“Social Network”, the movie about how Facebook started, has also been available in Japan since January 14, 2011. Many people who have seen the movie probably agree that it has many lessons in starting and growing business, such as importance in coming up with great ideas and/or identifying great ideas and implementing them quickly before your competitor, and quickly recognizing who to collaborate with and how.
It seems to the author that the KPS (Key Factors for Success) of Facebook’s start and growth can mostly be explained by The 11 Immutable Laws of Internet Branding by Al Ries and Laura Ries (2000).
1. What are The 11 Immutable Laws of Internet Branding?
According to Al Ries and Laura Ries, they are the following.
1) The Law of Either/Or : The Internet should be viewed as an entirely new business.
2) The Law of Interactivity : A website must be interactive in order to succeed.
3) The Law of the Common Name : Common names such as Art/com are poor brands.
4) The Law of Proper Name : Proper names are to be preferred to generic names, and best names follow most of the 8 principles (short, simple, suggestive of the category, unique, alliterative, speakable, shocking, personalized)
5) The Law of Singularity : Unlike the “real world” where there is room for a number two brand, there is room for only one.
6) The Law of Advertising : Advertising off the Net will be far larger than advertising on the Net.
7) The Law of Globalism : The Internet will demolish all barriers, boundaries and borders.
8) The Law of Time : The brand that is first into the prospect’s mind has the advantage, not necessarily the first into the marketplace.
9) The Law of Vanity : Many categories should not be included under a single brand.
10) The Law of Divergence : Technologies diverge into PCs, PDAs, laptops etc.
11) The Law of Transformation : The Internet will transform all aspects of our lives.
Frankly speaking, the author agrees more laws than others but she feels in general the 11 laws are useful in Internet branding and marketing.
She feels the law #2, #4, #5, #7 and #8 applies to the case of the startup of Facebook, leading to #10 and #11 as well.
2. How The Immutable Laws of Internet Branding Apply to the Success of Facebook Start up?
1) Business Model Based on The Law of Interactivity (#2)
Needless to say, Facebook is SNS, which is website leveraging on interactivity. This interactivity is not simply selecting from menu which is the interactivity of web 1.0 and/or typing in instructions and having the web site deliver the information in the form requested by the web user.
The interactivity of Facebook goes as far as interacting and sharing information with other web users in the online community in a real time. Such interactivity is something that distinguishes the Internet and social media from other offline media to create new business models.
2) First Mover Advantage to be the First Brand in the Prospect’s Mind in Niche Segment Base on The Law of Singularity and Time (#5, #8)
The two laws, of singularity and time, means that in the virtual world of the Internet, regardless of the size, industry etc. niche area needs to be defined by careful segmentation and the brand needs to be the first one in the prospect’s mind of that particular market segment.
This is how companies such as Amazon and Google succeeded. Amazon was the first brand for online book store and even the real world book store giant Barnes and Noble cannot deprive the number one position in the segment of online book store. Google, in entering online adverting market when Yahoo! already was number one in adverting mainly in banner ads, successfully created a more niche segmentation of online advertising based on search, leveraging its core business of search, which resulted in a great success.
In the case of Facebook, Foursquare was already a popular SNS and there was no way Facebook could be the number one brand in SNS in general; therefore, they first limited to Harvard students (and later expanded to some other top class university students) to create a niche segmentation of “SNS for top class university students”, and developed functions and contents meeting such targets such as friendship status. It was after Facebook had established number one brand in “SNS for top class university students” that the membership was made open to general public, which marked a turning point for Facebook to really grow.
3) The Great Name Based on The Law of Proper Name (#4)
The name “Facebook”, derived from the initial game of choosing the preference of the two photos of female student faces, is not a common name, and it does follow most of the eight principles of the best names. Also, to better follow the eight principles, “the” was dropped from the original name which was “The Facebook”, based on the advice from the Napster founder.
4) Expand Business Based on The Law of Globalism (#7)
After Facebook expanded to from Harvard only to some top caliber universities in the U.S., it immediately expanded to its counterparts in Europe (e.g. the U.K.) as the first step to global business expansion. This drove rapid growth of Facebook worldwide.
