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Bev Max

on 29 September 2014

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Transcript of Instagram

Excecutive Summary
Porter's Five Forces
Bargaining power of Suppliers (


Facebook - since 2004, leading online social network platform

not only for the purpose of socializing with each other, but also doing business

Facebook has bought Instagram for approximately US$1billion

Main supplier of Instagram

High bargaining power of supplier -> monopolizing the online social network industry
Porter's Five Forces
Bargaining Power of Buyers (

Most widely used social network media in the Internet

200 million active users
-> best photo-sharing social network media in the Internet.

free app
-> buyers have low bargaining power in the market.
Porter's Five Forces
Threat of Substitute Service (

Attachments sharing through e-mail, Facebook, Twitter etc.

Files sharing through file hosting service apps e.g. Dropbox and Google Drive

These service apps do not focus on photos and videos sharing

No special features to edit pictures
e.g. filter function, Instagram direct etc.

Low threat
Porter's Five Forces
Threat of New Entrants (

Knowledge is common for creating a similar app is quite common

Many people capable

Low entry barrier itself
-> technology requirement is not high
-> cost to develop the app is not high (low fees renting the servers and releasing the app)
Porter's Five Forces
Rivalry Among Existing Competitors (

Best online photo-sharing social media in the market

Facebook as the main supplier
-> supports the development of the app

Competitors of Instagram are competing with Facebook simultaneously

Great service quality

Lots of features e.g. the filter fuction, Instagram direct, photo map, etc.

Very challenging to substitute Instagram

Porter’s Three Generic Strategies


only focusing on online photos and video-sharing

Implementing the Focus business strategy
-> keep developing own unique features

Further enhancing the service quality

1) Mobile-based Apps service
targeting at those sharing photographs and videos online

Building a big worldwide Instagram community.
a) Adjustments

b) 15-sec long vids
-> longer than 6-sec long in Vine
(Comparative advantage)
3) Filter Function & Lux
a) ~ 20 filters of different effects

b) Lux: Brightness and saturation levels control
-> improving photo quality
2) Specialized Photo- and video- sharing service
4) Connection with other social networks
Photo-by-photo basis: Facebook, Flickr and Twitter

Sharing on different social platforms simultaneously
5) Following function
Following and be followed

photos and videos appearing in the form of newsfeed

Stronger interactions between different users
-> a large online social network community.
6) Service Assistance from other apps
a) Specifying location with the help from

100 cameras in 1
-> additional effects


-> Instagram statistics
e.g. number of followers,
likes and comments
7) Explore Tab
showing photos and videos that users will possibly like
-> photos and videos liked by people whose posts they’ve liked
-> posts liked by a large number of people

lets users to find, locate and follow other users
"Capturing and sharing the world's moment"
Initial release: October 6, 2010
Kevin Systrom (CEO, co-founder) -> wanted to create something to allow easy communication, and combined the passion for photography for Instagram
Mike Krieger (co-founder) -> Design and Development, experience designer and front-end engineer before
13 employees
>150m active users (Sept, 2013)
Acquired by Facebook for US$1Billion
Photos and videos sharing with filters
Future plans:
Introduction of advertisements
Full transcript