KARNATAKA SANGHAS

MANJUNATHA COLLEGE OF COMMERCE

&
JUNIOR COLLEGE OF COMMERCE

Dr.V.S.ADIGAL
M.A.ph.D.
Principal

Kanchangaon,Khambalpada,
Thakurli(East),Dist.Thane 421 201.

Tel.:2439952/2803975 Fax:2441826
Website : www.ksmanjunathacollege.edu.in
E-mail ID : mcac_college@rediffmail.com
principal@ksmanjunathacollege.edu.in
LBT No.KDMC/LBT-TIN/H/12001824

A PROJECT REPORT
ON THE TOPIC OF
AN ANALYSIS OF WHATS APP
IN THE SUBJECT OF ECONOMICS OF GLOBAL
AND FINANCE
SUBMITTED TO
UNIVERSITY OF MUMBAI
FOR SEMESTER II - FOR M.COM - PART - I
BY
NAME OF THE STUDENT
ASHOK SANDU PAZADE
ROLL NO 2509
UNDER THE GUIDANCE OF
Mrs. SHRADDHA SINGH
ACADEMIC YEAR 2015-16

KARNATAKA SANGHAS

MANJUNATHA COLLEGE OF COMMERCE

&
JUNIOR COLLEGE OF COMMERCE

Dr.V.S.ADIGAL
M.A.ph.D.
Principal

Kanchangaon,Khambalpada,
Thakurli(East),Dist.Thane 421 201.

Tel.:2439952/2803975 Fax:2441826
Website : www.ksmanjunathacollege.edu.in
E-mail ID : mcac_college@rediffmail.com
principal@ksmanjunathacollege.edu.in
LBT No.KDMC/LBT-TIN/H/12001824

CERTIFICATE

This is to certify that the project entitled submitted by ASHOK SANDU PAZADE Roll
no. 2509 student of M.Com PartI Economics Of Global And Finance (University of
Mumbai) Semester I examination has not submitted by any other examination & does
not form a part of any other course undergone by the candidate as a result of genuine &
bonafide effort. It is further certified that She has completed the required phases of the
project. This project is original to the best of our knowledge & has been accepted for
Internal Assignment.

Internal Examiner

External Examiner
Co-ordinator cum Principal

College seal
Place: Thakurli

DECLARATION BY THE CANDIDATE

I ASHOK SANDU PAZADE a Student of M.Com Part- I Economics Of Global And

Finance Roll no.2509 ,hereby wish to state that the work embodied in the project entitled
An analysis of Whats app in the subject of

Economics Of Global And Finance

submitted by me to the University of Mumbai for semester II examination during the

Academic year 2015-16. The said reports are forms of my own contribution based on
actual work carried by me under the guidance & supervision of Mrs. Shraddha Singh .
I further wish to state that this work is original & has not submitted for any other degree
of this or any other examination. Whenever the references have been made to the
previous work of others, it has been clearly indicated as such & included in the
Bibliography or list of preferences.

Name of the student: ASHOK SANDU PAZADE

Roll no.: 25109
Place: Thakurli
Date:

Signature of student

ACKNOWLEDGEMENT
I have received valuable support from the various individuals & institutions. It will be
difficult to name all of them here. However, I would like to specifically record my sense
of gratitude & indebtedness to some of them.
I am indeed grateful & wish to acknowledge my deep sense of gratitude to Mrs. Shraddha
Singh. whose erudite & profound scholarship inspired me to undertake project
assignment & complete said project under his guidance, support & sparing his valuable
time in his busy schedule without which this report would not have been possible.
I am grateful to Prin. Dr.V.S.Adigal & Co-ordinator of PG Centre at Manjunatha College
of Commerce for the support & encouragement & also expressed my gratitude to his
supportive staff for helping me in my submission of this assignment.
I also owe my indebtedness & record my feelings with love & affection here to my
parents who are the pillars in my life. My sincere thanks are also due to my friends,
relatives & other well-wishers for their constant help in the pursuit of the completion of
this report.
Finally last but not least I would like to express my gratitude to all those who are directly
or indirectly help me in this project.

