MySpace considers outsourcing some of its functions to Google but recognizes that doing so would lose them their competitive advantages of complete user control, differentiated social networking features, and direct payment processing. Building applications in-house would allow MySpace to better meet their specific needs, maintain differentiation from competitors, and more easily accept payments, positioning them for future growth by regaining market share. The document concludes that insourcing is the best option for MySpace to preserve their business model.

1. MySpaceTom SmallwoodShamyraLeakAnthony PolitiTyshon Tucker

2. What Makes MySpace DifferentComplete control in the users handProfile EntitiesSocial Networking FunctionalityMusic NetworkingMobilityVideo SharingInstant Messaging

3. Disadvantages From Outsourcing to GoogleLose Competitive AdvantageForfeiting Application ExclusivityCannot accept payments as easilyChange MySpace’s business processes

4. Positives of Building In-HouseEasier to receive payments from application providersBetter fit for MySpace’s specific requirementsDifferentiation

5. Future Growth PossibilitiesExpand profitsExpand user baseRegain much of once-had market share

6. In Conclusion…Adoption will eliminate differentiation and competitive advantageAdoption requires change in business processIn-house development is best fit for MySpace!

7. Questions?