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Orkut vs Facebook

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Orkut vs Facebook

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Submitted by:
Devesh Gangrade 09FT-183
Rohit Kaul 09FT-120
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Shubham Kapoor 09HR-023
Geena Ans 09HR-009
Manish Kumar 09IT-012

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Nidhi Verma 09IT-015

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Orkut vs Facebook 2010

Contents
Introduction.................................................................................................................................................3
Secondary Research....................................................................................................................................3
Orkut.......................................................................................................................................................3
Some stats on orkut.............................................................................................................................4
Facebook.................................................................................................................................................5
Facebook vs Orkut Search Trends for India.............................................................................................7
Search Trends for the last 30 days...........................................................................................................7
India and Internet........................................................................................................................................8
Research (orkut v/s Facebook)....................................................................................................................9
Attributes.................................................................................................................................................9
Research Design....................................................................................................................................10
Data Collection......................................................................................................................................10
Model Used...........................................................................................................................................10
Analysis and Interpretation.......................................................................................................................11
Orkut and India..........................................................................................................................................13
Appendix...................................................................................................................................................14
Responses..............................................................................................................................................14
Questionnaire........................................................................................................................................19
References.................................................................................................................................................20

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Orkut vs Facebook 2010

Introduction

In the past decade, social networking sites have become a mainstream cultural phenomenon. Social
networking has become one of the most popular activities on the web, with the top sites boasting
hundreds of millions of users, and social networking sites representing 16 of the world’s 100 most-visited
sites. A study, carried out by SMC Capitals, gives statistics showing that there are approximately 3.1
crore people who use social networking sites like Orkut, Twitter and Facebook.

Their popularity amongst the younger generation is even higher, with studies finding university student’s,
commonly spending at least 30 minutes every day on social networks. The ubiquity of social networking
in youth culture has been likened to an addiction.

Despite the focus of the English-speaking media on Facebook, MySpace, and occasionally Bebo,and the
common perception of an oligopolistic market, there is a flourishing supply of social networking services,
with dozens of large general-purpose sites competing alongside thousands of niche sites.

Some facts about the two most popular sites for the younger generation in India Orkut and Facebook-

 India has the second largest user base for Orkut with 20 million.
 Facebook attracted 18 mn unique visitors in India in May 2010.
 Orkut had 19.7 mn unique users in May 2010.
 Facebook grew 177 per cent in 2009.
 Orkut grew 35 per cent in 2009

Before we go into analyzing the reasons for the rapid rise of facebook over orkut, here is a brief overview
of the two sites.

Secondary Research
Orkut

Orkut is a social networking website that is owned and operated by Google Inc. The service is designed to
help users meet new friends and maintain existing relationships. The website is named after its creator,
Google employee Orkut Büyükkökten.

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Orkut vs Facebook 2010
As of July 2010, Alexa traffic ranked Orkut 65th in the world; the website currently has more than 100
million active users worldwide. Anyone of age above 13 years can join orkut.

The result was Orkut, and the product launched on January 24, 2004. The community membership was
originally by invitation only. Orkut's explanation for invitation

"Orkut is unique and fun, because it's an organically growing network of trusted friends. That way we
will all have at least one person to vouch for them. If you know someone who is a member of Orkut, that
person can invite you to join as well. If you don't know an Orkut member, wait a bit and most likely you
soon will. We look forward to having you as part of the Orkut community."

Orkut is available in 48 languages and has been localized for many countries. Some of the languages are
Hindi, Italian, Japanese, Javanese, Kannada, Kazakh, Kinyarwanda, Kirundi, Korean, Kurdish, Kyrgyz,
Laothian, Latin, and Latvian.

Some stats on orkut

Country-wise share

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Orkut vs Facebook 2010

Age-wise users

Facebook

Facebook is the world’s largest social network, with over 500 million users.

Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for
Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a
Facebook network. Zuckerberg immediately recruited his friends Dustin Moskowitz and Chris Hughes to
help build Facebook, and within four months, Facebook added 30 more college networks.

The original idea for the term Facebook came from Zuckerberg’s high school (Phillips Exeter Academy).
The Exeter Face Book was passed around to every student as a way for students to get to know their
classmates for the following year. It was a physical paper book until Zuckerberg brought it to the internet.

With this success, Zuckerberg, Moskowitz and Hughes moved out to Palo Alto for the summer and rented
a sublet. A few weeks later, Zuckerberg ran into the former cofounder of Napster, Sean Parker. Parker
soon moved in to Zuckerberg’s apartment and they began working together. Parker provided the
introduction to their first investor, Peter Thiel, cofounder of PayPal and managing partner of The
Founders Fund. Thiel invested $500,000 into Facebook.

