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Question: Discuss about the Analysis Business Model of Instagram. Answer: Introduction The report will discuss in detail about the company Instagram and different aspect of this social media platform. The report will cover the background of the company and discuss how the company got established. The report will also discuss about the business model followed by company along with detailed analysis of the company by using models like SWAT analysis and PEST analysis. Background The company Instagram was established as an experiment and the motive behind it was fun, quite similar to other social media platforms. The concept of sharing photos app that operates in one manner where photos are shared in a vertical manner from so many users (Loebbecke Picot, 2015). The company was established by Mike Krieger and Kevin Systrom. Initially they named it has BurBn but later changed it when they got seed round funding of 500k US dollars from Andressen Horowitz and other company called Baseline Ventures. Later Facebook acquired the company (Steinberg et al, 2015). The primary reason for Facebook to acquire this company was to strengthen the base of millions of mobile users and their overall usages. Instagram make mainly make money from advertisements and the unit dedicated on ads is very similar to Facebook ads handle. Moreover, the settings of ad which will be displayed on Instagram are directly connected to ads manager only. This is why, at the time of setting ads o n Facebook, people have the option to able to give some push to ad unit to cover Instagram also. Description of the product and services Following are different kinds of tools used by the company: - Explore tab: this tab is related to platform where some photographs get the chance to featured whenever any user click on the tab. Here, users also have the option to explore different section with the help of utilizing hash tags people find of some use. Filters: Instagram also has some photos where users can also apply on the images and this further may be sold for a fee and to brands in order to advertise the overall image. Instagram stories: this feature is primarily taking from Snapchat stories where brands have the chance to sponsor the promotion based stories from Facebook Dashboard of Ads (Iansiti Lakhani, 2014). Lux: there is feature called Lux impact where there are options to get use to the exposure of the present image with the help of 1000 point based sliders. Instagram Direct: this feature was introduced to compete directly with Snapchat model where one has the option to directly share the message or photos or videos. It can be send to one as well as group of users. Videos: initially, Instagram was only based on photos sharing. Later the company also started to share videos in order to permit the user to be able to share videos for fifteen seconds initially and later it was extended up to one minute (Spiegel et al, 2016). Evaluation of the strategy and future prospects: SWOT analysis Strength The main strength of the company is its large community along with providing value based proposition. Users on this platform are able to share their memories or personal moments with other. Being an active part of this kind of ecosystem, the media based company will be able to find different kind of touch points in order to reach as well as interact with the public. Also the company has the low touch as well as very efficient user based side (Tidd, 2016). The company also has massive reach to huge audience which leads to high level of engagement from their side. The company has the medium to add value while engaging audience which isnt just about sales. Weakness The biggest weakness of the company is its traffic on web which is very self-contained. In the present time, there is no other way to connect the site or bring traffic from this platform. While building audience on Instagram, people will need to engage or interact with them on this platform. Web traffic for many people like publishers is very crucial (Farre-Mensa et al, 2014). Opportunities Instagram is actually a new platform especially when compared to Twitter and Facebook. Both these companies are more established, and Instagram is still in a space that is more in testing phase and playing with different traffic circulation characteristics. Joining this platform has their benefits since people can actually study the level of engagement and different related patterns along with setting the personal trends (Tidd, 2016). In addition, there is also a very strong window of option for the many media based companies to set themselves and also build a strong presence. Threat Similar to any other social media platform, the ecosystem of Instagram is also transforming. Over a period of time, it is becoming more competitive by nature, specifically when the company has opened to ads based on API that actually permits for different tasks which include scheduling as well as publishing based content (Tidd, 2016). PEST analysis Political Instagram is constantly changing businesses in a more new as well as exciting manner. There are methods to use to calculate it present economic based impact are well setup by the company. Moreover, the company is associated with Facebook which is a powerful medium and getting more powerful with passing time especially after becoming the part of share market (Roof et al, 2014). Economic The platform is also helping much small and medium business to market them and further to connect with the customers. In addition it is also important to provide services in much better ways. Instagram is becoming a platform for socializing and also connect with people with different parts of the world (Haftor, 2015). Social Instagram permits the users to constantly stay in connection with the loved one and other acquaintances in every corner of the world. It is important to have access of internet and the widespread reach can help in spreading memories and happy news (Haftor, 2015). Technology It is crucial part of the company. The tools used by Instagram are already discussed in the report. Variety of services, tools and programming based language is used by the company to build its core infrastructure (Haftor, 2015). Summary of the key points Following are some of key points that the founders of the Instagram addressed: - The advancement of Smartphone has put the concept of photograph very simple and at the fingertips of so many people. However, there are still some ways to completely hide the problem area of a photo. The company was launched with different kind of filters that permit people to add more effects to snaps and bright colors. Another concern was to share the photo with the family and friends. Instagram presented a simple solution to comfortably link with Facebook or other social media platform and a photo can be posted in a second now (Cheng, 2016). In addition Instagram also wanted to get circled around uploading the issues where photograph usually take a lot of time to get uploaded as well as viewing them is a slow process. By connecting mobile phone to computer or even an attempt to upload the photo on the internet use to be big problem. The solution presented by Instagram was to make every file small (Cheng, 2016). References Cheng, Y. (2016). Application of E-commerce based Internet Plus Strategy in the Chinese Furniture industry with analysis on case study and business model canvas. Farre-Mensa, J., Kerr, W. R., Brownell, A. (2014). Entrepreneurial Finance Lab: Scaling an Innovative Start-Up Financing Venture. Haftor, D. M. (2015, June). Some Heuristics for Digital Business Model Configuration. InInternational Conference on Advanced Information Systems Engineering(pp. 123-130). Springer, Cham. Iansiti, M., Lakhani, K. R. (2014). Digital ubiquity: How connections, sensors, and data are revolutionizing business. Loebbecke, C., Picot, A. (2015). Reflections on societal and business model transformation arising from digitization and big data analytics: A research agenda.The Journal of Strategic Information Systems,24(3), 149-157. Roof, B. J., Yeh, A. S., Mizes, H. A., Haitao, D. U., Yang, M. (2014).U.S. Patent Application No. 14/529,399. Sadkowska, A., Townsend, K., Sissons, J. (2016). Fashionable clothing for mature women: an alternative design and small-scale business model. Spiegel, O., Abbassi, P., Zylka, M. P., Schlagwein, D., Fischbach, K., Schoder, D. (2016). Business model development, founders' social capital and the success of early stage internet start?ups: a mixed?method study.Information Systems Journal,26(5), 421-449. Steinberg, D., Horwitz, G., Zohar, D. (2015). Building a business model in digital medicine.Nature biotechnology,33(9), 910-920. Tidd, J. (2016). Preface [Integrating service innovation into business models]. Answer: