![]() KakaoTalk has vitalized the mobile game industry by collaborating with game developers to provide Kakao Game, while launching Plus Friend, a powerful mobile marketing channel for enterprises and content providers. By analyzing KaKaoTalk’s business model, we find that PSE (Preparation, Spread, Evolution) curve, composed of three phases: the preparation phase that establishes the platform to set the target group the spread phases where killer content is provided in the early stages of the platform, such as KakaoGame, a low pricing strategy, and reinforcement of the platform rules and the evolution phase where the platform continues to evolve. Based on research back ground, the purpose of this paper is to find determinants of KaKaoTalk’s huge success, and describe the platform business model. We pose research questions on how KakaoTalk could achieve huge success in Korea unlike other social platform enterprises. Most smartphones users, regardless of gender and age, use KakaoTalk. KakaoTalk, leading in the mobile industry, and became an inseparable part of the lives of Korean users. KakaoTalk was chosen the No 1 free Short Messaging Service (SMS) App by CNET, an American media website that publishes reviews, news, articles, blogs, podcasts and videos on technology and consumer electronics globally in 2011. It has become key stone for the mobile industry growth in Korea by providing mobile platform ecosystem. Since KakaoTalk, launched in 2010 as Mobile Instant messenger (MIM), it has strongest position in the mobile industry, expanding its service beyond messaging to a social platform encompassing games, digital contents, marketing e-commerce and more. KakaoTalk is the provider of a mobile messaging application and mobile social platform in Korea. In Korea, the mobile Internet environment has flourished in the last ten years, and as a result, social platform enterprises and app stores are growing rapidly. The emergence of new information and communication technologies (ICT) and of the Internet have opened new opportunities to design open market business models by enabling companies to fundamentally change how they organize and engage in economic exchanges both within and across companies as well as through industry boundaries (Zott and Amit, 2007). The mobile revolution was triggered by the introduction of Apple’s iPhone, and since then, the business environment around such platforms has brought about increased competition. ![]() In addition, the increase in smartphone penetration has led to a battle among platforms. Over the last ten years, unprecedented growth in social network services (e.g., Facebook) has greatly increased the use of platform business models. This study contributes to the innovation for social platform businesses. This study proposes a platform evolution pattern that involves the PSE curve in order to form successful platform. The PSE curve is composed of three phases: a preparation phase that establishes the platform and sets the target group, a spread phase where the firm provides killer content, such as KakaoGame, a low pricing strategy, and reinforcement of the platform rules in the early stages of the platform and an evolution phase where the platform continues to evolve. The case analysis indicates that a preparation, spread, evolution (PSE) curve is a successful platform business evolution. This study also discusses how to create a value proposition and how organizations using the platform can cooperate. The purpose of this study is to find the determinants of successful platform business, through the case study of KakaoTalk, a representative fast growing social platform in Korea. Platform business is often regarded as notable examples of successful businesses model in the mobile industry.
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