The Slack business model is basically based on paid subscriptions to its communication and file sharing services. Slack is an online messaging platform with numerous advanced features. The company name, “SLACK”, stands for “Searchable Lock of All Conversation and Knowledge”. Initially built for a video game, the platform has become a profitable business tool. The platform’s features include file sharing, direct messaging, alerts, search, group chat, and notifications. Slack allows integration with third-party services like Google Drive and Dropbox.
Slack’s ability to support source code snippets and integrate them with development tools such as Bitbucket and GitHub makes it ideal for developers. Slack is designed to resolve email limitations and provide multiple features like group and direct messaging, boosting internal communication efficiency.
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Stewart Butterfield, Serguei Mourachov, Cal Henderson, and Eric Costello established and launched Slack in 2013. Today, it’s one of the most popular channel-oriented messaging platforms. Both individuals and companies use the Slack business model to merge their systems, coordinate their teams, and operate their businesses. Before Slack’s founders realized its potential, it was developed for internal use. They would later convert the platform into a one billion project in a record eight months.
Stewart and his team developed a unique new product for the MMORPG (massively multiplayer online role-playing game) market. This act would transform how people communicate in their workplaces. Slack goes down in history as one of the fastest-evolving startups. Its product evolution was unconventional.
Initially, Stewart and his team never intended to develop a SaaS product for the workplace. Instead, they created a tool for internal use before realizing its commercial potential. According to Stewart, “the pattern was to share Slack with progressively larger groups. We would say, ‘Oh, that great idea isn’t so great after all. We amplified the feedback we got at each stage by adding more teams.”
Although this phase would become Slack’s Beta release, Stewart and his team didn’t call it so for fear that people would consider the product unreliable or flaky. Instead, they relied on what he termed “an impressive press blitz” They invited interested parties to try Slack and received a tremendous response. This response taught Stewart the importance of traditional media for businesses, especially during their launch phase. Slack’s founders attribute its growth and success to the continuous use of conventional marketing strategies and media.
Stewart Butterfield, Cal Henderson, Eric Costello, and Serguei Mourachov were Slack’s original developers. Salesforce would later buy Slack in 2020 for approximately $27.7 billion.
Slack’s mission statement is, “To make work life simpler, more pleasant, and more productive.”
Slack is committed to ensuring that collaboration is readily available with the following features.
Information on Slack circulates in channels. Users can create multiple channels. Often, these channels are created based on a company’s size or the number of teams working on a project.
The channel is Slack’s core unit. Channels help people maintain collaboration and organization on specific roles, share data, and complete their work efficiently. Channels are organized based on the situation and organizational structure. They can be public, allowing access to people in Slack’s organization, or private, limiting their access to specific people in the organization. Messaging occurs via the channels.
Slack maintains a trail of all tasks, allowing users to refer to a specific channel for information. You can refer to all the information uploaded on Slack in the future, even if you leave or archive the channel.
Slack guarantees security via two-factor authentication for accounts. This means that even when users forget their password, no one except them can sign in. further, the SAML-based SSO facilitates secure access via an identity provider.
Integration separates Slack from an ordinary instant online collaboration and messaging system. However, it lacks various built-in project management features such as Twitter, Dropbox, and Google Drive. Still, users can integrate these features in Slack, transforming it into a fully developed management application. Through integrations, companies can collect information from other applications. Integrations with software such as Salesforce boost a user’s productivity.
Users can create custom commands, such as keyboard shortcuts, instead of using predefined options.
Slack users can make video or audio calls free of charge with one to 15 people simultaneously. In this case, users don’t have to switch between Slack, Google, Skype, and Hangouts to make a call.
Slack has numerous bots ideal for different purposes. For example, the Slackbot facilitates note-taking and setting reminders, while the Diggbot helps deliver exciting news and websites to a channel. Slack users can create customized bots as well.
Search
Information on different Slack channels is easily retrievable because the platform is searchable.
Slack is a SaaS (Software as a Service) company that makes money through different monthly subscription plans. However, users can also access its freemium service.
The Standard plan on Slack is the least expensive. It’s ideal for small and medium-sized businesses. Subscribers using this premium will get access to various features, such as single sign-on, guest accounts, unlimited search, and multiple workspace channels. This plan also includes unlimited apps, screen-sharing, and group calls. Yearly charges are $7.25 per individual per month.
This plan is ideal for large companies or organizations with advanced administration tools. Subscribers will get all the Pro Plan features, guaranteed 99.99% uptime, data-export functionality, enhanced security, high user storage limits, personalized message retention, and round-the-clock email support. Subscribers pay $12.50 per individual per month.
Subscribers using the Enterprise Grid plan will get all features from the business+ plan and unlimited access to integrations with other apps, message and file history, and workspaces. Enterprise compliance and security, like the Enterprise Key Management add-on and HIPAA support, gives users peace of mind. Subscribers will also get personalized support.
You can learn about the Slack Business Model from this business model canvas.
Slack’s customer segments consist of:
Slack’s value propositions consist of:
Slack’s channels consist of:
Slack’s customer relationships consist of:
Slack’s revenue streams consist of:
Slack’s key resources consist of:
Slack’s key activities consist of:
Slack’s key partners consist of:
Slack cost structure consists of:
Slack Competitors
Below, there is a detailed SWOT analysis of Slack:
Slack is one of the best and most popular messaging apps available. It features private and public channels, critical integrations with third-party applications, and smooth file sharing. It managed to conquer the competition with its unique user interface. Apart from Slack’s user-friendliness, it’s compatible with mobile devices and desktops. The Slack team messaging application is feature-rich. It enables users to collaborate with their colleagues, share files, and automate repetitive tasks. Slack’s channels offer a dedicated space to accelerate communications with colleagues and third-party individuals. With its integrations, users can collaborate without switching platforms.
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