Place: Thakurli
Date:

Signature of the student

SR
NO.
1
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3
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5
6
7
8
9
10
11

CONTAIN
INTRODUTION WATS UP
GROWTH
MAJOR PLAYERS IN MESSAGING APPS
TECHNICAL
SECURITY
PRIVACY
OPEN WATS UP PROJECT
WHY WE USE WATS UP
WATS UP SWOT ANALYSIS
FUTURE
REFERANCE

PAGE
NO.
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AN ANALYSIS OF WHATS APP

Way back in 1876, a revolution was created by a 29year old

genius
Alexander Graham Bell, in theform of a telephone. Sadly
though, both, his mother and his wife were deaf. Most of us
alive today,
werent then. But we did get
to witness a similar break-through though, in 2009
Whats App, With 450 million monthly users and a million more
signing up each day, Whats App was just too farahead in the
international mobile messaging race for Facebook to catch up, as
you can see in the charta bove that we made last year. Facebook
either had to surrender the linchpin to mobile social networking
abroad, or pony up and acquire Whats App before it got any
bigger. It chose the latter. Facebook recently said on its earnings

call a few weeks ago that its November re launch of Messenger

led to a 70 percent increase in usage, with many more messages
being sent. But much of that was likely in the United States and
Canada where the standalone messaging app war is still to be
won. Internationally, Facebook was late to the Messenger party.
It didnt launch until 2011 after
Facebook bought Beluga, and at the time it was centered around
group messaging where SMS was especially weak. WhatsApp
launched in 2009 with the right focus on a lean, clean, and fast
mobile messaging app. And while the international messaging
market is incredibly fragmented, it was able to gain a major
presence
where Messenger didnt as you can also see in the chart above.
Unlike PC-based social networking, there is no outstanding
market leader in mobile messaging. Still, Whats App absolutely
dominates in markets outside of the U.S. like Europe and India.
Whats App was much more popular than Facebook in several
large developing markets, according to data from a small survey
conducted by Jana Mobileand published by The Information
(which requested we remove the graph of the data). In India,
Brazil, and Mexico, responses were 12X to 64Xmore likely to
say Whats App is their most used messaging app, compared to
Facebook. Those are big countries with tons of users that
Facebook needs.
Its also impossible for Facebook to acquire certain other Asian
competitors like We Chat, which is the
one hope of Chinese mega-giant Tencent to have a global
consumer product.
So its clear that Whats App had strategic interest to Facebook,
and we know that the two talked from

time to time. We made the map above using data from Onavo,
another Israeli-based company that
Facebook acquired for
Ahem competitive intelligence. Because Facebook scooped up Onavo
for more than $100 million in October, we dont have access to active
usage data anymore. The only thing outsiders can see are app store
rankings, which imply download rates and not current usage. So what
happened in the last year? WhatsApp looks to have pulled so far ahead
of Facebook in developing markets that there was no way to catch up.
Mark Zuckerberg said in a post today that the app was on its way to
reaching 1 billion users.
Weve heard Facebook has been interested in buying Whats App for
two to three years. We reported in2012that Facebook was in talks
to acquire Whats App. But over the past year, it became clear that
Facebook couldnt afford not to pay whatever it would take to
get Whats App on its team.
So the answer to Facebooks problem ended up being $19 billion.
Apparently, thats what it
took to take Jan Koum and his backers at Sequoia Capital(the fund
thatZuck originally spited) out of the market. If it waited any longer, that
number probably would have just gotten bigger.You might wonder how
WhatsApp will ever earn back the money it cost to buy, but this
acquisition wasnt about increasing Facebooks total revenue. It was
about surviving the g
lobal shift to mobile.

