Internal Analysis
VRIO Analysis
The company Gree Inc. because of the business strategy or the model it uses is placed at the temporary competitive advantage in VRIO model. It is placed here because as the company has evolved it has grown with the social games it offers and the platforms it has for the customers and users. Although it is a valuable resource for the company which is also rare, but it is not costly to imitate. Companies such Zynga and Mixi can also induct the same model with the investment and expertise.
SWOT Analysis
Strengths:
Financial Strength
Lucrative high user base in Japan
Expansion plans
Technology
Social Games and Platform
Weaknesses:
No control over distribution
Nonexistent work force
Structural changes
Opportunities:
Enter rapid growing smart phone market
Build own supply chai network
Threats:
Competition
Over reliance on intermediaries
Alternatives
Introduce more In-House Games:
As the case states, out of the top 30 games, Gree Inc. has 3 of them. This shows that the company has the potential to develop successful games. Therefore, instead of relying on third party developers to develop the games, Gree Inc. should introduce and develop more games in-house which will give the company an edge over the competitors. It will also help in negating over rely on third party developers.
Focus on providing platforms:
This can be another option for the company where Gree Inc. can become more of a platform provider. Rather than relying on Facebook and other social media website portals, Gree Inc. can have its own platforms. This will not only help the company to strengthen its operations, but by having more platforms the company can provide the services to other gaming industry players. The companies in return can offer a lucrative amount to run the games.
Provide Social games and platforms:
As the case states, the company had been already into social games and platforms with a successful implementation of both within the Gree Inc. business model. The company can stay aligned with the current system and look to expand into the international markets and stay competitive in the industry. This will serve as a dual strategy where they can target the customers as well as the industry players.
Recommendations
Out of the three alternatives presented to the company, the best or the most feasible option for Gree Inc. moving forward in the future will be to introduce more in-house self-manufactured games. The reason it is a necessity because relying on external third party developers can make the company over dependent on them. It will also reduce the quality of games produced because developers, design it as per their expertise. But if Gree Inc. will self-develop games it will ensure quality and innovation simultaneously. The ranking will also go up because of the quality of developers Gree Inc. already has. Therefore, it is recommended that Gree Inc. should introduce more In-House Games which is ensuring long term stability and innovation for the company. The industry is in the growth stage and having increased number of in house games will build a stronger brand identity and customer satisfaction for the company..............................
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