Apple, Amazon, Facebook, Instagram Lessons

On a cost-per-existing-customer basis, Facebook stole Instagram.  And that’s before Facebook spreads out the solution to the rest of its 780million users!  Forget about how many employees Instagram has, or its historical revenues or its assets.  In an innovation economy, if you have a product that 35million people hear about and start using in less than a year, you have something very valuable!

Kudos go to Mark Zuckerberg as CEO, and his team, for making this acquisition so quickly. 

Greed or fear.

Facebook is scared of the internet

Mr Zuckerberg has so far avoided the pitfalls by handling the rise of Facebook cleverly, and reversing his mistakes rapidly enough not to alienate users. But as its growth has slowed in the US, he has clearly got worried at the growing competitive threats to its dominance.

Instagram was one but there are others, some of which would be even more expensive. The internet has a nasty habit of consuming its mature companies ??? Yahoo took 18 years from being founded in 1994 to get into its current state. Facebook will be lucky to last that long.


Schumpeter’s curve is shortening in the post-Industrial age