International Business Team Project
How Facebook Beat Cyworld in Korea
“Rugman’s Children”
B&A Jaewon Choi
B&A Jaewoo Shim
B&A Eunsun Chang
B&A Mikko Meronen
Index
1. History of Facebook
CONTENTS
2. General Market
3. Korea Market
4. Comparison
5. Solutions
6. References
01. History of Facebook
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
01. History of Facebook
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
<Mark Zuckerberg, CEO of Facebook>
01. History of Facebook
ⅰ) What is Facebook?
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
02. General Market
ⅰ) Globalization
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
02. General Market
ⅱ) Market Share
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
03. Korean Market
ⅰ) Number of Competitors
History
Of
Facebook
① SK Coms
③ Me-today
- Launched in 1999
- Launched in 2007
General
- Cyworld, Nateon, Connecting
Market
- Appx. 30,000,000 Users
(62% of Koreans)
- Appx. 2.8 Million Users
(5.71% of Koreans)
Korean
Market
Comparison
Solutions
References
- Share Common Interests
- Easy to Use
- Link with Mobile (Smart-Phone)
- Market Leader
- Linkage with Naver
② Twitter
④ Yo-zm
- Launched in 2006
- Launched in 2010
- Appx. 2 Million Users
(4.2% of Koreans)
- Appx. 650,000 Users
(1.3% of Koreans)
- Share Information
- Share Common Topics
- Fastest Growth Speed
- Link with Daum
03. Korean Market
ⅱ) Market Dominator :
History
Of
Facebook
General
Market
Korean
Market
CYWORLD
① Established ?
- Launched in September. 1999
- Establisher : Cyworld Corp.
- 1999.9 Start Service (Cyworld Corp.)
- 2003.1 M&A by SK Communications
- 2005.6 Launched in Chinese Service
Comparison
- 2005.12 Launched in Japanese Service
- 2006.8 : Launched in U.S / Taiwan
Solutions
- Stock Share Rate :
- Total Published : 43 Millions of Stocks
References
- Price of Stock : $13.01
03. Korean Market
ⅱ) Market Dominator :
History
Of
Facebook
General
Market
② Revenue Structure
- Total Revenue : 6.6 Million (Q3. 2010)
- Overseas Revenue : $2.5 Million (2009)
Korean
Total Revenue
Market
Comparison
CYWORLD
46.5%
46.7%
37.5%
Searching
16%
References
21.5%
Cy Japan
Display
Solutions
Overseas Revenue
Contents
Cy HK
Cy China
31.7%
03. Korean Market
ⅱ) Market Dominator :
History
Of
Facebook
CYWORLD
③ Market Share
- Domestic Market:
General
Market
Korean
Market
Comparison
- Overseas Market:
- Japan: Feb. 2010 Finish Withdraw Market
Solutions
- EU : 2008.3 ~ Processing Withdraw Market
- HK : 2009.8 ~ Processing Withdraw Market
References
- Lest Market : Vietnam(40%), China(46.2%)
03. Korean Market
ⅱ) Market Dominator :
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
CYWORLD
④ Localization
- Language
03. Korean Market
ⅱ) Market Dominator :
History
Of
Facebook
CYWORLD
④ Localization
- Mini-Me (Another Myself)
General
Market
Korean
Market
- Design / Decoration
Comparison
Solutions
References
04. Comparison
☞ Facebook vs Cyworld(Nate) in Korea
Facebook
Cyworld
Market Share
Appx. 60%
Appx. 17%
Critical Asset
?
Market Share
Main Users
Over 30’s
Mainly 20’s
Application
Appx. 600,000
Appx. 120
Language
Partly Korean
Totally Korea
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
04. Comparison
1) Market share
History
Of
Facebook
General
Appx. 60%
Market
Korean
Appx. 17%
Market
Comparison
Solutions
References
The first leader.. Cyworld but M/S is decreasing..
Facebook has been expanding its M/S rapidly..