3. How The Immutable Laws of Internet Branding Apply to the Recent Success of Facebook?
1) Adapting to Mobile etc. as well as PC Based on The Law of Divergence (#10)
Facebook started with website for PC but it soon adapted to mobile. It was quick at rolling out mobile version website and applications. In addition to expanding business globally, successful and quick adaption to mobile led to rapid growth of Facebook because it allowed users to post updates and share information anywhere and anytime.
2) Making Facebook Part of People’s Lives Based on The Law of Transformation (#11)
As a result of anywhere and anytime use of Facebook, it became part of people’s lives and transformed how people find and share information. Today many Facebook users log in everyday and start and/or finish their day by checking the updates of their friends and posting their own updates; some even frequently check and post updates in a day.
In addition, as Facebook (and other social media) became popular, the people started to obtain information by social media instead of search which was the primary and only way of finding and accessing to relevant information. As it became common for the general public to share information by social media globally, many decisions are now made based on information obtained by social media hence viral marketing is now a hot topic among marketers.
4. The Author’s Final Thoughts
The above KFS based on The Immutable Laws of Internet Branding of Facebook give us a guidance of requirements to be successful in Internet business, marketing and branding. The requirements are more prominent the more the web evolves from web 1.0 of static website to web 2.0 of social media. This implies that they could well become even more prominent as the web further evolves to web 3.0, which might be semantic web or something more innovative.
References:-
Ries, Al and Laura, Ries (2000) The 11 Immutable Laws of Internet Branding, HarperBusiness
Showing posts with label SNS. Show all posts
Showing posts with label SNS. Show all posts
Saturday, 5 February 2011
Saturday, 15 January 2011
Vol.48 – 2011 Japan's First Year of Social Media / SNS
Recently Nikkei.net, an online media of Japan’s leading business media that also publishes newspapers, magazines and books, posted an interesting article on the result of its online survey about SNS they implemented in December 2010.
Although it has not revealed how many people responded to the survey, the results provide insight to the current situation and possible outlook of social media and SNS in Japan. Therefore, the author would like to explain it in this article as a follow-up of the previous articles from Vol.45 – 2011 Trend of Social Media: Worldwide and Japan (Part 1) through Vol.47 – 2011 Trend of Social Media: Worldwide and Japan (Part 3).
1. What are the survey results?
3 questions were asked to online users to vote and give comments if any. The questions, results of the vote, and summary of comments are as below.
1) Which SNS do you currently use? Multiple answers are acceptable.
(1) Result of the vote
SNS Name URL Brief explanation of SNS No. of votes
Mixi / http://mixi.jp/ Japan’s SNS leader / 306
Gree / http://gree.jp/ / Japan’s leading SNS strong in social games / 57
Mbga Town / http://mbga.jp/ Japan’s mobile portal site & SNS by DeNA, strong in social games / 26
MySpace . http://jp.myspace.com/ Worldwide SNS originated in the U.S. / 254
Facebook / http://www.facebook.com/ / Worldwide largest SNS originated in the U.S. / 27
LinkedIn / http://www.linkedin.com/ / Worldwide professional SNS originated in the U.S. / 72
Others / - / - / 46
N/A (Don’t use SNS) / - / - / 190
Explanation of SNS is by the author, who added URL as well to the article information.
(2) Summary of comments
People seemed to be surprised that Twitter was not included in the option because it is categorized as microblogging because they seem to feel it has SNS factors.
Facebook is the leader worldwide but Mixi is still the leader in Japan. One reason seems to be language issue. Japanese SNS are not available in English and other languages. For this reason, early adaptors of Facebook in Japan include those who would like to (re)connect with friends abroad as well as web experts.
What people desire is high security SNS, preferably originated in Japan, if not sufficiently localized to meet Japan market needs.
2) Which SNS would like to use in the future? Multiple answers are acceptable.
