What is your opinion about the reasoning behind Facebook's decision to acquire Instagram? Was the decision related to horizontal or vertical growth? Why?
In my opinion, the reason behind Facebook's decision to acquire Instagram because Facebook has tons of money on hand, so get lead in the social networks market, Facebook's mobile sucks, but Instagram's doesn't, better marketing, new strategies, future popularity of Instagram. Instagram is cheaper to run. Down additional changes can make it the best social networking applications, make Facebook a more digital, more secure, better marketing platform, target youth, etc.
Mark Zuckerberg realizes that Instagram's growth may harm the Facebook reputation and affect their users by seeing all the future benefits. In finally, Facebook bought Instagram at 1 billion dollars from Kevin Systrom. The decision is related to the vertical growth. Vertical growth signifies selling the products or services into the existing market.
The additional feature increases the capabilities of the current product or services. Same as Facebook acquire Instagram by seeing their photos features and these features liked by many audiences. By adding some more features in Instagram may increase the market approach throughout the world. Facebook makes additional changes to cause these changes to hike the users and audience of Instagram.
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