Cyworld Launches Against Myspace

In: Business and Management

Submitted By goodlcukgirl
Words 282
Pages 2
The institutional framework is made up of formal and informal institutions. The formal institutions impacting Cyworld’s expansion included legal regulations and governmental laws, while informal institutions involved cultural standards, ethics and other intangible aspects.

As far as Cyworld dealt in the United States, it was subject to the laws and rules of the country that regulate online activities. These included the protection of privacy and provision of security to the consumers and provision of quality services. Cyworld can be described as role model when it comes to issues like privacy protection and data security. Therefore, formal institutions were low constraining Cyworld’s expansion and the US market is a highly regulated market.

Informal institutions, however, had a major impact on Cyworld and the culture could be the main constrains. The widely accepted work of Geert Hofstede suggests that people from different groups, such as nations, can be very distinct from members of another group due to culture differences. According to Hofstede the American culture is different to the Korean culture in many ways, which is the domestic market of Cyworld; thus, the Americans are more individual focused, while Koreans make greater emphasis on the collective and people around.

In conclusion, Cyworld is failed in US market. There had three reasons.
• Firstly, when it entered the USA, MySpace has already dominated the market. Therefore, a foreign brand had barriers already from the early beginning.
• Secondly, Cyworld is a famous brand in South Korea. Most users in USA are American-Koreans or Korean overseas students. The strong preferences for Korean culture limited the growth of Cyworld in US.
• And the finally reason is Cyworld do not provide quality and special service compare to…...

Similar Documents

Why Myspace Failed?

...In the article “Rise and Inglorious Fall of MySpace” Gillette explains on what went wrong with MySpace to a point by explaining that there was, “Mismanagement, a flawed merger, and countless strategic blunders”. Another major problem that occurs is that MySpace gave too much freedom to the users to post anything and everything they want. The user had almost all control over how they wanted their page to look. If you look at Facebook, you can see that everyone’s ‘profile page’ looks exactly the same and that is because Facebook wants to have control over the users and as well as not allow advertisement that can be crude or offensive to parents who want to keep their children safe. Another factor to their downfall was that MySpace never offered many reasons for anyone to stay. MySpace was mostly used by musicians and artists to show a sample of their work. Now a days I’ve noticed that MySpace is still used by more famous musicians who give you sample of their song from the next album or even sometimes they put their Mixtapes on MySpace for everyone to listen to. Another factor to the fall of MySpace is that more and more social networking sites are appearing and more and more people leave MySpace to go to the newer ones. For example on June 28th 2011, Google came out with Google+ which is the newest social networking site. For me personally, I am starting to like Google+ more and more everyday, while my liking for Facebook is slowly decreasing. The reason for this is that once......

Words: 842 - Pages: 4

Cyworld

...Cyworld Marketing Fundamentals (18-7-2012) ------------------------------------------------------------------------------------------------------------------------------------ 1. Problem Statement In mid 2007, Cyworld had increased to more than 21 million users from its 2.5 million in 2003. By the end of 2007, SK Communications had $197 million revenues and an operating loss of $0.35 million due to the acquisition of Empas. Cyworld accounted for 50% of total revenues and majority of operating profits. Almost 70% of Cyworld’s revenues were coming from selling virtual items to decorate user’s home pages but this source of revenue was starting to become exhausted so new revenue streams were needed. 2. Situation Analysis Company. Cyworld began as a simple social networking platform when it started in 1999. It initially provided a service that allowed users to build a social network of friends and not much more. The company’s goal was to offer users a “small, clean community,” which meant limited ads and an exclusive focus on social networking. However, as time passed, Cyworld eventually lost its original value proposition. By 2006, the company had become an open community, providing its users with a variety of services. Cyworld  was no longer just focused on social networking, it had become a site based on personal media (concept of a user creating a “minihompy” and Home2) and a media platform (open platform for media sharing). Customer. Cyworld target......

