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

In May 2008, the new CEO Cyworld, social networking companies in Korea, we had to decide how to create and capture value from its rapidly growing user base. Cyworld was founded in 1999 and in 2003 it was acquired by SK Telecom, the leading mobile operator in Korea. By 2007, Cyworld had 21 million users and $ 95 million in revenue - $ 65 million from the paid items (music, virtual gifts, etc.), $ 15 million of mobile networks, as well as $ 15 million on advertising. New CEO had to decide which of these three sources of income it should focus in the future, and how this will affect the choice of target customers, service offerings and the necessary facilities.
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by Sunil Gupta, Sangman Han Source: HBS Premier Case Collection 18 pages. Publication Date: November 7, 2008. Prod. #: 509012-PDF-ENG

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