What do you know and like/don't like about Kakao Talk?
What do you know about how they make money?
Who is their competition?
With around 33 million users, Kakao Talk dominates the Korean free texting market, but it is yet to turn a profit. It needs a suitable business model because at this time it has very little cash flow except from selling some things like 'giftcons' (gift certificates).
Until now Kakao's rival, Tictoc has been far behind. But now SK has bought Tictoc which is currently the dark horse in the market.
Tictoc has recorded 10 million downloads since its launch last July. And with SK's marketing power we could see things really start to heat up in the free texting market and this is because SK can create synergy between its products such as Cyworld.
Guessing meaning from context
Try to guess the meaning of the words in bold and match them with their closest meaning from the choices in the right. The answers are below the table.
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to make money, more money coming in than the costs of doing business |
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have strong power over someone or something else |
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money coming into a business from selling things or business activities |
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someone/something that we don't know much about but could surprise |
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increased competition, increasing activity |
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to begin something, to start |
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the system for how a company/business does things/operates to be able to make money |
A=3, B=1, C=9, D=4, E=8, F=5, G=7, H=6
Some example sentences using the new words to help you to better understand their meaning.
1. These days, smart phones dominate the cell phone market.
2. It usually takes a new business one year to turn a profit.
3. Facebook's business model was to be a free service and not get advertisers until the company had many users.
4. A cafe makes a lot of cash flow from many small sales.
5. Samsung and LG are rivals in the electronics market.
6. Companies like Apple are very much dark horses when it comes to keeping secrets about their new products.
7. Last year Samsung launched its Galaxy Note.
8. The election is really heating up between Romney and Obama for the American presidential elections.
9. Big companies try to find smaller companies and products that compliment or fit with their own products or companies. This means that they can create synergy.
Some discussion questions using the new words to help you better understand the
word meaning and how to use them correctly. Try to use the words in your answer.
1. How do you feel about big companies dominating the market like in this story?
2. If you were Kakao Talk, how could you turn a profit? Do you think it is possible?
3. From the reading, what is wrong with Kakao's business model? What do you think they will do?
4. Describe a business that you think would have a good cash flow.
5. Do you think Kakao and SK's Tictoc should be rivals, or should Kakao join SK?
6. Think of a sports team or a company you know and describe who could be a dark horse in that sport or industry.
7. Why do you think SK launched a free text message system to Kakao?
8. Now thinks are really heating up in for Kakao, what do you think Kakao will do?
9. If you work for a company, what products or services does your company have synergy with? What ones could they have it with?
ECK Education
