Why Are the Largest Social Networking Services Sometimes Unable to Sustain Themselves?

Yong Joon Hyoung, Arum Park, and Kyoung Jun Lee, Why Are the Largest Social Networking Services Sometimes Unable to Sustain Themselves?  Sustainability 2020, 12(2). (Pdf)


The sustainability of SNSs (social networking services) is a major issue for both business strategists and those who are simply academically curious. The “network effect” is one of the most important theories used to explain the competitive advantage and sustainability of the largest SNSs in the face of the emergence of multiple competitive followers. However, as numerous cases can be observed when a follower manages to overcome the previously largest SNS, we propose the following research question: Why are the largest social networking services sometimes unable to sustain themselves? This question can also be paraphrased as follows: When (under what conditions) do the largest SNSs collapse? Although the network effect generally enables larger networks to survive and thrive, exceptional cases have been observed, such as NateOn Messenger catching up with MSN Messenger in Korea (Case 1), KakaoTalk catching up with NateOn in Korea (Case 2), Facebook catching up with Myspace in the USA (Case 3), and Facebook catching up with Cyworld in Korea (Case 4). To explain these cases, hypothesis-building and practice-oriented methods were chosen. While developing our hypothesis, we coined the concept of a “larger population social network” (LPSN) and proposed an “LPSN effect hypothesis” as follows: The largest SNS in one area can collapse when a new SNS grows in another larger population’s social network. For the validity and reliability of our case studies, we used an evidence chain and case study protocol with a publicly-accessible LPSN index to determine which SNS is better for participating in or adding offline social networks to their platform.

Business and Process Models for Managing Customer Relationships on Internet

이경전, 이가은,  “인터넷 기반 고객 관계 관리의 비즈니스 모델과 프로세스 모델에 관한 연구”, 정보과학회지, 18(11):12-21, 2000(11월). (PDF) in Korean


산업의 요구로부터 시작된 고객관계관리(CRM: Customer Relationship Management)를 기를 학문과의 관계에서 검토하고, 특별히인터넷 기반의 CRM에 관련된 비즈니스 모델과 프로세스 모델을 소개한다. CRM의 핵심적인 요소인 개인화는 하나의 마케팅 기법이 아닌 비즈니스 모델 수준에서 다루어져야 한다는 인식하에, 인터넷에서의 개인화 비즈니스 모델의 정의를 소개하고, 이를 위한 전제 조건과 개인화의 차원 등을 소개한다. 한편, CRM의 성공적인 구축은 이를 위한 프로세스를 여러 가지 관점에서 조망하는 것이 필수적인데, 본 논문에서는 여러 관점에서 이들을 정리하고, 이를 지원하는 도구들과 이러한 도구의 자동화 전략을 소개한다.

Case Study of Internet Business Networker: Business Model, Strategy, and Technology of OneQ.com

정태훈, 이경전, “인터넷 비즈니스 네트워커에 대한 사례 연구: (주)원큐의 비즈니스 모델, 전략, 기술을 중심으로”, 경영과학, 17(3):181-201, 2000(11월). (PDF) in Korean


This paper performs a case study on an Internet business networking company, oneQ.com. We define the functions of Internet business networker and discuss its characteristics such as network effect, lock-in effect, and increasing returns etc. Through reviewing the business models, strategies, and implemented technologies of the oneQ.com, we investigate the applicability and effectiveness of the Internet business networker as well as its research implications.

An Architecture of the P2P based e-Business Platform for Multimedia Content Distribution

조대연, 이경전, “멀티미디어 컨텐트 유통 e-Business를 위한 P2P 플랫폼의 구조”, 한국SI학회지, 2(2):53-62, 2003.  (PDF) in Korean


Current P2P (Peer-to-Peer) applications have the limited functions such as file search and transfer between peers and have the limitations such as trust problem on search results, copyright problem, and profitable business model problem. For a P2P application to be used as a business platform for the distribution of various multimedia contents, this paper proposes an extended P2P application architecture and its prototype system including distributed collaborative filtering, automated price negotiation system, and payment mechanism.

