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""Competitive"Strategy"
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"Yik"Yak"

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Pranav"Reddy"
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Index"
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S.No."

Topic"

Page"

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Executive"Summary"

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Background"of"Yik"Yak"

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Slywotzkys"Model"

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Value"Proposition"

7"

5"

Business"Model"Canvas"

9"

6"

Recommendation"

9"

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1.Executive+Summary+
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Yik"Yak"is"an"anonymous"social"media"app"where"the"users"can"post"yaks"in"a"10Smile"
radius."It"differs"from"its"competitors"like"Post,"Secret"and"Whisper"because"it"focuses"
on"users"that"are"in"close"proximity"of"one"another."The"users"can"post"yaks,"respond,"
like" or" dislike" the" yaks" and" it" is" becoming" increasingly" popular" in" the" US." It" is" the" 9th"
most"downloaded"app"in"the"US"in"20141.""
"

In" this" report," I" focused" on" analysis" of" value" proposition" for" Yik" Yaks" customers" (not"
end"users),"Slywotzkys"Model"and"business"model"canvas"to"figure"out"a"practical"way"
for" Yik" Yak" to" make" profit." Yik" Yak" has" gotten" public" attention" and" been" in" top" 10"
networking" social" apps" in" US" since" August" 2013," but" it" still" lacked" a" solid" revenue"
model"to"boost"its"further"development."
"

I" analyzed" the" different" ways" in" which" companies" can" monetize" insights" derived" from"
the"anonymous"data"of"Yik"Yak."I"suggest"a"business"model"canvas"for"Yik"Yak"to"start"
tapping"the"potential"of"its"users"text"data"and"turn"it"into"a"resource"for"companies"to"
understand"their"customers"better."
"

2.Background+of+Yik+Yak2""
"

Yik"Yak"is"an"anonymous"locationSbased"app,"founded"by"Brooks"Buffington"and"Tyler"
Droll," two" students" in" South" Carolinas" Furman" University." Like" other" apps" such" as"
Whispers"or"Secret,"Yik"Yak"provides"a"platform"for"users"to"share"their"thoughts"with"
wide"audience"without"identifying"themselves."But"unlike"these"apps,"users"dont"need"
to" provide" any" personal" information" when" they" register" and" even" a" password" is" not"
needed."Another"special"feature"is"that"users"can"only"share"their"thoughts"with"others"
within"a"radius"of"10"miles"(It"was"1.5"miles"a"few"days"ago)."
"

The"aim"of"the"founders"is"to"establish"a"local"news"bulletin,"especially"during"incidents"
that" capture" everyones" attention3." The" company" even" launched" a" new" tool" named"
Peek"to"support"its"direction,"which"can"allow"user"to"drop"a"pin"anywhere"on"a"map"to"
see"tons"of"posts"from"Yik"Yak"in"that"area."The"contents"of"Yik"Yak"are"mostly"around"
exams,"Netflix,"food"and"sex."Every"user"has"a"score"based"on"the"likes"(upSvotes)"they"
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1

"http://yikyaker.com/yikSyakSmovesStopS10SsocialSmediaSapps/"
http://www.forbes.com/sites/ellenhuet/2014/10/20/yikSyakSwantsStoSbeSaSnewsShubSbutSitSneedsStoSgrowS
upSfirst/2/"
http://blogs.wsj.com/venturecapital/2014/06/30/yikSyakSraisesS10SmillionStoSmoveSbeyondSbeingSaSgossipS
app/"
3
http://www.forbes.com/sites/ellenhuet/2014/10/20/yikSyakSwantsStoSbeSaSnewsShubSbutSitSneedsStoSgrowS
upSfirst/2/"
2

3"

have"on"their"yaks."The"score"is"called"Yakarma"which"can"be"an"incentive"for"the"user"
to"post"good"quality"yaks."
"
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2.2"Users"Analysis"
Yik"Yak"has"been"in"the"top"10"in"American"social"networking"applications"ranking"since"
August"2013."The"initial"users"were"students"in"high"schools"and"colleges."But"after"Yik"
Yak" became" a" gossip" app" and" fostered" cyber" bullying" among" high" school" and" middle"
school" students," they" blocked" the" app" within" 85%" high" school" and" middle" school"
campus"nationwide."Now,"the"major"users"of"this"app"are"college"students."
"

Chart"1."Yik"Yak"Mobile"Monthly"Active"users"(Comscore) "

