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Research Article

LINE, Naver’s Global Platform

Park, Hyobaekhyejinjeongguhyeon

KAIST Techno-MBA

Published: January 2014 · Vol. 18, No. 3 · pp. 99-124
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Abstract

Naver launched a new mobile messenger service, called NaverTalk, in late 2010 to counter the great success of KakaoTalk that was introduced in Korea early in the year. The NaverTalk could not overcome the first-mover advantages that Kakao enjoyed at home market. Naver decided to turn its attention to foreign markets, and launched a new service in Japan early 2011. LINE, as the new service in Japan was called, has been developed by team of NHN Japan. LINE was a great success in Japan, partly helped by the word-of-mouth that it was useful in the Great East Japan Earthquake in March 2011. Based on the success in Japan, Naver launched its aggressive expansion to Taiwan, Indonesia and other Southeast Asian countries. By July 2013, LINE had 200 million subscribers worldwide. LINE’s early success in foreign markets was made possible by its early entry in each market and also by its aggressive local marketing strategy, utilizing popular national movie stars. In addition, LINE has worked closely with collaborating firms such as telecom operators and device companies in each market. Naver, the leading internet portal company in Korea, has attempted to develop foreign business in the past but with little success. In addition, Naver has recently been criticized by citizen groups and the media in the domestic market for allegedly taking advantage of its monopoly position in internet-related businesses. For Naver, the success of LINE is a great opportunity to develop a global platform of its own and also as a means to ease mounting criticisms about its business practices at home. Naver set up a new company, called LINEPlus, to sustain its international expansion. In the midst of intensifying competition and rapidly changing business environments, the Naver and LINE management is searching for ways to sustain its early success in foreign markets. In particular, its recent entry into Spain could be a beginning of its expansion into European and Latin American markets. What should LINEPlus do to become a global leader in the global mobile service industry where several overlapping platforms are competing for a leading position?
Keywords: 라인(LINE)카카오톡모바일 메신저선발주자우위네트워크 효과