Whats App, a dream comes true of talking to a friend sitting oceans

apart through radio-waves, meaning absolutely free! What used to cost
a somewhere between Rs. 5-15 per message was brought down to being
free by online messaging like Way2SMS.This was still found to be
cumbersome by people mainly due the involvement of internet which
required logging or signing in a personal computer or laptop.
This is where Whats App walked in to make life easy for smartphone
use Rs. It leveraged on the increasing popularity of the term, Stay
Connected. Where people wanted staying in touch with their friends
and loved ones for as low a price as possible, Whats App removed the
price aspect from it. It seems this application builders leveragedon the
growing population of Short message service (SMS)
An invention by two guys with an experience of 20 years at Yahoo!
Inc. as per the official website,Whats App stirred hard the broth
BlackBerry (BB) had tried to, but could only cater to Black Berry users,
in the form of BB Messenger. No wonder, the success of Whats App is
much greater (in terms of number of users) compared to BlackBerry
Messenger. It is supported by many platforms Windows ,BlackBerry,
Android etc. It has even managed to enter the territory of Apple, which
is otherwise difficult to cross for a non-Apple-made application.

From being a multi-purpose, user-friendly, connectivity application to

allowing sharing of not only messages but also images, audio files and
videos, Whats App is a rage.
The reason is pretty obvious From downloading it to using it, Whats
App is free!But then WhatsApp does cost you something. It demands an
internet connection, on the smart phone handset, to be in use. Just out of
curiosity, I wonder then why should one not be as crazy about using Gtalk or Yahoo messenger or AOL as well.
Some of us must have heard of the kik application which followed in
the footsteps of WhatsApp and was a declared success. Why, all of these
are freetoo, with the internet connection? That makes them as well
equipped as WhatsApp.
What, then, distinguishes WhatsApp from the other free of cost
applications?It may be any one of the following

 The boom of 3G services followed by a fad for the same.

The plethora of cool and funky emoticons offered by WhatsApp
Adding a friend on WhatsApp is simple. Anyone who possesses this
application on his/hersmartphone and is present in your contact list at
the same time is connected to you via WhatsApp.

WhatsApp doesnt require any Sign in or Log out

Whats up, the on
Whats up, the on going homonym pun, somehow makes it
easier for the youth to connect with WhatsApp (Intelligent
naming).

 WhatsApp connects with its users in more than one ways

Facebook, Blog and Twitter, riding on the success of social
networkings popularity.

There can be a lot more than these. For some, its the ease of
clicking the Whats App icon, going to the chat with a friend and
seeing when was the last time he/she was seen online on the app.
For others, its the cool way in which one can update his/her
status without really bothering everyone on his/her friendlist to
become aware of the same by a pop- up in their respective
profile ( A friends status can be known only by going to View
profile).
The telecom industry did not take long to realize that
Conference call was a much needed value added service.
Hence, accepting the customer demands, Whats App too added a
fascinating feature of Group Chat in Feb 2011. Not only is it
easy to create a group on Whats App, it is equally easy to quit
the group too. WhatsApp has constantly been adding more and
more handsets to its kitty over the time and informing users of
the same through its website and blog. But fame is a doubleedged sword.
And so it happens that there has been a rum our taking some
rounds; recently there was a hoax about Whats App charging a
fee for its usage to the users whose screen logo did not turn red.
It was on declared on Whats Apps blog and everywhere else on

the internet that the apparently alarming message was a fake

one. Whether this was a marketing gimmick by the
parent company or an attempt to kill competition by someone
else is for the users to figure out.

So what we actually do is, set up a campaign to promote your

business to the list of number, either provided by you or by us
(Its totally up to you). Now we got a bot which is attached to
Whats apps official version.

We then be loading your promotional message and in in a

few minutes that message will be hitting everyones Whatsapp
app. Click here to know more about our Whats app Marketing
service.
Prices are really low, Many IT Company, Hotels, Writers, and
Small Businesses are have used our Whatsapp Marketing
Service. They get new clients every day and their revenue is
been increasing day by day.
We also offer an additional service for Whatsapp Marketing
customers, if you are interested increasing your conversion rate
and ROI. We also provide ROI Management Service.

Instant messaging as such is not a new thing (remember ICQ?),

but there are certain reasons why it hashad its resurrection now
1.Phones are increasingly more about data than talking
In developed countries nearly every new phone sold is smart
phone. Smart phones areincreasingly more about being smart
than phone. There is app for that, now also for the basic phone
features (talking and texting).

