Elena Baranovsky

Stephanie Fryer

Stephen Giusti

Sandy Coloma

AgendaAgenda• Company Background

• Company Problem

• External Environment Analysis

• Strategic Analysis

• Recommendations

Company BackgroundCompany Background

• Social network website, similar to Facebook & Myspace

• Ramu Yalamanchi, founded the company in 2003

• Headquarters are located in San Francisco, CA

• Ranked in the top 20 global websites

• Number one social network in over 30 countries, such as Latin America, Europe, Asia, and Africa

Company Background Cont.Company Background Cont.

• Features include: creating a profile, requesting/accepting friends, sharing comments and private messages.

• Allows you to post and view photos of people.

• Great source of networking

• Good way to keep in touch with people all over the world.

ProblemProblem• Hi5 does not differentiate itself from its

competitors

• It is mostly recognized outside of the U.S

• There is only one physical location, San Francisco, CA

External Environmental AnalysisExternal Environmental AnalysisOpportunities

• Technology• New way of communication.• Internet is global• New market with only few

competitors. • Users would continue grow

globally.• Not many laws to prevent

sharing of information of the users to our clients.

Threats• Technology• New entrance is high• High bargaining power of

suppliers.• High barging power of buyers.

of buyers • Rivalry among competing• Privacy issues are being

addressed that would affect our freedom of shared information.

Internal Environmental AnalysisInternal Environmental Analysis

Strengths• First movers advance in many

countries.• More than 80 million people

registered • Nearly 46 million unique users per

month.• Diversity of users.• Alexa® ranks us as a top 20 website

globally.• 1st social network in over 30 countries• Operates PostgreSQL• Friendly use.

Weakness• No too popular in the Unite

State.• Facebook is growing faster

globally. Competency is growing rapidly.

• Technology growing very fast, hard to keep up.

• Still a young growing market, Hi5 social networking still have needs to develop to satisfied its market.

• Only one physical location

Hi5 Business Level StrategyHi5 Business Level Strategy

Integrated Cost Leadership/Differentiation (sort of)• Sell ad space

- Targeted display banners

- Media placements

- Sponsorships

• Sell “Glitters” (hi5’s glittering gold by Taylor Buley) - Home page designs and digital gifts

• Sell to both large and small markets

Hi5 Corporate Level StrategyHi5 Corporate Level Strategy

• Low Levels of Diversification

- Dominant business model

• Most revenue come from selling ad space

• Also sell “Glitters”

Hi5 International StrategyHi5 International Strategy

• International Business Level- Headquarters in San Francisco

~No physical presence anywhere else

~Use telecommunications and the Internet

• Multi-domestic Strategy- Create websites for individual segments

Work with local communities (Social Networking Sites Going Global by Jon Swartz)

Hi5 Cooperative StrategyHi5 Cooperative Strategy

• Competition Response Strategy- Hired Horn Group, Inc.

- Increase brand awareness in U.S. (Horn Group to help hi5 in US by Aarti Shah)

• Partnerships

- Enterprise DB – provide enterprise class products and services (enterprisedb.com)

- Paymo, Inc. – provides direct user payment through mobile phones (hi5 Networks, Inc. from

BusinessWeek.com)

Hi5 Innovation & Hi5 Innovation & EntrepreneurshipEntrepreneurship

• Built in music player• First to use “Glitter” digital gifts• First to use OpenSocial 0.8 (hi5 Networks, Inc.

from BusinessWeek.com)

- Social platform used for making apps

- Allows users to make apps through hi5

RecommendationsRecommendations

• Differentiate and Create Awareness in the US.• Out of their 63 million users only 3.7 million

come from the US• This is due to lack of advertising.• Allow for more personality and uniqueness.• Need to amp their entertainment features.• Focus on their international qualities.

Recommendations Cont.Recommendations Cont.

• Open up offices internationally• Currently one office in San Francisco.• This would be a long term recommendation.• Opening up more offices would allow for

differentiation.- Combine and update concepts.

CitationsCitationsBusinessWeek. (2009). hi5 Networks, Inc. Retrieved March 31, 2009, from BusinessWeek.com

Web site: http://investing.businessweek.com/research/stocks/private/snapshot.asp? privcapId=35787531 (5/2/09)

Buley, Taylor. (2009, March 16). hi5’s glittering gold. Retrieved March 31, 2009, from

Forbes.com. Web site: http://www.forbes.com/2009/03/16/hi5-social-networking-technology- internet-hi5.htm

(5/1/09)

EnterpriseDB. (2009). Hi5 Networks selects EnterpriseDB to support one of the world’s largest

PostgreSQL installations. Retrieved March 31, 2009, from EnterpriseDB.com

Web site: http://www.enterprisedb.com/company/news_events/press_releases/ 2008_22.do (5/1/09)

Shah, Aarti. (2008, August 11). Horn Group to help hi5 in US. PR Week (US), p. 3. Retrieved

from LexisNexis database. (4/30/09)

Swartz, Jon. (2008, February 11). Social-networking sites going global; Asia, Europe sites draw

Users at faster rates than USA. USA Today, p. 10A. Retrieved from LexisNexis database (4/30/09)

Vara, Vauhini. (2006, October 2). MySpace has large circle of friend, but rivals’ cliques are

growing too. The Wall Street Journal, p.B1. Retrieved from Factiva database. (5/2/09)