Instagram

Headnote

This case explores the rise oflnstagramfrom its founder's desire to share photos of his passion to successful funding, launch, and eventual purchase by Facebook and Mark Zuckerberg. Starting from an application, it is now a successful technology company. The case provides students with an example of a successful technological innovation, launch, development of an enterprise, and eventual harvest. While the company is popular among some users, younger generations may grow tired and see it as it as an "older " user's platform as they now view Facebook. Can the company maintain its popularity, continued growth, and withstand governmental, societal, and parental concerns?

Keywords: Instagram, entrepreneur ship, technology

INTRODUCTION

Based on his love of bourbon and whiskey, Instagram's founder developed an application that enabled users to check in with each other, share plans, and share photos. After two venture capitalists gave him money to develop his application, he launched Instagram in 2010. It gained 25,000 users on the first day, 100,000 downloads the first week, and one billion users by the end of that year (Blystone, 2020).

Instagram slowly added features, such as website profiles, web widget buttons, designs, colorful icons, stories, and improved its offerings (Blystone, 2020). A second round of funding in February 2011 increased its capacity, reach, and number of employees. To develop revenue, it added advertising capability reaching 200,000 advertisers by February 2012. In April 2012 Facebook purchased Instagram for $1 billion (EarthWeb, 2022).

Instagram's employee amenities include encouraging a good work life balance, flexible hours, family-oriented policies, retirement plans, resources, and a paid 30-day vacation every five years. In 2019 the brand worked to decrease harassment, negative comments, and the number of photos visible on a page. They have also weathered government and parental scrutiny and criticism. (Instagram.com 2022).

Can Instagram keep up with possible government regulation, technological changes, and changes in customer demands, or will younger generations soon consider Instagram "old" like they do Facebook?

INSTAGRAM FOUNDING AND HISTORY

In 2009, Kevin Systrom developed a prototype web application called Burbn that reflected his taste for whiskeys and bourbons. The application would allow users to check in, post their plans, and share photos (Blystone, 2022). At a party in March 2010, Kevin met two venture capitalists and showed them his...