Words: 1414 - Pages: 6

Cyworld Case Study

...users? Which segments should Cyworld target? How can it create value for users in these segments? Cyworld segments their users according to “ABC segmentation” in the case study, which is Active users, Buyers and Connectors. As is shown by research, Korean and USA social networking users “clearly differed in the way they thought about and preferred to interact” (Shin, 2010:489). I therefore recommend that Cyworld further segment according to geographical location. Shin further points out “Korean users use Cyworld because of the involvement / participation … while the US users use synchronous communication services more frequently”. In terms of the ABC segmentation, Cyworld should target the Active Users with a lot of connectors, as well as the Buyers. Buyers should be encouraged to engage more with their connectors, and active users should be encouraged to become buyers as well. Cyworld can create value by developing algorithms to monitor the behaviour of their various segments on a continuous basis. With this information they can tailor their services to the various segments that they have identified. In terms of location, Cyworlds main focus should be on the existing market, Korea, and keeping the existing clients. Growth strategies can be formed for the USA, however value will need to be created by altering the existing offering as research has shown these segments differ. c. Which is the most valuable to Cyworld – an active user, a user who......

Words: 1030 - Pages: 5

Case for, or Against

...Assignment 2: LASA 2—The Case For, or Against, New Orleans Sometimes one’s choices may involve catastrophic decisions and bear great risk and yet there can be no clear answer. For example, if a person gets a divorce, shutters a plant, sells a losing investment, or closes their business, will he or she be better off? The following case incorporates nearly all of the material you have covered this far and presents an example of one such choice where nearly all of the alternatives have a significant downside risk. Review the following information from the article “A Cost-Benefit Analysis of the New Orleans Flood Protection System” by Stéphane Hallegatte (2005): • Hallegatte, an environmentalist, assigns a probability (p) of a Katrina-like hurricane of 1/130 in his cost-benefit analysis for flood protection. However, the levees that protect New Orleans also put other regions at greater risk. You may assume the frequency of other floods is greater than Katrina-like events (Vastag & Rein, 2011). • The new levees that were built in response to Katrina cost approximately fourteen billion dollars (in 2010). This is in addition to the direct costs of Katrina (eighty-one billion dollars in 2005). • 50 percent of New Orleans is at or below sea level. • A 100-year event means that there is a 63 percent chance that such an event will occur within a 100-year period. • The following are the interested (anchored and/or biased) constituencies: o Residents of New Orleans—both those......

Words: 575 - Pages: 3

Cyworld Case Study

...Cyworld Introduction The U.S. social networking market is a huge technology sector that has been booming for many years. In 2006, a South Korean company called Cyworld decided they wanted to try to enter this industry that at the time, was dominated by MySpace and Facebook. According to the case study, “Cyworld is no small fry. It is the number one social network site in the Internet-savvy South Korea, where 90% of the population under the age of 20 and 25% of the total population are reportedly Cyworld’s registered users” (Peng, 2011, p. 147). There is no doubt that Cyworld was popular and successful in South Korea, however, for the company to break into the U.S. market they somehow needed to overcome the challenge of translating their home country success overseas. Because the U.S. and South Korea are so culturally different, this would not be an easy task. “Literally translated, “Cy” can mean “cyber,” but it is also a play on the Korean word for relationship, so “Cyworld” can also mean “relationship world.” (Peng, 2011, p.147). Cyworld started their concept in 1999, and allows for users to form on- and off-line relationships by forming buddy relationships through users homepages. In the U.S. version, this included a photo gallery, a message board, a guest book, and a personal bulletin board. Users then link their homepage to another users to form the relationship. Social Network Competition The social network industry is an oligopoly meaning there are a......

