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TABLE OF CONTENTS INTRODUCTION1. Theoretical Framework

.1 Social network theory and network effect

.2 Six degrees of separation

.3 Three degrees of influence

.4 Habit-forming mobile products

.5 Geo-targeting trend technology

.6 Theoretical concept of the financial bubble

.7 Start-up building .2. Research Methodology and Empirical data

.1 Quantitative research method

.2 Qualitative research

.3 Single case study on the company HeadyUp1. Focus group research questions2. The interview with CEO of HeadyUp INTRODUCTION

online social network business is expanding rapidly because of global need of people to communicate with each other in big distances and get information. Users are obsessed with social networks nowadays. To check an account in Facebook or Vkontakte became an everyday habit. The boom on social network activity started with the release of My Space and then Facebook, Twitter and Instagram. Before it was search engines that were used the most by people to get information. Social networks like all big companies also follow the idea of making profit in exchange of providing people with goods and services. [7, p.141]entrepreneurs transfer company’s business processes online or they establish new companies that operate only in the internet and that don’t need physical resources to make products or services. The research paper is very up-to-date because it describes how to establish the company that operates online. Mobile applications became totally the new way of earning money and they changed daily routines of people. According to recent statistics people now use phone more than other devices to get the information. That is the reason why mobile applications became popular worldwide. [1, p. 6]The main term of profit-making in the Internet is advertising. After starting generating revenue, mobile application companies start to go to the IPO and some successful one are sold to big IT giants. All these activities made this kind of business one of the most profitable and popular last years. [1, p.10]object of the research is the mobile application HeadyUp that is location-based social network enables users to see and share pictures or videos with other people around on the map. Additionally, the user can add to his or her content the one out of 52 million songs.problem of the research can be formulated as a question how to create a startup IT Company and maintain it in after-launch phase to achieve success? To find solution to this problem several issues are analyzed such as the start-up market situation, startup financial bubble, new trends in mobile applications market, development of the application from the idea to the product or service, monetization model of the product or service, approaches how to attract investors and manage the company to receive revenue, how to gain users, how to market the product in order to attract and retain attention of users etc.thesis focuses on the process of the development of the idea with the end product- internet application. The subject area is mobile applications. The main objective of the thesis is to implement the plan for HeadyUp on how to develop the product for the future success and create the paper itself in a form of guide that will be a visual tool for young entrepreneurs that shows how to build mobile applications with the help of step- by -step instruction.research is started with the theoretical part where the main postulates and available information about start up market are included. The author discusses social network phenomena, online social networks history, the concept of the financial bubble and prospective startup bubbles, habit-forming mobile products, startup building process, geo-targeting technology, descriptions of different marketing and strategic tools to analyze company performance.all, the empirical part is written which consists of quantitative, qualitative and single case study research methods. Quantitative and qualitative researches are conducted to prove some parts from the single case study and to develop solutions for the company how to improve the performance in the after-launch phase. The single case study shows on the real example of the company how all processes were established and company was released.doing the research there is not much literature related to the topic or previous research was found by the author. There appeared the lack of scientific information because social network business is a quite new area. In the internet there is no serious scientific research which is related to the research topic. There are only available some particular researches concerning usage, monetization etc. by global marketing agencies. This research is written about the innovative type of business-mobile applications, especially mobile social networks.literature which was used to make the research were books, marketing agencies researches, articles from scientific magazines and journals and online websites related to the topic. The chapter about habit-forming products is based on the book of the American author Nir Eyal. The author analyses the phenomena why people are addicted to some products and services and to some not. Nir Eyal introduces the reader the Hook model or in other words 4 steps process companies use to build customer habits. This book became really popular among the programmers from the Silicon Valley because it reveals the secret of how such big IT companies like Instagram, Twitter, Pinterest gained so many users. [4]bestseller book called “The Power of habit: Why we do what we do in Life and Business” was used to implement also the chapter of the habit-forming online products. The author made the study analysing daily habits of people. He proves in the book the fact that habits predict not only life-changing events but also the behaviour of consumers. [40]

The last book that needs to be

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