Before the success of Naver, Daum’s profit model was regarded as the formula for success by other firms in the industry. Daum continued to dominate, and most firms focused on benchmarking the service model to develop web mail services and community service to maximize the price of banner advertisements, their main product. Naver was one of the third tier companies in an industry following such norms. Then in 2002, Naver implemented a strategic innovation to break the prevailing rules of the industry and pursue an economic takeoff. They defined the market in a totally different way, based on “who”, “what” and “how”. By focusing on “search advertisements”, which was a new notion at the time, Naver changed its main customers from big companies to small and private companies. To maximize the performance of its changes, Naver concentrated its resources and capabilities (R&Cs) to strengthen the search engine. The firm developed a new concept of the Internet search service named “Knowledge Search” and benefited from the first mover advantage by gaining in on the network effect. As a result, Naver set a new industry norm and now dominates the Internet portal industry market.