Premium Essay

Cyworld Launches Against Myspace

In:

Submitted By goodlcukgirl
Words 282
Pages 2
The institutional framework is made up of formal and informal institutions. The formal institutions impacting Cyworld’s expansion included legal regulations and governmental laws, while informal institutions involved cultural standards, ethics and other intangible aspects.

As far as Cyworld dealt in the United States, it was subject to the laws and rules of the country that regulate online activities. These included the protection of privacy and provision of security to the consumers and provision of quality services. Cyworld can be described as role model when it comes to issues like privacy protection and data security. Therefore, formal institutions were low constraining Cyworld’s expansion and the US market is a highly regulated market.

Informal institutions, however, had a major impact on Cyworld and the culture could be the main constrains. The widely accepted work of Geert Hofstede suggests that people from different groups, such as nations, can be very distinct from members of another group due to culture differences. According to Hofstede the American culture is different to the Korean culture in many ways, which is the domestic market of Cyworld; thus, the Americans are more individual focused, while Koreans make greater emphasis on the collective and people around.

In conclusion, Cyworld is failed in US market. There had three reasons.
• Firstly, when it entered the USA, MySpace has already dominated the market. Therefore, a foreign brand had barriers already from the early beginning.
• Secondly, Cyworld is a famous brand in South Korea. Most users in USA are American-Koreans or Korean overseas students. The strong preferences for Korean culture limited the growth of Cyworld in US.
• And the finally reason is Cyworld do not provide quality and special service compare to

Similar Documents

Premium Essay

Hsc Case Study

...9-709-426 REV: AUGUST 25, 2009 DAVID B. YOFFIE MICHAEL SLIND NITZAN ACHSAF LinkedIn Corp., 2008 Late in June 2008, a year and a half after becoming CEO of the online professional networking service LinkedIn, Dan Nye announced that a new funding round had given the company a $1 billion valuation. Investors, led by the private equity firm Bain Capital Ventures, had purchased a 5% stake in LinkedIn for $53 million. As a result, Nye now had ample resources to put toward accelerating his company’s already phenomenal growth. LinkedIn, based in Mountain View, California, had signed up more than 23 million users for its service, and that figure was increasing at a rate of 1.2 million new users per month.1 (See Exhibit 1 for information on LinkedIn’s membership growth.) Among members of the service were top executives at every company on the Fortune 500 list.2 “LinkedIn is now so prevalent and so valuable that you have to join it,” said Nye, a Harvard Business School graduate (Class of 1994) and a former executive at Advent Software and Intuit.3 Nye understood that LinkedIn, like the ambitious professionals whom it served, could not stand still. He had arrived at the company in February 2007, and since then LinkedIn had launched a European-based operation, opened up its platform to third-party software developers, and increased its head count from 60 to 310.4 A mere half-decade after its founding, the company had already turned profitable, and it was on track to bring in revenues...

Words: 10297 - Pages: 42

Premium Essay

Strategy Case Studies

...S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II www.ibscdc.org 1 Transformation Corporate Transformation Korean Air: Chairman/CEO Yang-Ho Cho’s Radical Transformation A series of fatal accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven...

Words: 71150 - Pages: 285