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In a World of Social Media: A Case Study Analysis of Instagram

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American Research Journal of Business and Management
ISSN-2379-1047
Volume 4, Issue 1, 8 Pages

Research Article Open Access

In a World of Social Media: A Case Study Analysis of Instagram

Dr. Daryl D. Green1*, Dr. Richard Martinez1, Amalan Kadja2, Lauran Evenson2
Lisa MacManus2, Stephanie Dirlbeck2
Professors, Oklahoma Baptist University, 500 W. University Drive, Shawnee, Oklahoma.
1

2
MBA Student, Oklahoma Baptist University, 500 W. University Drive, Shawnee, Oklahoma.
[email protected]
Abstract: Social media is a great way to foster a personal relationship between a brand and its followers.
With over 400 million users and 80 million posts per day, Instagram has become an essential social media
marketing tool for all business. Yet, with frequent changing of social media use patterns and preferences, it can
be challenging to assign the right strategy to the right social media platform. The purpose of this case study
is to explore how Instagram can improve as a mobile app for businesses and consumers. The study begins by
exploring the rise of multi-platform use. The study will also evaluate and compare major social channels in
terms of consumer and brand preferences. The study will then analyze and provide insights on ways Instagram
can improve as a marketing platform for businesses. Data collection is achieved through case study analysis as
an empirical way to examine social media platforms. This study provides individuals and businesses engaged in
social media a comparison of major social media platforms and provides insight into digital marketing strategies
for Instagram and businesses alike. The application of these conclusions could increase the survival rate of new
social media platforms and provide a better understanding of Instagram as a strategic tool for practitioners.
The study is significant because this research widens contemporary assumptions about strategic thinking for
social media mechanisms.
Keywords: Instagram, Social media, Businesses, Consumers, Digitalization, Case Study, Data Collection, Digital
Marketing
Introduction
Social media has been a part of our lives for years. The social network is the collective of online communication
channels dedicated to community-based input, interaction, content sharing, and collaboration (Rouse, 2016).
Social networks started out as a way for people to remain connected or reconnected with friends and family. Now,
social media is used as much more than that. The world is getting more and more dependent on digitalization,
and social media is making the internet not only a source of information, but also a source of influence (Hanna,
Rohm, & Crittenden, 2011). In general, businesses should seek to integrate social media into their strategy to
attract and interact with customers. In fact, Larson and Draper (2017) argued that today’s businesses need to
understand digital marketing in general. That reality means individuals need to be able to utilize a variety of
social media platforms, including Facebook, YouTube, Twitter, Instagram, Snapchat, and other web platforms.
Organizations are able to reach the global market through social media due to millions of users worldwide.
This research was conducted to evaluate Instagram’s marketing strategies using qualitative content analysis to
facilitate a case study analysis.
What is Instagram? Instagram is a mobile app (iOS and Android) that enables users to instantly turn their
mobile snapshots into visually appealing images, which are then shared with others on the network (Larson
& Draper, 2017). The images can be shared on other social networks, as well, including Twitter, Facebook,
Tumblr, Flickr, and Foursquare. In fact, Instagram provides an advantage for individuals using such a vast
network to continuously learn new ideas and communicate them to an ever-present community. With that in
