Case analysis report:
CYWORLD

Class: BIZ2117

Section 6

I, HONG DOO(2009122198)
CONTENTS

1 . Introduction ------------------------------------ 3
2. Environment analysis --------------------------------- 3
2 -1. Bargaining power of suppliers -------------------------

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2 -2. Bargaining power of buyers --------------------------

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2 -3. Threat of new entrants ----------------------------

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2 -4. Threat of substitutes -----------------------------

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2 -5. Rivalry among competitors ---------------------------

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3. Company Analysis --------------------------------- 5
3-1. history of Cyworld ------------------------------5
3-2. Core competences …show more content…

Some companies, like Facebook and Youtube, collaborate to complement unfulfilled needs of users. Also, as we can see at Cyworld s case, firms keep imitating the competitor s strong points and sometimes develop more advanced services.

3. Company analysis
3-1.History of Cyworld
For about 10 years, for most of Koreans between the ages 10 s to 30 s, Social network service has meant only one thing; Cyworld. Established by 4 graduates of the Korea Advanced Institute of Science and Technology in 1999 (similar way Google was established by 2 Stanford university students), Cyworld is web-based social networking company. It was an unprecedented phenomenon that the company powerfully affected consumer trends on the web. The word
Cyworld is a combination of cyber and world which means a cyber world where people are able to have virtual relationships like a real. Cyworld has underwent rapid growth after starting
Mini hompy (Mini-hompage) service, which functions for the users to express their own life(photos, diary, music, etc) and connecting others. After that, Cyworld has made a substantial amount of profit. Also, there was a great fortune for Cyworld in 2004. One of the biggest competitors, called Freechal, announced to require a charge for all services. As a result, a majority of Freechal users have started to move to Cyworld where all services are free. This gave an outstanding growth of