Cyworld Case Study
a. Why do people use social networks?
Social networking allows people to “connect, communicate, and interact with each other and their mutual friends…” (Correa, Hinsley and de Zuniga 2008:248). In a nutshell, people engage in social networking to feel part of a community, to keep in touch with their existing friends, make new friends, and express themselves in various forms. The case study also suggests that people use social media as an archive for photos, videos etc.
b. How can you segment Cyworld’s users? Which segments should Cyworld target? How can it create value for users in these segments?
Cyworld segments their users according to “ABC segmentation” in the case study, which is …show more content…
The difference between Facebook, Cyworld and MySpace and Amazon is that the latter is a retailer not focused on social aspect. Users can interact by rating, or commenting on products, however the intent or the connection is for transactional purposes only. Money is generated by Amazon by the sale, or the commission on the sale, whereas the others have advertisement or virtual sales income model. Facebook, MySpace and Cyworld have all tried some form or another of targeted advertising (which carries potential privacy infringements); however Amazon fiercely protects their consumers privacy
The difference between Facebook, Cyworld and MySpace and YouTube is in the content. Where the former three allow various forms of content sharing, YouTube is specifically designed for User Generate Content Video’s. On YouTube you don’t need to be an active member of a “channel” (community) to derive benefit or share an interesting video, but you can follow or subscribe to a channel.
e. What should be Cyworld’s business model – paid items, mobile networking, or advertising? Should Cyworld explore any other areas of opportunity?
Cyworld has the advantage that should they decide to focus on mobile networking they already have the infrastructure in the telecoms industry and mobile industry by