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In a World of Social Media: A Case Study Analysis of Instagram
mind, the purpose of this article is to explore how Instagram can improve as a mobile app for businesses and
consumers.
Review of Literature
Every day, billions of humans connect through various social media platforms that are widely used for
communication and information exchange. Aichner and Jacob (2015) described social media as “web-based
applications and interactive platforms that facilitate the creation, discussion, modification, and exchange of
user-generated content.” They also identify 13 types of social media: social networks, “blogs, business networks,
collaborative projects, enterprise social networks, forums, micro blogs, photo sharing, product/services reviews,
social bookmarking, social gaming, video sharing, and virtual worlds” (p. 258). As of today, Facebook is the most
used social media platform in the world with more than 1.5 billion active users (Kousoulou, 2016).
As the world is getting more and more dependent on digitalization, social media is making the internet not
only a source of information, but also a source of influence (Hanna, Rohm, & Crittenden, 2011). Consequently,
businesses should seek to integrate social media into their strategy to attract and interact with customers. A
2014 survey of 351 business executives revealed that 9% of marketing budgets are assigned to social media
marketing (Yang, Lin, Carlson, & Ross, 2016, p. 526). Social media strategies are now treated as an integral part
of Integrated Marketing Communications (IMC) and help in organizations’ promotional efforts by facilitating
interaction between the organization and its customers and among the customers themselves. Therefore, most
stakeholders expect organizations to have some presence on social media platforms, and a lack of these venues
is considered unacceptable and non-normative in this day and age (Jain, Zaher, & Roy, 2017, p. 2).
Recent studies on the importance and impact of social media in the business world agree on the valuable benefits
for a company to invest in social media marketing. First, social networks are tools to make a business stand
out and increase awareness. Taken Smith, Blazovich, and Murphy Smith stated that 88% of marketers gained
more exposure for their business and two-thirds of marketers experienced a rise in search engine rankings
due to social media marketing (2015, p. 131). These numbers can be explained by the fact that customers trust
social media more than corporate-sponsored messages concerning product information. Second, by creating
online communities, companies can earn customer loyalty. Social media allows businesses to establish a strong
relationship with customers. They share their vision, values, and products, as well as receive in return feedback
and new customers. Value is derived from online customer communities, the participants of which are so
engaged with the company that they become loyal customers and even champions for the brand. These types of
customers are instrumental in facilitating viral marketing and driving traffic to the company site (Taken Smith
et al., 2015, p. 131). Thus, through social media platforms, companies can increase profits. Even though it is
difficult to measure the Return On Investment (ROI) of social media (Taken Smith et al., 2015, p.128), studies
show that there is a positive correlation between social media activity and a firm’s financial performance (Yang
et al., 2016, p. 527). Indeed, the R&D, marketing, sales, and customer service that departments gain from social
media insights about customers’ preferences can lead to the creation of new products and informed decisions
about the best way to advertise and serve clients. Taken Smith et al., claimed that 80% of Fortune 500 companies
are engaged in social media, and believe that the impact on the bottom line is most noticeable on long-term
performance (2015, p. 132- 134).

