Jim Washkau Jr.

At its peak, the social networking site MySpace attracted 75.9 million users per month. Over the next two years however, MySpace has been on a constant decline, losing over a million users a month. Despite essentially pioneering the social network craze, competitors like Facebook, LinkedIn, and Google have been constantly expanding while MySpace struggles to stay alive. Having been bought in 2005 by News Corp. for $580 million and generating $470 million in advertising dollars, News Corp. started looking for a potential buyer with an asking price of $100 million. Despite a significantly lower asking price, nobody is interested in MySpace. Having only been projected to generate $184 million in 2011, MySpace has certainly seen a drastic decline in use and has a tarnished brand name. Having been the leading social networking site in 2008, MySpace has failed to keep its user base and has disappointed investors. Although MySpace is unlikely to be able to compete directly with competitors like Facebook, it has a chance to differentiate its services and rebuild a profitable business model. By creating a new brand image, investing in new high technology services and advertising platforms, and expanding to new markets, MySpace can rebuild its value and gain market share again.

Despite having a head start in the social networking boom, MySpace lacked the architecture to stay competitive. Competitors like Facebook “focused on creating a robust platform that allowed outside developers to build new applications” while “MySpace did everything itself.” MySpace tried to create all of the sites features itself which proved to be too slow and lacked the proper quality users expected. MySpace’s development staff was stretched too thin as many features were not implemented properly or did not catch on at all. In addition, the quality of user pages was constantly declining as users were allowed to insert their own web code leading to unappealing layouts, images, sounds, comments, and spam spread by others users. In addition to a plethora of ads located throughout the site, MySpace’s quality began to deteriorate quickly. At the same time, MySpace was receiving a bunch of negative publicity as sexual predators started using the site and privacy issues began to emerge. For many users, the appeal of a brand new, clean, and sophisticated site called Facebook began driving users away from MySpace at a very fast pace.  In April 2008, MySpace was overtaken by Facebook in worldwide visitors and MySpace has been on a constant decline in users.

In response to MySpace’s decreasing performance, Murdoch hired a former AOL executive, Jonathan Miller and held a conference in Beverly Hills to discuss the direction of the business. After MySpace’s chief operating officer, senior vice-president for engineering, and senior vice-president for strategy decided to resign, Murdoch hired a completely new staff to lead MySpace after cutting 30% of U.S workers. Despite receiving advice to completely abandon MySpace after morale plummeted, MySpace is still in operation with a significantly reduced staff. Their new vision is to redesign the site as a social entertainment hub.

If MySpace wishes to once again become a competitor in social networking, they must remove the “déclassé” stigma that has been created. Aside from just being unpopular, MySpace is viewed as a cluttered platform and a nuisance to use efficiently. Because of this, the best option for MySpace may be to retire the MySpace brand completely and start fresh. With the desire to become a new social entertainment hub, creating a new brand allows MySpace to create a new image of quality and usefulness.

In addition to a new brand name, Myspace must invest heavily into high technology services to appeal to new users and stay competitive. With technology constantly shifting on social networking sites, MySpace must develop a system that evolves properly, unlike the original MySpace. In addition to using new technology to please users, creating a new advertising system using the latest technology to generate revenue will also be essential to the success of a new MySpace. This can include focusing heavily on the mobile smart phone market that is expected to constantly grow at a fast rate. Also, selling their advertising services to everybody, instead of just businesses, like Facebook does, will yield additional revenue.

To aid the expansion of a new MySpace relaunch, expanding to new additional markets aside from the U.S is recommended. Despite originally opening headquarters in markets overseas to help with the operation of MySpace internationally, it was not managed properly. Instead of focusing on opening headquarters in foreign markets, developing one site that can be used by everybody would be more efficient. This will ensure that everybody has access to the same content and the site is properly populated. Upgrades made to the site will be usable by everybody despite their location which will allow the site to be competitive in all markets.

Based off of these possible alternatives for MySpace, focusing on a new brand image, high technology, and international markets will allow MySpace to create a new social network that is attractive to all internet users. With a new brand name and disassociating from the MySpace name, it will stay clear of any negative views the MySpace brand has created. With the addition of high technology services that gives users a reason to use the new site, it will also help them stay as loyal users. High tech advertising services will also help MySpace generate the revenue needed to stay in operation and stay on the cutting edge. With all of these changes combined into an international service, MySpace has a good chance of starting new and giving users what they are interested in.

