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  • Kiara Hanice

The Uprising Of Startups And Social Media Algorithms - Part 2


The first part of this topic included the advantages of social media algorithms in a start-up, best social media marketing strategies for a start-up as well as three examples of start-ups that have used social media algorithms in the most innovative manner possible to produce amazing results. Now that our basics are covered and we have in-depth knowledge of start-ups and social media algorithms, let us dwell deeper into some of the biggest social media sites and conduct a SWOT analysis on each. “What is SWOT?”, you ask. SWOT is an abbreviation of Strengths, Weaknesses, Opportunities and Threats, it provides an insight on an organisation’s or company’s pain points as well as strongest assets.

SWOT Analysis On Social Media Networking Sites



Easy User Experience

Currently, in India Facebook is occupied by older adults. This means something as most adults do not have the patience for social media sites, and seem to be effortlessly scrolling through their Fb feed. The algorithm generated by Facebook is easy to use and thus provides a hassle-free experience to its customers.

Enormous Customer Base

Facebook boasts a wide customer base of roughly 2.89 billion monthly active users in the year 2021. There are various reasons for this success, the social media algorithms make the user experience a blissful journey, the constant updates in the algorithms produce engaging features that keeps individuals hooked. Moreover, it appeals to a wide range of age groups from 15- to 18-year-olds to 20- to 30-year-olds. Finally, it connects people from two ends of the world. You remember your closest childhood friend, who you lost touch with? No worries, as long as they are on Facebook, you are just one click away from them.


Heavily Rely On Ads

Facebook is a free service and since it is used by billions of users, it is a great way for brands or organisations to promote their company via ads. However, since we users are on the app, we are bombarded with a constant supply of ads. Facebook’s algorithm allows advertisers to "retarget" people. Individuals who have visited the advertiser's website or app off Facebook, may result in more ads showing up in your news feed as a result of retargeting.

Privacy Breach

On April, 2021 The Economic Times published an article titled “CERT-In issues advisory over Facebook leak concerning 6.1 million Indians”. The Computer Emergency Response Team (CERT) stated that users must secure their profile information on the social networking site after it was found that the personal data of 533 million Facebook users globally, including details of 6.1 million users from India have been allegedly leaked online and posted for free on hacking forums. This is a huge threat to the networking site as many people are quite sceptical about online platforms and their security, thus this is a huge blow to the network and could cost them thousands of users.


More Ventures

Facebook already owns WhatsApp as well as Instagram, however it can widen its horizon for other ventures as well. It could begin to invest in start-ups as well as indulging in blogs and providing more information-based content. Facebook has the capacity to try out new prospects instead of merely being an entertainment provider.

Build Business Acumen

Facebook currently lies in the grey area of entertainment and business. It is not a high functioning business network like LinkedIn, nor is it a sole entertainment provider like Instagram. Many individuals use this social media in order to gain more users on their company or are looking for people to hire. Facebook can use the help of algorithms to direct individuals to various job opportunities and internships in the same manner LinkedIn does. Therefore, making it a more professional place to establish professional relationships.


Free Speech And Chaos Caused

Facebook is a free platform where the users are free to type whatever comes to mind, however this comes with a hefty price to pay. Facebook has been banned in ten countries due to the spread of malevolent content, hate speech against the government of the country and so on. They could benefit from users as massive countries like China, North Korea have placed a ban on said social media.

Uprising Of New Platforms

Facebook seems to be the oldest player in the current market of social media. With networks such as Tiktok, Pinterest and so on taking over among the youth, Facebook will have to step up its game. Tiktok has 1 billion monthly active users and is slowly creeping up the ladder to reach Facebook.



High Engagement Rate

This means that the social media site allows brands to engage with the users. The average branded engagement rate on Instagram hovers around 1.22%, this is significantly better than its parent brand – Facebook which has an engagement rate of 0.08% and Twitter which is at 0.045% This engagement rate is vital as users interact with each post and story, thus providing a brand to reach a bigger pool of users. Moreover, Instagram algorithms depend on the use of hashtags. It tends to attract more users.

Sturdy Influencer Community

Instagram’s strength lies in its value proposition and the influencer community. One famous influencer promoting a brand’s products is enough to stir traffic on the brand’s website. Additionally, the algorithm will mention these influencers in your explore page or will show you their ads if you have previously displayed interest in the product, brand or the influencer


Paid Ads And Promotion

As learned in earlier articles, a brand requires a well-blended combination of organic as well as paid promotion. However, when it comes to Instagram, most organisations refer to using paid ads, how is this a weakness? Well, there is no guarantee that the user would buy your product. More often than not, they would not visit the website. They would see the ad and continue to scroll through their feed.

Limited Means Of Communication

For a social network of over a billion monthly active users, one can either comment or direct message you to keep in touch. There are only two methods and it is entirely possible that your comment or message gets lost in a sea of other messages from people. Individuals believe that there need to be more than two communication outlets in order to contain the flow of interaction.


Ads In The Form Of A Video

Granted that earlier ads were mentioned as a weakness, video ads on the other hand is a huge opportunity that must be grabbed by Instagram. Instagram came up with the feature of video ads in order for brands to promote their products. A short one-minute video will keep the audience’s attention and if it is well made, is bound to draw the audience to the brand’s website.