(1) Result of the vote
SNS Name / URL / Brief explanation of SNS / No. of votes
Mixi / http://mixi.jp/ / Japan’s SNS leader / 105
Gree / http://gree.jp/ / Japan’s leading SNS strong in social games / 21
Mbga Town / http://mbga.jp/ / Japan’s mobile portal site & SNS by DeNA, strong in social games / 15
MySpace / http://jp.myspace.com/ Worldwide SNS originated in the U.S. / 34
Facebook / http://www.facebook.com/ / Worldwide largest SNS originated in the U.S. / 252
LinkedIn / http://www.linkedin.com/ Worldwide professional SNS originated in the U.S. / 51
Others / - / - / 34
Don’t know / - / - / 139
Don’t want to use SNS / - / - / 145
Explanation of SNS is by the author, who added URL as well to the article information.
(2) Summary of comments
Most comments are on Facebook, which can be summarized that people are interested in and would like to try Facebook because they can network with people around the globe and it has been hot topic among media lately. Also some people point out that Facebooko has superior operability and has abundant functions which allow them to develop and maintain online networking effectively.
However, there are some others who would not use intend to use Facebook because they would like to keep work and private separate. Such people seem to find it is difficult to keep them separate on Facebook and they are happy to keep the two separate by using Twitter and blog.
Some others find current SNS has too much “fun, entertainment” factors and prefer business SNS. And some others who voted for “don’t know” say they already use Twitter and Facebook which is already sufficient; they do not have time and manpower to start using additional SNS.
3) What do you feel are problems or what are you dissatisfied with of the current SNS? Multiple answers are acceptable.
(1) Result of the vote
Options / No. of votes
Current IT services such as e-mails are sufficient / 132
Worried about privacy issues / 328
Using SNS daily is time consuming / 247
Others (to be specified in comments) / 41
Not dissatisfied / 118
(2) Summary of comments
Half or more comments were about privacy issue. Some people question the necessity of excessive online networking with people they have not met face-to-face. Some others are worried about security of private information and pointed out that security management is not sufficient e.g. registration is extremely simple. Some others pointed out about anonymity of the Internet world and some others about spoofing issue saying that he/she actually had problems with spoofing. And some others mentioned that level of etiquette and literacy of SNS among users is too varied and education to enhance the general level of etiquette and literacy of SNS users.
Some people who voted for “not dissatisfied” commented that Facebook is designed well and that privacy issue applies also in real world and it is that each individuals that are responsible for his/her privacy management. On the other hand, it is interesting to note that some others feel that flexible privacy setting of Facebook makes the SNS like a black hole in a closed online network.
Comments that was not about privacy include the fact that SNS is addictive to make you tired giving negative impact on real world community, and the fact that smart phones (in Japan) have been rather slow in adapting to needs attributing to rapid SNS growth such as application development and popularity.
2. What are the author’s final thoughts? (Conclusion from the survey result)
The survey results support the previous 3 articles by the author about recent social media trend and possible outlook in Japan, especially the following points.
1) Facebook to outbreak and 2011 will be the “first year of social media” in Japan
Facebook is getting hot and it is very likely that more people in Japan will start Facebook. The outbreak of Facebook in 2011 is a matter of time, or rather, it is already breaking. There have been so many online articles on Facebook in January, events related to Facebook. A summit was held in Tokyo on January 14, and on the same day in Osaka a co-hosted preview event plus discussion on a topic was held by a leading Japanese newspaper and Osaka University (team of students studying SNS) of the movie about Mark Zuckerberg that went on from January 15. There was a survey result targeted some 100 companies announced very recently that more respondents are interested in Facebook than Twitter. Indeed as an online article forecasted, 2011 will likely to be the “first year of social media” in Japan.
2) Privacy issue will become hot
Privacy issue, although it had not been much discussed in Japan, is a big concern for online users and therefore it is quite probable that this issue becomes hot in 2011 and we will see online articles etc. also in Japan.
3) Mobile and SNS grow together
Growth of smart phone (feature phone) is correlated with growth of social media and SNS. The entering of smart phone in Japan in 2010 by multiple OS companies was a big factor for Twitter’s gaining popularity and also the Twitter’s breakout drove more diversified products to be launched in Japan. Facebook’s popularity in 2011 would likely to further drive this trend, as well as more mobile applications meeting Japan local needs to be developed and provided to Japanese users.
