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Retrospective of Online Communities

Social interaction functionality and the development of online communities itself has continually evolved.  This has led to increasing competition in the market; new entrants and diversifying competitive set through technology and the development of consumer needs.  Competitors now offer numerous different functionality and methods for social interaction, with varying success. Habbo is identified as an MMOSG market and so this market represents the most direct competition.  Never the less the broader market set is still crucial to consider since they often meet the same needs and open up the possibility of product replacement/ substitution. MMOSGs offer the greatest degree of social interaction and tools that focus on developing an online community via socialisation, which makes them the greatest threat to the market since a strong community will stick together and ensure the stickiness of the service. 

The above graph uses key competitors who represent their section of the Online Community market.  Habbo and Second Life are two examples of MMOSG’s purely because Habbo is used in terms of a central reference point on social interactivity, which the other players are relative to.

For a full text version of this essay please email me at alistair.williams@sulake.com