Remember what Digg is? The once social media giant with an estimated value of more than 160 million was sold for only for $500,000 in the July
The website was first launched in the year 2004 as a way for anyone to put up their own news and other internet content instead of relying on the conventional newspaper. However around the year 2010 when Facebook and Twitter took off as well as a “series of redesigns…which some weren’t well received by users” and by the end of 2010 according to ComScore “Digg’s audience had fallen by more than half”of 2012.
Normally when a product going into decline a firm can implement product extension strategies to extent the products life. These strategies may include repackaging, redesigning, additional promotion as well as exploring new markets. However what I want to know is what kind of product extension strategies can be applied when the product is something like a website. When redesigning the website doesn’t work what can firms turn to, websites are non-tangible goods its’ not something you can simply repackage like or make an add-on for like the X-box 360 or the PS3. Would the same fate fall on the current social media giants?
Sources:
http://online.wsj.com/article/SB10001424052702304373804577523181002565776.html?mod=wsj_share_tweet