2. That data is getting faster

New 4G LTE (Long term evolution) phones will enable highspeed data for mobile phones.This opens new opportunities for
what kind of content we can exchange in MIM platforms..
3.Facebook is so huge that it is already mass broadcasting
If you are average Facebook user sending your status update,
the odds are that the message will be seen by your family,
friends and colleagues plus countless of people you do not even
know a bout. This is great, but serves more of peoples need for
vanity and instant recognition.
The most meaningful conversations happen with the people you
know. Same phenomenon has been also reason for the success
of Path.

Technical
Whats App uses a customized version of the
open standard Extensible Messaging and Presence Protocol
(XMPP). Upon installation, it creates a user account using one's
phone number as the user name (JabberID: [phone
number]@s.whatsapp.net).
Whats App software automatically compares all the phone
numbers from the device's address book with its central database
of Whats App users to automatically add contacts to the user's
WhatsApp contact list.
Previously the And roidand S40versions used an MD5-hashed,
reversed-version of the phone's IMEIas password, while theiOS
version used the phone's Wi-Fi MAC addressinstead of IMEI.
A 2012 update now generates arandom password on the server
side. Whats App is supported on most Android, BlackBerry,
iPhone, Nokia, and Windows smartphones. All Android phones
running the Android 2.1 and above, all BlackBerry devices
running OS 4.7 and later ,including BlackBerry 10, and all
iPhones running iOS 4.3 and later.

However, some Dual SIM devicesmay not be compatible with

Whats App, though there are some workarounds for this.
Multimedia messages are sent by uploading the image, audio or
video to be sent to an HTTP server and then sending a link to the
content along with its Base64 encoded thumbnail (if applicable).

Security

In May 2011, security researchers noticed that new updates of

Whats App no longer sent messages as plaintext, but the
cryptographic method implemented was subsequently described
as "broken".

As of August 15, 2012, the Whats App support staff claim

messages are encrypted in the "latest version" of the Whats App
software for IOS and Android (but not BlackBerry, Windows
Phone, and Symbian), without specifying the implemented
cryptographic method.
German Tech site The Hdemonstrated how to use Whats A PIto
hijack any Whats App account on September 14, 2012.
Shortly after, a legal threat to Whats API's developers was
alleged, characterized by The H as "an apparent reaction" to
security reports, and Whats API's source code was taken down
for some days. The Whats API team has since returned to active
development.

PRIVACY

A major privacy and security problem has been the subject of a

joint Canadian-Dutch government investigation. The primary
concern was that Whats App required users to upload their
mobile phone' sentire address book to Whats App servers so that
Whats App could discover who, among the users' contacts, is
available via Whats App.

While this is a fast and convenient way to quickly find and

connect the user with contacts who are also using Whats App, it
means that their address book was then mirrored on the Whats
App servers, including contact information for contacts who are
not using WhatsApp. This information was stored
in hashed, though not salted form and without "additional"
identifying information such as a name, although the stored
identifying information is sufficient to identify every contact.

On March 31, 2013, the telecommunications authority in Saudi

Arabia, the Communications and Information Technology
Commission(CITC), issued a statement regarding possible
measures against WhatsApp, among other applications, unless
the service providers took serious steps to comply with
monitoring and privacy regulations.

One of the drawback of WhatsApp is that the user does not

need to send a friend request to send messages to another user.
However, users can block numbers on Whats App.

Criticism of business model :

In response to the Facebook acquisition, Slate

columnist Matthew Yglesias questioned whether the
company's business model was viable in the long term.
It had prospered by exploiting a "loophole" in mobile phone
carriers' pricing. "Mobile phone operators aren't really selling
consumers some voice service, some data service, and some
SMS service," he explained.
"They are selling access to the net work. The different pricing
schemes they come up with are just different ways of trying tom
aximize the value they extract from consumers. "As part of that,
they sold SMS separately. That made it easy for Whats App to
find a way to replicate SMS using data, and then sell that to
mobile customers for $1 a year.
"But if Whats App gets big enough, then carrier strategy is going
to change," he predicted. "You stop selling separate SMS plans
and just have a take-it-or-leave-it overall package. And then
suddenly Whats App isn't doing anything.""

