GREE, INC. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION

Green, Inc. One of the Earliest Company in the field of Social network and Mobile gaming. In addition to this the Company also earns from Paid advertising, In-house games and Performance indicators. Yoshikazu Tanka, founder of the company who previously worked for the Rakuten has brought this company from nothing to something who is now dealing with the IOS and Android. Basically Tanka, start’s Gree, Inc.from the idea of prototype of the social network and after passing different phases of ups and downs and by entering into different markets, it is now a well settled company and is looking to expand itself in the international market.

In 2007, the Cash flow of the company decline because of more expectation from paid advertising. Later on Company thrust for the growth and expand its business by advertising on TV commercials and by thoroughly analyzing the end users. As the company is involve in the multiple business, so in each market segment, company faces problem like facing the strong rivalry. In addition to competition the company also has to satisfy the investors as they are trusting and investing in the company.

Gree, Inc and Dena, these two companies incorporated at the same time, they learn from each other as well as compete with each other. Later on, these two companies become the competitor of the leading virtual gaming company “Zynga”. After the company stable at some time in the domestic market, it seeks to grow in the international market.

PROBLEM STATEMENT

The problem, which the company is facing now a days isthat they have to decide whether to expand in the international market or not? This idea come up because the local market is now saturated, globally competition is starting and lastly the international market is now entering to the domestic market.

ANALYSIS

INTERNAL ANALYSIS

VALUE CHAIN:

In the Value chain analysis, Gree, Inc. has competent personnel that have thoroughly understand about the requirements of the end users and they are using the latest technologies as market requires. They are also doing excessive marketing to increase revenue and give the best after sales services. This is the reason that the company have produced some greatest products like “Tsuri-Sta”, “Odoriko Clinoppe”, etc.

VRIO:

After analyzing the Gree, Inc. in a manner of VRIO analysis it concludes that, as the competitor of the Gree, Inc. like ‘DeNA’ and ‘mixi’ can easily imitate technologies and the business model with their expertise, so the Gree, Inc. has temporary competitive advantage and its performance is also temporary above normal. The company can improve its rating by adopting those technologies or methods which would difficult to imitate by its competitors.

EXTERNAL ANALYSIS

PEST ANALYSIS:

POLITICAL FACTORS:

As in the scenario the political situation are stable and there is no hurdle in political conditions so the company is providing a better platform to their customers and they can improve it more and more. The investors are also happy with the political stability of the country and that’s the reason they are seeking more investment in this industry.

ECONOMIC FACTORS:

As this gaming industry is worth $59 billion in 2011 and is continuously growing @ 7.2% compounded per annum so it cansay that the economic conditions of the industry is on boost and is expected to reach at the $83 billion in 2016. According to this the industry can flourished in upcoming years.

SOCIAL FACTORS:

As the rate of the youth in japan is increasing and that’s why demand of the virtual games in the young generation is also increasing, so in this respect company can prosper but the global market is already saturated so the sales cannot increase for sure, but will same.

TECHNOLOGICAL FACTORS:

As the japan is one of the fastest growing country in the field of technology and the government fully support different IT companies so in this respect the company can further prosper itself and can have competitive advantage.FIVE FORCES OF COMPETITION:

THREATS OF NEW ENTRANTS:

This industry is about virtual gaming and as the virtual gaming is all based on a person’s imagination. If a person has creative and imaginative idea, he/she can starts the business even with very low investment so the threats of new entrants is very high.

THREATS OF SUBSTITUTE’S PRODUCTS OR SERVICES:

As the substitute product of virtual games are video games and outdoor games, and these games are not more attracted towards teenagers so the threats of substitute products is medium.

BARGAINING POWER OF BUYER:

The switching cost of the customer is very low even they do not have to pay any amount to switch from one product to another...................

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