E-BUSINESS TREND: FAR-EAST E-COMMERCE EXPLOSION
Information Systems in Enterprises
Dr. Sherri Braxton-Lieber
January 2, 2011
The internet has changed the world in every way. New companies are constantly popping up each with a new and exciting idea. Sometimes these ideas overlap. In this case study we will explore four of these companies, two American and two Asian. We will explore how different markets deal with the same products and services.
MySpace began in 2003 as an offshoot of eUniverse, an internet marketing company. (Wikimedia, 2010) It put together popular social networking features so that users could create profiles in order to chat and interact with each other. In 2005 it was purchased by New Corporation. In recent years it has lost market share to its main competitor Facebook.
One of the oldest social networks is Cyworld which began in 1999 in South Korea. It currently has over 18 million users which is over a third of the country’s 48 million people. (Squidoo, 2010) Its main source of revenue is the sale of virtual goods. In 2006 it entered the U.S. market with the European market coming the following year. Both of these have since been shut down. (Wikimedia, 2010)
eBay has long thrived in the online world. It started in 1995 and has grown to over 90 million users. (eBay, 2010) Allowing users to buy and sell just about anything imaginable they had $60 billion in goods sold through their site in 2009 alone. Taobao is an online site allowing people and businesses to sell their goods to other users. Originally it was limited to China but earlier this year they have struck an alliance with Yahoo Japan to let Japanese users take part. (Wikimedia, 2010)
Launched in 2003, MySpace started as one of the pioneers in social networking. From 2007-2008 MySpace was considered the leader in social networking sites. Cyworld is roughly the South Korean equivalent to MySpace. They started at about the same time and both have had their fair share of ups and downs. Cyworld is wildly successful in South Korea, but hasn't fared well in the US or Europe.
Cyworld and MySpace are both free social networking sites that allow users to create their own page. Although they are both free, Cyworld went a step further in the use of buying power to make their social networking site more appealing. Users are able to purchase accessories for their mini-me, furniture, and wall art for their virtual room. Cyworld charges for these items that can be purchased with real money, which allows them to generate more revenue than MySpace. (Haag, 2009) “In 2006, Cyworld received the Wharton Infosys Business Transformation Award for being an organization that has made the best use of IT for transformation”. (Wikipedia) The development team at MySpace has decided not to be a competitor with Facebook as of late 2010. Instead, they intend to target younger people by making the site very music-oriented with the admission that older users may have less interest. "Too-little, too-late" may be how MySpace will be seen in the future. On October 26, BTIG analyst Richard Greenfield said, "Most investors have written off MySpace now," and he was unsure whether the changes would help the company recover.
Products and Services
When you look at Taobao and eBay it is clear that they offer both convenience and specialty products and services. EBay, and the Chinese equivalent Taobao, are two of the more well-known online consumer-to-consumer (C2C) websites, and are utilized by millions of online shoppers searching for bargains. Both eBay.com to TaoBao.com sell a combination of convenience items and specialty items. Many consumers seek these sites because of the perceived savings from buying items that are previously purchased or used. The value of these sites are numerous, one value is the convenience of “online browsing” for...
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