Open WatsApp Project

Why Use Wats App

Whats App Messenger is a smartphone messenger available for
Android and other smart phones. WhatsApp uses your 3G or
WiFi (when available) to message with friends and family.
Switch from SMS to Whats App to send and receive messages,
pictures, audio notes, and video messages. First year FREE!
($0.99 USD/year after)

No Hidden Cost:
Once download the application, can use it to chat as much as
one want. Senda million messages a day for free! WhatsApp
uses Internet connection: 3G/EDGE or Wi-Fiwhen available.

Multimedia:
Send Video, Images, and Voice notes to friends and contacts.

Group Chat:
Enjoy group conversations with ones contacts.

No International Charges
Just like there is no added cost to send an international email,
thereis any cost to send WhatsApp messages internationally.
Chat with friends all over the world aslong as they have
WhatsApp Messenger installed and avoid those pesky
international SMScosts.

Say no to PINs and Usernames:

Why even bother having to remember yet another PIN
orusername? WhatsApp works with phone number, just like
SMS would, and integratesflawlessly with existing phone
address book.

No need to Login/LogOut
No more confusion about getting logged off from
anothercomputer or device. With push notifications WhatsApp is
ALWAYS ON and ALWAYSCONNECTED.

No need to add buddies

Your contacts who already have WhatsApp Messenger will be
automatically displayed.

Offline Messages
Even if someone miss push notifications or turn off phone,
WhatsApp willsave messages offline until retrieve them during
the next application use.

And Much More

Share location, Exchange contacts, Custom wallpaper, Custom
notification sounds, Landscape mode, Precise message time
stamps, Email chat history, Broadcastmessages and MMS to
many contacts at once and much much more

Wats App Swot Analysis

Strengths

1. Top of the mind app among customers

2. High awareness and huge customer base
3. Due to network effect - Customer base keeps increasing
High brand equity(also due to Facebook)
4. Ad free and hence higher customer satisfaction
5. Customers are loyal with over 700 million active users

6. Available in all platforms

7. Has been enjoying early mover advantage
8. Bug free compared to its competitors (Works smoothly
without any problems)
9. WhatsApp Inc was acquired by Facebook in 2014 for approx.
US$19 billion

Weaknesses

1. Certain improvements need to be done in product

development
2. Fear among users that data might get leaked due to cloud

Opportunities
1. Increasing internet penetration especially in developing
countries
2. Increasing smartphone users
3. Technological development

Threats
1. Intense competition from similar apps
2. Similar applications are available for free
3. Not a differentiated product. Substitutes are available

Competitors
1. Viber
2. WeChat
3. Line
4. Skype
5. Telegram
6. Facebook messenger

Future

What lies ahead is known by none. The application is free today

but may not be tomorrow or so thetalks go around.
As far as the facilities provided are concerned, WhatsApp today
does not provide the option of Calling (although its logo has a
phone receiver inscribed in the centre!). It may have this in
future.

With the technology growing in leaps and bounds, we may also

expect a Skype-like free video call viaWhatsApp. What has been
a user-friendly, connectivity application till date may take a turn
towards shared-information holding platform like Drop box,
meaning people may not only be able to chat onWhatsApp but
also share and store common data.
With the advent of Cloud Computing, the world has virtually
shrunk down to the size of a room. It may not come as a surprise
hence, to see such a large network-sharing support on Whats
App someday.
Whether the mole will actually become a mountain someday is a
mystery. Till then, we enjoy the present and await the surprises
of future

BIBLIOGRAPHY
https://en.wikipedia.org/wiki/WhatsApp
https://www.whatsapp.com/
http://www.wikiswot.com/SWOT/4_/Whatsapp.html
http://nivedithg.blogspot.in/2012/10/wechat-mobile-appreview.html
http://www.wikiwealth.com/five-forces:whatsapp