Cyworld Case Analysis
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Institution
Cyworld Case Analysis
Cyworld代写 Cyworld is a Korean based social network like MySpace and Facebook. Unlike other social media platforms, Cyworld operated in Korea.
The concept of communication changed at the advent of internet bubble. Users no longer view internet as the method of receiving simple information and emails. The internet consumers especially in communication, want customized room on the web through. Which they can socialize with friends and express themselves in any way possible. It has been proved difficult with the close analysis of the companies like Cyworld that delivering consumer needs while trying to create and capture business value.
Summary of The Case Cyworld代写
Cyworld is a Korean based social network like MySpace and Facebook. Unlike other social media platforms, Cyworld operated in Korea. It was started by MBA student from Korean Institute of Science and Technology in 1999 (Gupta and Han, 2008). Initially intended to be social network by providing an address book. People invited friends and won gifts every time a friend is invited. The company was later taken over by SK Telecom which is a dominant telecommunication company in Korea. Cyworld代写**成品
Cyworld rose to one of the major social platforms in Korea. However, Cyworld continued to struggle with user motivation, satisfaction and segment while trying to create commercial value. This prompted the new management to evaluate various strategies to make Cyworld continue growing commercially and offer consumer motivation and satisfaction.
Major Issues Facing Cyworld Cyworld代写
Cyworld has struggled to remain afloat in a market is dominated by other players. Although its business model was winning, at some level it falls short of the expectations. Some of the problems that the company is facing can be categorized into various groups including marketing, management, financial, and strategic problems.
Marketing Problems Cyworld代写
Although Cyworld has a market share of 22 million which is more than half of the whole population, it has failed to market it services which would create it commercial viability (Gupta and Han, 2008). Customer became bored with services that it offered in homepage particularly paid items. Most likely, some of the new features for decorating home may lack value to the consumers by the fact that they were sold virtually. Cyworld代写**成品
Therefore, lacked a connection between the virtual products with the customer needs which can be created with intensive marketing to impulse consumers on their value. Also, out of the 22 million subscribers, only less than 5 million were active daily users and buyers of items. (Gupta and Han, 2008) It means that the company has failed to market its products to more than half its subscribers. In regard to this, the company need to focus on paid items which has been the major contributor in its revenue base. Thus, to capture this value thorough marketing would be the strategic option.
Financial Problems Cyworld代写
The Cyworld growth was not anticipated and therefore it developed financial problems for the bid to expand. Although this problem was solved after its partnership with SK Telecom, financial crisis persisted due its saturation in the market and lack of customer motivation and satisfaction. As such, it continued to drift on strategy to use to capture value with paid items being the most preferred.
Management Problem Cyworld代写
Cyworld is lacking on the strategic management. Some of the consumer issues like failing to create value and products declining in sales are dependent on the motivation or laxity of the management. This was not until the entry of CEO Joo whose goal is to realign Cyworld strategies and business model to its goals and customer needs.
Strategic Problems Cyworld代写
Cyworld is failing to have a strategic way to capture value in the market. Most of its subscriptions and usage had continued to decline. It is clear that it lacks to be innovative in its marketing and product innovation strategies.
Critical Analytics Cyworld代写
Cyworld need to realign its business goal with it business model. The company should invest in marketing to show its commitment in keeping its customers satisfied. The management should go for the initial business model of paid items as it will not bring confusion on the users and will keep it focused.
When the company choose on the niche to focus like in this case paid items and engage in extensive marketing to create awareness and products value. It will increase its will not only increase on subscriptions but also the number of users paying for items. The reason for this recommendation is because it align with initial goals and model of Cyworld and which has continued to contribute 72 percent of revenues.
Recommendations Cyworld代写
The company should concentrate on paid items as it major commercial value. Therefore, it should focus on creating innovative features for homepage and other social uses while engaging in extensive marketing to create awareness and their value. Reason being, in as much as Cyworld is a social site, it was commercially motivated and virtual items are the major source of income.
References
Gupta, S. and Han, S. (2008). Cyworld: Creating and capturing value in a social network. Harvard Business School. 1-18.
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