Words: 1090 - Pages: 5

Cyworld - Segmentation & Targeting

...Cyworld: User Segmentation and Targeting TMBA BBUS 506 A Michael Cavelero, Joel Engstrom, Nesreen Zadah, David Tobey 4/19/2010 Introduction Smoke signals, telegraphs and telephones: communication in the modern world evolves quickly. The 21st century has been no exception. The rise of the internet heralded the growth of so called “online social networks” or simply “social networks” – websites where individual users carved out their own niche. Many of these networks have become household names to Americans: MySpace, Facebook, Linkedin and more. For many Koreans between the ages of ten and thirty, social networking has meant one thing: Cyworld. Cyworld, a small social networking company, was founded in 1999 by a group of MBA students in South Korea. The network was revolutionary, pioneering user experiences, such as community gifting and public threads, that other networks would adapt years later. Cyworld underwent rapid growth, and in 2003, was acquired by SK Telecom, a billion dollar Korean mobile communications enterprise. Cyworld employed a relatively unique revenue model of selling virtual items (“microtransactions”) to over twenty million users. However, by 2006, the social networking market was changing rapidly. Surveys and forecasts reflected declining activity and loyalty among current users. Additionally, an increasing percentage of users simply took advantage of the free services that were offered. Hyung-Chul Joo, as newly appointed CEO of SK Comms (the......

Words: 3253 - Pages: 14

For Against Electoral

...For or Against Electoral College System Introduction to U.S. Government In my opinion the Electoral College system is not the best system for electing the U.S. President today. Electoral College system has ebbed and flowed with the possibility of an election resulting in no majority winner, due to a viable third party candidate, or the possibility of a president being elected without winning the popular vote. It's not fair to the candidates running for office, not fair to the campaign volunteers and especially not fair to the American people. Although the Electoral College System was originally considered to be a brilliant innovation that cleverly solved a cluster of 18th-century problems, as we approach the 21st century, we confront different problems and our constitutional system of presidential selection does not look so brilliant. I believe that the Electoral College should be abolished and a direct election of the President and Vice President of the United States by popular vote should be established. The current Electoral College System is unfair for several reasons. One of the most obvious faults is that a president can be elected without winning a majority of the popular vote. It is an insult to democracy for a candidate, after winning the popular vote, to lose the election and the presidency. In addition, a citizen's individual vote has more weight if he or she lives in a state with a small population and a proportionately larger number of electoral seats. It......

Words: 455 - Pages: 2

Cyworld

...ccccdd grupo sd Caso Cyworld Grupo B – GMBAW 13 ddd Sonia Riveiro Sara Cristóbal Christian Martín Lucía Rodríguez Miguel Ángel Paz Pablo Villar Ramón Guerra GMBAW13 - GrupoB DEFINICIÓN DEL PROBLEMA Cyworld se enfrenta a un mercado maduro. Su cuenta de resultados se ha estancado, y se dan los suficientes factores como para augurar una futura reducción de los márgenes operativos. Este problema tiene dos aspectos a destacar: 1. Ha alcanzado el límite de su base de usuarios 2. El modelo de negocio está obsoleto La primera causa solo puede resolverse a través de la escalabilidad del negocio a otras áreas geográficas. La segunda a través de un cambio/ajuste del modelo actual. Dicho cambio iría de la mano de un análisis de la situación actual y una evaluación de alternativas; en definitiva, si es necesario reposicionarse o, por el contrario, incidir en el posicionamiento actual. Solucionar el segundo problema llevaría a incrementar el valor de la base de clientes y posibilitaría el crecimiento de la cuenta de resultados a través de un crecimiento en el margen operativo. ANALISIS DE LA SITUACIÓN [Compañía] Cyworld se posiciona en el mercado como una comunidad limpia y libre, donde los usuarios usan sus nombres verdaderos, casi exclusivamente dedicada a las redes sociales y con poca publicidad. El modelo de negocio se basa en el concepto de minihompy. Una pequeña página inicial personal que los usuarios pueden utilizar a modo de diario y para comunicarse con......

