Research On Development Model Innovation Of Renren.com

The origin of the SNS is from the United States of America. These web sites are Internet application services designed to help people build a social network. In recent years, with the rapid development of our country social networking market,"Renren.com", as a representative of the SNS, grew up promptly. By the end of December2010,"Renren.com" had nearly170million registered users and did its initial public offering on May4,2011in New York Stock Exchange."Renren.com" stock had a price of19.50dollars per share on the first day of the opening market and it became the third largest internet corporation in China. However, in the subsequent trading days, the stock price of "Renren.com" went down below its issue price. In November2011"Renren.com" stock price has dropped to5.8dollars per share and shrank by nearly3/4. Through the phenomenon, analysis the current development situation of the "Renren.com" can give other social networking sites some reference for their future development in this article.After my research and analysis of "Renren.com" about its income and business model, at this stage it faces with many development issues. The specific problems are:many users lost and the user viscosity is low; the function of website is too simple and it lacks of attractive products; its most gross income is too depending on advertising and third-party gaming applications. Based on the problems above, combined with strategic brand management theory, the network marketing4C theory and the theory of value net, the author find the reasons caused the current problems of "Renren.com" include the reason of SNS industry development and "Renren.com" itself. In the development of the industry, our country’s structure of users is relatively single, it lacks of high quality variety of third party applications, the enterprises in the industry generally in accordance with the mood of Facebook, thus it became homogenization. And the industry inside has not a clear profit pattern of common standards. From "Renren.com" internal perspective, its brand building has some problems and its own marketing strategy lack of innovation, its own development value net is not perfect and the ability to integrate resources is not enough.This article suggests some recommendations for the better development of "Renren.com" in the future."Renren.com" needs to focus on its brand building and improves its brand awareness continuously to achieve the consolidation of its leader position in the social networking web site industry. In marketing strategy innovation, this article from the angle of the user, cost, convenient communication design the future development of the enterprise marketing strategy. At last "Renren.com" needs to constantly improve the elements on the value chain and optimizing some certain elements can form a complete value chain system. Strengthening relationships with partners on the value chain can build alliances and make complementary advantages. Finally, continuously improve the ability to integrate resources to form a diversity profit model and maintain long term competitive advantage in the industry.