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  • Cyworld Creating and Capturing Value in Social Network

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    Putri
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    Cyworld started in 1999 as a social networking site in South Korea. It was acquired by SK Telecom in 2003 as Cyworld's user base was growing rapidly. After the acquisition, Cyworld reached critical mass and saw synergies with NateOn. However, later users began decreasing as they lost interest or had privacy concerns. Cyworld explored options to generate revenue such as paid items, mobile networking, and advertising on the site. It faced challenges with lack of revenue and competition from other social media sites.

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    Cyworld started in 1999 as a social networking site in South Korea. It was acquired by SK Telecom in 2003 as Cyworld's user base was growing rapidly. After the acquisition, Cyworld reached critical mass and saw synergies with NateOn. However, later users began decreasing as they lost interest or had privacy concerns. Cyworld explored options to generate revenue such as paid items, mobile networking, and advertising on the site. It faced challenges with lack of revenue and competition from other social media sites.

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    16 views12 pages

    Cyworld Creating and Capturing Value in Social Network

    Uploaded by

    Putri
    Cyworld started in 1999 as a social networking site in South Korea. It was acquired by SK Telecom in 2003 as Cyworld's user base was growing rapidly. After the acquisition, Cyworld reached critical mass and saw synergies with NateOn. However, later users began decreasing as they lost interest or had privacy concerns. Cyworld explored options to generate revenue such as paid items, mobile networking, and advertising on the site. It faced challenges with lack of revenue and competition from other social media sites.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    of 12

    Cyworld

    Creating and Capturing Value in


    Social Network

    Putri Julieta Dewi (041914353010)


    Dicky Surya Putra Pradana (041914353022)
    Helene Elisabeth Simon (041914353034)
    The Evolution of Cyworld
    The Early Era (1999-2003)
    * Started by MBA students from KAIST
    * Have 2 competitors, Daum and Freechal
    * 2001 Cyworld developed minihompy

    Acquisition by SK Telecom (2003)


    * Cyworld user base was increasing rapidly
    * Need funds for operating expense and buy new servers
    * SK Telecom acquired Cyworld

    Post Acquisition (2003 – 2006)


    * Cyworld reach criticall mass
    * Synergic relationship with NateOn
    Konsep Cyworld
    Minihompys
    Cyworld User

    User Motivation User Satisfaction


    * Social networking Users decrease (not have time,
    * Daily blog bored, few friends, privacy
    * School activity problem)

    User Segment
    * Late teen & early twenty
    * ABC segmentation (Active users,
    Buyers, Connectors)
    Creating Value

    Saturation Users Home2

    Challenges
    Tired of Activity
    Home2
    at Minihompy
    Capturing Value

    3 options for generating revenue

    Paid Items

    Mobile
    Advertising
    Networking
    Paid Items

     Paid items composition


     Minihompy (skin, accessories, etc)
     Music
     Miniroom & storyroom
     Web font
     Others
    Mobile Networking

    Started mobile cyworld where users could connect


    their minihompys by mobile phone to increase
    customer loyalty
    Advertising

     Starting as a “clean community” with no ads


     Introduced advertising “happy click”
     Advertising could be the future of the company
    Problems at Cyworld

     Lack of revenue
     Less user buying products to decorate their homepage
     Another competitor
    Business Model for Cyworld

     Increasing advertisement
     Integrating with online games
     Share games on minihompy
     Incentive to log on everyday
     Integrating with online shopping

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