Strategic Product Management2016

Yuxuan Chen • Pavel Chernyshev • Celine Omeira • Leilani S C Pao • Merve Varli • Yiwen Zhang

Chelsea 5

WhatsApp Messenger

Why does it exist?

Because we want to build a better SMS alternative. Because we believe we can. Because someday very soon everybody will have a smartphone.

Who are the founders?

WhatsApp was founded by two men who were doing geeky stuff at Yahoo! Inc. before starting WhatsApp Inc.

Industry Analysis

1Bn

215M

650M

236M

100M

Threat of substitutes

Threat of rivalry

WeChat is the first platform owning a lot of services for users to make their life easier. They dominate the Chinese market for now. However, there is a need in the European market for such platform. Therefore, WhatsApp will fill this gap.

BCG Matrix

High Low

High

Low

Market Share

Market Growth

?

How does WhatsApp make money?

Used to generate revenues with the $0.99 fee however now it is downloaded for free.

I'm not in rush to make money from WhatsApp until they reach 1 billion users. The right strategy is to focus on connecting people before aggressively turning them into businesses.

Mark Zuckerberg CEO

First-Mover Advantage: Network Effect1 Billion Active Users

Massive Database

Free Features

now has

IT IS TIME TO MAKE MONEY

thePROBLEM1

TWO POSSIBLE WAYS OF REVENUE GENERATIONFOR MESSENGERS

Option 1- Application fee(Reduces the user base)

Option 2 - Product development(Use best features from our competitors and innovate)

We live in

theSOLUTION2

Stickers & EmojiImitation StrategyPersonalization

Synchronize to to use personal data

FREEMIUM

Highly personalized stickers, emojis, birthday cards

and more.

Sticker Shop

And Go Beyond Communication

For the first time companies can approach people directly

Cooperation Strategy

Community

Moving from a service to a platform

Create a competitive advantage in the

European market

Work with Corporations:

Booking Systems (restaurants, movie theaters, flights)

Public Services (appointment online)

Offers (jobs, promotions, news)

Permission marketing

Agree to receive a personal message from us on WhatsApp

Opportunity for businesses of different levels and government to provide best experience ever.

Revenue Projection

Based on calculations of Business Insider

theRESULT3

0

1000

2000

3000

4000

5000

6000

2015 2016 2017 2018 2019 2020 2021 2022 2023

WhatsApp Monetization Potential

USER BASE YEAR END (M) TOTAL PAYING USERS (M) TOTAL REVENUE ($M)

Additional Results

• First-mover advantage in the European market

• Enhancing customer loyalty

• Increasing switching costs

• Appeal to new customers leading to a growing customer base

• Stop the question mark

• Value creation to customers

RisksMitigation Strategies are Applied

Users’ reaction to over complexityConcerns for privacy

Difficulties of working with 3rd parties

Thank you!