Free Essay

Monster.Com in Emerging Markets

In:

Submitted By cankucukbayram
Words 698
Pages 3
01.20.13
A Silent Failure
Introduction

The article I am going to summarize is from the economy section of Hürriyet Gazetesi, which is one of the most well-known newspapers of Turkey. It is actually a short story about Monster.com, one of the largest employment websites in the world but I will be giving some other details about the case. The company (Monster Worldwide, Inc.) decided to start their operations in the emerging markets such as Brazil, Russia, Mexico, Latin America and Turkey. Despite their high hopes, the adventure that started in 2006 by founding their “department of developing countries” had to finish. Probably there are some other complicated reasons too but I believe that, lack of preparation to compete with the local players and underestimating their power in the market were the main reasons in this case.
Reasons to Be In These Markets

According to the article, in that era, the authorities of Monster.com described their reasons of investment as, the interest of foreigner investor to these markets, country’s young workforce and their increasing usage of internet. These companies will create job opportunities and they will need people to hire, which means a growing demand for job search engines.
Turkey

Monster.com started their operations in Turkey in 2008. They announced that Turkey will be their cornerstone and made the country the main base for emerging markets. In 2011, they selected Ebru Çapa, a very experienced turkish manager in the sector, as the head of operations in Turkey. However, there are 3 very powerful local players in Turkey in the field. The competition between Kariyer.net, Yenibiris.com and Sevretcv.com was already very intense. By joining of Monster.com, sharing the market turned into a very hard game. Advertising, publicity, promotion and since it was a personal sector and Turkey is a kind of reserved country, gaining the trust of customers was very hard for them.

Rivals

Kariyer.net was the most powerful competitior for Monster.com. They have been in the business since 1999. Furthermore, the company (ILab) that owns the Kariyer.net has other successful sites such as Gittigidiyor.com which recently has been bought out by Ebay. In the beginning of the competition between the world leader and them, this company started a nationalist policy in their marketing and advertising strategies which seems to be worked.
The other competitors weren’t also new in the market. Both of them have been founded in 2000. Yenibiris.com is owned by a very big and powerful media company named Doğan Holding. They had a lot of opportunities by using their TV channel. They didn’t stay out of the challenge. But their intention was about getting some of Kariyer.net’s portion.
Secretcv.com is relatively smaller than these companies. Even so, they tried to stay in the league.

Why did Monster.com fail?

In December, 2012 They decided to stop their operations not just in Turkey but Brazil and Mexico as well. Then they published a note on their web sites in these countries saying that “Thanks for visiting Monster.com, the site for your country has gone out of use since 28 December 2012”.
Why did it happen? Did they have very intense competitions in each of these countries? I don’t think that situations are the same in these completely different markets. The way of doing business, customer characteristics, even internet infrastructures are different. I think the problem was in the head of the company. Taking such big step requires lots of work to be able to succeed. I don’t think that in management level Monster.com was ready to be successful in these non-dependable, developing markets. Doing business in an economy like U.S.A or E.U is not quite similar with doing business in these economies. They must have believed mistakenly that it is.

Sources: http://www.hurriyet.com.tr/ekonomi/22319243.asp (The original article) http://www.kariyer.net/website/hakkimizda/index.aspx http://www.yenibiris.com/YenibirisHakkinda/Hakkimizda.aspx http://www.secretcv.com/footer/hakkinda_yeni.php?kat=1 http://www.google.com/finance?q=NYSE%3AMWW&ei=vln-UIiRMYbYkwPifw http://en.wikipedia.org/wiki/Monster.com

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