Abstract
Kakao is a fast growing software company focused on providing innovative smartphone applications. The company is rooted in the Korean mobile communication market where customer demands for high speed connectivity have been growing sharply. Kakao maintains the top position in the category of mobile communication utility tool for the last three years and competes successfully with other new comers. However, the company faces tremendous external threat from traditional smartphone carriers, SK Telecom, KT and LG U+. Those telecommunication conglomerates view the rapid growth of Kakao as a dangerous possibility that may deprive them of revenue streams from their traditional cash cows of texting and voice calling. Moreover, traditional software champions, Naver and Daum, steadily expand their market shares by differentiating themselves. Those competitors have strong brand assets, innovation capabilities and market sensitivity. After three years in the mobile software market, Kakao faces constraints to its growth potential. Kakao tries to overcome the situation by positioning itself as a new mobile platform leader that connects potential customers and game publishers. In addition, the company wants to speed up innovation for sustaining its reputation through a financial transfusion from external investors. Instead of choosing an easier option of being merged or acquired, the company clearly sets its course to fight against external challenges. How can Kakao overcome the difficulty and sustain growth? What kind of strategic choices can be executable?
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.