positive force throughout the company. (Make Snapchat the fastest way to communicate)
Facebook is social media giant and we don’t want to be another social media company, Spiegel stated in the memo. We are messaging company and that’s why we invented stories to tell what’s going on to everybody and not between 2-3 friends.
Snapchat is having 188 million daily active users (DAU) which is down from 191 million global DAU from previous quarters.
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