Stakeholders are one of the major parts of one organization’s business venture. Stakeholders help in making substantial approach in order to develop company background and reputation in the market. In order to understand about any company, stakeholder analysis is often necessary. Stakeholder analysis helps in understanding the benefits that one company can derive if they choose their stakeholders prolifically. In this context different models can be taken under consideration to complete the project. The following section will focus more on stakeholders of Snapchat and how it is influencing the business of Snapchat in a competitive market. Snapchat is one of the largest social media platforms, and that is why it is a lucrative section for investors (Snapchat, 2018). In this project stakeholder analysis, stakeholder segmentation and Recommendation will be provided in order to have an affirmative response from the customers.
Like any other company Snapchat also has a huge follower in the market and it can be said that they have a very strong stakeholder group behind it, who are given the company needed financial support (Usmani, 2018). In case of Snapchat, the stakeholder group is making a proper contribution to the development of the organisation. Like other companies, Snapchat has its employees, higher officials, public and other service providers in the stakeholder list. To be very precise the name of both co founders can be taken into consideration. Apart from that, Snapchat receives financial support from other organisations that are looking for economic benefits (Imaduddin, Anita, Rashid, Hamid and Yuserrie, 2014).
The role of company employees cannot be overlooked because they are one of the major contributors in development of Snapchat. The ground level companies handle the issues that are faced by Snapchat users and take all the necessary steps by analysing the issue properly. The role of higher managers come after the role of ground level employees. Assuring quality service Is a necessary aspect and the higher officials of the organisation take decisions related to this matter (Yang, Shen, Ho, Drew and Xue, 2011). Rectifying the technical problems, employee management and many other Official jobs are executed by the higher officials so that Snapchat can give a seamless service experience to the users.
The co-founders of Snapchat are one of the biggest investors and they are regarded as the biggest stakeholders of the organisation (Hasli Azilla, 2014). Apart from this, the organisation has different collaborative features with different Information Technology Company in the whole world. They have collaboration with Lightspeed and Benchmark; both of these are one of the best companies in their operation field. Apart from this, Timothy Sehn, Imran Khan and Michael Lynton are one of the biggest stakeholders of the organisation.
Corporative potential- the corporate potential of a company depends on the stakeholders who are associated with the team. The offensive stakeholders can affect the business of an organization in a positive manner by taking the job on a serious note (Allen and Peloza, 2015). The defensive stakeholders can affect the business by regulating the norms related to business. On the other hand the swing stakeholders can affect the business in a positive or negative manner but it is not possible to state precisely. The hold stakeholders cannot affect the business and that is why they are often negligible.
Competitive threat- the biggest threat for Snapchat is having issues related with the the defensive and swing stakeholders (Qusef and Ismail, 2016). For the offensive and hold stakeholders they will not have any kind of issue. Threat oriented with market capitalization loss is a big factor to be taken into consideration. The rise in the numbers of the competitors can be a vital fact to be taken under consideration (Gill, 2017). It is necessary to have a better kind of relationship with the threatening organizations to have better grip in the market.
The actual behaviour of the given stakeholders is relevant to the needs of the management. The actual behaviour of the offensive stakeholders is going to give better outcomes for the company Snapchat. The defensive behaviour of the stake holders make one company docile in nature the productivity and sales hampers in an elevate manner (Yang, Shen, Ho, Drew and Xue, 2011). The behaviour of the stakeholders from the hold category is not that much harmful in nature and in this regard the company has to think about only the swing stakeholders and the defensive stakeholders. They are going to affect Snapchat if they are left unattended.
The main objective of conducting a stakeholder analysis is having a proper idea of what challenges are present in the market for Snapochat and how the company can minimise it. The measures that are taken into consideration help in determining the facts, which are related with market capitalization (Cairns et al., 2016).
The stakeholders of the stakeholders have to be prioritised because they will also be connected with Snapchat when any collaborative venture will be taken into consideration. In this regard, the entire team of stakeholders have to be prioritised.
There are four different strategies to incorporate stakeholders to a firm and they are offensive defensive, hold and swing. These factors are described below to understand the influence of them to a market.
