Wal-Mart-analysis
Background and Central Problem
Myspace.com is a SNS (social networking service) website which was founded in 2003. It was once the most visited social networking site in the world, and in June 2006 surpassed Google as the most visited website in the United States. It has been operating well with all its good features of music, games, videos and pop culture until early in 2008, when it was overtaken by Facebook in the number of unique worldwide visitors, and was surpassed in the number of unique U.S. visitors in May 2009. It had a significant influence in pop culture and music and created a gaming platform. Also, the site started the trend of creating unique URLS for companies and artists. With its once excellent performance and fame, Rupert Murdoch loved it very much, which led to the fact that Myspace was acquired by News Corporation in July 2005 for $580 million. However, since then with the poor managing strategies, wrong market positioning and News Corporation’s little help, the number of Myspace users has declined steadily in spite of several redesigns. After failure of changing top management for several times and leaving of its founders, Myspace was jointly purchased by Specific Media Group and Justin Timberlake for approximately $35 million in June 2011.
After Myspace’s peak time, its poor performance in innovation and management strategies make it generally being considered as a pornographic site. Too heavily it depends on advertisement without proper screening. It represents a negative, chaotic and obsolete environment to the public. Moreover, after being acquired by News Corporation, it got little autonomy and enough help. To make things worse, too frequent changing of senior management, among whom no one really knows about Myspace, has generally diminished morale within the company. Myspace has fallen into a vicious circle and exodus of users continues.
Environmental Scan
Demographic
The number of users is crucial for a SNS company. Because
Myspace.com is a SNS (social networking service) website which was founded in 2003. It was once the most visited social networking site in the world, and in June 2006 surpassed Google as the most visited website in the United States. It has been operating well with all its good features of music, games, videos and pop culture until early in 2008, when it was overtaken by Facebook in the number of unique worldwide visitors, and was surpassed in the number of unique U.S. visitors in May 2009. It had a significant influence in pop culture and music and created a gaming platform. Also, the site started the trend of creating unique URLS for companies and artists. With its once excellent performance and fame, Rupert Murdoch loved it very much, which led to the fact that Myspace was acquired by News Corporation in July 2005 for $580 million. However, since then with the poor managing strategies, wrong market positioning and News Corporation’s little help, the number of Myspace users has declined steadily in spite of several redesigns. After failure of changing top management for several times and leaving of its founders, Myspace was jointly purchased by Specific Media Group and Justin Timberlake for approximately $35 million in June 2011.
After Myspace’s peak time, its poor performance in innovation and management strategies make it generally being considered as a pornographic site. Too heavily it depends on advertisement without proper screening. It represents a negative, chaotic and obsolete environment to the public. Moreover, after being acquired by News Corporation, it got little autonomy and enough help. To make things worse, too frequent changing of senior management, among whom no one really knows about Myspace, has generally diminished morale within the company. Myspace has fallen into a vicious circle and exodus of users continues.
Environmental Scan
Demographic
The number of users is crucial for a SNS company. Because