You’re the PM for WhatsApp and you have $1B to invest. What would you do?
- Malcolm Sequeira
Strengths :
- WhatsApp has become the default messaging tool for majority of internet users in developing countries specially in Asia, and Africa
- Network effects. Almost all of the people in the family and office are already present
- Video calls and audio calls have also picked up
- Has recently begun the whatsapp for business
Weaknesses:
- Has not innovated much since the launch.
- Telegram taking over the group chats or community
- Has to catered to most use cases which are in demand
- No way to schedule the events (people want to call each other at a particular time)
- messaging in group sucks ( no way to thread or fork )
- Navigation and organisation of chat is really bad
- No filtering
- Has stuck to primarily focused on B2C, where it is finding hard to make money
Competition :
- Telegram has taken over the group discussions
- Google Meet and Zoom have taken over the group calling
- Slack and teams have taken over the professional groups
- Google Pay has disrupted markets like India.
Opportunity :
Given the Covid situation,
- Work from home will continue to see more adoption, everyone will prefer virtual hang outs than in person meetings.
- Video/Calls for official and personal reasons has seen the spike. it would continue to increase
- Slack and teams have seen excessive hike in the adoption
- Digital payments will see a spike in adoption
- P2P contact less payments will continue to see the spike
- Transactions with merchants will see adoption of digital mediums
- E-commerce is picking up, and engagement will increase in this space
- Users want to be in constant touch with the seller for any queries
- May want to directly buy things from whatsApp
Recommendations :
Two pronged strategy to invest 1 Billion USD more wisely
- Retain the lead in the existing P2P communication in the developing countries
- Invest 10% of 1 Billion of USD in improving the product to avoid churn
- Proposals mentioned above are :
- Improving the filtering, discoverability etc
- Improving group discussions
- Events in whatsapp
- Proposals mentioned above are :
- Invest 10% of 1 Billion of USD in improving the product to avoid churn
- Invest in new categories aggressively to catch up with leads and take over the market. In remaining 90% of the money left, 30% of the money can be spent on the following domains.
- Invest in Video/audio calls along with facilities for event and calendar creations
- will directly hit google meet and zoom
- Check if any new start ups like Loom or airmeet can be acquired.
- Aggressively purse in Whatsapp payments
- Adopt UPI in india more aggressively for P2P payments
- Spend marketing money to get more customers
- Build features in the product to ensure all the basis use cases are taken care of
- Ledger to know my expenses
- Track the payments to my peers
- Adopt UPI in india more aggressively for P2P payments
- Invest in enabling businesses through WhatsApps : Give this feature free of cost to businesses to attract,
- Customer support can be enabled to begin with
- Businesses can take order in the next phase
- Invest in Video/audio calls along with facilities for event and calendar creations