11% of users are over the age of 35, and the fastest growing demographic is users over 30. Facebook has
also seen huge growth internationally; 15% of the user base is in Canada. Facebook users’  passion, or
addiction, to the site is unparalleled: more than half use the product every single day and users spend an
average of 19 minutes a day on Facebook. Facebook is 6th most trafficked site in the US and top photo
sharing site with 4.1 billion photos uploaded.

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Orkut vs Facebook 2010
Based on these types of numbers, Microsoft invested $240 million into Facebook for 1.6 percent of the
company in October 2007. This meant a valuation of over $15 billion, making Facebook the 5th most
valuable US Internet company, yet with only $150 million in annual revenue. Many explained
Microsoft’s decision as being solely driven by the desire to outbid Google.

Facebook’s competitors include MySpace, Bebo, Friendster, LinkedIn, Tagged, Hi5, Piczo, and Open


Social.

While Orkut is much smaller than Facebook worldwide, it does dominate in at least two large countries:
Brazil and India. But that soon may change.

Orkut is losing its market share in India – and not in terms of absolute traffic, but purely on interest/intent
of users.

The above graph for unique visitors highlights steep rise in facebook users vis-à-vis Orkut. The reasons
quite obviously points towards the peer group presence and activeness on facebook.

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Orkut vs Facebook 2010
Facebook vs Orkut Search Trends for India

The inflexion point occurred towards the end of 2009 and what’s interesting is the consistency of
Facebook search volume as opposed to Orkut, which is dwindling.

Search Trends for the last 30 days

Google Trends though it is not the measurement for absolute traffic, it does give you an idea of the future
and is harbinger of the new social ground for Indians. The below figure shows the relative time spent by
users on Facebook Vs Orkut. Thus, from both the graphs we can notice that the activeness and
engagement is pretty high for Facebook as compared to orkut. Thus, concluding that the consumer is
much more engaged and active on facebook than orkut.

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Orkut vs Facebook 2010

India and Internet

From 5 % in 2000 to 36 % in 2009, the growth of internet has been tremendous in India. Given the
continuous growth of internet users over the years, the smaller towns have overtaken the metros in
internet usage. Increasing number of cyber cafes and government initiatives of e-kiosks have created
interest among small town people.

School and college students contribute 44% of the internet usage. Although internet growth has seeped
into lower SEC classes and smaller towns, youth still continue to drive the internet usage as traditionally
they are early adopters of new technology.

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Orkut vs Facebook 2010

Research (orkut v/s Facebook)


Attributes

From the secondary data analysis and literature review the following attributes which are associated with
social networking sites were determined.

Attributes
Viewing recent visitor on your profile
Ability to block certain users
Ability to customize/control access to your data
Ease of use of the interface
Ability to share multimedia
Ability to publicize personal content
Having diversified web applications
Aesthetic appearance of personalized page
Ability to connect with the interest groups
Chat application with voice chat feature
Chat application easy to use
Ability to express opinions (likes, dislikes)
Regular innovativeness in features
Friends/peer group presence
Variety of communities present
Highlighting Intelligent suggestions
Online gaming facility

These attributes were incorporated into the questions which were put to the respondents in the
questionnaire. The respondents’ attitude towards the social networking sites (Facebook and Orkut) were
measured by summing the set of beliefs about the sites’ attributes weighted by the evaluation of these
attributes.

Research Design

The research was exploratory as well as descriptive and was cross sectional in nature. The unit of this
study was an individual.

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Orkut vs Facebook 2010
Data Collection

Primary data was collected through online questionnaires. A questionnaire was prepared, containing the
seventeen attributes (mentioned above).For each attribute, the users’ evaluation and strength of belief
(that Orkut and Facebook has the attribute) was measured. The sampling method used was convenience
sampling. The questionnaire was circulated via e mail and the social networking sites to the population.
The data from 50 respondents was analysed and inferences were drawn, as discussed in the next section.

The questions in the questionnaire were designed as per the Fishbein Multiattribute Attitude Model.
Evaluation of an attribute and the beliefs were measured on a seven-point scale ranging from “very good”
to “very bad”, as in the following example.

Viewing recent visitor on your profile is

Very bad __ : __ : __ : __ : __ : __ : __ very good

-3 -2 -1 0 +1 +2 +3

The questionnaire is attached in the annexure at the end of this report.

Model Used

The Fishbein Multiattribute Attitude Model to measure the attitude of consumers towards facebook and
orkut.