Overall, MySpace has the resources and experience to create a new social networking site that gives users what they are interested in. It is important for MySpace to learn from their past mistakes and develop a site that is clean and secure. Focusing on quality instead of quantity in terms of features would be essential to the success of their new site as users expect more now than ever before. Although the upfront costs to developing these services will be higher than simply redesigning the existing MySpace, it will always have a negative stigma to it. Starting clean will allow the developers to get rid of all the old clutter, create a new clean reputation, and build a new future-proof architecture. With all of these techniques combined MySpace should be able to successfully build a new brand.

Works Cited

Gillette, Felix. “The Rise and Inglorious Fall of Myspace – BusinessWeek.” Businessweek -
Business News, Stock Market & Financial Advice. Bloomberg Businessweek, 22 June
2011. Web. 30 Nov. 2011.
<http://www.businessweek.com/magazine/content/11_27/b4235053917570.htm>.

“Myspace.” Wikipedia, the Free Encyclopedia. Web. 30 Nov. 2011.
<http://en.wikipedia.org/wiki/Myspace>.

Smith, Dave. “Ex-MySpace CEO Launches Start-Up Studio – International Business Times.”
International Business News, Financial News, Market News, Politics, Forex,
Commodities – International Business Times – IBTimes.com. International Business
Times, 16 Nov. 2011. Web. 30 Nov. 2011.
<http://www.ibtimes.com/articles/250672/20111116/myspace-ceo-mike-jones-science-
startup-aol.htm>.

“Social Network Failure: What Happened to MySpace? | .eduGuru.” .eduGuru – Internet
Marketing, Web Analytics and Social Media in Higher Education. 12 Oct. 2009. Web. 30
Nov. 2011. <http://doteduguru.com/id3701-social-network-failure-what-happened-to-
myspace.html>.

Zynga’s business strategy takes a unique position which depends on the transactions of highly profitable patrons called “whales.” Although Zynga has over 232 million active users that play their social online games, only a small portion of these users account for all of Zynga’s overall revenue(1,MacMillan and Stone). These users are “comparatively wealthy, older players” who are willing to pay cash to get ahead in these virtual communities. This may be a good way for Zynga to initially raise capital but it may soon face a consumer spending crash after their games start to lose their appeal. Investors have become wary of Zynga as they may be too dependent on Facebook’s application platform and its ability to keep these consumers regularly spending money. Zynga has already began to see its revenue decline to only $1.3 million compared to $27.2 million the prior year(1, Winker). With such a drastic decline in consumer spending Zynga needs to adjust its focus on how it profits from its online social games. By changing its focus from exclusively on whale customers, generating advertising revenues, and expanding to new social gaming platforms, Zynga has the opportunity to capture a larger market share of social gamers and appealing to new businesses to advertise for.

With strong competitors emerging and changes in their main gaming platform, Facebook, Zynga has seen a decrease in their amount of active monthly users. This slowdown in growth has been attributed to a lack of new games released in 2011 as well as a transition to Facebook’s new virtual payment system. Facebook has required that Zynga accepts payments through Facebook Credits which takes an additional 30% cut in revenue. This means that consumers no longer have to pay Zynga directly and effects how Zynga receives payments. The amount of daily users during the second quarter of 2011 has also decreased from 62 million to 59 million users. This decrease is due to an increase in the number of alternative games from companies like Electronic Arts (2, Winker). These alternatives are also pushing away Zynga’s most valuable customers, the whales. These customers are becoming aware of Zynga’s “money-hungry” scheme of pushing inflated virtual items on a regular basis.

In response to decreasing performance in the most recent quarters Zynga has started releasing virtual-goods updates at least twice a week. This includes special holiday items as well as measures to drive up the value of items purchased with real currency. This effort to encourage users to buy more items was not well received. Many users view these items as “sinks” that just force them to spend money to progress within the game. Because of this, Zynga has been forced to focus solely on the whale players who are also starting to spend less money. The new addition of Facebook credits have made the system even more confusing for casual players and have not boosted revenues despite a large player base.

