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Zynga Case Analysis - Social Video Game Services

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  • "Running head: ZYNGA CASE ANALYSISZynga Case AnalysisNameCourseDate Running head: ZYNGA CASE ANALYSISIntroductionZynga is social video game services provider that is situated in San Francisco, in CaliforniaDid Zynga’s business model need modification..

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  • "Running head: ZYNGA CASE ANALYSISZynga Case AnalysisNameCourseDate Running head: ZYNGA CASE ANALYSISIntroductionZynga is social video game services provider that is situated in San Francisco, in CaliforniaDid Zynga’s business model need modifications?The business model of Zynga is primarily based on getting individuals addicted to their games aswell as getting them to list other people to join or purchase virtual good or products both ofwhich assist the players get further well with the games. This business model needsmodifications to a modification that would permit them to grow the organization’s profit whichthey fuel into brand new services and products which they can scale up with the use of newer aswell as more efficient technology that will allow them to lower their product as well as servicecosts to an extent that in more instances, they would be in position of giving services toindividuals for free that other gaming companies will charge for (Forró, Cauwels, & Sornette,2012). This will make other gaming companies not to be in position of competing with them.How would you evaluate the strategic management of Zynga?The goal of Zynga is to adopt the usage of data analysis for the formation of its strategies.Through carrying out an analysis of what products the game users buy, with virtual money, thecompany can develop many other imaginary products the consumers will acquire by the use ofactual money. Through continuously analyzing the consumer preferences, the company has thepossibility of developing targeted strategies for the business. The continuity of mining data is asignificant part of the gaming company strategy formulation. The company develops games formarkets such as China and India (Forró, Cauwels, & Sornette, 2012). The company engagesmostly in acquisitions together with alliances like the acquisition of Tencent. The company ismostly focused mobile gaming which is a good strategy because most of the people and lovers of Running head: ZYNGA CASE ANALYSISgames own mobile phones. The gaming company has done several acquisitions like NEWTOYand the recent one is Natural motion. It also uses facebook as well as its features as a platform ofmaking their games go viral.The way Zynga should spend the approximate $1 billion generated from its IPOZynga should spend the money consider the option of setting up a delivery drone since thedelivery drone of physical goods seemed a nightmare. The company should consider health aswell as well being because health issues keeps on growing when the company grows. It shouldhave moved into the provision of platforms which connect doctors to patients together with data,thus offering a connective media in the form of infrastructure and this could be very ideal forZynga. The social gaming company should have used the sum of money to enhance its globalfoot print so as to ensure that the people are connected through the enormous growing economyand the love of the social games.What Zynga actually did is that it tried to maintain its grip concerning social networking gamersthrough the creation of newer titles as well as features ("Zynga files for US$1-billion IPO",2011). The company also used the IPO funds for the general corporate purposes and this wasthrough the acquisition of not less than 10 companies. Current situation for ZyngaThe current situation for Zynga includes; the company has not been in good position of keepingup with the trends in the online gaming industry. Monetization also tends to remain a significantissue for the online gaming company. New games are not certain to be of success in the verychanging as well as alternating gaming industry and its’ return on R&D is very poor for thetechnology company. Zynga has completely worsened. The problems that the company has Running head: ZYNGA CASE ANALYSISencountered include; In 2013, the social gaming company lost $39 million on revenues of thetotal $873.3. In 2012, the company had lost $209.5miilion of the total $1.28 billion in total. Theday consumers of the day to day of the company experienced a decrease by a margin of 51.8%year over year during the fourth quarter and 10% from the quarter which was previous up to 27million. The gamers who used to spent money on games not less than once a month fell from2.9million to 1.3 million. The company has made a major strategic change since 2011. The company in 2014 was forced tolay off almost 15 % of its employees so as to create room for the purchase of Natural motion(Webster, 2015). My view is that this strategic move will improve their performance and returnthem to the track in the gaming industry because Natural Motion is a studio behind mobile phonehits such as charming clumsy ninja as well as CSR Racing which is a game that making $12million per month at one time. "

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