Whatsapp case harvard Management Case Study Paper (Case Study Sample)

Instructions:

At the end of the module, you will deliver a business case analysis individually. This will
encourage you to develop awareness on the application of economic tools in the field
of financial management and corporate governance, rather than only pursuing a purely
theoretical understanding of economics and business management.
In your analysis, you have to answer the assigned open questions (see below) based
on the case (available on Blackboard on Week 1).
The assessment will assess your (1) understanding on the assigned case, including the
challenges and opportunities the firm faces, (2) skill of examining what the factors are
causing the challenges and opportunities, either internally or externally, and (3) skill of
analysing on the how these factors affect a firm’s value and whether the acquisition
price can be justified.
Specifically, your case analysis should aim to answer the following three questions.
Assignment Questions:
1. What is the motivation of this acquisition (Please summarise the challenges
Facebook faced before the acquisition.) and what are the opportunities
Facebook has after the acquisition?
2. Does WhatsApp have a sustainable competitive advantage? You should
answer this question by discussing the following elements:
• Network effect of Whatsapp and switching cost for users
• The entry barrier in messaging market for other competitors
• The main differences between WhatsApp and other messaging App
3. How could WhatsApp monetize itself? (i.e. What could be its revenue sources?)
4. What is the WhatsApp's standalone value by applying the relative valuation
method?
5. From your answer in (2), (3) and (4), do you agree with Facebook’s $22b
purchase of WhatsApp?
The paper systematically all questions in case and moved to a logical conclusion

source..

Content:

Facebook is basically an internet based company which provides social networking activities and services around the world. At present it has placed itself among the topmost of social media business and captured about 2 billion active users worldwide. Facebook declared its purpose for acquiring WhatsApp Inc. which is another message based company providing services similar to that of facebook in terms of some features (Investopedia, 2019). The acquisition price was about $22 Billion in order to capture access of many more users. This strategy was initiated in order to get various users and to provide top notch technological services and better mobile experiences for users. Mark Zuckerberg, the founder of facebook also announced that they have introduced an aim to provide the customers power of sharing information efficiently according to their will and developed new horizon of communication activities (Digital Marketing Blog, 2019).
The main motivation that triggered the initiative of acquiring WhatsApp was a pure strategy. It is essential for all the companies to follow up with the latest market trends and develop a probable market shift. With the advancement of time, various changes take place in case of technology, consumer perceptions and reliability towards certain features of the brand. The market environment becomes highly competitive. Proper Research and development is required to be a part of the competitive environment and earn higher revenues.

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Whatsapp case harvard Management Case Study Paper (Case Study Sample)

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