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According" to" Comscore," Yik" Yak" mobile" monthly" active" users" reached" 2" million" in"
October" 2014." But" in" December" 2014," the" user" numbers" were" still" about" 1.8" million."
Though"the"data"shown"by"Comscore"is"from"people"over"18,"it"may"not"have"a"huge"
impact" since" the" target" users" of" Yik" Yak" are" college" students." Considering" Yik" Yak" is"
still"in"its"early"state,"the"number"of"users"is"quite"huge"and"is"increasing"steadily"since"
its" promotion" of" new" attractive" feature," Peek," with" which" the" user" can" see" yaks" from"
any"location"on"the"map."
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"https://gigaom.com/2015/02/13/yikSyaksSgrowthSflatlinedSafterSfundingSbutSwhy/"

4"

2.3"SWOT"analysis"
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Strength"
" Anonymous"posting"attracting"more"
users"to"join"Yik"Yak."
" SequoiaSfunded"
" Location"limitation,"differentiating"with"
competitors."
" More"than"1.8"million"users."
" Surpassed"earlier"entrants"like"Secret"
and"Whisper"to"become"one"of"the"top"
10"social"networking"apps"in"US.""
" RealStime"search"and"speedy."
" Ability"to"innovate"new"features."

Weakness"
" Weak"advertisement"
" One"source"revenueSinvestments"
" Users"can"post"anything"negative"and"
illegal"like"rumors"or"bomb"threats."
"

Opportunity"
" Increasing"number"of"mobile"internet"
users"
" Population"of"Big"Data."
" It"may"become"a"way"for"business"to"
communicate"with"their"customers"and"
catch"customer"needs."

Threat"
" Increasing"number"of"competitors"in"US"
market"or"foreign"markets."
" Bad"media"image"because"of"incidents"
of"cyber"bullying"in"high"schools."

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3.+Slywotzkys+Model5"
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Customer)selection:))
"
Which"customers"does"Yik"Yak"want"to"serve?"
Yik" Yak" has" a" very" particular" set" of" demographic" that" it" is" popular" in." That" includes"
particularly"younger"generation"between"16S27"years."These"are"the"group"of"customers"
that" are" still" pursuing" education." They" like" to" know" whats" going" around" and" are" most"
active"on"social"media.""
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5

"http://tbmdb.blogspot.com/2009/04/profitSzoneS1997.html"
5"

"
To"which"customers"can"Yik"Yak"add"real"value?"
"
These"are"the"consumers"who"want"to"share"their"opinions"with"everyone"and"most"of"
them" are" highly" active" on" social" media." However," they" need" a" new" source" to" do" the"
same"and"Yik"Yak"allows"them"to"be"anonymous."
"
Which"customers"will"allow"Yik"Yak"to"profit?"
"
Maybe" in" the" future" some" customers," who" are" young" and" particularly" well" off," would"
want"to"pay"for"the"app."However,"it"seems"highly"unlikely"as"of"now"because"this"is"the"
era"in"which"things"are"replaceable."So"if"Yik"Yak"starts"to"ask"for"money,"it"might"easily"
be" replaced" some" other" application" with" similar" features." Yik" Yak" can" partner" up" with"
companies"and"sell"them"data"that"they"can"use"to"make"business"decisions."
"
Which"customers"does"Yik"Yak"not"want"to"serve?"
"
The"segment"of"population"who"arent"active"on"social"networks,"are"highly"unlikely"to"
use"this"application."Also,"the"working"professionals"in"spite"of"being"young"or"active"on"
social"media"are"highly"doubtful"of"using"this"app."
"
Value)Capture:))
)
How"does"Yik"Yak"make"a"profit?""
"
Yik"Yak"can"collect"and"consolidate"data"and"sell"the"insights"to"other"companies."The"
data" is" anonymous," but" can" provide" companies" an" insight" of" what" the" younger"
generation"is"talking"about.""
Yik" Yak" can" sell" insights" to" media" companies" that" can" gather" news" from" different"
perspectives"of"people"in"different"locations.""
"
Strategic)Control:))
"
The"unique"feature"about"this"application"is"that"it"doesnt"require"any"sign"ups"or"any"
personal"data."It"is"anonymous"and"people"can"share"their"thoughts"freely."Also"it"shows"
the"messages"only"in"10"miles"radius"and"thus"there"is"a"higher"probability"that"people"
with"similar"backgrounds"and"interests"sharing"their"thoughts."
"
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6"

