The main purpose of this report is to analyse the key stakeholders for Snap Inc Company and to suggest specific strategy programs for each stakeholders in Snap Inc. The organizational model is used to analyse key stakeholders and accordingly classification for groups is done in this report. The generic strategy for each of the stakeholder is also analysed in this report.
Stakeholders are generally termed as the groups or any individual who may influence or can be influenced with strategic objectives or goals of the organizations. According to Freeman, there are various important stakeholders for any organization like owners, customers, suppliers, employees, competitors, government, trade unions, media, or political groups (Thor, 2016). Using generic stakeholder model of Freeman, organization model for Snap Inc can be easily prepared according to its present business conditions.
Snap Inc. is American multinational company mainly deals in technology as well as social media. The company was founded in 2011 by Bobby Murphy and Evan Spiegel. Snap chat, spectacles and Bitmoji app are various major products of the company (Snap Inc, 2017). From the organization model, it is cleared that owners, customers, employees, competitors, suppliers and media are the major stakeholders for Snap Inc.
It is also evident that stakeholders are the vital sources to provide all information related to customers, market and the competitors (Thor, 2016). These are also barometric measures provides motivation or attitude factors for the external and internal structure of the organizations. These also help the organizations to encourage or motivate to introduce improved products and services.
From the organization model, it has been found that there are major six important stakeholder’s categories for Snap Inc. The six major stakeholder categories for Snap Inc are owners, customers, employees, competitors, suppliers and media.
The owner’s category is specified as the major stakeholder in the Snap Inc Company and gives enough idea about founder of the company that are Evan Spiegel and Bob Murphy. Both of the owners have equal 21.8% equity in the entire organization (Snap Inc, 2017). Both of the owners also shares 70% of the voting power in the entire Snap Inc Company. Evan Spiegel is the CEO and Bob Murphy is the CTO of the organization. Both are the key to perform all business operations for the organization.
Customers are the major stakeholders in the company. It has been analysed that 150 million customers are its daily users and are using its various applications snap chat, spectacles and Bitmoji app to share pictures and video across the entire globe.
The competitors like Apple, face book or Google are giving stiff competition to Snap Inc in the field of advertising and mobile engagement (Derak et al, 2016). The companies which incorporate with IT and traditional companies which deal in radio, television and print media sector are also giving the company a tough competition at the global market place.
The employees are also playing significant role in the growth of the company and help it to achieve all its strategic objectives and goals. The Snap Inc employs the highly talented workforce that includes software engineer, product managers and designers (Salado and Nilchiani, 2013). The company also focuses to provide great working conditions and also provides significant compensation packages to its employees in order to develop innovative and creative products and services for their customers for enhancing their user experience.
There are so many supplier and investors for the company who have made huge investment in the company in order to achieve maximum profits. The company receives $485,000 from the Light seed venture company. The company also gets funds from Benchmark Capital that helps the company to achieve revenues of around $68 million from that investment (Snap Inc, 2017). The Snap Inc also gets huge investment from USA based Coatue Management in order to enhance its business operations in terms of development of more innovative and user friendly products and services. The company also focuses to achieve billion dollars revenue’s target for the coming financial year 2017.
The social media category of the stakeholder is also one of the vital factors which helps the company to achieve all its strategic objectives and also enhances overall growth of Snap Inc. The company is using both traditional and digital media aspect for advertising all its products and services which helps the company to enhance its overall user database. The company also getting stiff competition from social media giants like Face Book and Google but its app and products are more efficient and effective among most of the users (Jiang et al, 2014). The company is also using traditional media factors like radio, television and print in order to enhance its advertising features and to reach most of the customers all across the globe. The companies like LINE, Naver, Tencent or Kakao is also giving the company a tough challenge in the field of traditional media but the company focuses on aspects like partnerships, advertising, talent and engagement in order to achieve competitive advantage over all its competitors.
Further, the company is also following all the federal regulations and laws of USA related to publicity rights, privacy, data protection, intellectual property, content regulation, and taxation or consumer protection. But all these regulations are affecting the overall business performance and growth of the company. The restrictions made by the foreign governments are also affecting business operations of Snap Inc (Snap Inc, 2017). There are severe chances that certain governments can block or restrict company’s products that can affect usability and accessibility of products for indefinite and longer span of time. For example, the company is not able to provide snap chat services in China due to immense presence of Google in the country and due to some restrictions made by Chinese government.
As the Snap Inc.’s most power is handled by its owners, the company will not face any competitive threat from any individual in the company. The owners are occupying 21.8% equity share in the entire organization. There is enough coordination and cooperation from other stakeholders in the company which is also helping the company in operating all business operations in effective manner (Pritchard and PMP, 2014). The actual behaviour of the owners is to become the leading and innovative technology company in the world. The owner also focuses to enhance their overall revenues by end of 2017 year. The actual behaviour is to provide user friendly and cost effective apps to customers in order to enhance their satisfaction and experience level for products and services of the company.
The main objective of the owners is to enhance business operations of the company all across the globe. The owners have belief that they can able to provide best image messaging apps multimedia apps to their customers in order to share videos or images in efficient manner (Grant, 2016). The possible coalitions aimed by the owners is facing tough challenge from Apple, face Book and Google as they are also focused to enhance instant messaging and multimedia apps in order to attract more users to use their products and services.
From the above, it is evident that owners are the key drivers which are operating the entire business operation for Snap Inc. The behaviour and motives adopted by the owners are significant enough to achieve all their strategic objectives and can also compete effectively with their competitors at the global level.