Words: 2835 - Pages: 12

Against Love

...Jorge Rodriguez-Sawao Professor DiAngelo ENG112 March 31st, 2014 In Favor of Love Laura Kipnis, in her essay Against love, touches many aspects of love. It is a sensitive topic simply because love brings out many different opinions and beliefs. The author argues the fact that in order to have a good relationship and love we need to meet creating requirements like good communication, coherence and close relationship or intimacy. It is an interesting essay. What quite caught my attention is that at the beginning of the essay, the author says “Love is, as we know, a mysterious and controlling force. It has vast power over our thoughts and life decisions. It demands our loyalty, and we, in turn, freely comply. (Kipnis 734). This is the simplest way to explain what love is about. When people realize that you really love someone we do and say things you never imagine. Love is an important part of life. Life without love is like an ocean without water. Love is not something you find on the streets or stumble on. It grows on you with time. On the essay, the author, also refers about passion. “Of course, the parties involved must work at keeping passion alive ….. (Kipnis 736). Passion can be described in two words: strong and uncontrollable. We can’t control how we feel about the people, activities and ideas in our lives. Passion unfortunately is not always a good thing especially it can make a person incompetent. Everyone has a passion of their own and their pursue......

Words: 559 - Pages: 3

Against "Against Utilitarianism

...Against “Against Utilitarianism” Utilitarianism, a form of consequentialism, is one of the most notable and influential moral theories. The basic concept behind utilitarianism is that the morality of an action is based solely on the consequences it produces. People possessing utilitarian views believe that a person’s actions should be chosen to maximize utility for the greater good of all people. In the article “Against Utilitarianism,” British philosopher Bernard Williams aims to discredit the validity of the utilitarian argument. He supports his argument through examples of moral dilemmas and working definitions of utilitarian terms. Although Williams presents a compelling case against utilitarianism, such a prominent theory in philosophy cannot be reproached so quickly. Utilitarianism enhances overall happiness and utility without disparaging individual integrity. The concepts making up utilitarianism are extensive, however two of the most fundamental concepts include negative responsibility and integrity. Negative responsibility is the belief that a person is as responsible for the consequences of an action that they failed to prevent as they are for the actions they carry out. The idea of negative responsibility is directly related to utilitarianism because it deals with the concept that a person is responsible for consequences brought about by their being. This includes a person’s lack of action which, in itself, is considered an action to a utilitarian. Based on......

Words: 1084 - Pages: 5

Cyworld

...Cyworld: Creating and Capturing Value in a Social Network “Cyworld: Creating and Capturing Value in a Social Network” discusses the growth and evolution of the Korean social media network, Cyworld, and the decisions made by its executives in order progress the company into what it is today. Over the course of the article, Sunil Gupta and Sangman Han cover how Cyworld has evolved from a simple social network to one that utilizes mobile networking, digital micro-transactions, and advertising as ways to generate revenue. Issues regarding how Cyworld’s executives would create value for their user base and in turn, generate revenue, by capturing said value are also discussed. The main issue presented for Cyworld executives was how they were going to transition from their original business model of a clean and ad-free social network to one that did more as their install base grew over time. By leveraging the knowledge gained from previous marketing classes, the data provided within the Cyworld case study, and my own personal experiences, I suggested that Cyworld focus its efforts on their most connected members as well as their mobile networking service. These marketing decisions would not only support Cyworld’s original business model and brand image as a social networking company, but also provide a natural direction of progression for Cyworld to go through. 1. Why do people use social networks? Over the past decade, social networks and social media in general has......

Words: 1765 - Pages: 8

Company Analysis of Myspace

...Company Analysis of Myspace Company Analysis of MySpace, Inc. a subsidiary of Specific Media LLC Tolunimi Adedeji Jacob Johnson Senez Rodriguez Davenport University Instructor: Dr Lori Kerlin, SPHR,ACC Abstract Specific Media LLC, a company that is based in Beverley Hills, California acquired Myspace,Inc. in June, 2011. The purpose of this analysis is to examine the scope of the business, its market distribution, identify current issues that are affecting the growth of the organization, evaluate the primary and secondary target markets, prepare an organizational SWOT analysis and develop a strategic plan that would improve the business practices and support their success. This article will showcase the fact that the primary responsibility of a company is to increase profits and many factors come into play which affect the profitability of a company. We will seek to find what these factors are for Myspace, Inc. and develop plans to minimize this and increase the overall profitability of the company. Introduction: Myspace, Inc. is a social networking service owned by Specific Media LLC. It operates a web site to create private online community. It is an online service that allows its members to set up personal profiles that can be linked together through networks of friends. MySpace enables its members to share photos, post journals and comments, and describe their interests, as well as play social games. The company (Specific Media) offers online, mobile,......

