What will be the company's future growth engine? Will it be deepening existing businesses or expanding into new ones?

LINE YahooLY CorporationBusiness StrategyGrowth DriversBusiness DevelopmentInnovation
Created At: 8/15/2025Updated At: 8/17/2025
Answer (1)

Okay, talking plainly about potential future growth engines for LY Company.

What will be the future growth engines for the company? Deepening existing businesses or expanding into new ventures?

My personal view is that this is absolutely not an "either/or" proposition, but rather a "two-pronged strategy." For a company the size of LY, relying on just one leg won't let it run fast or steadily.

Think of it like an established, experienced restaurant.

First Prong: Deepen Existing Business — Making the Signature Dishes More Appealing, Keeping Regulars Loyal

This is about "defending the core franchise." In Japan, LINE and Yahoo are practically national-level apps with enormous user bases. It's like that restaurant that already has great word-of-mouth and a steady flow of customers. Now, the goal isn't to stand still, but to make the current services deeper, stickier, and even more indispensable.

How to Deepen?

  1. Build a "Super App" Ecosystem:

    • What does it mean? Making it so you can do everything within one app, with no reason to leave.
    • Example: Right now you use LINE to chat. LY wants you to also use it for payments (LINE Pay), shopping, food delivery, news, financial services (FinTech), insurance... bundling everything inside LINE. This makes you spend more time on it, creates more monetization opportunities for LY, and because it's so convenient, you won't bother switching to other apps. This is how they dig their "moat" deeper.

  2. AI + Big Data "Precision Targeting":

    • What does it mean? Knowing you better than you know yourself.
    • Example: LY holds your (and hundreds of millions of users') search, chat, and shopping data. With AI analysis, what can it do? You just searched for "Hokkaido skiing" on Yahoo? LINE immediately pushes you discounted flight and hotel packages. You chatted with a friend on LINE about wanting a new phone? The shopping channel might recommend the latest iPhone. This hyper-personalization significantly boosts ad and e-commerce revenue and makes you think, "Wow, this app really gets me," dramatically improving the user experience.

The core goal of this leg is: Stabilize cash flow, increase customer lifetime value (CLV), and firmly secure the existing stronghold. This is the foundation, the bedrock, and the "ammunition depot" for the company's stable growth.

Second Prong: Expand into New Businesses — Opening New Fronts, Seeking the Next "Breakout Hit"

Relying solely on the old business isn't enough. What if users lose their taste for it someday? So, exploring new possibilities is essential. It's like the restaurant owner opening a trendy cafe or bar next door to attract new, younger clientele.

Where to Expand?

  1. Generative AI:

    • What does it mean? The hottest trend right now - AI that can write, create art, generate videos, etc.
    • How to play? This could be one of LY’s biggest future bets. It can be used not only to optimize existing search and advertising but also to create entirely new services. Examples include providing enterprises with intelligent customer service, giving personal users AI assistants to draft emails or summarize meetings, or even integrating an AI chatbot within LINE to be your "universal advisor." This is technology that could completely change the game's rules.

  2. Web3 and the Metaverse:

    • What does it mean? Simplified, it’s the "next-generation internet," emphasizing virtual worlds and digital assets.
    • How to play? This area is still somewhat conceptual, but major companies must position themselves early. They could explore NFTs (digital collectibles) or build a virtual space within LINE where your avatar can socialize or attend concerts. While it might not generate significant profits short-term, it’s about "buying a ticket to the future" – what if this direction takes off? LY doesn’t want to be left behind.

  3. B2B (Business-to-Business) Services:

    • What does it mean? Monetizing not just regular users, but other companies too.
    • How to play? LY possesses strong tech and data processing capabilities. It can package these capabilities into solutions sold to other businesses. Examples include helping SMEs with digital marketing, providing data analytics tools, or offering cloud computing services. This is a very stable and profitable market with high margins.

The core goal of this leg is: Finding the next growth curve, hedging risks associated with existing businesses, and ensuring the company remains a leader in the next era.

Summing Up

So, back to the initial question: What is the growth engine?

The answer: A dual-engine drive.

  • Deepening existing business is the company’s "ballast" and its "blood supply pump." It provides stable revenue and vast amounts of data, giving the company the confidence and resources for new exploration.
  • Expanding new businesses acts as the "rocket booster." It represents the vision for the future and is key to achieving leapfrog growth.

To put it simply, LY's strategy boils down to this: Leverage its existing "cash cow" businesses (LINE and Yahoo) to provide stable ammunition (funds) and data fuel. Simultaneously, use these resources to boldly invest in and explore future possibilities. One engine secures the present; the other builds the future. Only then can the company move steadily and far.

Created At: 08-15 06:04:00Updated At: 08-15 10:34:15