Offensive- offensive strategy can be taken into consideration when the group is supportive in nature. Offensive strategies include direct and indirect approach to gain market capitalisation. If the competitors are strong then indirect strategy will be beneficial for the company and if the rivals are not strong then a direct strategy will be effective for the company (Kinyua et al, 2015). An offensive strategy will be the stakeholders are willing to make proper contribution to the market capitalisation. Supportive potential has to be in order to have better impact on the market capitalisation process.
For Snapchat the offensive stakeholders are company executives and company employees who are dedicated to their job and about market capitalisation by suppressing the challenges the scenes from the other competitors of the market.
Defensive- The defence system the usual management tools that can be utilised to attacks of the potential competitor of the market. It is often seen that different companies performing in the same business field cause unintentional harm to an organisation. In order to spread their business the organisation has to suppress their competitors market in a drastic amount (Camilleri, 2017). In these cases, an organisation has to adopt the defensive stakeholder strategy to minimise the effects of their competitors. It is important to keep a good relationship with competitors of the market.
In case of Snapchat, the organisation needs to build good relationship with the Government of the country where they are spreading their business. Government tries to rules related to taxation and other business aspects to maximize their income from the market (Centeno, 2017). A good relationship with the government policy makers might be beneficial for Snapchat because they can take precautionary steps to minimise the effects which the upcoming policies can have on their business.
Swing- According to the stakeholder Management Theory, there are different stakeholders of a company who can affect an organisation in a positive or negative manner. The competitors of an organisation can be categorised in this section because they have the minimum potential to cut down the business of a company (Kinyua et al, 2015). It is important to know that a collaborative venture can minimise the possibility of getting negatively affected by a competitor. Such attributes make a company one of the swing stakeholders of a particular organisation.
In case of Snapchat the market competitors can be categorised in this section. Snapchat has to collaborate with its market competitors in order to get a good glimpse of the market where it is planning to spread its business (Balqishanis et al, 2017). The stakeholders which can negatively affect the company can be taken into consideration for better market grip in a competitive environment.
Hold- the strategy can be taken into consideration when it is seen that one competitor is not that much harmful for the organisation. Apart from this, the strategy helps in identifying those competitors, which has minimum potency to affect business of an organisation in a positive manner (Brem and Viardot, 2017). In this regard, it can be said that Snapchat can adopt this strategy to spread its business in those countries where other social media platforms are not so popular. They might not get extensive benefits but they will be one of the first organisations, which tried to penetrate the market on its own.
Snapchat needs to formulate strategies in order to penetrate the market, which has not been used as a business place by any other companies. In order to maintain good relationship with the stakeholders, the company uses monotonous approaches. Taking steps according to the market needs will be beneficial for the company in order to maintain the stakeholder ratio. It can be recommended that the company needs to find the gaps existing in their functionality system of the company in different markets. Good returns to the stakeholders can be a better strategy from the current ones used by the company to include new stakeholders to their business and retain the existing ones. They can use different models in order to introduce something new to the market and stakeholders who are interested to invest in Snapchat. It can also be recommended that one organization like Snapchat have to make proper amendments to the policies, which are related to the stakeholders of an organization. There is a possibility for the organization but for that they have to work proficiently.
Conclusion
From the above discussion, it can be concluded that Snapchat has the possibility of getting a good return from their calculated investments. The stakeholders of the organisation are supportive and that is why the organisation is getting good returns from the markets where it is operating. From the above discussion, it can be stated that, Snapchat has the possibility of penetrating and new market but they need to analyse the effects of positive and negative stakeholders in an extensive manner. Snapchat should prioritise the effects of getting involved in the joint venture and for that they have to analyse the facts related to the market and the partners with whom it is collaborating. The current stakeholders of the organisation are helpful and they are trying to support the organisation to gain good returns from the market. The stakeholders will be financially benefited from the company and that is why their approach is optimistic in any kind of decisions taken by the company’s management. By differentiating between positive and negative effects, an organisation can have better returns of the market.
References
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