Words: 1831 - Pages: 8

Against

...I am against at early marriage because at very young age early marriage can destroy our lives and it gives us big responsibility and many problems. Responsibility has to be shouldered at a very young age. One has to take on household responsibilities, child rearing responsibility. There is no adult to guide or help out. Missing out on the fun of teenage life and being young. The hard of married life can get to you. They deprive you of your youth. Health also can get affected as early pregnancy can have a negative impact on overall health. Breakdown of marriage is possible. Often the young couple is immature to shoulder major responsibility and end up fighting with each other. Adjustment problems may arise. Education also gets affected. The young couple may not be able to pursue higher education as they have to take on the responsibilities of family budget. Work opportunities are limited for the youngsters. Since their education levels are low, they cannot get highly paid jobs. Bringing up children may be difficult. Their knowledge of child care may be limited and parental guidance is also not there. They may not be able to provide the appropriate care for their child. When your young your not yet mature, and haven't had the chance to live life, and at a young age, you haven't always finished school or secured a good job, your not financially ready and this causes many young marriages to end prematurely. At a young age, you really don't know what u want from life until your......

Words: 548 - Pages: 3

Myspace & Facebook

...Internet. It started out simply as email and instant messaging. This has been around for over ten years. Though an advanced form is in the works. It is people communicating by means of Web 2.0. Web 2.0, is the name for the massive forms of new communication of Myspace, Facebook, and other Social Networking Sites. People go on these sites, not just teens anymore, and interact with fellow networkers. It might have been cute and nice in the beginning but now some are getting addicted and living in these worlds that are technically extensions and some are even fantasy such a Secondlife.com Now I could write for months about these topics and sites but I would like to narrow it down to two websites on one topic. This is an informal paper in the sense that its methodology wouldn’t bode well with those of the social sciences. Also, I took surveys and they weren’t all random so from a statistical standpoint it is not a true sample. At the same time, I feel those I have chosen are from a wide range of “Myspace and Facebook backgrounds” though in this paper I generally found that Myspace has been eliminated among my social peers and is almost obselete. Though it still has credence. Alot can be explained why Myspace has failed among my peers when compared to Facebook. I and most of my peers fit the hegemonic group she explains(Boyd 2007). I asked seven questions to my subjects and there were also follow up questions when those who were interviewed gave answers that......

Words: 1909 - Pages: 8

Cyworld Marketing Case Analysis

...Cyworld Case Analysis Market Segmentation Cyworld’s market can be segmented many different ways using various factors to create the segments. Cyworld can demographically segment its market using statistics such as age, sex, and country. This can be done by breaking down Cyworld’s users based on male/female, current country of residence, and then further grouping the users into age categories of 13-18 years old, 19-29 years old, 30-39 years old, etc. Cyworld can gain information on its market by further segmenting its users based on specific aspects of the website, such as activity level, purchases, and the amount of connections. For activity level segmentation, Cyworld would categorize users based on the amount of times he/she signs into the website per week, or the amount of time he/she spends on the website, and grouping them into high activity, medium activity, or low activity. Segmenting Cyworld’s market by purchases would consist of the same process of grouping users into a high, medium, or low category based on the amount of money each user has spent in the last four months buying virtual items. Segmenting Cyworld’s market by the amount of connections groups users into high, medium, and low category based on the amount of relationships (friends/ties) each user has. Cutoff criteria for segmenting users based on connections, as well as purchases, should be set so that approximately 1/3 of users fall into each category. Target Segment The main segment that......

Words: 1487 - Pages: 6