The competition in the latest technology to develop more innovative and creative factors is affecting and giving competitive threat to snap Inc’s employees. The better cooperation among all the employees is also helping the company to develop new innovative products for their users (Markmann et al, 2013). The flexible working conditions and effective compensation packages for employees is also motivating and encouraging employees to enhance their actual behaviour in order to achieve all strategic objectives for Snap Inc.
The main objective of all employees in Snap Inc is to develop new innovative products for their users and at the same time, also focuses to improve the quality of their existed products or apps in the market place. The highly talented employees of the company have the belief to develop more innovative and creative products than their competitive software and technology companies (Bourne, 2016). The unique working culture and performance appraisals for all the employees in equal manner are also motivating employees to perform in efficient manner to achieve all strategic objectives for their company.
From the above, it is evident that employees are the key assets and stakeholders of Snap Inc that will help the company to achieve all their objectives and focuses to develop more innovative products to give their company a competitive edge over all their competitors in market place.
The Snap Inc is getting market threat from companies like Google, face book or Apple in the area of technology as well as in social media. The company has enough potential to introduce new snap tools in the market which can be more user friendly than tools of Google or Apple (Caniato et al, 2014). The company’s actual behaviour is to enhance technology in its snap tools and give more satisfaction or experience to their users.
The main objective of the company is to effectively deal with the competition from other big technology companies. The company also focuses to improve technology of its products and to provide more innovative tools to its customers. The company has the belief to improve its business operations on its own which is indicated from the examples where company has rejected acquisition offers from companies like Google and Face Book (Levin and Green, 2016). The company has also collaborated with some financial companies in order to enhance its investment to explore its business operations and more market share at global level.
From the above, it is cleared that Snap Inc is continuously developing more innovative snap tools for its users in order to enhance their satisfaction and experience level. The competitors are also key stakeholder for company that encourages the company to perform efficiently by developing more innovative products and services.
The social media platforms like face book, you tube or Instagram are big competitive threats to company as they are also developing more innovative snap tools which are continuously giving tough competition to Snap Inc. The company is also active on the social media which is its cooperative potential which has enhanced its chances to reach to more customers (Kinyua et al, 2015). The actual behaviour of the company is to develop such mobile applications for its customers which are more efficient to share videos and pictures in any part of the globe.
The main objective of the company is to become leading social media company all across the globe. The company has the belief to use traditional media factors as well in order to enhance its advertising features so that can reach to maximum number of people (Pritchard and PMP, 2014). The company is using print, radio or television sources to provide their users enough knowledge about their products and services. The company also focuses on coalitions with various financial companies, advertising, talent and engagement in order to achieve all strategic objectives efficiently.
From the above, it is evident that media is also one of the key stakeholder for Snap Inc. that is helping the company to achieve all its strategic objectives and goals. The company is using both digital and traditional media to enhance customer’s experience. This is also helping the company to get appropriate feedbacks of customers that is helping it to improve quality and technology of its mobile applications and other software.
This stakeholder can be classified under the category of high power as well as high interest in the business operations of the company. The strategy adopted for this category is that this needs to be deal with utmost care and needs to manage more closely (Bourne, 2016). Further, offensive strategy needs to be managed for this category as this maximises their influence in the company by reducing threat factor to other stakeholders.
This stakeholder can be classified under the category of high power but have low interest in business operations of the organizations. The strategy adopted for this category is that this needs to keep satisfied in order to enhance production level of the company (De Brucker et al, 2013). Further, offensive strategy is also suitable for these stakeholders as these focuses to achieve all strategic objectives and goals for the organizations and is very supportive in nature to enhance growth of entire organization.
This stakeholder can be classified under the category of low power and low interest in business operations of the organizations. The strategy adopted for this category is that this needs to be monitored effectively and also requires less effort as compared to other stakeholders in the company. Further, defensive strategy is most suitable for these stakeholders as are non supportive for the company (Rothaermel, 2015). This strategy also prevents threat of competition from companies like face book, Google or Apple to Snap Inc. This strategy reinforces current belief of the company and also maintains existed programs in the company in order to achieve all strategic objectives.
This stakeholder can be classified under the category of low power but have high interest in the business operations of Snap Inc. The strategy adopted for this category is that this needs to be informed on continuous basis in order to enhance marketing strategies for the company. Further, swing strategy can be more effective for this category of stakeholders (Hubbard et al, 2014). The company needs to use this stakeholders to maximise more positive impact on business operations and its growth but at the same time, also needs to focus on their threatening capacities. As this is the category which can either hinder or support in business operations and growth of the entire organization.
The top management is responsible to determine the best suitable generic strategies for every stakeholder that depends on level of power or interest of the stakeholders. The effective communication with each stakeholder is vital for the organizations to get their feedbacks and make them satisfied to achieve all strategic objectives and goals in effective manner.
The offensive strategy will be more vital for the owners as will strategically manage their power and interest at higher level in the organization. They need to be more supportive to other stakeholders in order to enhance their performance level to achieve strategic objectives effectively.
The employees also need to be given more power as will help to enhance their interest level for organizational growth. The offensive strategy for these stakeholders needs to be used more effectively by giving them more power in decision making and more responsibility in the organization.
The competitors need to be placed under low power or high interest category in order to inform them about all developments and innovations at the organizations. This also makes Snap Inc. to be more competitive at market place and also enhance its market share.
The media should also be place under category of more power and interest in business operations of the organization. This will create effective marketing strategies and also helps the company to penetrate more market all global level.
From the report, it is concluded that organization model helps to identify all the key stakeholders for Snap Inc. The stakeholder analysis has been done effectively to analyse the major stakeholders and their category in Snap Inc. The generic programs for each stakeholder is effectively analysed and also some recommendations for each stakeholder is also given in this report.
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