Garena is an online game and social media platform provider based in Singapore. It started as an online game provider but has since expanded into multiple products and services. Its main platforms are Garena+ for online games, TalkTalk for game streaming, and BeeTalk for social media. It aims to leverage synergies between its platforms to increase network effects and retain customers. Moving forward, Garena will need to acquire more popular mobile games and explore strategies like partnerships or acquisitions to develop its own game development capabilities as the games market evolves.

1. Ling Ran (Kevin)
Zhao Xiaoyi
Lin Wenhao
Lim Shuqiang
MT 5016 Biz model for Hi-tech Products
MT 5016 Biz Model for
Hi-tech product

2. Introduction
Garena+
Talk Talk
BeeTalk
Business transformation & Network effect
Competitor Analysis
Strategy Control
Customer Selection & Scope of Activities
Future Development

3. Introduction
• Garena is a consumer internet platform
provider.
– Headquartered in Singapore (Fusionopoli, One North)
– Founded in 2009
– Started as internet game provider (LOL; Fifa Online, etc…)
– Huge expansion within 6 years (4000+ employee; 6
countries)
– $ 2.5Billion Valuation, biggest IT company in Southeast
Asia

4. How online game works
Offline Game Online Game
Better Skills = More Victories More Money = More Victories

5. By pumping in money, players can buy best players and get maximum enjoyment
Over $10 million transaction daily for FifaOnline worldwide

6. What are game platform providers
Server provider & maintenance
Game operation and supervision
Platform integration
Marketing & Sales
Pay and PlayGame Development
Bug fixing
Platform ProviderDevelopers Player

7. How does game developer choose
platform provider
Stable server operation Precise game cheater spot
Excellent marketing ability
Event hosting

8. The ability to increase user base and let them
PAY MORE

9. Introduction
Garena+
Talk Talk
BeeTalk
Business transformation & Network effect
Competitor Analysis
Strategic Control
Customer Selection & Scope of Activities
Future Development

10. Launched in 2010
An online game and social platform for people to
meet, chat and make friends with each other
PC Platform --- Garena + Mobile Platform --- Gas

11. A single platform login for all the online game hosted by Garena
Average online user: 1.5million on weekdays ; 2.5million on weekends

12. For online game player
• One single access for multiple games
• Social interaction with other game players
• Community building
• Teamwork platform
• Mobile access
• Integration with social media (Facebook, Twitter, etc)
Value Proposition

13. For game developer
• Provider a larger customer base
• Locality
• Data management
• Marketing platform
Value Proposition

14. Value Capture
3 most popular game on Garena+
Game
content
Developer
Garena+/Gas
Consumer
Game Platform
Pay for Virtual equipment/ extra
features
Commission
Royalties
Advertiser
Provide
server
Subscription
Fee
Buy Ads
Place banner ads on welcome
window / game interface

15. Introduction
Garena+
Talk Talk
BeeTalk
Business transformation & Network effect
Competitor Analysis
Strategic Control
Customer Selection & Scope of Activities
Future Development

16. Launched 2012
A highly engaging real-time video
communication and game streaming
platform
For Audience
• Real-time communication with DJ
• Live streaming of popular game
competition
• Choice based on audience-driven
criteria
• Multi-sensory entertainment
• Improvement of gaming skills
For DJ
• Earn more easy money
• Generate sense of pride
• Gain popularity
Value Proposition

17. Value Capture
Consumers registering for following channels.
Commission fees from followers buying virtual gift to greet
DJs.
Advertisements.

18. Gaming
DJ
Live Show
DJ
TalkTalk Consumer
Advertiser
(game developer)
Signing fees for
popular DJs
Subscribe shows
Subscribe shows
Provide live game instructions to attract
subscribers
Provide live shows to attract
subscribers
Buy virtual gift to greet
DJs
Share profit from selling virtual gifts
Buyads
Playadsonpopular
channels
Registration fees
Permissions to subscribe
channels

19. Introduction
Garena+
Talk Talk
BeeTalk
Business transformation & Network effect
Competitor Analysis
Strategic Control
Customer Selection & Scope of Activities
Future Development

20. Launched 2014
A mobile App for people to connect
and communicate with each other
based on locations and interests
• Free messaging and calls
• Easy connect with people nearby and with
same interest
• Business opportunities
- Play games, order meals, order taxi
• Best serves the emotional needs of people
• Curiosity – Majority of users are young
people with a huge portion of under 18
people
• Fulfill loneliness --- peak usage after 11pm
Value Proposition

21. Value Capture
• Makes most of its money by selling customers virtual goods
(like virtual gifts, online stickers and emoticons).
• Make money from assigning VIP permission (permit to tract who
has seen your personal portfolio, could set specific age range to search
around, discount charge for virtual goods)
• Investment from Gas (provide Gas’ trail version game to consumers,
help to transfer customer to Gas)
• Advertisement fee

22. Consumer
Advertiser
(game developer)
Buy online
stickers/icons/emoticons,
Vip permission
Free mobile social platform
Banner ads on
welcome window
Buy Ads
Value Capture
Game
function
connect to
Gas
Provide game
Thunder Strike
Free trial version Thunder Strike
Buy complete version Thunder Strike
Investment

23. Introduction
Garena+
Talk Talk
BeeTalk
Business transformation & Synergistic
effect
Competitor Analysis
Strategic Control
Customer Selection & Scope of Activities
Future Development

