GREE IncCase Analysis Prepared ForDr Rajshree
GREE Inc.
Case Analysis
Prepared For:
Dr. Rajshree Prakash
COMM 401 Strategy and Competition
Section
Prepared By:
Victoria Zilic
9235477
Concordia University
October 27th, 2014
Problem Statement
GREE’s in-house games and platform development has proven to be successful. Despite their achievements, their ability to remain prosperous in Japan and exploit worldwide opportunities remains uncertain. In order for GREE to continue with its on-going success, they must make key decisions regarding its future growth. GREE must determine whether their strategy and competitive advantage of developing both in-house games and platforms for external developer will advance internationally as it did domestically. Additionally, in the face of global expansions, GREE must also evaluate its ability to compete in international markets with a product that requires significant localization. Moreover, as GREE reaches market saturation in Japan, and deals with the underlying impact of the new Kompu Gacha regulation, it is also essential they revise their domestic strategy to maintain its position in the domestic market.
External Analysis
The PEST framework was used to obtain an understanding of the environment in which GREE operates.
On the political front, the social mobile game industry is becoming subject to more heighten regulations regarding the monetization practice. The concern of undue addiction to social games leading to overspending on virtual goods, has lead to the adoption of a new regulation in Japan, prohibiting the use of the Kompu Gacha mechanism, used to induce users to spend more time and money on virtual good. The new regulation in Japan has the potential to influence the adoption of similar regulations in other geographic markets. The rise of regulations regarding the monetization practice in mobile games across boards may impede on GREE’s ability to sustain revenues.
Socio-cultural trends
Case Analysis
Prepared For:
Dr. Rajshree Prakash
COMM 401 Strategy and Competition
Section
Prepared By:
Victoria Zilic
9235477
Concordia University
October 27th, 2014
Problem Statement
GREE’s in-house games and platform development has proven to be successful. Despite their achievements, their ability to remain prosperous in Japan and exploit worldwide opportunities remains uncertain. In order for GREE to continue with its on-going success, they must make key decisions regarding its future growth. GREE must determine whether their strategy and competitive advantage of developing both in-house games and platforms for external developer will advance internationally as it did domestically. Additionally, in the face of global expansions, GREE must also evaluate its ability to compete in international markets with a product that requires significant localization. Moreover, as GREE reaches market saturation in Japan, and deals with the underlying impact of the new Kompu Gacha regulation, it is also essential they revise their domestic strategy to maintain its position in the domestic market.
External Analysis
The PEST framework was used to obtain an understanding of the environment in which GREE operates.
On the political front, the social mobile game industry is becoming subject to more heighten regulations regarding the monetization practice. The concern of undue addiction to social games leading to overspending on virtual goods, has lead to the adoption of a new regulation in Japan, prohibiting the use of the Kompu Gacha mechanism, used to induce users to spend more time and money on virtual good. The new regulation in Japan has the potential to influence the adoption of similar regulations in other geographic markets. The rise of regulations regarding the monetization practice in mobile games across boards may impede on GREE’s ability to sustain revenues.
Socio-cultural trends