2304 Media Management Group 6A<br />Industry Analysis of the Social Network Gaming in Turkey<br /><ul><li>The Stardollpers...
Stardoll<br /><ul><li>Mission– Develop a creative environment for everyone who loves fashion, celebrities and all there is...
Growth - 20 languages, 80+ million users worldwide, since 2004
Platform – Web based
Business model– Free entry (a small share of userspay a lot plus ads)</li></li></ul><li>Why Turkey?<br />Why Turkey?<br />...
General overview of the market in Turkey<br />Main operators<br />Early entrants: Joymax, K2 Networks and Gameforge.<br />...
General overview of the market in Turkey<br />Facebook<br />Turkey is the 3rd biggest country on the platform.<br />More t...
Industry analysis of social network games in Turkey using the five forces<br />
Bargaining power of suppliers<br />Independent game developers - low bargaining power.<br />Using external platform= High ...
Bargaining power of customers<br />Large customer base – <br />low volumes<br />Differentiated products <br />Switching co...
Threat of new entrants<br />Developing a new platform requires substantial investments. <br />Strict governmental policies...
Threat of substitutes<br />Many available substitutes from both a narrow and broad perspective<br />Technological advances...
Rivalry among existing competitors<br />Numerous equally big competitors<br />Currently in Turkey there are comparable few...
Threats for Stardoll<br />The threat of the most popular platform – Facebook<br />Rapid technological changes/updates<br /...
Opportunities for Stardoll<br />The market: massive potential<br />Young audience – young market<br />Men<br />The dominan...
Upcoming SlideShare
Loading in …5
×

Sse socialnetworkgames group6a

921 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
921
On SlideShare
0
From Embeds
0
Number of Embeds
29
Actions
Shares
0
Downloads
14
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Sse socialnetworkgames group6a

