hi5 Strategic Analysis Presentation


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A PowerPoint presentation of a Strategic Analysis of hi5, a social networking site. Looks at how they can differentiate themselves from other international social media websites. This was for my Business Policy and Strategic Management class.

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hi5 Strategic Analysis Presentation

  1. 1. Elena Baranovsky Stephanie Fryer Stephen Giusti Sandy Coloma
  2. 2. Agenda <ul><li>Company Background </li></ul><ul><li>Company Problem </li></ul><ul><li>External Environment Analysis </li></ul><ul><li>Strategic Analysis </li></ul><ul><li>Recommendations </li></ul>
  3. 3. Company Background <ul><li>Social network website, similar to Facebook & Myspace </li></ul><ul><li>Ramu Yalamanchi, founded the company in 2003 </li></ul><ul><li>Headquarters are located in San Francisco, CA </li></ul><ul><li>Ranked in the top 20 global websites </li></ul><ul><li>Number one social network in over 30 countries, such as Latin America, Europe, Asia, and Africa </li></ul>
  4. 5. Company Background Cont. <ul><li>Features include: creating a profile, requesting/accepting friends, sharing comments and private messages. </li></ul><ul><li>Allows you to post and view photos of people. </li></ul><ul><li>Great source of networking </li></ul><ul><li>Good way to keep in touch with people all over the world. </li></ul>
  5. 7. Problem <ul><li>Hi5 does not differentiate itself from its competitors </li></ul><ul><li>It is mostly recognized outside of the U.S </li></ul><ul><li>There is only one physical location, San Francisco, CA </li></ul>
  6. 8. External Environmental Analysis <ul><li>Opportunities </li></ul><ul><li>Technology </li></ul><ul><li>New way of communication. </li></ul><ul><li>Internet is global </li></ul><ul><li>New market with only few competitors. </li></ul><ul><li>Users would continue grow globally. </li></ul><ul><li>Not many laws to prevent sharing of information of the users to our clients. </li></ul><ul><li>Threats </li></ul><ul><li>Technology </li></ul><ul><li>New entrance is high </li></ul><ul><li>High bargaining power of suppliers. </li></ul><ul><li>High barging power of buyers. of buyers </li></ul><ul><li>Rivalry among competing </li></ul><ul><li>Privacy issues are being addressed that would affect our freedom of shared information. </li></ul>
  7. 9. Internal Environmental Analysis <ul><li>Strengths </li></ul><ul><li>First movers advance in many countries. </li></ul><ul><li>More than 80 million people registered </li></ul><ul><li>Nearly 46 million unique users per month. </li></ul><ul><li>Diversity of users. </li></ul><ul><li>Alexa® ranks us as a top 20 website globally. </li></ul><ul><li>1 st social network in over 30 countries </li></ul><ul><li>Operates PostgreSQL </li></ul><ul><li>Friendly use. </li></ul><ul><li>Weakness </li></ul><ul><li>No too popular in the Unite State. </li></ul><ul><li>Facebook is growing faster globally. Competency is growing rapidly. </li></ul><ul><li>Technology growing very fast, hard to keep up. </li></ul><ul><li>Still a young growing market, Hi5 social networking still have needs to develop to satisfied its market. </li></ul><ul><li>Only one physical location </li></ul>
  8. 10. Hi5 Business Level Strategy <ul><li>Integrated Cost Leadership/Differentiation (sort of) </li></ul><ul><ul><li>Sell ad space </li></ul></ul><ul><ul><ul><li>- Targeted display banners </li></ul></ul></ul><ul><ul><ul><li>- Media placements </li></ul></ul></ul><ul><ul><ul><li>- Sponsorships </li></ul></ul></ul><ul><ul><li>Sell “Glitters” ( hi5’s glittering gold by Taylor Buley) </li></ul></ul><ul><ul><ul><li>- Home page designs and digital gifts </li></ul></ul></ul><ul><ul><li>Sell to both large and small markets </li></ul></ul>
