Discuss About The Enterprise Strategy Concept Measurement And Validation.
Identification of Stakeholders of Snapchat
The basic aim of the survey is to evaluate the stakeholders and to explain their strategies. The survey shows different stakeholders of Snap Chat and the brief explanation of each of the stakeholders. It also focusses on the analysis of the stakeholders which includes the behavior analysis as well as the motives of the stakeholders. Categorization of the stakeholders and the generic strategic management programs are the main points of discussion in this survey. The strategic plan involves the four strategies that will be discussed in the study. The research intends to provide four recommendations for each of the stakeholder group as well as the procedures that are the most appropriate for the stakeholders.
There are two types of stakeholders in Snapchat which has been explained in details, and they are as follows
Managers – Managers in Snapchat are those persons who are responsible for monitoring the ventures of the Snapchat or the staffs of the firm. They are always in charge of carrying out some duties and regularly takes decisions about those duties.
- Owners – The owners of Snapchat are liable for any risk of any ventures as it is the duty of the owner to implement the ventures. The CEO of Snapchat Evan Spiegel has brilliant potentials of leadership which helps him to overcome the risk factors of the firm and also reduce the chance of risks in the future (Dedeo?lu and Demirer, 2015).
- Employees – In a corporate firm like Snapchat, an employee is a person who has been engaged to give facilities to the firm regularly in return of salary either based on their hours of working or on a yearly basis (Fei, 2016). If in any case, Snapchat loses any staff it might affect their customer service. So Snapchat has to give a proposal for an attractive term and conditions for their teams to retain their good workers.
- Society – Any successful firms are building the basis of the culture, and the firm creates their policies for the improvement of the culture and its peoples. Therefore, it could be noticed that Snapchat has contributed to the society in the form of their thriving business.
- Customers – Snapchat gives immense importance to their users as without them the business of Snapchat could not grow (Barnett, 2018). The customers of Snapchat helps to run their business effectively, and the firm too enticed them with their different offers. About 60% of the people in the UK are utilizing the facilities of Snapchat.
- Suppliers – To run their organization effectively, it is vital for Snapchat to collaborate with the suppliers (Ferretti, 2016). Most of the suppliers are expert in their works, so the firm needs to collaborate with them on the long-term basis.
- Government – Snapchat seriously follows the laws of the government to run their firm effectively. But sometimes Snapchat needs to go against the law if the firm thinks it to be wrong and also avoid the trials and arguments.
- Creditors – Creditors are those persons who lend money to the firm trusting the firm that they would repay the money in time. The firm had to refund the money with full cash along with added interest.
- Shareholders – Shareholders could be any person, firm or organization that holds at least one share of the stocks of the firm. If Snapchat performs poorly, the market value of the firm will decrease, and the shareholders would lose the investment.
The four groups of stakeholders in Snapchat are the customers, management, influencers, and suppliers. They could help in any activities of the firms, and they should give an effort to put an impact on the decisions of the firm. The organization model of the stakeholders is usually Descriptive, Normative and Instrumental.
Descriptive Stakeholders: This model gives the perception to describe the firms their techniques as well as their effect on the surroundings.
Normative Stakeholders: This model assumes that the stakeholders have significant value in the market.
Instrumental Stakeholders: This model describes the execution of the outcomes of the stakeholders in achieving the aims, increased growth, and sustainability.
The behavioral structure of stakeholder needs to identify the procedures of the decision-making of Snapchat. Moreover, the structure is related both to the stakeholder's behavior in a specific way as well as inspiring others to behave in the same way.
Moreover, this is not a system but a culture to behave or not to behave on the one hand and constant inspirations to demoralize on the other hand. In the decisions of buying anything, it is possible but in case of policy activity, a stakeholder might behave to inspire others- that might be their duty as a stakeholder (Fernandez-Feijoo, 2014). This can be considered as the duty of the stakeholder and whether they are performing them as a behavioral response.
Analysis of the Stakeholders
The stakeholders of Snapchat had various aims and goals by their interest in the firm. These aims are connected to their purpose of achieving their targets. Each and every stakeholders has their own personal motives in Snapchat.
- Customers– Customers are those persons who would utilize the facilities of the venture or programs of Snapchat. These could be users or other internal departments of the firm. In the case of distributing new software for the sales team of Snapchat, the customers would be the sales members of Snapchat (Jones, 2016).