4) Cannibalization among SNS, new strategy for Japan players needed for survival
One final insight as the conclusion of the 3 above points is the fact that Facebook popularization in Japan following Twitter cannibalization phenomenon is likely to occur in Japan SNS/social media market. This is because there is a limit to the number of social media vehicles one person can manage and/or one person can devote his/herself using social media. As in a recent online article of an interview of a senior executive of Mixi, Japanese SNS are thinking of new strategy and new competitive functions and services in order to survive global SNS and social media entering and gaining popularity in Japan.
References:-
Collaboration online survey result: Social Net Revolution – The Third Wave in IT (in Japanese)
http://www.nikkei.com/news/research/vote/result/q=9694E0E6E3E0E0E2E3E2EAEBE0E4;p=9694E0E6E3E0E0E2E3E2EAEBE0E6;o=F2F2F2F2F2F2F2F2F2F2F2F2F2F2
Although it has not revealed how many people responded to the survey, the results provide insight to the current situation and possible outlook of social media and SNS in Japan. Therefore, the author would like to explain it in this article as a follow-up of the previous articles from Vol.45 – 2011 Trend of Social Media: Worldwide and Japan (Part 1) through Vol.47 – 2011 Trend of Social Media: Worldwide and Japan (Part 3).
1. What are the survey results?
3 questions were asked to online users to vote and give comments if any. The questions, results of the vote, and summary of comments are as below.
1) Which SNS do you currently use? Multiple answers are acceptable.
(1) Result of the vote
SNS Name URL Brief explanation of SNS No. of votes
Mixi / http://mixi.jp/ Japan’s SNS leader / 306
Gree / http://gree.jp/ / Japan’s leading SNS strong in social games / 57
Mbga Town / http://mbga.jp/ Japan’s mobile portal site & SNS by DeNA, strong in social games / 26
MySpace . http://jp.myspace.com/ Worldwide SNS originated in the U.S. / 254
Facebook / http://www.facebook.com/ / Worldwide largest SNS originated in the U.S. / 27
LinkedIn / http://www.linkedin.com/ / Worldwide professional SNS originated in the U.S. / 72
Others / - / - / 46
N/A (Don’t use SNS) / - / - / 190
Explanation of SNS is by the author, who added URL as well to the article information.
(2) Summary of comments
People seemed to be surprised that Twitter was not included in the option because it is categorized as microblogging because they seem to feel it has SNS factors.
Facebook is the leader worldwide but Mixi is still the leader in Japan. One reason seems to be language issue. Japanese SNS are not available in English and other languages. For this reason, early adaptors of Facebook in Japan include those who would like to (re)connect with friends abroad as well as web experts.
What people desire is high security SNS, preferably originated in Japan, if not sufficiently localized to meet Japan market needs.
2) Which SNS would like to use in the future? Multiple answers are acceptable.
(1) Result of the vote
SNS Name / URL / Brief explanation of SNS / No. of votes
Mixi / http://mixi.jp/ / Japan’s SNS leader / 105
Gree / http://gree.jp/ / Japan’s leading SNS strong in social games / 21
Mbga Town / http://mbga.jp/ / Japan’s mobile portal site & SNS by DeNA, strong in social games / 15
MySpace / http://jp.myspace.com/ Worldwide SNS originated in the U.S. / 34
Facebook / http://www.facebook.com/ / Worldwide largest SNS originated in the U.S. / 252
LinkedIn / http://www.linkedin.com/ Worldwide professional SNS originated in the U.S. / 51
Others / - / - / 34
Don’t know / - / - / 139
Don’t want to use SNS / - / - / 145
Explanation of SNS is by the author, who added URL as well to the article information.
(2) Summary of comments
Most comments are on Facebook, which can be summarized that people are interested in and would like to try Facebook because they can network with people around the globe and it has been hot topic among media lately. Also some people point out that Facebooko has superior operability and has abundant functions which allow them to develop and maintain online networking effectively.
