BackGround • Mxit began as paid for mobile instant messaging service in in January 2005. Initially it was developed as a multi-player game that eventually whittled its way down to a social networking site (Heunis2010). • 4 million users worldwide
Business Model • Free to sign up. • At the moment Mxit gets most of its money from advertising. As it is a private company most of the financial records are in fact held confidential. • Users send SMS to receive Moolah. Send an SMS. Credits on Mxit • “Splash Ads”
Nike campaign • This was followed by footballers sponsoring training tips, and creating real time drills which users can take on to the pitch with them • Fans could also ask Nike sponsored footballers questions and could host mobile and video blog. • The ad campaign ended up reaching over 500 thousand users on the Mxitplatform.
Strengths • Very adaptable software – integrates well across different platforms • Built in payment model – SMS • Slow growth of internet in SA allows for mobile technology to take off. • Youthfulness of the brand • MxitExchange – 750 000 users – Classifieds
weaknesses • Mxit doesn’t generate its own content. Makes it more expensive to run • Moolah is clunky to operate. • In English, not adaptable to Non-English speaking countries • Needs a good telephonic network - infrastructure
Opportunities • Allowing independent software developers to use the Mxit platforms • Broad multi – player games (Heunis 2010). • Data Costs are coming down - Video, more data more room to maneuver • Educational Aspects
Threats • Smart Phones • BBM • Staying relevant (loss of “cool” factor”).