Tiffany Hu Blog Post 2 – Power
http://fortune.com/2016/08/02/facebook-snapchat-2/
The article describes how powerful Snapchat has gotten. It explains how Facebook attempted to buy Snapchat for three billion dollars. However, Snapchat did not agree. In Snapchat’s gaining popularity, its power has similar increased as well. The article further describes how Facebook, which owns Instagram has copied some of Snapchat’s features. However, users of both Snapchat, Facebook, and Instagram continue to use Snapchat as a means of carrying out these similar features.
This situation illustrates an example of power. The more power that one has, the greater the value they can obtain in a trade. This is due to the amount of other options that one has from others. In this case, the massive number of Snapchat users represents the potential opportunities that Snapchat could have. Many people value Snapchat, increasing its popularity. To Facebook, the trade would be giving Snapchat a certain amount of money to get ownership of Snapchat. The three billion dollars that Facebook offered was rejected by Snapchat. This shows that Snapchat has a relatively high power. If Snapchat’s popularity and thus power was lower, then Snapchat probably would not reject the offer. This further illustrates that Snapchat has a better option than getting the three billion dollars through selling the company. It’s better option in this case would be to stay as it’s own owner.