Addition Of Features Or Building On The Current Features.

The most used feature or the most captivating feature on Instagram is the reels section. Reels are shirt videos that last up to 60 seconds. Instagram’s main competition when it comes to this is Tiktok where a person can make a three-minute video. The social network site can increase their time limit on reels and add features such as if a part 1 of a video was viewed, automatically its part 2 would show up. This can be done by an intricate algorithm.


Tough To Get Noticed

The presence of several users on Instagram makes it unbelievably tough for regular folks to get attention and become recognised. You have the talent, the skill and the knowledge to entertain your client base, however due to the presence of film stars, pop stars, politicians, influencers you will go unnoticed. Unlike Tiktok, where a viral video is more than enough to put you on the map.

Accurate Representation

The more likes a post gets, the more popular a person is. You may have seen individuals with the perfect skin and the perfect body on Instagram and thought “I wish I was built like that”. This is a huge issue with Instagram, we users barely see anyone of our body type or skin type flaunting their assets since the social media network presents people in the most “perfect” manner possible. Every tiny aspect right from the filter of the post, to the picture chosen to the caption selected must be 100% flawless, this leads to a lot of issues among users who just want to be on Instagram for the fun of it and don’t want to be bombarded by pictures of flawless individuals who make users doubt their self-worth.

Now that we have discussed two major social media sites, let us mention the start-ups in the earlier article and perform a SWOT analysis on them.

SWOT Analysis On Start-Ups



Great User Interface

The payment app is designed in a sleek, elegant manner with the right amount of panache. The algorithm has been formed in such a manner that people of various age groups find it easy to fulfil their payment needs. Features such as Remind me later and Dismiss buttons are presented after swiping the card and not while scrolling the feed, thus only providing the user with options only after they are done with the task. The algorithm has been formed in this manner so as to not annoy the customer with irrelevant options.

Good Customer Base

CRED boasts of a huge customer base of nearly 5.9 million users. The algorithm of the website and app has made credit card payments easy for people and thus they have accumulated a huge customer base over a short span of time.


Confusing Marketing

The initial ads of CRED did create a ruckus among fans as they were creative, quirky and fun. It involved a famous celebrity performing something we would never expect of them and that was enough to create a stir. However, soon enough people started to catch on to realise that the ads do not mention how to effectively use the app to complete a credit card payment, thus leaving the users in the dark.

Unsustainable Revenue

Presently, CRED does not receive any revenue on any transaction that occurs on the app. CRED makes money by charging a listing fee for products and offers that businesses wish to display to the app users. This is not enough to keep the company running and in case of an unforeseen event, could lead to a major financial crisis.


Attracting a younger audience

For youngsters to start working, earning their income and entering the world of tax paying adults, a task like paying bills can be daunting. The algorithm used by the company can be used to draw a youngster’s attention. The rewards feature is one way to bring them in, however they do need to find more innovative ways to keep the young users engaged.

Offering more FinTech Services

Just to pay a credit card bill, no one would download an app. The company should add FinTech services. FinTech means the integration of technology into financial services. The social media algorithms could be developed in a manner such that they could pay other bills as well, it could involve if their bank account statement makes them eligible for an insurance and so on.


Highly Competitive Market

CRED is not the first app to revolutionise the field with online credit card payment. There are several other apps out there such as Amazon Pay, Google Pay, Paytm and so on that do the same and provide additional amenities. It is of vital importance that CRED step up and try to stand out as much as it can, else it will drown in a sea of its competitors.



Saviour At The Last Moment

Ever have guests giving you a two-day notice or need to go to an important meeting in the evening but are not ready? UrbanClap is the best app for these problems. The algorithm used by the start-up is excellent as it connects a nearby trusted professional to your place within a matter of hours.

On A Budget

UrbanClap’s algorithm is made to fit the user’s budget like a glove. The user needs a service; however, it needs to be according to their budget and the app does it in the snap of a finger. It is easy to use, affordable and extremely convenient to the user, thus gaining a high affinity when it comes to user experience.


Employee Risk

The employees are professionals and safe, however they are not aware of the house they step into. They may be exposed to a risky environment and an environment that is not in their control. The algorithm just provides them with an address and the task assigned, not whether it is a good place to work in or not.



UrbanClap can collaborate with bigger social media networks to place their organisation on the map. Currently, they are not receiving a lot of traffic, due to their rather monotonous presence online. They must use various social media algorithms to build traffic on their app and contact sites in order to promote an organic marketing field.


Safety Issue and Unfamiliarity

Most people are willing to go out, than allow a stranger into their house. Your local mechanic or plumber who you have known for years is a reliable, dependable source and will reduce his price when you bargain, these are options that cannot be found on an online set-up and provide a huge threat to the market.


We have gone through the tips and tricks of how start-ups have flourished and have gained an insightful amount of information on their strengths, weaknesses, opportunities and threats. Social media algorithms are a vital tool to carry in establishing a successful start-up and thereby one should not underestimate their use. They help an organisation gain a better reach, develop a higher number of users and provide analytics on a company’s growth and target audience.


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