This case study analyzes the strategic challenges facing Zynga, a major online gaming company. It identifies weaknesses like high costs and seasonal leadership changes. Alternative courses of action are proposed, including innovating products/processes and forming partnerships. The recommendation is for Zynga to select a strategic business partner to support growth while maintaining distinctiveness from rivals. A plan of action suggests prioritizing innovation, adopting new technologies, recruiting outside talent, shortening game development times, and forming partnerships with other companies to remain competitive against larger rivals.
This case study analyzes the strategic challenges facing Zynga, a major online gaming company. It identifies weaknesses like high costs and seasonal leadership changes. Alternative courses of action are proposed, including innovating products/processes and forming partnerships. The recommendation is for Zynga to select a strategic business partner to support growth while maintaining distinctiveness from rivals. A plan of action suggests prioritizing innovation, adopting new technologies, recruiting outside talent, shortening game development times, and forming partnerships with other companies to remain competitive against larger rivals.
This case study analyzes the strategic challenges facing Zynga, a major online gaming company. It identifies weaknesses like high costs and seasonal leadership changes. Alternative courses of action are proposed, including innovating products/processes and forming partnerships. The recommendation is for Zynga to select a strategic business partner to support growth while maintaining distinctiveness from rivals. A plan of action suggests prioritizing innovation, adopting new technologies, recruiting outside talent, shortening game development times, and forming partnerships with other companies to remain competitive against larger rivals.
This case study analyzes the strategic challenges facing Zynga, a major online gaming company. It identifies weaknesses like high costs and seasonal leadership changes. Alternative courses of action are proposed, including innovating products/processes and forming partnerships. The recommendation is for Zynga to select a strategic business partner to support growth while maintaining distinctiveness from rivals. A plan of action suggests prioritizing innovation, adopting new technologies, recruiting outside talent, shortening game development times, and forming partnerships with other companies to remain competitive against larger rivals.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 5
HOLY
ANGEL
STRATEGIC MANAGEMENT
A Case Study:
ZYNGA: ROOM FOR A FINAL ROUND OR IS THE GAME
OVER?
Submitted to:
Ms. Carmelita Lao
Submitted by: GROUP 5 Navarro, Adrian Gabriel Guevarra, Karen Joy Guintu, Jonalyn Mae Punzalan, Julliene Marla Mora, Faye HOLY ANGEL CASE STUDY
I. STATEMENT OF THE PROBLEM
Why is there a frequent change in the top management? What are the intellectual and ethical issues due to litigation action against the company?
II. OBJECTIVES
A. Short-Term
B. Long-Term
III. AREAS OF CONSIDERATION/FACTS OF THE STUDY
SWOT
STRENGTH WEAKNESSES
Well-known gaming industry Rich regarding product launch company High-standard requirements Invested in Investment in research High operation cost and development with a high level Seasonal leadership of innovation Financially capable Outstanding leadership and management abilities OPPORTUNITIES THREATS High mobile users Number of competitors are Accessible increasing User-friendly Affected by changes in exchange Linked up on several social media rates platforms Security Breach Issues with Users Involvement in intellectual property disputes HOLY ANGEL ANALYSIS VIA PORTER’S FIVE FORCES MODEL Threat of New Entrants STRENGTH: Threat of Substitute STRENGTH: Power of suppliers STRENGTH: Power of Buyers STRENGTH: Competitive Rivalry STRENTH:
IV. ALTERNATIVE COURSES OF ACTION
ACA 1: INNOVATION OF PRODUCTS
ADVANTAGE: Boost public knowledge of the online gaming industry. One must outperform the competitors in order to prosper. As vital as improving Zynga's app, in-person, email, or phone support is ensuring a lag-free experience. DISADVANTAGE: Making investments in technical innovation may come at a great cost.
ACA 2: INNOVATION IN PROCESS
ADVANTAGE: Zynga may advance their position by being more aggressive and competitive. It is done by a product champion, which aids Zynga in its pursuit of innovation. DISADVANTAGE: It's likely that the invention will result in higher product pricing.
ACA 3: PARTNERSHIP ADVANTAGE: Raises the significance of diversity for the organization's culture and performance. In order to fulfill their full potential, businesses will find it easier to form multidisciplinary teams. Zynga may opt to work with an organization that is HOLY ANGEL ahead of the curve in order to create an idea that it might not be able to generate on its own. DISADVANTAGE: It's likely that Zynga will pick a partner that doesn't live up to its standards, which would be detrimental to product development.
V. RECOMMENDATION
While pursuing its business strategy, which focuses on R&D being differentiated from others and on remaining distinct from rivals, Zynga Company may choose to turn to strategy alternatives like Corporate and Functional Strategies. Corporate Strategy is therefore strongly advised to support its growth and maintain its relevance by selecting a business partner. As stated, it is preferable to have strict criteria that are weak. Lowering the minimal requirement would open the door to luring in more talented and skilled workers, which the company could then use to its advantage. As part of corrective action for the business's long- and short-term sustainability, both research and development teams and human resource strategies would be sufficient to handle the major problems.
VI. PLAN OF ACTION
Assisting Zynga in completing the organization restructure of the company based
on our discussions of the issues that the company faces. Innovation could possibly be prioritized in short term. Adopting new technology might give Zynga market dominance and save money on legal fees. Recruiting talents outside the company whose sole purpose is to develop new product is possible. Furthermore, Zynga should have different ways to shorten the time it takes to make games. The rapid movement in technology’s evolution makes early entry into a market simple. In addition, the company may form partnerships with other companies in the long run as it could be beneficial to them. It is undeniable that the there are a lot of success recently for Zynga, but the challenges also keep on expanding. Given that Zynga is smaller than its competitors, it is having a hard time in terms of resources. The team is proposing that Zynga recruit/ partner up with other small businesses or independent developers so that I can remain competitive in the industry. In making strategies, the company should also consider other companies that can provide platforms for other players such as Facebook, and other simple interfaces and not HOLY ANGEL only the high-end ones as most of the young people heavily rely on their phones for gaming.