However, there are some others who would not use intend to use Facebook because they would like to keep work and private separate. Such people seem to find it is difficult to keep them separate on Facebook and they are happy to keep the two separate by using Twitter and blog.
Some others find current SNS has too much “fun, entertainment” factors and prefer business SNS. And some others who voted for “don’t know” say they already use Twitter and Facebook which is already sufficient; they do not have time and manpower to start using additional SNS.
3) What do you feel are problems or what are you dissatisfied with of the current SNS? Multiple answers are acceptable.
(1) Result of the vote
Options / No. of votes
Current IT services such as e-mails are sufficient / 132
Worried about privacy issues / 328
Using SNS daily is time consuming / 247
Others (to be specified in comments) / 41
Not dissatisfied / 118
(2) Summary of comments
Half or more comments were about privacy issue. Some people question the necessity of excessive online networking with people they have not met face-to-face. Some others are worried about security of private information and pointed out that security management is not sufficient e.g. registration is extremely simple. Some others pointed out about anonymity of the Internet world and some others about spoofing issue saying that he/she actually had problems with spoofing. And some others mentioned that level of etiquette and literacy of SNS among users is too varied and education to enhance the general level of etiquette and literacy of SNS users.
Some people who voted for “not dissatisfied” commented that Facebook is designed well and that privacy issue applies also in real world and it is that each individuals that are responsible for his/her privacy management. On the other hand, it is interesting to note that some others feel that flexible privacy setting of Facebook makes the SNS like a black hole in a closed online network.
Comments that was not about privacy include the fact that SNS is addictive to make you tired giving negative impact on real world community, and the fact that smart phones (in Japan) have been rather slow in adapting to needs attributing to rapid SNS growth such as application development and popularity.
2. What are the author’s final thoughts? (Conclusion from the survey result)
The survey results support the previous 3 articles by the author about recent social media trend and possible outlook in Japan, especially the following points.
1) Facebook to outbreak and 2011 will be the “first year of social media” in Japan
Facebook is getting hot and it is very likely that more people in Japan will start Facebook. The outbreak of Facebook in 2011 is a matter of time, or rather, it is already breaking. There have been so many online articles on Facebook in January, events related to Facebook. A summit was held in Tokyo on January 14, and on the same day in Osaka a co-hosted preview event plus discussion on a topic was held by a leading Japanese newspaper and Osaka University (team of students studying SNS) of the movie about Mark Zuckerberg that went on from January 15. There was a survey result targeted some 100 companies announced very recently that more respondents are interested in Facebook than Twitter. Indeed as an online article forecasted, 2011 will likely to be the “first year of social media” in Japan.
2) Privacy issue will become hot
Privacy issue, although it had not been much discussed in Japan, is a big concern for online users and therefore it is quite probable that this issue becomes hot in 2011 and we will see online articles etc. also in Japan.
3) Mobile and SNS grow together
Growth of smart phone (feature phone) is correlated with growth of social media and SNS. The entering of smart phone in Japan in 2010 by multiple OS companies was a big factor for Twitter’s gaining popularity and also the Twitter’s breakout drove more diversified products to be launched in Japan. Facebook’s popularity in 2011 would likely to further drive this trend, as well as more mobile applications meeting Japan local needs to be developed and provided to Japanese users.
4) Cannibalization among SNS, new strategy for Japan players needed for survival
One final insight as the conclusion of the 3 above points is the fact that Facebook popularization in Japan following Twitter cannibalization phenomenon is likely to occur in Japan SNS/social media market. This is because there is a limit to the number of social media vehicles one person can manage and/or one person can devote his/herself using social media. As in a recent online article of an interview of a senior executive of Mixi, Japanese SNS are thinking of new strategy and new competitive functions and services in order to survive global SNS and social media entering and gaining popularity in Japan.
References:-
Collaboration online survey result: Social Net Revolution – The Third Wave in IT (in Japanese)
http://www.nikkei.com/news/research/vote/result/q=9694E0E6E3E0E0E2E3E2EAEBE0E4;p=9694E0E6E3E0E0E2E3E2EAEBE0E6;o=F2F2F2F2F2F2F2F2F2F2F2F2F2F2
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