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Orkut vs Facebook 2010

Analysis and Interpretation

Based on the responses from the users, an average

BELIEFS (bi)
Attributes EVALUATION Orku Facebook
(ei) t
Viewing recent visitor on your profile is +1 +2 -1
Ability to block certain users is +3 +2 +1
Ability to customize/control access to your data is +3 +1 +1
Ease of use of the interface is +3 +1 +1
Ability to share multimedia is +2 +1 +2
Ability to publicize personal content is +2 +1 +2
Having diversified web applications is +3 0 +2
Aesthetic appearance of personalized page is +1 +1 +1
Ability to connect with the interest groups is +1 +2 +1
Chat application with voice chat feature is +1 +1 -1
Chat application easy to use is 0 +1 +1
Ability to express opinions (likes, dislikes) is +1 -1 +2
Regular innovativeness in features is +1 0 +2
Friends/peer group presence is +3 +1 +2
Variety of communities present is 0 +2 +1
Highlighting Intelligent suggestions is 0 0 +1
Online gaming facility is +2 -1 +2

Attitude +22 +37

Attitude = Summation of Evaluation*Belief

From the evaluation score we can see that the attributes ‘Chat application is easy to use’, ‘Variety of
communities are present’ and ‘highlighting intelligent suggestions’ are not desirable (as the evaluation
score is zero).

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Attributes like ‘Ability to block certain users’, ‘Ability to customize/control access to your data’, ‘Ease of
use of the interface’, ‘Having diversified web applications’ and ‘Friends/peer group presence’ are the
most desirable attributes followed by ‘Ability to share multimedia’, ‘Ability to publicize personal
content’ and ‘Online gaming facility’, with attributes like ‘Viewing recent visitor on your profile’,
‘Aesthetic appearance of personalized page’, ‘Ability to connect with the interest groups’, ‘Chat
application with voice chat feature’, ‘Ability to express opinions (likes, dislikes)’ and ‘Regular
innovativeness in features’ a relatively minor although still salient consideration.

There are no attributes with a negative evaluation score, meaning that no attribute is viewed as
undesirable by the users.

The results for Beliefs indicate that Orkut outperforms Facebook on ‘Viewing recent visitor on your
profile’, ‘Ability to block certain users’, ‘Ability to connect with the interest groups’, ‘Chat application
with voice chat feature’ and ‘Variety of communities present’. Orkut is perceived as inferior to Facebook
on the following attributes: ‘Ability to share multimedia’, ‘Ability to publicize personal content’, ‘Having
diversified web applications’, ‘Ability to express opinions (likes, dislikes)’, ‘Regular innovativeness in
features’, ‘Friends/peer group presence’, ‘Highlighting Intelligent suggestions’ and ‘Online gaming
facility’. For the remaining attributes, both Orkut and Facebook are perceived to be the same.

The brand attitude score for Facebook is 37, which is very good compared to the brand attitude for Orkut
(which is 22).

Conclusion-Orkut and India

As per IMRB active internet users have increased from 32 million in 2007 to 52 million in 2009. Of this
52 million 49% lie in the 18-25 age group as per the above graph and this 49% is nearly 25 million users
and forms the target segment of Orkut or Facebook.

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Orkut vs Facebook 2010
Although Orkut boasts of 20 million Indian users most of them are now migrating on to Facebook and
still keeping their Orkut profiles. That is the Orkut users might no longer be active or just log into orkut
periodically.

What makes Facebook click for most of its users can be seen from the survey results that were
administered to the sample. There was continuous innovation and changes made to keep up with the pace
of the consumer. Eg: Facebook launched ‘Like’ buttons for Pages (which replaced ‘Become a Fan’).
Liking a Page means you are connecting to that Page. When you connect to a Page, it will appear in your
profile and you will appear on the Page as a person who likes that Page.

The features where Facebook scores over Orkut are:

 Ability to share multimedia


 Ability to publicize personal content
 Having diversified web applications
 Ability to express opinions (likes, dislikes)
 Regular innovativeness in features
 Friends/peer group presence
 Online gaming facility

What Orkut needs to do is to engage its clients more, create more and more applications that involve the
user more, but as Facebook is already way ahead in its innovation strategy and tie up with various service
providers Orkut needs to gear up and think of something innovative to engage its consumer. A starting
point to innovate could be thinking up of new diversified applications on Orkut and then moving on to
cover the other gaps like gaming applications and ability to publicize personal content even more,
something on the lines of Google Buzz.

