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Cyworld Case Study Analysis

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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 ------------------------- - - - - - 4 2 -2. Bargaining power of buyers -------------------------- - - - - - 4 2 -3. Threat of new entrants ---------------------------- - - - - - - 4 2 -4. Threat of substitutes ----------------------------- - - - - - - - 5 2 -5. Rivalry among competitors --------------------------- - - - - - 5 3. Company Analysis …show more content…

That s the reason why a lot of network sites keep their fee low as least as possible and are very reluctant to raise it, or even put additional services with small amount of money. 2-3. Threat of new entrants The threat of new entrants into social network industry is low. Starting a social network is very easy as it doesn t require big amount of capital, however, it s not easy to attract certain amount of users at the very first time. Without users who use same community, the community loses its utility and power to both current and potential customers, resulting in shut down. Also, even though it s quite easy to sign up, people who surf the Internet tend to stick on a page for a very short time and feel bothered when they are forced to sign up. As Cyworld distributed free cyber money to new comers, a lot of networks need attractive baits which are better than competitors. That s the reason why so many websites offer various benefits when a user joins them. 2-4. Threat of substitutes This could range from traditional networks and their places like soccer clubs, parentsteacher association, bars and parks to future form of networks like virtual reality which is far to come soon. The strength of social network is that it can not only produce new connections among people but also reinforce existing off-line networks with more convenience, speed, and easiness. Nowadays, people use social network websites when they form new

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