MySpace

I am sorry for my late post on the case review. Have been, actually am, sick with high temperature over the weekend.

For questions 1,2: I think Facebook has been posing threat on MySpace from the first day it entered the competition battleground of social networking. Although MySpace was the spearhead in this area, or the first mover by establishing its brand awareness among users, but it failed to preserve its fame on several aspects:
The user ID trustworthiness. Although MySpace users have reached to almost 100 million users worldwide, but only 45% of the IDs are reported active within a month. One user, on average, owns 3 IDs on MySpace. The filtering process of adults from teenagers is weak, which has lead to several incidences of sex-maniacs' attack on youngsters. Facebook on the other hand has built its reputation by clever choice of audience - first Ivy League colleges in the U.S, then regular colleges, which attracted many "on campus" (the most creative and active demographics on the internet in terms of content creativity and speed)students who had access to the internet. Parents of those cyberbully victims favored to facebook as it is the role model accumulation of schools they would like to send their kids to. Facebook guaranteed their user identity by adding features like identifying a person on photos spread over different profile photo folders.
Content layout: unlike MySpace, facebook uses easily recognizable, "eye friendly", standard profile layout without customization option of the profile cosmetics. MySpace attracted yougsters throught the ability of high cusomization of the profile interface. Since facebook was in business of more "mature" social gathering, google like interface attracted majority of the internet surfers.
API-proprietory add-ons: Facebook attracted users through attractive applications written by those who are interested in software development, but lack large audience with standard platform for the application to be tested. Easy entry, exit, all you can eat application revenue generation through ads, sponsorships, or even selling merchandise, quick response rate, feedbacks enabled by up to date metrics by facebook attracted more and more developers. Users on the other hand, spread those application virally thanks to News feed feature on facebook profiles. MySpace users had to enter one's profile to see what's been added. Utilizing first mover's advantage, facebook has built up its empire of free applications, and strong-bond social groups before MySpace.

Although MySpace could come up with, or even join Google on open-source applications the train has left already. It is mentioned in the case that developing its own proprietary software platform would enable MySpace to differentiate itself from competing websites like Hi5, Friendster... as they use OpenSocial, homogeneity will prevail. But developing a software platfomr is too costly. Even if it did develop its own software platfrom, the value proposition for developers should be sweeter to facebook's. Facebook on the other hand has much larger collection of the real "face-applications",and tie with "face-sites" like flickr... The inertia of Facebook can be raised passed only by those who offer completely different value creation, and proposition on social networking. MySpace, the largest victim of its laggardness to new possiblities, should redefine its position, get out of the red and sink into blue ocean by establishing demand, not looking for one, and perhaps rename itself before challenging facebook on the new arena of social-networking.