Cyworld: Creating and Capturing Value in a Social Network Harvard Case Solution & Analysis

Shade cases must be printed in color, to optimize their efficiency. In the month of May 2008, the new CEO of Cyworld, a social network business in Korea, had to determine the way to create and capture value from his quickly growing user base. Cyworld was established in the year 1999 and in 2003 it was acquired by SK Telecom, a pioneer mobile service supplier in Korea.

By year 2007, Cyworld had 21 million users along with $95 million revenue - $65 million from paid things (music, virtual presents, etc.), $15 million from cellular networking, and $15 million from marketing. The new CEO had to determine which of these three revenue sources he should focus on in the future and how this pick would influence the target customers, the service offerings and the essential capacities.

PUBLICATION DATE: November 07, 2008 PRODUCT #: 509012-HCC-ENG

This is just an excerpt. This case is about SALES & MARKETING

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