  1. 1. 2304 Media Management Group 6A<br />Industry Analysis of the Social Network Gaming in Turkey<br /><ul><li>The Stardollperspective</li></li></ul><li>Executive summary<br />Turkey is an interesting market due to the high number of young and educated people – people are interested in social games and are willing to pay for them.<br />The competition level in Turkish social gaming industry can be regarded as high and is increasing as the market attracts new players of both origin: foreign and domestic. Stardoll is a popular social game operating in the Turkish market. The main threats in the social gaming industry include uncertainty and fast pace of technological changes, governmental regulation as well as difficulty to maintain the leadership position and competitive advantage. Facebook provides a distribution channel reaching the majority of social network users yet poses a threat to independent platform developers. Other opportunities in the social gaming industry of Turkey include the booming fashion industry with partnership and co-creation possibilities related to that.<br />
  2. 2. Stardoll<br /><ul><li>Mission– Develop a creative environment for everyone who loves fashion, celebrities and all there is to it!
  3. 3. Growth - 20 languages, 80+ million users worldwide, since 2004
  4. 4. Platform – Web based
  5. 5. Business model– Free entry (a small share of userspay a lot plus ads)</li></li></ul><li>Why Turkey?<br />Why Turkey?<br />The 2nd biggest population of the region (71,158,647 (July 2007) )1, which is young (60% are under 35) and educated.<br />Turkey is the 3rd most engaged Internet audience in the world.<br />The Turkish online social games market is one of the biggest in Europe and is rapidly growing.<br />Average gamer: male (about 60%), age – 18-20 y.o. (27% under the age of 14). <br />Hours per week spent on games: 3,7 hours (in 2009).<br />Most preferred platform: PC (in 2009).<br />This leaves plenty of room for growth outside of this segment in the future (for ex.: games targeted to kids, girls and adults).<br /> 1 Turkey Population statistics. http://www.irantour.org/turkey/populationturkey.html<br />
  6. 6. General overview of the market in Turkey<br />Main operators<br />Early entrants: Joymax, K2 Networks and Gameforge.<br />Very successful -> no local competitors.  <br />GameSultan, GGChave started as Internet-café, became local operators handling distribution, payment systems, localization. (20,000 Internet-café by 2009). <br />Knight Online earned about $1M/month from Turkish operations. <br />Metin2 has about 3 Million active Turkish users. <br />New entrants (like Korean publisher NHN) are preparing Turkish version of their games.<br />Virtual worlds <br />Virtual worlds are growing (for ex.: Sanalikagrew to 3Million registered users in 6 months).<br />
  7. 7. General overview of the market in Turkey<br />Facebook<br />Turkey is the 3rd biggest country on the platform.<br />More than 18.5M members(02.01.2010).<br />44% of users are 18-24 y.o. <br />Popular games: Farmville, City of Wonder.<br />Main business models used for social network games:<br />1) in-game ads; <br />2) micro-transactions.<br />
  8. 8. Industry analysis of social network games in Turkey using the five forces<br />
  9. 9. Bargaining power of suppliers<br />Independent game developers - low bargaining power.<br />Using external platform= High costs of switching suppliers for game developers – when games are adapted to the platform dependency increases. Few number of platforms in relation to the number of game developers<br />
  10. 10. Bargaining power of customers<br />Large customer base – <br />low volumes<br />Differentiated products <br />Switching costs could <br />be present (psychological)<br />
  11. 11. Threat of new entrants<br />Developing a new platform requires substantial investments. <br />Strict governmental policies<br />Independent game developers could emerge at any time<br />Value of product increased by <br /> number of users.<br />
  12. 12. Threat of substitutes<br />Many available substitutes from both a narrow and broad perspective<br />Technological advances may change the future game market<br />Time spent on Facebook increasing, <br /> both threath of substitute (own platform) and <br />opportunity (usingFacebook)<br />High taxes on importing video games <br />
  13. 13. Rivalry among existing competitors<br />Numerous equally big competitors<br />Currently in Turkey there are comparable few independent social network games<br />Low barriers of exit<br />Commited actors<br />Industry primarily not figthing for monetary resources, rather people’s time<br />Innovation and first mover advantage crucial<br />difficult to maintain leadership over time<br />Aspiration to drive industry change<br />
  14. 14. Threats for Stardoll<br />The threat of the most popular platform – Facebook<br />Rapid technological changes/updates<br />Dependency on Facebook micro payment solutions (currently could be seen as an opportunity)<br />Bargaining power of platform supplier, increased dependency<br />Difficulty to maintain competitive advantage and leadership position – innovation required<br />Governmental regulations, interventions and restrictions<br />Uncertain and fast-changing industry<br />Increasing density (level) of competition<br />Foreign competitors with strong financial and IT background, Korean companies entering the market<br />Domestic competitors with strong competences and know-how of the local market<br />The potential threat of mobile games (future substitute)<br />
  15. 15. Opportunities for Stardoll<br />The market: massive potential<br />Young audience – young market<br />Men<br />The dominant (standard) platform Facebook – highly used and hence a good distribution channel<br />The Turkish fashion industry is growing and is hence young and dynamic  possibility for Stardoll integrate and leverage<br />Turkish people willing to pay when liking the game<br />Exploit opportunities in young target groups e.g. Stardoll merchandise <br />Market becoming more western – chance to anticipate change<br />Developing high quality games to satisfy increasing knowledge of the European market, Turkey might follow the same pattern<br />
  16. 16. Reference<br />http://www.docstoc.com/docs/17645381/GFK-OnlineGamingMarketTurkeyResults<br />http://www.scribd.com/doc/16737036/Social-Networking-Market-in-Turkey-Vodafone-Messenger-Launch<br />http://www.tr-facebook.net/facebook-turkiye-kullanicilari-hakkinda-2009-istatistigi.html<br />http://www.insidefacebook.com/2010/02/11/turkey-uk-france-germany-growing-the-most-as-facebook-reaches-123-million-europeans/<br />Online games in Turkey. http://www.icopartners.com/blog/archives/1044<br />http://www.programlar.com/makale/oyunlarin-gelecegi-sosyal-ag-oyunlari-ve-5-tahmin.2o.5.1.html<br />http://www.todayszaman.com/news-216390-nascent-turkish-games-sector-emerging-player-in-global-market.html<br />http://www.activegamingmedia.com/media-center/turkey-rising-%E2%80%93-an-interview-with-erkan-bayol-executive-producer-at-ceidot-game-studios<br />http://www.export.by/en/?act=news&mode=view&page=2&id=12823<br />http://www.icopartners.com/blog/archives/1044<br />http://www.alexa.com/siteinfo/facebook.com<br />http://www.bigpoint.net/index.es?action=partner&subpage=partner_developer<br />http://www.activegamingmedia.com/media-center/turkey-rising-%E2%80%93-an-interview-with-erkan-bayol-executive-producer-at-ceidot-game-studios <br />http://www.appdata.com/<br />http://kotaku.com/5657969/why-do-people-play-social-network-games<br />www.zynga.com<br />http://www.alexa.com/siteinfo/facebook.com<br />http://www.facebook.com/apps/application.php?id=111596662223307<br />Porter, M.E:, “The Five Competetive Forces that Shape Competetive Strategy”, HBR, 2008<br />Prahalad&Ramaswamy, “Co-Creating Unique Value with Customers”, 2004<br />Guest lecture with ChristerBrjörkman 2011-01-31<br />MalinStröman, interview 11-01-27<br />Guest lecture with Linda Hellqvist, Google 2010-11-18<br />Guest lecture with Stefan Lampinen 2011-02-02<br />

×