Zynga Poker Case Solution
Introduction
The case introduces Zynga, a company that provides an online social gaming services with over 240 million active users monthly. The primary game provides by the company include Zynga Poker, Cityville, Farmville and Mafia Wars. The company started in 2007 co-founded by Mark Pincus. However, the company had seen tremendous growth in its short period where its revenues and profitability are consistent near to a billion dollars currently.
Strategy
The company had formulated and implemented effective and efficient strategies to reach its strategic objectives so that it could ensure its survival in the highly diverse and competitive market. Furthermore, increase its profitability by providing a platform for the internet consumer where they could connect through a game. The company primary strategic goal is to provide its user with a place where they could play games. In like manner, the company could also benefit by selling virtual good to the users. Furthermore increasing its economies of scale through advertising on its game portals.
Critical success factors
From the company's performance, it shows that Zynga is still famous to provide poker game to the related customers because this game has a huge market trend in which every new, as well as existing customer, enjoy the game under the unique features. On the other side, a strategic implementation of the group players attracts the customers to play against each other at the level of challenging or the competition with each other. In addition to a famous game (Farmville), many customers are still enjoying this game and retain their focus for the long-term because the unique features of this game provide benefits to the customer to play at any time and with each selected player. Thus with this feature, many gaming zones are still struggling to provide the similar services in order to beat Zynga with this type of quality.
Porter’s five forces
The porter's five forces analyze an impact of an industry over the current environment in which they operate. According to the situation of Zynga, it has been determined that a position of a company is based on the recent analysis through the use of this model. Which includes all the opportunities and threats that it would face over the recent environmental factors. So following factors would determine the position of an industry and to formulate a strategy to improve the factors by the business decisions.
Bargaining power of buyer-High
Under the industry of gaming zone, it has been identified that a control of the customers is high in the sense of switch to another game due to the lack of entertainment of the games which they played so far. So in a case of Zynga, a company has no control to retain the customers for long-term because every gaming zone provider is focusing on to provide high-quality games in order to make the customers use for a considerable period.
Bargaining power of Supplier-High
The supplier's power under a case is high because Zynga is totally reliable to provide sources based on the support of Facebook, Google, and Apple apps. Therefore, it has been identified that these suppliers would change the terms and conditions that would hurt the revenues of the business overtime. Also, they could not allow the business to run smoothly due to the lack of resources and performance they judge by Zynga......................
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