Design and Analysis of Online Advertising Expenditure Model based on Coupon Download

전정호, 이경전, 쿠폰 다운로드를 기준으로 하는 온라인 광고비 모델의 설계 및 분석, 지능정보연구, 16(4), 2010. (PDF)


In offline environment, unlike traditional advertising model through TV, newspaper, and radio, online advertising model draws instantaneous responses from potential consumers and it is convenient to assess. This kind of characteristics of Internet advertising model has driven the growth of advertising model among various Internet business models. There are, conventionally classified, CPM (Cost Per Mile), CPC (Cost Per Click), and CPS (Cost Per Sales) models as Internet advertising expenditure model. These can be examined in manners regarding risks that stakeholders should stand and degree of responsibility. CPM model that is based on number of advertisement exposure is mechanically exposed to users but not actually recognized by users resulting in risk of wasted expenditure by advertisers without any advertising effect. While on aspect of media, CPS model that is based on conversion action is the most risky model because of the conversion action such as product purchase is determined by capability of advertisers not that of media. In this regard, while there are issue of CPM and CPS models disadvantageously affecting only one side of Internet advertising business model value network, CPC model has been evaluated as reasonable both to advertisers and media, and occupied the largest segment of Internet advertising market. However, CPC model also can cause fraudulent behavior such as click fraud because of the competition or dishonest amount of advertising expenditure. On the user aspect, unintentionally accessed advertisements can lead to more inappropriate expenditure from advertisers. In this paper, we suggest “CPCD”(Cost Per Coupon Download) model. This goes beyond simple clicking of advertisements and advertising expenditure is exerted when users download a coupon from advertisers, which is a concept in between CPC and CPS models. To achieve the purpose, we describe the scenario of advertiser perspective, processes, participants and their benefits of CPCD model. Especially, we suggest the new value in online coupon; “possibility of storage” and “complement for delivery to the target group”. We also analyze the working condition for advertiser by a comparison of CPC and CPCD models through advertising expenditure simulation. The result of simulation implies that the CPCD model suits more properly to advertisers with medium-low price products rather than that of high priced goods. This denotes that since most of advertisers in CPC model are dealing with medium-low priced products, the result is very interesting. At last, we contemplate applicability of CPCD model in ubiquitous environment.

Evaluation of Conversion Action Data Mechanisms in Cost-Per-Action Advertising

이첨, 이경전, Cost-Per-Action 광고 방법을 이용한 Conversion Action Data 메커니즘의 평가, Information Systems Review, 18(2):123-135, 2008.pdf (in Korean)



The online advertising industry’s business model undertakes the change from CPM (cost-per-mille)-based to CPC(cost-per-click)-based. However, due to the problem of ‘Click Fraud’, CPA (cost-per-action) has been regarded as a new step. For CPA, publishers need to get information after a user clicks an advertisement. Therefore, in CPA, the key is to get Conversion Action Data (CAD). This paper introduces two existing mechanisms for getting CAD, compare their characteristics, and analyze their limitations. Then the two new mechanisms are introduced and their requirements and feasibility are analyzed. Lastly, we compare the existing two and the new two mechanisms, and point out each mechanism’s business possibility, value and Application Area. This paper will help publishers choose the most appropriate mechanism on the basis of their situation.

Key Word

Internet Advertising, CPA(Cost Per Action), Conversion Action Data, Business Model

Customer Model Analysis for UCC Knowledge Sharing Service: A Case

윤은정, 이경전, UCC 지식 동영상 공유 서비스의 고객 모델 분석 사례, 지능정보연구, 제15(1):15-30, 2009. ISSN 1229-4152.pdf (in Korean)



As knowledge is now being distributed and shared through the Internet not only in the form of text but also in that of video, UCC((User Created Content) knowledge video sharing services have emerged on the Internet such as Instructables.com. This paper deals with a UCC knowledge video service in real world and reports the case of analyzing its customer model. The knowledge video sharing service can be considered as both a kind of discontinuous innovation, which requires knowledge provider’s technical ability of creating and editing UCC video, and a value network, which matches UCC providers and consumers therefore brings network effect, we first adopt the Chasm theory as the base of the customer model and refine the customer model referencing the Technographics, which is also an Internet-refinement of the Chasm model. Finally, non-customer analysis of Blue Ocean strategy is applied for exploring potential customers of the service.


Key Word


UCC, Technology Adoption in Life Cycle, Chasm, Technographics, Customer Model, Business Model