24. WHY:
 Southeast Asia is less mature than Chinese game publishing and game operations
 A very tough competition in Chinese market and less capital
 The strong consumption power for potential customers in SEA
Key for success--Blue ocean strategy
First Entry for South East Asia

25. • Performance
 Commercial expansion on emerging markets in SEA, HongKong and Taiwan
 Learn successful experiences from big firms in Red ocean market(Tencent), apply it to
emerging markets.
 2009-2010,10X revenue, 2010-2011,4.5X revenue,2011-2012,3X revenue
Key for success--Blue ocean strategy

26. 2010: Garena+ 2012: Talk Talk 2013: BeeTalk 2015 Shoppee
Product Suites & Transformation
Transformation from online game provider into a comprehensive IT company
Key for success: First-mover in South East Asia

27. New business
<10%
>90%
Revenue Stream

28. Purpose
• Use Synergistic Effect to promote gaming
business.

29. Synergistic Effect
• TalkTalk was integrated in the Garena+ platform
to transform game player into the game
streaming audience. At the same time, TalkTalk is
streaming popular game competitions provided
by Garena+
• Highly overlapping of customers!
• However, the intended connection failed due to
insufficient user of TalkTalk (mainly because the
company failed to predict the customer
behavior).
• According to the Garena employee, TalkTalk will
be suspended in SEA market

30. Synergistic Effect
• Game function on BeeTalk platform is connect to
Gas (Garena+ on mobile) for only the most
profitable game Thunder Strike.
This will transfer potential customer from
BeeTalk to Gas/Garena+
• BeeTalk game platform has become the major
(almost all) revenue income for the products.

31. Customer Selection & Scope of Activities
Introduction
Garena+
Talk Talk
BeeTalk
Business transformation & Network effect
Competitor Analysis
Strategic Control
Future Development

32. Customer Selection
Table 1. Study on 200 games with 465 million monthly active users

33. Customer Selection
• Gamers
• Male and Female
• Average age: 18 – 35

34. Scope of Activities
• Vertically Disintegrated
• Is an online internet platform provider
• Share risk and more responsible to changes in
market conditions
Outsource
• Developing of games
• Advertising
• Maintenance of games
In-house
• System Management
• R&D
• Marketing
• Payment (AirPay)
• Partnership and investment
• Maintenance of system and
relevant add on functions

35. Customer Selection & Scope of Activities
Introduction
Garena+
Talk Talk
BeeTalk
Business transformation & Network effect
Competitor Analysis
Strategy Control
Future Development

36. Competitor Analysis
 Focus in Vietnam
market
 30 million active users
 Products spread spans
from social media to
entertainment to
mobile games
 Games were of poorer
resolution and quality
VNG Asiasoft
 Focus in the Thailand
market
 Provides promotional
media and advertising
activities
 Device that increases
level of security
 Absence of
complimentary social
media or add on
features
Garena+ Focus in Taiwan and
Hong Kong market
 28 million active users
 Products spread spans
from social media to
entertainment to
mobile games
 Any?
 Complimentary assets
such as Talktalk and
Beetalk to enhance
user’s experience

37. Customer Selection & Scope of Activities
Introduction
Garena+
Talk Talk
BeeTalk
Business transformation & Network effect
Competitor Analysis
Strategic Control
Future Development

38. Emphasis in brand awareness:
- Exhibition like Garena Carnival
- Cosplay competition
- Communication with gamer
- Lottery
Strategic Control (Branding)

39. - Enhance Network Effects
- Partnership
- Healthy ecosystem of developers and stakeholders
Strategic Control (Network effect)

40. GPL as a part of eSports ecosystem, enhances the connection and network effect
between online gaming platform and TalkTalk (i.e. free gifts or lottery), thus, push its
hot games ultimately.
-More incentive (High reward like LOL S5, nearly 200m)
-Large scale competition
Strategic Control (Network effect)
Garena Premier League (GPL) is a professional Garena LOL league
with teams in SEA, which lasts for few months annually

41. - Sole agent in Taiwan & SEA
- Low ‘ping’ value-better network connection
- High switching cost to other servers
Strategic Control (Appropriability)

42. - Build in new and integrated support features (Garena Authenticator )
- Enhance stability and connectivity of systems (One account log-in all products)
- Enhance security in payment (AirPay)
AirPay, an Indian third-party payment provider, affords payment gateways to Garena.
Strategic Control
Garena Authenticator providing 2-step authentication for your Garena Account

43. Introduction
Garena+
Talk Talk
BeeTalk
Business transformation & Network effect
Competitor Analysis
Strategy Control
Customer Selection & Scope of Activities
Future Development

44. Changing trends in games:
• Esport is still hot now!! But more revenue is in market.
• Thunder Strike (Existing hot Garena mobile game)is not enough. Garena needs to
import more hot mobile games to BeeTalk and Gas
http://blogjob.com/oneangrygamer/2015/05/global-games-market-to-hit-74-2-billion-in-2015-according-to-superdata/
Future Trends

45. MMO game revenue sharing rule
MMO game developer
Game Platform
>60%
<30%
Alliance /Acquisition=> Independent developer
Models can be followed:
 Alliance: NetEase corporate with Oriental DreamWorks (movie company) and game
designers from other labs that developed Kung Fu Panda mobile game
 Acquisition: Tencent Acquires Riot Games (League of Legends developer) for
$400M
- Develop competencies for game developing
Future Development