  9. 11. Hi5 Corporate Level Strategy <ul><li>Low Levels of Diversification </li></ul><ul><ul><li>- Dominant business model </li></ul></ul><ul><ul><ul><li>Most revenue come from selling ad space </li></ul></ul></ul><ul><ul><ul><li>Also sell “Glitters” </li></ul></ul></ul>
  10. 12. Hi5 International Strategy <ul><li>International Business Level </li></ul><ul><ul><li>- Headquarters in San Francisco </li></ul></ul><ul><ul><ul><li>~No physical presence anywhere else </li></ul></ul></ul><ul><ul><ul><li>~Use telecommunications and the Internet </li></ul></ul></ul><ul><li>Multi-domestic Strategy </li></ul><ul><ul><li>- Create websites for individual segments </li></ul></ul><ul><ul><ul><li>Work with local communities ( Social Networking Sites Going Global by Jon Swartz) </li></ul></ul></ul>
  11. 13. Hi5 Cooperative Strategy <ul><li>Competition Response Strategy </li></ul><ul><ul><li>- Hired Horn Group, Inc. </li></ul></ul><ul><ul><ul><li>- Increase brand awareness in U.S. ( Horn Group to help hi5 in US by Aarti Shah) </li></ul></ul></ul><ul><ul><ul><li>Partnerships </li></ul></ul></ul><ul><ul><li>- Enterprise DB – provide enterprise class products and services (enterprisedb.com) </li></ul></ul><ul><ul><li>- Paymo, Inc. – provides direct user payment through mobile phones ( hi5 Networks, Inc. from BusinessWeek.com) </li></ul></ul>
  12. 14. Hi5 Innovation & Entrepreneurship <ul><li>Built in music player </li></ul><ul><li>First to use “Glitter” digital gifts </li></ul><ul><li>First to use OpenSocial 0.8 ( hi5 Networks, Inc. from BusinessWeek.com) </li></ul><ul><li>- Social platform used for making apps </li></ul><ul><li>- Allows users to make apps through hi5 </li></ul>
  13. 15. Recommendations <ul><li>Differentiate and Create Awareness in the US. </li></ul><ul><ul><li>Out of their 63 million users only 3.7 million come from the US </li></ul></ul><ul><ul><li>This is due to lack of advertising. </li></ul></ul><ul><ul><li>Allow for more personality and uniqueness. </li></ul></ul><ul><ul><li>Need to amp their entertainment features. </li></ul></ul><ul><ul><li>Focus on their international qualities. </li></ul></ul>
  14. 16. Recommendations Cont. <ul><li>Open up offices internationally </li></ul><ul><ul><li>Currently one office in San Francisco. </li></ul></ul><ul><ul><li>This would be a long term recommendation. </li></ul></ul><ul><ul><li>Opening up more offices would allow for differentiation. </li></ul></ul><ul><ul><ul><li>- Combine and update concepts. </li></ul></ul></ul>
  15. 17. Citations <ul><li>BusinessWeek. (2009). hi5 Networks, Inc. Retrieved March 31, 2009, from BusinessWeek.com </li></ul><ul><li>Web site: http://investing.businessweek.com/research/stocks/private/snapshot.asp? privcapId=35787531 (5/2/09) </li></ul><ul><li>Buley, Taylor. (2009, March 16). hi5’s glittering gold. Retrieved March 31, 2009, from </li></ul><ul><li>Forbes.com. Web site: http://www.forbes.com/2009/03/16/hi5-social-networking-technology- internet-hi5.htm </li></ul><ul><li>(5/1/09) </li></ul><ul><li>EnterpriseDB. (2009). Hi5 Networks selects EnterpriseDB to support one of the world’s largest </li></ul><ul><li>PostgreSQL installations. Retrieved March 31, 2009, from EnterpriseDB.com </li></ul><ul><li>Web site: http://www.enterprisedb.com/company/news_events/press_releases/ 2008_22.do (5/1/09) </li></ul><ul><li>Shah, Aarti. (2008, August 11). Horn Group to help hi5 in US. PR Week (US), p. 3. Retrieved </li></ul><ul><li>from LexisNexis database. (4/30/09) </li></ul><ul><li>Swartz, Jon. (2008, February 11). Social-networking sites going global; Asia, Europe sites draw </li></ul><ul><li>Users at faster rates than USA. USA Today, p. 10A. Retrieved from LexisNexis database (4/30/09) </li></ul><ul><li>Vara, Vauhini. (2006, October 2). MySpace has large circle of friend, but rivals’ cliques are </li></ul><ul><li>growing too. The Wall Street Journal, p.B1. Retrieved from Factiva database. (5/2/09) </li></ul>