Instead of focusing on existing whale players, Zynga needs to appeal to more casual players in addition to finding more whales. According to a study by SuperData Research, Facebook’s social gaming platform only accounts for about one-third of worldwide social gaming traffic. This means that by offering their games exclusively on Facebook, Zynga is ignoring the other two-thirds of the total online player base. Even though only a small portion of players purchase in-game goods, ignoring a large amount of players not using Facebook is a mistake. Other popular social networking sites in Russa, Turkey, and Latin America can offer Zynga more players and inevitably more whales who are willing to spend money. New Facebook competitors are also emerging that Zynga can expand to such as Google+. Zynga needs to develop or extend their game selection to these new markets if they wish to stay competitive.

Instead of just focusing on profiting from whale customers, Zynga needs to develop new games that cater to casual players as well. Zynga is known for their creative and addicting games and it needs to stick to this reputation. Instead of constantly creating minor updates to its current games they should focus on creating new innovative games that people are willing to pay for at their own pace. Instead of giving all the power to players who spend the most amount of money, Zynga should balance the amount of money spent and the amount of power that the items provide. As stated in the article, “Every player has their own price. (3, MacMillan and Stone)”

Alternative methods of profiting from such a large player base is possible as well. Online advertising has become a huge online industry and has a large potential of being successful. Facebook already has their own advertising model that has been successful and Zynga can incorporate something similar. Displaying visual ads during their games is a way for Zynga to profit from customers who do not spend any money at all. Since many of Zynga’s customers who grow bored of their older games simply move on to new ones, they may stop spending money on virtual items entirely (4, Raice and Smith). Having a profitable advertising system will ensure that Zynga continues to generate revenue despite what their players decide to do.

Based off of these possible alternatives, focusing on players aside from the whale consumers is a necessary step for the survival of Zynga. Whales will always be profitable customers but will not be enough on their own. By expanding to additional social networks and capturing an even larger share of the social games market, Zynga can appeal to many more customers. Making new games that even the playing field for everybody will increase their satisfaction and encourage them to make occasional purchases. Implementing an effective advertising system to generate additional revenue is  another effective strategy. With so many popular games reaching millions of users, advertising will always be an effective method for Zynga.

With Zynga’s current model still operating efficiently for now, there is still enough time to switch the focus of the company. It is important for Zynga to expand to new markets and stay ahead on the spreading of social games. With strong competitors arising it is also vital to be ahead on trendy games that people are willing to spend money on. With the addition of a strong advertising model, these new methods are sure to be effective towards progressing Zynga as a competitive company. Since Zynga has relied on the whale consumers to generate most of their revenue, it is important to focus away from them. Having these new methods will ensure better long-term results and progress the company as a whole.

Works Cited

MacMillan, Douglas, and Brad Stone. “Zynga’s Quest for Big-Spending Whales –             Businessweek.” Businessweek – Business News, Stock Market & Financial     Advice. Bloomberg Businessweek, 06 July 2011. Web. 11 Oct. 2011. <http://www.businessweek.com/magazine/zyngas-quest-for-bigspending-whales-   07072011.html>.

Raice, Shayndi, and Randall Smith. “Zynga Filing Shows Slowing Growth.”          Business News & Financial News – The Wall Street Journal. Wall Street Journal,           21 Sept. 2011. Web. 11 Oct. 2011.             <http://online.wsj.com/article/SB100014240531119037036045765855709282133  98.html>.

Walsh, Mark. “MediaPost Publications Social Gaming Thrives Beyond Facebook, U.S.      10/11/2011.” MediaPost – News and Conferences for Media, Marketing and      Online Advertising Professionals. MediaPost News, 10 Oct. 2011. Web. 11 Oct.     2011. <http://www.mediapost.com/publications/article/160237/social-gaming-        thrives-beyond-facebook-us.html>.

Winkler, Rolfe. “Testing the Durability of Zynga’s Virtual Business.” Business News &      Financial News – The Wall Street Journal – Wsj.com. Wall Street Journal, 28 Sept.         2011. Web. 11 Oct. 2011.             <http://online.wsj.com/article/SB100014240529702044224045765970705682082  88.html>.

Zynga | Connecting the World Through Games. Web. 11 Oct. 2011.            <http://www.zynga.com/>.

