MySpace Makes Space to Change

This story is a must to use with A2 students looking for a relevant, topical strategy case…

Former darling of the social networking market, MySpace has suffered terribly from the rise of Facebook, LinkedIn and Twitter. Substantial organisational and cultural change is on the Board agenda - so 30% of the staff are to leave.

The aim, according to the CEO, is to make MySpace “an efficient and nimble team-oriented company”.

This super, short article in the Guardian is packed with points that A2 students could consider:

- Why is structural and financial change so important for MySpace?
- Why has MySpace lost market share to Facebook, Twitter and others?
- Will new leadership necessarily improve the fortunes of the business?
- To what extent might MySpace’s ownership by global media giant News Corp have been a factor in the decline of the business? Might it have been more successful if it had maintained its independence?