Zynga Game Network is a social gaming company founded in 2007 that became the fastest growing game company in 2011. It is known for popular games like FarmVille and Mafia Wars played on Facebook. Zynga changed the parameters of competition in gaming by focusing on ease of gaming, simplified gameplay, and social engagement over graphics and complexity. This created a new "Blue Ocean" of non-customers for the company, including parents, casual players, and teenagers. Zynga's business model of free-to-play games with in-app purchases allowed for unmatched customer value at low prices. However, the sustainability of this model is now being questioned as the social gaming market becomes crowded with imitators.
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[Note: This is a partial preview. To download this presentation, visit:
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
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LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
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Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Zynga - Analysis of Blue Ocean Moves
1. ZYNGA GAME NETWORK, INC.
Hold’em
Poker Mafia Wars Farm Ville
Draw Bubble
City Ville Something Safari
Analysis of Blue Ocean moves Group
7
2. AGENDA
Industry Competitive Blue Ocean
Introduction Overview Landscape Offering
Attracting
Non-Customers Sequence of BOS Sustainability Conclusion
3. Introduction
Entered the market with a novel concept of social gaming
and was the fastest growing Game Company in 2011
Founded Market Mission
Valuation
Connect the world
2007 $ 7
billion
through games
Daily Active Customers Revenues Game Studio
Users Acquisitions
60
million
230
million
$ 1.2
billion 15
Mobile
Surpassed market value
of long time console game
17 Games
company EA Sports Facebook
Games
15
4. domination of PC/Console based gaming competing
Industry
primarily on Graphic sophistication & Complex Gameplay
Young
Sec–A and Professionals
Sec–B $ 25 bn $ 5.6 bn
Revenue Revenue
15% $ 6.6 bn
Mobile
Revenue
18% Sec–A and
67% Online Sec–B
Console Based
Parameters of Competition
Graphics Accessories
Complex
Gameplay *Market Size (Revenue – 2007)
5. Landscape
All market players were trying to compete on similar
parameters only through price differentiation
High
Low
1
1 2
2 3
3 4
4 5
5
Console Gaming
Parameters
Price of
Hardware Cost to
Cost to Violence
Violence Play to
Play to # of
# of
Legend
Hardware Start
Start Win
Win Genres
Genres
Online Gaming
6 7 8 9 10
Mobile Gaming # Titles in # of New Cost of Graphics Creativity
Genres Games Mktg.
6. Blue Ocean
Offering
Changed the parameters of competition to ease of gaming
and socially engaging, simplified gameplay
Violence NEW PATHS
Eliminate
Cost of
Game
Gameplay Marketing
Gaming
Hardware
3 Different
Reduce
Complexity Cost Buyer Group
Graphics Genres Functional/
Emotional
Appeal
Social
Network
Ease of
Starting
5
Raise
Activity
Learning
Quotient
Social
Create
Gaming
Ability to
buy fast
progress
7. Blue Ocean
Offering
Changed the parameters of competition to ease of gaming
socially engaging and simplified gameplay
High
Low
9 10 11 12
CREATE
Social Learning Ability to Social
Network Quotient buy fast Gaming
Activity progress
8. Customers
The broad adoption of Zynga games can be attributed to
Non-
attractive value proposition for all 3 tiers of non-customers
UNEXPLORED PARENTS & 36+
Tier – 3 • Removed Violence
• Play with Friends & Family
Tier – 2 REFUSING CASUAL PLAYERS
• FREE Games
• Ease of Starting
Tier – 1 SOON-TO-BE TEENAGED
• Complete NEW genre NON-FPS
• Bragging Rights
• Social Engagement
9. Sequence
Zynga® has changed the basis of competition by simplifying
Purchase & Delivery and improving Convenience during Use
Purchase Delivery Use Supplements Maintenance Disposal
Buyer
Productivity
Customer
Utility
EA®
Simplicity
Price
Zynga®
Convenience
Cost
Risk
Fun & Image
EA®
Environmental
Friendliness
10. Sequence
Offers unmatched value for its customers at a price they are
willing to pay. It is aligned with the target customers’ needs
Buyer
Utility
Revenue Energy
3% Characteristic
Price
$ 1.2 bn
Paying
PAY for FASTER
Customers REFILL Cost
Free to play but require
$4999 NO COST purchases to unlock
Premium for additional features
Game Pack hardware FREEMIUM
11. Sequence
Internet based business model and the absence of a distribution
structure ensures lower costs relative to competition
Buyer
Cost of Sales / Revenue Utility
Year Price
2010
Cost
Zynga
12. Sustainability
Markets are questioning the sustainability of the model as
imitators/competitors are swarming the once Blue-Ocean
Imitation Non-Exclusive Innovation
Channels
All games have
become “cow-
clickers”
Falling Share
Price
83% fall on
NASDAQ
(Jan-Jun ’12)
13. Conclusion The company had successfully overcome traditional gaming
and established social gaming now needs to
re-innovate to stay afloat
Eminent Red New Growth
Challenges
Ocean Channels Plateau
New Brand
Innovation Image