Mobile Race

 

Korea’s two leading internet companies – Naver and Kakao – came up with strategies to put their utmost efforts into the mobile business.

According to the Internet business industry on Nov. 18, as Naver and Kakao announced their mobile service promotion strategies under the goal of “offering mobile services that can quickly start when users want them,” the Korean Internet industry is expected to quickly center on mobile services. Recently, Lim Ji-hoon, CEO of Kakao, proclaimed the start of the full-scale mobile era, with the buzzword of “On Demand.” Then, Kim Sang-hun, CEO of Naver, suggested Naver’s mobile strategies under the slogan of “Live.”

But in detail, the two have different stories. Naver will approach the mobile Internet business landscape via customized technology that can interact with users in its strong services such as search and shopping in real time. On the other hand, Kakao will make good use of its strategies to create a new mobile world by expanding its online to offline (O2O) services into user-oriented “On-Demand” services.

Moreover, there is a strategic difference between Naver, which announced its will to compete with global Internet companies while emphasizing “mobile only,” and Kakao focusing on domestic demand. The development of the mobile platform market is being watched with keen interest.

Naver’s “Live Connection” is borderless. With an eye towards competing with Google’s YouTube, in August Naver launched the “V App,” which empowers K-Pop stars and their fans around the world to communicate with each other. More than half of its downloads took place abroad. Its service will expand into beauty care and food, extending the area of its roles as a medium that informs the world of the Korean cultural wave.

“On Demand” stressed by Kakao delivers information and services that users want via a mobile system. Kakao’s strategy is to bet on not only supplies, but on a more convenient service, which suits well with the changing lifestyles of people. They are planning to launch services that cater to customer needs through O2O services, create a new market based on them, and commercialize the services in the market.

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