Method
In order to best evaluate Instagram’s social media strategy, this case study employs qualitative content analysis.
Case studies are mostly used in disciplines like organizational studies and social sciences (Kohlbacher, 2006).
They can be explanatory, exploratory, descriptive, interpretive, or evaluative (Zainal, 2007, p.3). A case study
is defined as “an empirical inquiry that investigates a contemporary phenomenon within its real-life context,
especially when the boundaries between phenomenon and context are not clearly evident” (Yin, 2003). Case
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In a World of Social Media: A Case Study Analysis of Instagram

study analysis benefits students by developing their problem-solving skills and engaging them on the topic of
interest (Tidwell, 2015). It also allows them to apply concepts learned in class and increase their knowledge
of a company or a phenomenon. This method also allowed the researchers to gain new insight on social media
platforms. Additionally, Competitor and SWOT Analyses were utilized to gain a better understanding of this
social media platform.
Organizational Background
Organizations are created on the dedication and hard work of select individuals who want to better the
environment and market with their product or service. Instagram founders, Keven Systrom and Mike Krieger,
created a revolutionary idea that combined increasingly available pictures with the ease of connecting with
people through social media (Lagorio, 2012). In 2010, Instagram was available to the public via a free download.
The creation of Instagram revolutionized how social media organizations are structured. Instagram utilized the
strength of a flat organization to leverage the ability of its members to be open and creative while maintaining
collective direction. Flat organizations often lead to an environment of innovation and creativity. The culture on
Instagram is a reflection of the structure throughout the company. This combination of culture and structure
allowed Instagram to create an app allowing users to connect via a platform of picture sharing and location
services.
Today, there are more than 800 million users, which places Instagram as one of the most popular social
networks worldwide (Instagram, 2017). One of the greatest advantages of having a presence on a platform,
such as Instagram, is the ability to tap into the growing social media network and directly communicate with
over 800 million active users from around the world. Instagram created a strategy to focus on certain aspects
of the market and target users based on identifiable similarities in the way people communicate (Larson &
Draper,(2017). Instagram’s strategy mirrors the Porter focus strategy in that it creates a specialized service
in a limited market. Instagram is a fantastic place for individuals to share ideas, connect with foreign worlds,
increase humankind’s knowledge, and increase diversity. Instagram provides an important advantage for
individuals using such a vast network to continuously learn new ideas and communicate them to an ever-
present community.
Results and Discussion
Strategic analysis is a vital instrument for evaluating Instagram. Effective analysis breaks down several key
factors, such as the competitive environment, key obstacles, and critical assumptions, impacting organizational
strategies (Harris & Lennox, 2013). These management tools “provide a structured method for organizing and
understanding the complex trends and developments” that are occurring across this business sector (Palmer,
Dunford, & Buchanan, 2017). This research probes deeper into the infrastructure of Instagram by evaluating
the company’s strategy, structure, and organizational culture. A comprehensive strategic analysis includes; (a)
an identification of the organization’s current competitive environment, (b) a consideration of the pros and
cons of its actions, and (c) the advancement of a set of recommendations based on its strategic analyses (Harris
& Lennox, 2013).
When conducting competitor analysis, a company needs to gather information about each competitor’s real
and perceived strengths and weaknesses (Kotler & Keller, 2012). In this case study, Instagram was compared
to Snapchat and Pinterest (See Tables 1.1 & 1.2 for SWOT and Competitor Analysis). A market analysis is an
important tool that is used to analyze the three social media platforms. A SWOT analysis is an overall evaluation
of a company’s strengths, weaknesses, opportunities, and threats. It is a tool that is used to analyze the internal
and external environment faced by the firm being considered (Kotler & Keller, 2014).
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In a World of Social Media: A Case Study Analysis of Instagram
Because Instagram is used by 800 million active users (MediaKix, 2017), it allows people to manipulate their
photos to their liking, and now it has a feature similar to Snapchat’s through which a user can share a “story” for
24 hours until it disappears, along with the infamous face filters. It has also adopted Facebook’s direct message
feature. Privacy concerns can be easily addressed through Instagram’s private/public feature. Interestingly,
Instagram started out as a mobile photo-sharing application and quickly turned into an advertising platform
for all companies in social media. Now, companies utilize Instagram more than ever. When scrolling through
Instagram, you might see a sponsored advertisement, and it allows you to tap on the screen and reach the
product instantly and effortlessly. Our SWOT analysis identified one potential major issue: photo copyrights.
