Case Study Cyworld Creating And Capturing Value In Social Network

Case Study Cyworld Creating And Capturing Value In Social Network Group Members Syed Hasan Zaman (20738) Muhammad Wasim (20735) Mansoor Owais Talha Qadri Question 1 why do large number use societal network? Answer Peoples mostly use the hearty networks for the purpose of managing their social lives, similarly it includes to satisfy the desire of socialization of each individual which is required to be satisfied and the social networks be the most comm provided used medium now a days in order to satisfy much(prenominal) need.Comparing it to the some other mediums such as emailing, messaging or calling the reason for the preference of the social networking points is because that the audience in the social network is large enough also it fuddles the opportunity to socialize with other peoples around the globe and making naked friends and connections and getting to know peoples, cultures and rates around the globe Question 2 How can you segment Cyworld user?Which segment sho uld Cyworld target? How it can compose value for users in this segment? Answer The segmentation of user of Cyworld ar the teens and the generation in early twenties as the largest user mathematical group of Cyworld is the users comprised of the these two age segmentation. The reasons for these segmentation to be close ined towards Cyworld is that there is no rank fee and the generation is neither able to pay huge rank or reactivation feesCyworld should target the youth as they be most elicit generation segment in socialization and who are well certain of using such sites and medium to communicate, contact and maintain their relationships with others and also look for to communicate with peoples around the globe in other regions For creating value for its users, Cyworld initiated with the tactics of introducing the idea of creating and managing minihompys by way of buying the virtual items and decorating the minihompys solely afterwards Cyworld observed that the users are g etting bored of this operation and realized that the Cyworld forget not be able to capture justified value on providing such run.After surveying all the accompanimentors the Cyworld decided to launch Home2 which is in fact the upgraded version of minihompys besides this have the option of sharing photos and mevery an(prenominal) other things. This created more value for the users of the Cyworld and shortly around 80,000 users of the Cyworld migrated to the Home2 as it is something new as it was a blend of blogging and minihompys. Question 3 Which is most semiprecious for Cyworld An diligent user, a user who spends a lot of money with Cyworld or a user with a lot of connection? Answer The most valuable for Cyworld includes the one who are an active user of the site as they are the potential customer of the organization.Considering the fact of generating revenues, the most revenue generation activity for Cyworld was the Paid Items which concludes the 72% of all the revenue ge nerated by the organization but as a matter of fact the organization can only attain such revenue when item are being interchange and the people will only buy if they can show that to others on the site as the items are not tangible neither transportable rather they are all virtual so the only value for the customers is the status regime they show by means of placing it on their throw minihompys. The users with a lot of connection is considerably valuable for the company because these are not only permanent users of the site as they wont leave the site because this will cause them to leave the connections they have and this makes them not only the potential customer but also they can attract others to join the site and can increase the users f Cyworld Question 4 How is Cyworld different from Facebook or Myspace? How these social networking sites are differ from other bigger websites such as Amazon, Yahoo and Youtube? Answer Cyworld is different from Facebook or Myspace as on thes e social sites it is assumed that we are talking to a habitual at large (for example writing on a firends wall) but the reality is we are still communicating with a precise group of peoples (i. e. only the friends or connections of that person can see what we post on his wall). The other reason is Cyworld came with the idea of minihomphys where are Facebook and Myspace lacks such handiness of option.The websites such as Amazon, Yahoo or Youtube are specific functioned sites exchangeable Amazon is used for online shopping, yahoo is a general purpose site which includes features from offering sale purchase to news reading material and many other areas and Youtube is specifically used for watching videos or sharing it, in comparision to Cyworld, Cyworld offers the sharing of ideas, minihompys, videos, photos, music and many other things and this variety of option carve up Cyworld from the sites such as Facbook, Myspace, Amazon, Yahoo and Youtube Question 5 What should be Cyworld profession model paid items, mobile networking or advertising? Should Cyworld explore any other area of opportunity? AnswerCyworld started generation of revenue from the services of offering paid items and it constitute 72% of the revenues generated by the company but forecasting the future and analyzing the user behavior and trend Cyworld came to the resultant that the people in future will not be much provoke in purchasing virtual items for real money which can give them not much of value and satisfaction and the company realizes that the revenues will bury if the company sticks to the model of Paid Items. After considering all the facts the company came to the conclusion that the company should migrate from paid items model to the advertising models as followed by Facebook and many other sites. Its hard for Cyworld to make its own position in the securities industry where the websites such as Facebook and Myspace are handling the maximum market share