- Management– These could be the person or a group of persons those who have curiosity in the management of the ventures or other programs of Snapchat. Board members of Snapchat and accountants, managers of the firms, are included in this group (Vracheva, Judge and Madden, 2016).
- Suppliers– Various types of dealers and retailers of the firm are in this group, but company's partner, short-term workers and any person else who could give facilities to the ventures or programs of Snapchat could come under this group.
- Influencers – These are the persons who can change the direction of the ventures or programs of Snapchat (Korschun, 2015). Local newspaper and trade unions could be a good source of influencing the people about any new services of the firm.
Classification of the Stakeholders in Snapchat
The four categories of stakeholders in Snapchat are primary stakeholders, secondary stakeholders, excluded stakeholders and connected stakeholders. The details of this categories are as follows:
- Primary Stakeholders– These stakeholders are involved in the financial transactions of the business of Snapchat. Customers, suppliers, shareholders, creditors and employees are included in this group.
- Secondary Stakeholders– These stakeholders are not directly involved in the financial transactions of the business of Snapchat but are affected by the activities of the firm. Common peoples, societies, social activist groups and the media are included in this group.
- Excluded Stakeholders – These stakeholders had not any financial influence on the business of Snapchat but have some interest in the business. Children and common peoples are included in this group.
- Connected Stakeholders – These stakeholders are involved in the core marketing and economic tasks of the business of Snapchat. Customers, suppliers, advisors, professionals and competitors of the firm are included in this group.
The generic strategy programs adopted by Snapchat to improve their competitive marketing are the cost leadership, focus, differentiation and integrated cost leadership-differentiation strategy (Korschun, Bhattacharya and Swain, 2014).The detailed explanation of this strategies are as follows:
- Cost Leadership Strategies– To apply the cost leadership strategy, Snapchat has to struggle for the maximum number of customers through cost (Mampaey and Huisman, 2016). This plan works better when the products or facilities are consistent. In this way, Snapchat could sell their generic products at low cost without decreasing their profits.
- Focus Strategies– This planning works to help limited users better than their competitors who helps a wider range of users. This plan is based on cost leadership and differentiation plans. The main aim of this plan to make the firm stand out in a particular market.
- Differentiation Strategies– This strategy works for Snapchat to give a good or facility with unique qualities demanded by the consumers. To be successful in this plan, the firm should have access to good research team, a highly talented and creative team, a strong marketing and sales team and a business status for quality and new inventions (Miterev, Engwall and Jerbrant, 2016).
- Integrated Cost Leadership-Differentiation Strategies– Sometimes Snapchat apply the combined strategies of cost leadership and differentiation instead of depending on one generic strategy. This makes to adjust rapidly and adopt the new technical developments. The goods under this plan are less unique and price is not low as price leadership plan but they mixed the benefits of both the plans.
While addressing the stakeholder group, it is strongly recommended to the owners to create a long-term plan as well as the strategy for retaining the trust of the users. Snapchat should utilize the social networking site to interact with the customers and also conduct surveys to know the feedback from the customers (Ranängen, 2015). Moreover, one of the recommendations is respect and understand the customers as well listen to them. The employees are recommended to be honest, supportive as well as a respectful. As the employees are the most significant stakeholder so it is strongly recommended that the employee, as well as other business associates, should work in a team. The employees are advised to manage the business by applying new strategies.
The suppliers are recommended to gain the trust of the customer’s by providing superior quality of goods and facilities to the consumers (Sanderson, 2017). The assets that are produced must be of suitable price as well must be delivered at the right time. The customers are especially recommended to inspect the product before purchasing. It is also recommended to the customers that to give the correct value to the products. It is the prime duty of the customer to choose the appropriate supplier who provides high-quality products.
After evaluating the strategic plans, it is recommended that differentiation strategy is the best generic strategy (Scandelius and Cohen, 2016). Under the differentiation strategy, customers of Snapchat receives unique goods and facilities that are demanded by them. The basic resources and the goods are not so important because the products are the users itself. Only with range through a large base of customers, the business of Snapchat is running effectively. Customers are those persons who utilizes the facilities of the venture or programs of Snapchat.
It can be concluded that different stakeholders are responsible for managing the strategic development of the business. The analysis of the stakeholders presented the importance of behavior analysis for the stakeholders. It can be seen that the motives of the stakeholder are to achieve the targets. The survey also focused on the generic strategic programs for the development of the strategy of Snapchat. The review gave detailed information about the four policies that apply to Snapchat. Therefore, the survey presented the overall view of stakeholder analysis as well as strategic development concisely.
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