Copyrights become an issue on Instagram because people can steal your photos/ideas, and call it their own.
When you are business, this could be detrimental to your brand.
Additionally, the analysis showed that Instagram should be available on more devices than just Android and
iPhone. In fact, this reality is a limitation of the organization’s growth. Being mobile-dependent, Instagram
is challenging to run the application through a web browser, and only one device can operate an Instagram
account (Wilkerson, 2018). With that being said, Instagram is known for being innovative, being the first social
media application to have a picture-only feature. Thus, Instagram is well-positioned to dominate its current
competitors with revolutionary thinking. In fact, Instagram leads their market by understanding their current
and future users. For example, many millennials are connecting better with Instagram than other social media
platforms like Facebook due to the photo interface. Within the library community, Instagram’s adoption has
been strongest in academic libraries with the highest number of Instagram users being college-age patrons
(Wilkerson, 2018). With that type of forward-thinking, Instagram may be able to sustain their current rate of
growth.
Furthermore, Snapchat may be the best competitors to challenge Instagram’s domination of the social media
category. Snapchat is used by 100 million active users (MediaKix, 2017). With the second most used application,
Snapchat is a top competitor with a lot of features. Snapchat is an instant picture-sharing application that
allows people to share pictures that disappear in a matter of seconds along with the instant messages. Snapchat
originally had the infamous face filters, but that is now on Instagram as well. Snapchat offers control to their users
in a fun, virtual way. Although Snapchat consumers can tailor their stories to the public or viewed by followers
only, privacy issues arose when people were informed that their ten-second pictures were not disappearing
like they thought. One major threat that Snapchat faces is imitation, as evidenced by Instagram now having the
face filters and insta-stories. Businesses have started utilizing Snapchat for advertisements. Advertisements
pop-up when viewing friends’ stories, ‘the featured’ stories, shows, our stories, and daily stories. When viewing
a story on Snapchat, an advertisement will pop-up mid story and allow you to “swipe up” to access the product
instantly, which is a great way to reach a target audience. However, consumers can skip advertisements by
tapping their screen, and that is not beneficial to companies paying Snapchat to promote their products. Just
behind Instagram, Snapchat is a great advertising platform, but should not be used primarily for advertising
and marketing.
75 million people use Pinterest, and the vast majority of those people are women (Beese, 2017). Pinterest has
a diverse user group and promotes itself as a web and mobile sharing application. With Pinterest, consumers
can search the web on a much more focused scale. Free access, virtual bulletin boards, bookmarking, and user-
friendliness are just a few features that Pinterest has to offer. It can be used for marketing and advertising
in several ways, including using keywords in titles, embedding pins in blogs, using your blog for business as
an analytics tool, and having pinnable images on every post published. However, SWOT analysis indicates
that Pinterest could be seen as more of a woman’s preference than a gender-neutral site, which is a potential
weakness for the app. Pinterest has several marketing and advertising tools for companies; however, it should
not be a primary contender because Snapchat and Instagram are better platforms. They can all be used as
complements to each other to reach different audiences, nevertheless.
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In a World of Social Media: A Case Study Analysis of Instagram
Table1.1. Competitor Analysis
Snapchat Pinterest
Critical Elements Instagram
(Industry Competitor) (Industry Competitor)
Unique Selling Promotes itself as an Promotes itself as a Promotes itself as a
Proposition instant photo sharing/video video/picture sharing web and mobile sharing
application. messaging application. application.
Value to Prospective Customers can view other Customers can instant Customers can search
Customers people’s lives at their message pictures/ the world wide web from
fingertips. Can also shop and videos and send money the application, utilizing
see the latest trends. in seconds. images on a focused scale.
Core Competencies Instagram specializes in Snapchat specializes in Pinterest is a social media,
advertising and picture video/picture sharing bookmarking application
sharing. and has recently started that allows users to
with advertising. discover and share creative
ideas.
Positioning in the Top Top Middle
Market (i.e., top,
middle, bottom)
Marketing Mix Product: Variety of services Product: Variety of Product: Variety of
Product Price: Free services services
Price Place: Online Price: Free Price: Free
Place Promotion: Ads Place: Online Place: Online
Promotion Promotion: Ads Promotion: Ads
Overall Impressions Instagram is considered an Snapchat is considered Pinterest is considered
in the Market industry leader in social an industry leader in an industry leader in web
media. It allows people to messaging through searching. For example,
see other’s lives, and it is picture sharing. it has allowed people to
utilized by companies to search recipes and DIYs
promote their products. conveniently.
Table1.2. SWOT Analysis