04. Comparison
2) Critical asset
History
Of
Facebook
The “Critical Asset” of SNS……
The Beginning of Industry……
General
Market
Korean
Market
Comparison
Solutions
References
But Later……
04. Comparison
3) Main users
History
Of
Facebook
Worldwide Facebook Users
General
Cyworld Main Users
Market
Korean
Market
30.00%
Comparison
50.00%
24.10%
25.00%
40.00%
20.00%
20.00%
10.00%
10.00%
5.00%
References
26.70%
30.00%
15.00%
Solutions
44.60%
10.00%
5.00%
2.50%
2.40%
0.00%
0.00%
2~17
18~34
35~49
Users
50~64
65~
Facebook
20s
Cyworld
30s
40s
04. Comparison
4) Application
More than
600,000 Apps
in
Facebook
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
126 Apps
in
Cyworld
04. Comparison
5) Language
History
Of
Facebook
- Cyworld is a Typical Local Company
☞ Everything fits to Korean
General
Market
Korean
Market
Comparison
Solutions
References
BUT
Facebook offers Korean Partly…
05. Solutions
Index
History
Of
Facebook
General
① Target age : Over 30’s Customer
Market
Korean
② Language : Translate into Korean
Market
Comparison
③ Revenue Structure
: Give more Benefits to Developers
Solutions
References
05. Solutions-
Age
1) Target Age : Over 30s
History
Of
Facebook
General
Cyworld : Dominate 20’s customers,
Facebook : Should conquer age over 30s.
Market
Age Distribution
Age distribution of
Korean
of Facebook
Cyworld Users
Market
Users
Comparison
30 %
20 %
Solutions
10 %
0%
References
05. Solutions-
Language
2) Translate into Korean
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
• Application explanations are not
translated into Korean
• Koreans have difficulties to understand
what that mean
05. Solutions-
Application
3) Change Revenue Structure
History
Of
Facebook
General
Market
Korean
Market
Comparison
Solutions
References
• Profits from applications games developers
☞ Game Developers : 70%
☞ Facebook or Cyworld : 30%
• Should be more percentage of profits
to developers.
☞ More developers make more
interesting applications.
06. References
ⅰ) Books
1. Opening
• 소셜미디어 마케팅의 비밀
- The Secret of Social Marketing
2. Current Status
3. Industry Status
- Published in Aug.20th, 2010
- Wriiten By Paul Gillien
- 전병국, 황선영 옮김 / 멘토르 출판사
• 페이스북, 무엇이고 어떻게 활용할 것인가
4. Problems
5. Solutions
6. References
- Facebook, What it is & How to use it
- Published in Aug.5th, 2010
- Wriiten By 구창환, 유윤수, 최규문
- 도서출판 더숲
06. References
ⅱ) Newspaper / Internet Article
1. Opening
- SK컴즈 영업이익 78억 달성……(2010.11.4.노컷뉴스)
- Yelp Security Hole puts Facebook……(2010.5.11.TechCrunch)
2. Current Status
3. Industry Status
- Major Facebook Security Hole……(2010.5.5.TechCrunch)
- How will Facebook make money?......(2010.6.15.Pcworld)
- Age of Social Network Users……(2010.2.16.Royal Kingdom)
4. Problems
- South Korea Facebook Status……(2010. Facebook)
- 페이스북 코리아 법인등록……(2010.10.21.GDNet Korea)
5. Solutions
- 한국시장에 관심많다……(2010.11.3.Digital Daily)
- 신세계, 롯데 소셜커머스 진출(2010.10.25.한국경제)
6. References
- Facebook User age / Information(2010.11.25.Facebacks.com)
06. References
ⅱ) Newspaper / Internet Article
1. Opening
- DBR SNS Marketing……(2010.8.20.DBR 네이버 블로그)
- Using Social Network Browser……(2010.12.01.Blog of Reporter)
2. Current Status
- Record Analysis of 2009,2010……(2010.11.SK Com)
- History of SK Coms......(Sk Communication Offical Site)
3. Industry Status
4. Problems
- Facebook Status by Country……(2010.12.01. Socialbakers.com)
- World Map or Social Network……(2010.06. Vincos.it)
- Facebook’s overall Information……(2010.12.1.Wikipedia)
5. Solutions
6. References
- Facebook Reaches Top Ranking……(2010.03.15. Experian)
3 Books, 18 Articles
05. Solutions