Module 1 Assignment: Situational Analysis
Akpa Chukwuemeka Emmanuel [131341]
Master of Business Administration, Nexford University
BUS6140 – Master of Business Administration Capstone
Module 1: Business Change
Dr. Michael Rodriguez
May 07, 2025
Introduction
WhatsApp is an American social media, instant messaging (IM), and voice-over-IP (VoIP)
service platform owned by technology conglomerate Meta. WhatsApp, leading globally in
messaging service was first released in 2009, Hitesh B. (2024), It allows users to
send text, voice messages and video messages, make voice and video calls, and
share images, documents, user locations, and other content. Prior to pivoting, WhatsApp was
primarily involved in simple messaging app, it then moved strategically into a versatile
platform encompassing business tools and potential advertising. This shift was driven by the
need to generate revenue and diversify its offerings beyond free messaging.
Situational Analysis
Financial Position - The WhatsApp’s primary revenue source is from WhatsApp Business
having over 200 million monthly active users worldwide and revenue from $443 million in
2018 to $1, 1279 million in 2023, Spocket (2024). This revenue stream is largely driven by
business users utilizing the platform for customer communication.
Market Conditions – WhatsApp has over 2.5 billion users worldwide, making it a dominant
player in the messaging app market. It is the most popular in over 100 countries, with India
having the largest user base. Emerging markets like India and Brazil are key growth drivers,
with India projected to have over 795.67 million users by 2025, according to Sudeepta B.
(2025) and further worldwide projections to hit 3.14 billion by year-end 2025, Rhys N.
(2025).
Competitive Landscape - While WhatsApp dominates, competitors like Microsoft Office 365,
Slack, and Intercom also play a role in the communication market. WhatsApp is expected to
continue growing in user base and revenue, particularly in emerging markets. The messaging
1
app market is highly competitive, with rivals drawing in different user categories with special
features. Telegram’s growing emphasis on privacy has helped it gain a sizable user base
across numerous nations, whereas WeChat’s dominance in China is supported by its suite of
integrated services, Hitesh B. (2024).
Internal Strengths and Weaknesses – WhatsApp has a unique technology that has made its
platform strong and secure with no severe bug reported till now, it has a privacy option with
an end-to-end encryption system that ensures only chat users adjust for visibility of the
messages. There are no annoying advertisements like other free apps present in the market,
with a simple and easy-to-use interface which demonstrates user-oriented strategy that has
made it a hit among a large number of users.
Like every other business, WhatsApp has its peculiar weaknesses which include its limited
business features which has discouraged some businesses from choosing it for their customer
interaction and support solutions. Also, as part of the Meta corporation, users are still
concerned about WhatsApp handling their data due to the Facebook-Cambridge Analytica
data scandal.
WhatsApp can explore different areas for improvement such as adding more customization
options by providing significant functional and graphical enhancements, taking advantage of
increasing internet penetration across the globe to provide access to collaboration, e-
governance, e-commerce integration to sell products in a rich marketplace and interaction
with customers, diversifying into payment services to provide transaction convenience for the
users of the app, adding more security controls such as biometric authentication that can help
mitigate increasing concerns over data privacy and security, increasing the users' confidence
in the platform.
2
Key Factors for Pivoting
The primary reason that motivated WhatsApp from pivoting was to take opportunity of the
market yearning for a platform offering users a cheap workaround to the sky-high SMS
prices that some telecom monopolies charged. Rather than getting hit with a bill for every
message they sent, WhatsApp users spent just $1 a year for unlimited messages. This was the
business strategy which made WhatsApp a global phenomenon, with users exchanging 10
billion messages a day around the world by 2012, Issie Lapowsky (2024).
In capitalizing on the needs of the market, WhatsApp had pivoted to focus on business
services and potentially including ads as a means of capitalizing on its large user base to
generate revenue. The action is driven by the need to generate revenue for parent company
Meta as traditional Facebook usage declines in some markets. WhatsApp's revenue model
aimed to leverage its established infrastructure and worldwide penetration to connect
consumers and businesses.
Risks and Challenges – Analysis
WhatsApp faces huge risks that could impact first of all on user’s finances, for example,
when an unauthorized use of WhatsApp is made by an intruder, they often lead to data leaks,
identity theft and violations of privacy regulations, potentially causing financial losses
through account takeover and fraudulent transaction.
Another risk is from the regulatory side as there are increasing scrutiny on off-channel
communications which includes WhatsApp, particularly in the financial industry. Firms have
been facing fines and penalties for failing to adequately monitor and preserve WhatsApp
messages. Tom Bleach (2014) reported that wall street firms were fined up to $392 million
3
for unauthorized use of messaging services which includes WhatsApp. The firms and their
employees went ahead to use WhatsApp to communicate with colleagues, partners and
customers compromising their ability to monitor and record communications as against the
strict regulations enforced by SEC.
4
Reference
Hitesh Bhasin (2024, December). SWOT Analysis of WhatsApp (Updated 2025)
https://www.marketing91.com/swot-analysis-whatsapp/
Spocket (2024). WhatsApp Earning and Revenue: 2024. https://www.spocket.co/statistics-
whatsapp-earnings-and-revenue#
Sudeepta Bora (2025). The Best Future Trends and Predictions for the Evolution of
WhatsApp for Business. https://myoperator.com/blog/the-future-of-whatsapp-business
Rhys Northwood. (2025, May). WhatsApp’s 3 Billion Monthly Users: A Blueprint for Digital
Dominance. https://www.ainvest.com/news/whatsapp-3-billion-monthly-users-
blueprint-digital-dominance-2505/
Tom Bleach (2024, august). SEC Slaps More Wall Street Firms With $392Million in
WhatsApp Fines: What’s the Next Move? https://thefintechtimes.com/sec-slaps-more-
wall-street-firms-with-392million-in-whatsapp-fines-whats-the-next-move/
Issie Lapowsky (2024). How WhatsApp ate the world.
https://restofworld.org/2024/how-whatsapp-for-business-changed-the-world/#
