...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 Cyworld...
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...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 quickly...
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...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 online...
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...S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II www.ibscdc.org 1 Transformation Corporate Transformation Korean Air: Chairman/CEO Yang-Ho Cho’s Radical Transformation A series of fatal accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven...
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