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 become one of the world’s biggest industries. With the advent of sites like Facebook, Twitter, YouTube, and more, connecting with people around the world has never been easier. In the case study, “Cyworld: Creating and Capturing Value in a Social Network”, Professors Sunil Gupta and Sangman Han analyze the history and business practices of South Korean-based social networking site, Cyworld.…...

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