SWOT analysis can be done to determine the effect of this new change in their service. One of the strength is to learn from its parent company, Facebook. Instagram can also analyze user’s response of advertisements on Facebook and avoid repeating the same mistakes. Secondly, Instagram provides very clear and simple interface to users, which is one of the advantage of their app. Since company is still growing and has only been out from last few years, it does not have many weaknesses. But simplicity which is one of their strength, could be seen at risk by selling advertisements on their app. Therefore, Instagram’s major challenge will be to continue providing user friendly and clear design interface. It is possible to overcome this problem by coming up with an approach that will be quickly adapted by users and will keep them more interested in this app. The company will have an opportunity to expand and possible more users. As Instagram will increase their partnerships with more brand marketers; brands will help promote Instagram service to more users. As a result, Instagram will expand their target market, especially by offering their service in more developing countries. Moreover, it will also benefit financially. Instagram will be able to utilize the profits earned by these advertisements for making more investments. And in long run, Instagram will have an advantage of financial stability and will have more resources to grow their business. Lastly, Twitter, the competitor of Instagram can be seen as threat
SWOT analysis can be done to determine the effect of this new change in their service. One of the strength is to learn from its parent company, Facebook. Instagram can also analyze user’s response of advertisements on Facebook and avoid repeating the same mistakes. Secondly, Instagram provides very clear and simple interface to users, which is one of the advantage of their app. Since company is still growing and has only been out from last few years, it does not have many weaknesses. But simplicity which is one of their strength, could be seen at risk by selling advertisements on their app. Therefore, Instagram’s major challenge will be to continue providing user friendly and clear design interface. It is possible to overcome this problem by coming up with an approach that will be quickly adapted by users and will keep them more interested in this app. The company will have an opportunity to expand and possible more users. As Instagram will increase their partnerships with more brand marketers; brands will help promote Instagram service to more users. As a result, Instagram will expand their target market, especially by offering their service in more developing countries. Moreover, it will also benefit financially. Instagram will be able to utilize the profits earned by these advertisements for making more investments. And in long run, Instagram will have an advantage of financial stability and will have more resources to grow their business. Lastly, Twitter, the competitor of Instagram can be seen as threat