James Washkau
News Article Commentary #3
The Environment (ENVT 0845)
11/07/2011

Air Pollution Tied To Lung Cancer In Non-Smokers

Section One

When people think of lung cancer, the first thought that may enter their mind is the effects of smoking. However, according to a new study released by the American Journal of Respiratory and Critical Care Medicine, people who live in areas with high air pollution levels could see up to a 20 percent increase in their chances of developing lung cancer. Even people who do not smoke can be at increased risk for lung cancer due to the amount of fine particles found in air pollution.

The environmental issues that come from these air pollutions include an increased risk to cancers, especially those that irritate the lungs and cause inflammation. Since areas that have higher pollution levels have also been found to have higher cancer rates, it is becoming more important to regulate pollution levels.

Who: All humans living in areas with pollution.
What: Air pollution leading to rising lung cancer rates.
When: Currently air pollution effects us every day.
Where: Throughout the world, especially in high pollution areas.
Why: Air pollution created from production, power plants, and vehicles release harmful substances in the air.
This article was published on October 28, 2011 at Reuters.

Section Two

Although lung cancer is generally associated with people who have been smoking for most of their lives, non-smoking people considered as “never smokers” have become the sixth leading cause of cancer in the United States. This is significant because until recently lung cancer was generally only caused by cigarette smoke. According to this article, it has now been found that the fine particles in air pollution can irritate the lungs and cause inflammation. This later leads to lung cancer even if the person has never smoke before. Because of this, one in ten people who have developed lung cancer have never smoked.

The impact this can have on all of us can be devastating. If air pollution is not regulated and controlled even further, we could see even higher rates of cancer in people across the nation. An additional study of people in China found that those who lived in homes with pollution from burning coal and wood to heat homes found an additional risk of lung cancer. This is further evidence that burning fuels to create heat or energy releases toxins that we breath in and are directly harmful to our health.

This is a problem that effects everybody, even if they do not yet live in high pollution areas. Since pollution spreads rapidly, if it is not controlled it will become an even greater world-wide issue. It is important to switch to alternative energy sources to directly combat these pollutions. These cancer causing pollutions have been found even in areas within regulatory standards, which proves that we currently are not combating it enough.

After reading this article, I was surprised to find that lung cancer was such a threat to our health even without smoking. This changed my opinion that our current regulations are efficient at controlling pollution. I now realize that without further regulatory action, our pollution problem will continue to grow. It is important to create public awareness towards these air pollutions to encourage governments to create tougher pollution regulations. I would recommend this article to others to help them realize how serious a problem this is becoming. We have the ability to reverse this trend by switching to alternative energy sources and public awareness of this problem needs to be the first step in the path to recovery.

James Washkau
Kelsey and Mackenzie Inc.
Philadelphia, PA 19123
May 11, 2011

Craig Harris
Marketing Manager
Fivestar, Inc.
Philadelphia, PA 19122

Dear Craig:

I understand that Fivestar, Inc  is having difficulties with the sales of their winter tires. We believe that the problem is not with the actual tires but rather the attitudes of the consumers interested in these types of tires.

Background

Although initial sales of the Treadfast winter tires were encouraging, sales quickly leveled off. Treadfast’s share of the Northeastern winter tire market is lower than expected despite Treadfast’s tagline of “All the traction of the better-known tires, at a price you can afford.”

Objectives

The objectives our market research firm is trying to achieve are:

• Summarize current brand attitudes using our market research findings.
• Evaluate the impact of three consumer attitude change strategies.
• Recommend one strategy for consumer attitude change

Summary of Market Research Findings

The data gathered from surveying recent winter tire purchasers establishes the following information.

• The importance of current attributes found in a winter tires.
• Consumers’ perceptions of Treadfast’s and competitors’ performance in regards to these attributes.

Table 1 summarizes the results of this survey.

After reviewing this data we have concluded that Linemich has the highest attitude score followed by Bridgeyear, Goodstone, and lastly Treadfast. These final attitude scores were calculated by multiplying each attribute importance by the brands attribute rating. These scores were then summed into a final attitude score.

Strategies of Attitude Change

The three ways we suggest changing consumer’s attitudes towards Treadfast tires would be the following methods.

1. Changing the importance/desirability of attributes
2. Changing brand beliefs
3. Adding a new attribute

Changing the importance/desirability of attributes

This method involves emphasizing the importance of an attribute on which your brand rates well in. Additionally, deemphasizing an attribute in which your brand ranks low in is also recommended.  If this method is chosen to be implemented it would change the attribute importance and average brand ratings chart in the following way.

