Analysis Of Instagram 's Business Model

Social media being an ever growing industry, companies have incorporated their marketing and strategies to better their businesses. We explore that the reasons for the importance of incorporating this is: The daily use of handheld devices to access social media on a daily basis amongst computer use, Big data: online tracking produces oceans of data, challenging business analytics programs, Twitter, Facebook, and Pinterest

who have many followers. Instagram is a profitable tool for people or businesses to share

This source shows how the Social Media scene has grown radically and is right now woven significantly in our social society. The development and advancement of Social Media has likely affected your business or industry too. The author worked in the Internet Marketing and Search Engine Optimization (SEO) industry for more than 10 years and the significance of an emphasis on Social Media has been in a quick rise for as far back as quite a long

Instagram, one of the fastest-growing social networking platforms, is used daily by more than half of its 600 million active users. And it's good for more than just posting selfies and brunches. At a time when visual content is critical for any brand to execute on a successful marketing strategy, Instagram presents a unique opportunity to position a brand creatively and showcase its personality. Plus, it's a place where the consumers can see your curated content on the daily without feeling overwhelmed by emails and notifications. Half of the platform's users check their feed multiple times a day.

Marketing is continuously changing and growing within the business field. Recently, social media is becoming one of the main marketing strategies used by companies, which is known as social media marketing. Twitter, Facebook, Instagram, YouTube, and blogs are some of the platforms used in this area of marketing. These types of social media allow consumers to be updated by following their favorite companies. It is not a surprise companies are starting to regularly use this form of marketing due to the role social media has in today's society. Social media does, however, impact a company in a multitude of ways. There is much debate on whether companies should or should not use social media to market themselves. Even though there are some flaws

Instagram can drive sales and increase correspondence just as effectively as other social media channels if not better in a lot of ways. Approximately 75% of businesses are already using Instagram to promote their business and develop a well-rounded social media presence. With the 150 million users that access Instagram, you are missing out on a vast number of potential clients and outreach opportunities if you neglect this important resource.

Instagrams size of their user base and their users level of engagement is critical to their success. Instagrams financial performance has and will continue to be determined by their success in adding, retaining and engaging its users. If people do not think Instagram is useful, reliable and trustworthy they may not be able to retain a solid user base. There are a number of factors that could affect their ability to retain such a large user base.

A social media strategy allows a business to reach a different audience – sometimes a smaller, niche audience committed to a brand or industry. In addition, such

We cannot deny how big of an impact social media has on our lives now, not only on people but businesses too. It has opened a whole new door to the business world and given them a big opportunity to interact and attract a larger amount of customers. It’s given us a new and faster way of communication by exchanging pictures, stories, news, blogs, online discussions, etc. In exchange businesses have benefited by a long shot just by the click of a button. With the help of the Internet a company no longer is dependent on a particular customer base to survive because now it can reach out to a worldwide audience within seconds. It’s imaginable the countless business attributes of all social media to this day and still is growing. Social media

In an age of rapid digital technology advancements it is relatively easy for new entrants into the market. Due of the low cost to start up a social media it is easy for new firms to enter into the market. Pinterest is interest based and showcase images supplied by its users therefore if Pinterest stopped engaging its users then the “supplier” will leave Pinterest. Pinterest have no major existing rivalries in most of their rivalries are copycats of Pinterest. Pinterest should focus on innovating new ways to engaging to gain an even further competitive advantage. Pinterest should watch for new innovations by its copycats to maintain its dominance. After all Samsung use but a Korean copycat brand that people bought when they can’t afford Sony. In 20 years’ time Samsung has become the world’s largest consumer electronics manufacture because it out-innovated its competitors. Pinterest should be cautious in its attempts to generate revenue and try not to cause a sense of betrayal turning into an online advertising store. Due to the fact that Pinterest has such a high influence on consumers, buyers have very little bargaining power but to accept the terms Pinterest offers. Overall through the use of Porter’s five forces model it is in Pinterest interest to sustain its competitive advantage through innovation and be cautious in its plan to increase revenue ultimately its user is the company’s most precious

Porter's Five Forces model is often used as a tool for analyzing industries and competitive structures within them. An industry's profit potential is determined by either one or a combination of five competitive forces within that industry. These forces are: the threat of new entrants, the bargaining power of customers, the bargaining power of suppliers, the threat of substitute products or services, and the

The term of social media is becoming increasingly popular presently, the amount of social media users is growing dramatically, and the monetization of social media has been discussed in publications but not in details. Nowadays, the most frequently used approach to make money for social media is online advertising. However, the successful company like Tencent proves other potentials of monetization. Because the business model is critical to make profit for a company, a company’s financial performance could be better

Based on the Literature Review in Chapter Two, it could be seen that there were three essential factors that needed to be investigated in more detail i.e.:

The Five Forces model is a framework for analyzing the competitive environment in which a company works and therefore determining its profit potential. (The Economic Times) The framework is a tool designed by Michael Porter, which states that there are four separate forces: “The Threat of Entry”; “Supplier power”; “Buyer power”; “Threat of substitutes” and the “Degree of Rivalry.” (Porter’s Five Forces) This model can assist both new and existing companies in determining the profitability of a new product line and or a start up business. For example, an entrepreneur looking to develop a new business plan for marketing a particular set of clothing (e.g., t-shirts) both domestically and internationally will put his or her plan through the five forces frame work in order to determine the possible future success of his or her company based on the current market.

According to American Institute of CPAs (2016), this theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter’s five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization’s current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use the five forces framework to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.