Instagram Snapchat Pinterest

Multiple filters available to Constant refreshing of Diverse user group
enhance and customize pictures pictures Virtual bulletin boards
Strong and supportive parent Growing application User friendly
company for users
Strengths
800+ million users Innovative platform
First social media app for for picture sharing
pictures only Does not store
historical photos
Not available on PC operations; Lack of discreetness Possible gender biases
i.e., interact online like you can Not a diverse product Susceptible to spam pictures
on your device Pictures are only Based on user uploads
Weaknesses Required to follow to view available for a small
content amount of time
Weakened privacy firewall

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In a World of Social Media: A Case Study Analysis of Instagram

Advertisement opportunities Advertising Growing business with

Technology development opportunities opportunity for advertisement
Opportunity Growth and product Social networking
enhancement Linked with Facebook and
Twitter
Faces strong competition Negative publicity Copy-cat websites
Possible issues with photo rights Legal ramifications Spam
Threats
Other social media sites adopting
bookmarking features
Strategic Implications
If social media platforms, like Instagram, want to be successful, they must apply a systemic approach to the
market. Hu, Manikonda, and Kambhampati (2014) established Instagram as an innovator in the marketplace.
Instagram has enjoyed rapid growth in the number of users since its inception in 2010. The organization has
attracted millions of users with 55 million photos being uploaded daily. Instagram is the most popular photo-
capturing media app to date (Hu, Manikonda, & Kambhampati, 2014). Yet, past achievements provided no
future guarantees for future success in the market. This research produced several strategic implications in this
academic article:
Adoption Rates
Key findings of the case analysis show that brands that choose to incorporate Instagram into their social media
strategy continue to see an increase in purchasing power and online customer engagement. Although overall
adoption rates for brands have increased significantly in recent years, adoption rates among older adults are
still low. According to a study conducted by PEW research, US Facebook users aged 45-54 are spending more
time on Facebook, and represent 21% of the total time spent on the platform, more than any other age group.
(2) This is likely an indicator of the channels that brands are actively using to promote content and target
consumers. Currently, Instagram does not provide the option to view trending topics, such as worldwide news,
sports, and events that can appeal to older consumer segments and attract more businesses.
Accessibility
The Instagram app was created as a portable system, designed for mobile devices, such as smartphones and
tablets. Instagram is only available as an iPhone and Android app. This photo-sharing app excludes the mobile
users who have Windows, Linux, or Blackberry operating systems. (3) There is a large market that business
cannot reach. Instagram could develop a universal app that can be downloaded to any type of computer, tablet,
or smartphone. A universal app will attract more business and reach a larger audience. There is now a web
version, which can be accessed on computers, but it lacks many of the attractive features that are only available
on the mobile app.
Conclusions
Social media platforms are increasing in popularity since they allow users to connect and interact with each
other and share their experiences, activities, and passions. Social media is also influential and one of the most
important tools for marketing and branding. This study provided insights on various tactics that Instagram
can utilize to improve as a marketing platform for businesses. Launched in 2010, Instagram evolved quickly to
become one of the most favorite social media platforms for individuals and businesses. What makes Instagram
unique is the instant photo and video editing and sharing with an audience of 800 million active users. This
platform benefits from a good positioning and can take advantage of exciting advertisement opportunities
and technological advancements. The main strengths of Instagram are having a high user base and having a

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In a World of Social Media: A Case Study Analysis of Instagram
strong supportive parent company. It is also utilized by many businesses and has allowed small businesses
to grow their online presence. The disadvantages of the company are the photo rights issues and the strong
competition. In order for Instagram to maintain their lead in social media, they should improve in favor of
business utilization. For example, businesses would benefit from being able to upload photos from non-mobile
devices and add a photo shopping feature for convenience. Another area of improvement would be adding
topics like World Wide News, Sports, and specific events. Although privacy issues are inevitable right now on
Instagram, users and businesses could also benefit from an automatic watermarking feature. In summary, the
research conducted on Instagram could increase the survival rate of new social media platforms and provide
a better understanding of Instagram as a strategic tool for practitioners. The study is significant because this
research widens contemporary assumptions about strategic thinking for social media mechanisms.
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Citation: Dr. Daryl D. Green, Dr. Richard Martinez, et al. “In a World of Social Media: A Case Study Analysis of
Instagram” American Research Journal of Business and Management. 2018; 4(1): 1-8.
Copyright © 2018 Dr. Daryl D. Green, Dr. Richard Martinez, et al. This is an open access article distributed
under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction
in any medium, provided the original work is properly cited.

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