These new scores were calculated by increasing the warranty brand attribute and applying the same formula found in Table 1. Since Treadfast tires have a high warranty score, increasing the importance of the attribute will lead to Treadfast with a higher overall score. If consumers believe that having a good warranty on their tires is important, Treadfast will be a much more competitive tire.

Changing Brand Beliefs

Using advertising, Treadfast can portray their tire’s attributes in a positive light while simultaneously describing negative attributes about compactor’s brands. This method can be implemented with Treadfast by reinforcing the idea that Treadfast tires have superior traction compared to competing brands. The following table shows how this change will affect total attitude scores.

As seen above, changing consumer beliefs about Treadfast’s traction will lead to a large increase in the total attitude score. This was calculated the same way as Table 1 with the only difference being Treadfast’s increased traction attribute score.

Adding a new attribute

Adding a new attribute to the brand rating table can help Treadfast make consumers aware of an attribute that they hadn’t previously considered when comparing brands. Adding a new “noise level” attribute can help make consumers aware that different tires do create different levels of noise. Since Treadfast does have a good noise level rating, Treadfast has the option of encouraging consumers to take noise levels into consideration. The following table shows how a noise level attribute would affect the total attitude scores.

This new noise level attribute will create consumers aware of an additional factor that they may have previously overlooked. Treadfast’s exceptional noise levels will help boost the appeal of Treadfast’s overall score and make it a more attractive tire. This new score was calculated by subtracting points from existing attribute importance and adding them to a new category for noise levels.

Recommendations

Based off of the three consumer attitude change strategies I would recommend that Treadfast tires follows the changing brand beliefs strategy to achieve the highest overall attitude score. Table 5 shows the overall scores of the three attitude change strategies and why I believe changing brand beliefs would be the most effective.

Changing brand beliefs allows Treadfast to emphasize their tire’s traction, which consumers consider the most important attribute when buying winter tires. Treadfast can show competing brands attributes negatively while simultaneously advertising positive features about Treadfast tires. This method leads to the highest attitude score for Treadfast tires which will lead to higher overall sales in the Northeastern winter tire market.

I will contact you in a few days after you have had a chance to review this report. I would like to schedule a meeting to review the report and to discuss the next steps.

Sincerely,

James Washkau
Account Manager

James Washkau

Critical Analysis 3: Quick Action Helps Google Win Friends in Japan

BA 3101: Integrative Business Applications

Section 11

10/26/2011

Google’s new strategy to expand into new international markets, especially in Asia, has been a more difficult task than initially anticipated. Expanding to these new areas has shown that search engine market share is difficult to gain, largely because of existing competitors and strong brand loyalty. In Japan, Google has been trying to find new ways to expand their image throughout the country by creating new web services like the Person Finder site that helped people affected by the recent earthquake and tsunami that has devastated Japan. This people finder site was initially designed to health earthquake victims in Haiti but was adapted to be used for Japan as well. Overall, this People Finder site collected 616,000 records to help victims and earn acceptance from the Japanese people. This relates to Google’s own mission statement which is “To organize the world’s information and make it universally accessible and useful.” Google collaborated with Japanese companies and even volunteers to get reliable information about victims of the disaster which helped Google build a reputation in Japan. With these new methods of reaching out to international users and developing new web services aside from a search engine, Google is on the right path towards successfully expanding to these new regions. By focusing heavily on privacy, new web services, humanitarian tools, expanding their search engine, and effectively advertising, Google has a the ability to appeal to these new regions and gain even more market share on their services.

Although Google has search engines set up in many Asian countries like Japan, they are still using trailing competitors like Yahoo! Japan. Even though Google has been constantly gaining market share in other countries, Japan is one of the last countries where Yahoo! still has a lead over Google. According to a recent study, Yahoo! Japan has about 50.4% of the market while Google only has 39.6%. The reason for this is likely because Yahoo is owned by the Japanese telecommunications company, SoftBank. This company has a better understanding of the Japanese market and is better adapted to meet Japanese search needs than Google may currently be.

