Why MySpace lost its market as a Social Media Platform.

1. Rediscovering
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Animesh Jain, BM PARICHAY 2014

2. Founded in 2003
Founders- Kris Dewolfe and Tom Anderson
HQ- California, US
Revenue- 20 Million Dollar
Type- Social Entertainment Platform
History

3. Competitors

4.  Where to Compete?
 How to Compete?
 Porter’s 5 Forces Model
 Icarus Paradox
 Competitive Advantage
Analyzing Failure

5.  Lack of loyalty to its users
MySpace was launched to appeal to “Generation Y”, 13-
15 year olds with bit of internet nouse and an
understanding about how to socialise online.
 In 2005, when the site was at its peak, the site was
brimming with teenagers writing on each other’s pages,
becoming MySpace friends with their favourite bands
and uploading their party photos.
 MySpace failed to adapt and appeal to its original market
as they left their mid-teens and became young adults.
Analyzing Failure

6.  Lack of innovation
There is little comparison between MySpace and Facebook
as a product. Facebook takes seconds to master and
constantly adapts around a user’s network of friends, their
likes and the games they play on the site.
 MySpace still operates in a similar way to when it first
launched, with only a handful of minor usability updates
over the last five years.
 MySpace was also slow to adopt technologies such Ajax,
which allows users to send messages without the need to
open a new browser window; programs to import e-mail
address books into friends lists; and instant messaging.
Facebook trumped it on all three.
Analyzing Failure

7.  Lack of understanding about itself
At the end of last year, MySpace’s chief executive Mike
Jones admitted the site was no longer a social network but
now a “social entertainment destination”.
 The site had repositioned as it became obvious it was never
going to compete with the leading social networking
websites in its previous state. It had admitted defeat.
 Brands should adapt to the changes within their market, but
never make reactive decisions and change the market they
operate in altogether.
Analyzing Failure

8.  Lack of control
Rupert Murdoch’s NewsCorp bought MySpace for around $580m in 2005
when it had 20 million unique users. Now MySpace is losing its parent
company tens of millions of dollars each month.
 NewsCorp has admitted the losses are neither “acceptable or
sustainable” and its president Chase Carey said the social networking
site was a “problem”.
 MySpace executives were pressured to make profit from the site
immediately to substantiate the predictions, whereas Facebook’s
investors were ready to take on early losses in order to invest for the
future.
Analyzing Failure

9. Ansoff Matrix

10.  Positioning
 Brand Ambassadors
 Social Causes and Public Events
 Get Investors
 User Friendly Social Media Platform
 Mergers & Acquisitions
Revival Plan