To be successful, a company needs to provide something customers want. It must be able to do so for less than they’re willing to pay. And there must be some reason why competitors can’t just copy it when it succeeds. In management terms, it needs a value proposition, a business model, and a strategy.
Can Snapchat Survive If Facebook Copies All Its Best Features?
It’s a classic strategy debate.
May 12, 2017
Summary.
When Snap CEO Evan Spiegel was asked about Instagram copying its features on Snap’s first earnings call, he replied that “Just because Yahoo has a search box, it doesn’t mean it’s Google.” That’s true, but it doesn’t necessarily imply what Spiegel needs it to. In fact, Snap’s response to Facebook’s attempts to copy it reflects a decades-old debate over what strategy is, one that’s being re-litigated in the digital age. The debate over how sustainable “operational advantages” are continues to this day. But even if one grants that certain capabilities can be hard to imitate, Spiegel needs to explain why Snap’s capabilities qualify.
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New!
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HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.