As Yahoo! starts to fall behind in most of its other markets, Google has the opportunity to gain even more market share. Creating the People Finder site in Japan was a great way to gain acceptance as a legitimate brand and allows Google to start releasing new services that people are willing to try. Since Google is much more than just an online search engine, focusing on these additional services is where Google has the opportunity to shine. Learning from their past mistakes gives Google a new start to enter the Japanese market and fix their previous wrong doings.

Aspects like privacy need to be heavily focused on in Japan if Google wants to be seen as a legitimate company. Japanese people and businesses consider privacy and security extremely important and seek companies who are able to provide this. Making sure that services such as Google Maps do not invade privacy again like before should be an important goal for Google. Although Google already has a good security record for their services, it would be wise to reassure Japan of this and keep that message in their minds, possibly through advertising.

New web services is an area where Google is always on the cutting edge. Having introduced dozens of new web services over the last few years has made Google one of the world’s most powerful companies. Services like Google Documents, Google +, Gmail, and Google Music are services that can easily be transferred to Japan. These are services that have little competition already and can quickly gain usage in a high-tech country like Japan. Adding additional security to these services and offering them for free to users should give them an even larger advantage over Yahoo! who is lacking many of these services.

As seen with the recent earthquake and tsunami disaster in Japan, Google can also benefit from creating free humanitarian tools. Although the People Finder site was specific to a disaster and cannot be implemented at all times, other tools may be able to boost their reputation within the country. Programs designed to help schools and colleges would boost Google’s reputation and consequently the use of their search engine and other services. If Google analyzes what they did right with the People Finder service and implements that into their new services, Google should see a good increase in their Japanese user base.

In addition to new services, Google should focus on their primary function which is their search engine. Although they might be trailing Yahoo!, they still have a good share of the market that they can already work off of. Google already scored a victory over Yahoo! when they decided to switch to Google’s search technology after Yahoo! US switched to Microsoft’s Bing search engine. This means that Yahoo!’s search results in Japan will be almost identical to what Google already has in Japan. Even with the possibility of Yahoo! switching their search technology again, Google has the ability to convince users to switch. Creating an advertising message informing users about this and getting them to “cut the middleman” will help gain market share. Adding several new features that Yahoo! will not be able to provide, like real-time results and improved translation functions will give users even more of an incentive.

Based off of these alternatives, Google needs to focus on innovating in Japan with an emphasis on privacy similar to how it does in the US. Complimenting their search engine with services that the Japanese people will use, like the People Finder did, will give the search engine proper attention. Creating advertising messages using the attention they gained with their People Finder service would inform the Japanese people that Google can provide them with even more valuable services. These methods would help capture an even larger market share, especially as Yahoo! starts to shrink in other countries. As Google learns to adapt to foreign markets and learns from their mistakes, their image will improve significantly. Key aspects like privacy needs to be a priority as foreign markets take this even more seriously than the US. If these methods are properly implemented by Google they will continue to see their services become more widely used and create an accepted brand within Japan.

Works Cited

“Google Remains Search King.” Save Smart, Invest Smart | DailyMarkets.com. Daily Markets,      14 Oct. 2011. Web. 26 Oct. 2011. <http://www.dailymarkets.com/stock/2011/10/14/google-remains-search-king/>.

Hamasaki, Ayumi. “Google Inflates Search Market Share versus Yahoo! Japan.” Asiajin. 26 Jan.   2009. Web. 26 Oct. 2011. <http://asiajin.com/blog/2009/01/26/google-inflates-search-market-share-versus-yahoo-japan/>.

Macdonald, Craig. “Google Gains Market Share in Japan.” Actionable Insights. 28 July 2010.        Web. 26 Oct. 2011. <http://actionableinsights.covario.com/1547/google-gains-market-share-in-japan-through-deal-with-yahoo-japan/>.

Tabuchi, Hiroko. “Quick Action Helps Google Win Friends in Japan.” The New York Times. 10    July 2011. Web. 26 Oct. 2011. <http://www.nytimes.com/2011/07/11/technology/quick-action-helps-google-win-friends-in-japan.html?pagewanted=all>.

Evolutions and Extinctions – Lab Final Review Page

Cnidarians
Rugose Corals

Tabulate corals

Hexacorals

Bryozoans

Brachiopods
Inarticulates

Articulates

Mollusks
Gastropods

Bivalves

Cephalopods- squids
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Arthropods
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Echinoderms

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Hemichordates
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