Scope:))
"
Yik" Yak" should" start" analyzing" the" yaks" and" see" what" is" trending" and" sell" it" to" other"
companies"without"revealing"the"identities"of"the"users."The"companies"can"then"make"
their"business"decisions"based"on"Yik"Yaks"data."
"
"
4.+Value+Proposition+for+Yik+Yak+to+End+Users+
""
Jobs)to)be)done:)
)
" Provide"a"platform"to"discuss"gossips,"college"stories"anonymously."
" Connect"with"locals."
" Peek"into"shared"statuses"(yaks)"in"any"location."
"
Customer)pain:)
)
" Unable"to"share"intimate"and"personal"stuff.""
" Unrelated"content"in"apps"similar"to"Yik"Yak."
" Lack"of"direct"views"of"people"in"a"certain"area"about"any"incident."
""
Customer)pain)relievers:)
" Able"to"post"anonymously."
" Yaks"with"effective"votes"of"S5"get"deleted"automatically."
" Yik"Yaks"Peek"feature"can"be"used"to"point"any"area"and"check"the"yaks"there."
"
Customer)gains:)
" Able"to"post"statuses"(yaks)"visible"to"everyone"around"a"radius"of"10.5"miles."
" Lesser"spam"and"unrelated"stuff"compared"to"other"apps."
" Gives"an"idea"of"whats"there"on"peoples"minds"in"a"certain"area."
" Availability"of"both"universal"humor"and"inside"jokes."
"
Gain)creators:)
" Anonymity"
" Effective"spam"remover"
" Ability"to"view"yaks"in"any"area"
"
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7"

Value+Proposition+for+Customers+to+use+Yik+Yaks+Data:+
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Jobs)to)be)done:)
)
" Analysis"of"user"reactions"to"product"launches."
" Analysis" of" location" specific" user" sentiments," which" can" help" in" tweaking" the"
products"based"on"location."
" Instant" news" source" from" people" who" are" willing" to" share" without" any" concern"
about"their"identity."
"
Customer)pain:)
" Unable"to"capitalize"the"intimate"and"personal"sentiments"of"people."
" Unable"to"analyze"on"failed"products"in"a"certain"area."
"
Customer)pain)relievers:)
" Insights" on" likes" and" dislikes" of" people" in" a" certain" area" regarding" different"
products."
" Able"to"analyze"the"data"and"get"insights"from"any"location"on"map."
"
Customer)gains:)
" Insights" on" products" exclusively" based" on" a" small" location" rather" than" a" set" of"
people"from"different"locations."
" Ability"to"market"to"a"certain"section"based"on"where"they"live."
" Ability" to" analyze" the" social" and"psychological" state" of" their" end" customers" and"
come"up"with"better"products."
)
Gain)creators:)
" Anonymity,"which"can"help"get"harsh"truth"at"times."
" Ability"to"view"yaks"in"any"area"
"
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"
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Table"1"Business"Model"Canvas"
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6.+Recommendations:+"
"

Yik"Yak"provides"users"a"way"to"anonymously"broadcast"their"thoughts"and"views"in"a"
way" that" can" reach" their" fellow" cohabitants" of" the" neighborhood." This" allows" users" to"
uninhibitedly" voice" their" opinions," likes," dislikes" and" points" of" views" on" various" issues"
that"affect"them"in"a"location"specific"context.""
"
Considering"this"unique"platform"provided"by"Yik"Yak,"it"throws"up"a"vein"of"hyper"local,"
real"time"sentiment"data"that"can"be"analyzed"to"provide"impactful"actionable"insights"to"
both"large"conglomerates"as"well"as"small"local"business."Using"text"analytics"to"mine"
useful"data"from"the"explosion"of"data"provided"by"the"Yik"Yaks"medium"could"lead"to"
useful"insights"that"can"help"companies"make"profitable"decision.""
"
This" data" can" be" further" utilized" to" make" forecasts" by" using" predictive" modeling." If"
mathematical"modeling"is"done"on"the"data"provided,"it"can"be"used"as"a"parameter"to"
make"forecasts"for"various"products"that"are"targeted"at"end"users"in"the"age"range"that"
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is" catered" to" by" Yik" Yak." Building" mathematical" models" to" find" correlations" between"
various" events" in" real" time" and" the" subsequent" reactions" to" those" events" can" help"
predict"user"reactions"to"events"that"happen"in"the"future.""""
"
Therefore" Yik" Yak" has" tremendous" untapped" potential" in" its" data" that" is" waiting" to" be"
analyzed"to"understand"customers,"that"is,"end"users,"better.""
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10"