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Orkut vs Facebook 2010

Appendix
Responses

Orkut
  -3 -2 -1 0 1 2 3

Viewing recent visitor on your 0.00% 0.00% 4.00% 8.00% 16.00% 24.00% 48.0%
profile is

Ability to block certain users is 0.00% 4.00% 4.00% 12.00% 24.00% 12.00% 44.00%

Ability to customize/control 4.00% 4.00% 8.00% 16.00% 12.00% 32.00 24.00%


access to your data is %

Ease of use of the interface is 0.00% 4.20% 4.20% 16.70% 33.30% 12.50% 29.20%

Ability to share multimedia is 0.00% 8.00% 12.00% 32.00 24.00% 12.00% 12.00%
%

Ability to publicize personal 4.00% 8.00% 4.00% 16.00% 28.00% 28.00 12.00%
content is %

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Orkut vs Facebook 2010
Having diversified web 0.00% 20.00 40.00 12.00% 24.00% 4.00% 0.00%
applications is % %

Aesthetic appearance of 8.00% 0.00% 8.00% 16.00% 24.00% 36.00 8.00%


personalized page is %

Ability to connect with the 0.00% 0.00% 4.00% 4.00% 32.00% 40.00 20.00%
interest groups is %

Chat application with voice chat 16.00% 0.00% 4.00% 20.00% 16.00% 16.00% 28.00%
feature is

Chat application easy to use is 0.00% 8.00% 4.00% 12.00% 24.00% 36.00 16.00%
%

Ability to express opinions 12.00% 24.00 20.00% 32.00 12.00% 0.00% 0.00%
(likes,dislikes) is % %

Regular innovativeness in 8.00% 12.00 12.00% 44.00 20.00% 4.00% 0.00%


features is % %

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Orkut vs Facebook 2010
Friends/peer group presence is 0.00% 8.00% 12.00% 24.00% 12.00% 32.00 12.00%
%

Variety of communities present 0.00% 4.00% 4.00% 8.00% 20.00% 32.00 32.00%
is %

Highlighting Intelligent 4.00% 8.00% 12.00% 56.0% 12.00% 4.00% 4.00%


suggestions is

Online gaming facility is 24.00% 16.00 20.00% 32.00 0.00% 8.00% 0.00%
% %

Facebook
  -3 -2 -1 0 1 2 +3

Viewing recent 33.30% 20.80% 4.20% 33.30% 4.20% 4.20% 0.00%


visitor on your profile
is

Ability to block 8.30% 4.20% 8.30% 25.00% 8.30% 16.70% 29.20%


certain users is

Ability to 0.00% 4.20% 8.30% 16.70% 20.80% 33.30% 16.70%


customize/control
access to your data is

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Orkut vs Facebook 2010
Ease of use of the 0.00% 4.20% 8.30% 16.70% 29.20% 8.30% 33.30%
interface is

Ability to share 0.00% 0.00% 4.20% 4.20% 25.00% 37.50% 29.20%


multimedia is

Ability to publicize 0.00% 0.00% 4.20% 8.30% 8.30% 45.80% 33.30%


personal content is

Having diversified 0.00% 4.20% 0.00% 8.30% 12.50% 29.20% 45.80%


web applications is

Aesthetic 0.00% 4.20% 12.50% 29.20% 8.30% 25.00% 20.80%


appearance of
personalized page is

Ability to connect 4.20% 4.20% 16.70% 12.50% 16.70% 29.20% 16.70%


with the interest
groups is

Chat application with 12.50% 12.50% 20.80% 33.30% 16.70% 0.00% 4.20%
voice chat feature is

Chat application easy 4.20% 0.00% 8.30% 25.00% 33.30% 8.30% 20.80%
to use is

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Orkut vs Facebook 2010
Ability to express 0.00% 0.00% 8.70% 4.30% 8.70% 30.40% 47.80%
opinions
(likes,dislikes) is

Regular 0.00% 0.00% 4.20% 12.50% 8.30% 33.30% 41.70%


innovativeness in
features is

Friends/peer group 0.00% 0.00% 8.30% 12.50% 4.20% 41.70% 33.30%


presence is

Variety of 0.00% 4.20% 4.20% 29.20% 25.00% 20.80% 16.70%


communities present
is

Highlighting 4.20% 4.20% 0.00% 29.20% 16.70% 33.30% 12.50%


Intelligent
suggestions is

Online gaming 0.00% 0.00% 0.00% 16.70% 12.50% 37.50% 33.30%


facility is

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Orkut vs Facebook 2010

Questionnaire

Please take a moment to fill this survey.

Please choose the options from the drop down that best describes the attribute (in the rows) for Orkut
and Facebook.

Options:
-3 : Very Bad
-2
-1
0 : Neutral
+1
+2
+3 : Very Good

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Orkut vs Facebook 2010

References

IAMAI Report 2009-2010

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTEDUCATION/EXTDATASTATISTICS/EXTEDSTAT
S/0,,menuPK:3232818~pagePK:64168427~piPK:64168435~theSitePK:3232764,00.html

http://cybergyaan.blogspot.com/2010/05/orkut-vs-facebook.html

http://www.orkut.co.in/Main#MembersAll.aspx

http://blog.facebook.com/blog.php?post=409753352130

http://techcrunch.com/2010/07/07/orkut-facebook-india/

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