Kate Burns

Econ 357

Presentation #1

Instant Messaging Service

Proprietary License

Cross-Platform

Subscription Based

Used on Smartphones

Utilizes Data

Jabber ID: [phone number]@s.whatsapp.net

Compares numbers from contacts with central database

Automatically creates WhatsApp contact list

Set profile name

Set profile picture

Set status

Change your wallpaper, color themes, etc.

Founded in 2009

American Brian Acton and Ukrainian Jan Koum

Former employees of Yahoo!

Based in Mountain View, California

WhatsApp is a pun on the phrase “What’s Up”

Wanted to build a better SMS because, very soon, everyone will have a smartphone

Free subscription for the first year

$0.99 subscription fee per year afterwards

Available on Google Android, Blackberry OS, Apple iOS, Nokia Series 40, Nokia AshaPlatform, Symbian, and Microsoft Windows Phone

Allows customers to send text messages, video messages, picture messages, and audio media messages

“A few short years ago, my friend Brian and I set out to build a messaging service with a single focus: best possible user experience. We bet that if our team of engineers could make messaging fast, simple, and personal, we could charge people directly for the service without having to rely on annoying banner ads, game promotions, or all those other distracting “features” that come with many messaging apps...WhatsApp has just 50 employees, and most of us are engineers. We’ve arrived at this point without spending a dollar on targeted ads or big marketing campaigns. We’re here because of all the people who share their WhatsApp stories with co-workers, friends, and loved ones – stories we love to hear.” –Jan Koum

“There was the woman from New Zealand who moved to South Africa to complete her PhD. The week before she left to go back home, she met the man of her dreams. Despite living thousands of miles apart, she told us that WhatsApp has allowed them to feel closer than ever.”

“We also heard from a British woman who runs a charity in Uganda. She told us that her team on the ground uses WhatsApp to send daily reports, photos, and videos of the children they’re helping, which she shares to build support for her organization all over the world.”

India’s doctors are using WhatsApp to instantly send electrocardiogram pictures of patients who’ve suffered heart attacks, saving valuable time and potentially lives.

In the mountains of Madrid, rescuers used WhatsApp to locate and save lost hikers.

There is hope that WhatsApp will be used as a means of speaking one’s mind and standing up for their basic rights in places of civil and political unrest like in Koum’s home country of Ukraine.

A total of fifty employees that are either Customer Service Associates or Client Engineers comprising of Full Time staff and Interns

Devotion to customers is highest determiner for the running of the company

Rather charge a subscription fee than sell ads and interrupt customer experience

Privately Owned

Want to Stay Independent

Few Expenses

Only 50 Employees

Revenue is expected at approximately $300 million per year

Not focused on monetization

Did not want to divulge much about finances

Able to compete with free companies because of high customer satisfaction and trust along with minimal expenses and small employee base

Uses a bait and hook pricing strategy with free service for the first year, upgrade after the first year for continued quality with payment

Focusing on independence for the company

Growth has been exponential, especially since April 2013

“Our goal in creating WhatsApp was to empower people through technology and communication, no matter who they are, or where they live. We wanted to improve people’s lives in some small way. So thank you for making that possible. Thank you for sharing your stories, and please, keep them coming – we can’t wait to hear what you’ll use WhatsApp for next.” – Jan Koum