my comm 401 project
John Molson School of Business, Concordia University
Comm 401 - Strategy and Competition
Individual Midterm Assignment
GREE Inc.
Due date: October 27, 2014
Prepared by:
Itohan Okoebor
Overview and Problem Identification:
GREE Inc. has been succeeded to be one of the top Companies that dominated Japan social gaming market from 2004 till 2012. The in-house games development, successful in monetizing mobile social games, and development of its platform that it offered to third-party game developers in Japan, brought it Average revenue per user (ARPU) to four times higher than that of its competitors Zynga and Facebook in 2012.Technically superior products endorsements and partnership with popular Japanese music Groups, Tie-ins with other commercially successful product, ability to expand it audience from casual, Intellectual capital and a good adverting strategy is one of the most important assets of the company.
Despite the steady growth during the last six years, the company is experiencing several challenges. They are highly dependent on game business and they compete with global platform players. A recent customer protection law, named “kompu gacha” has also shown some treat to GREE’s future. Therefore, in order to maintain or even grow the competitive advantages within the game industry, GREE must identify new strategies for international growths in the face of a rapidly changing growing gaming marketplace.
INTERNAL ANALYSIS
Value Chain
In terms of primary activities, it is proven that a huge amount of GREE’s margin growth in the past has been as result of their outbound logistic, marketing and sales efforts. More specifically, they main income came from paid services, which accounted for over 90% of total revenue in 2012.
VRIN
We can see that GREE’s other primary activities appear to be remarkably efficient. As a result, this process can be considered a valuable, rare, inimitable, and non-substitutable. As such, focusing on
Comm 401 - Strategy and Competition
Individual Midterm Assignment
GREE Inc.
Due date: October 27, 2014
Prepared by:
Itohan Okoebor
Overview and Problem Identification:
GREE Inc. has been succeeded to be one of the top Companies that dominated Japan social gaming market from 2004 till 2012. The in-house games development, successful in monetizing mobile social games, and development of its platform that it offered to third-party game developers in Japan, brought it Average revenue per user (ARPU) to four times higher than that of its competitors Zynga and Facebook in 2012.Technically superior products endorsements and partnership with popular Japanese music Groups, Tie-ins with other commercially successful product, ability to expand it audience from casual, Intellectual capital and a good adverting strategy is one of the most important assets of the company.
Despite the steady growth during the last six years, the company is experiencing several challenges. They are highly dependent on game business and they compete with global platform players. A recent customer protection law, named “kompu gacha” has also shown some treat to GREE’s future. Therefore, in order to maintain or even grow the competitive advantages within the game industry, GREE must identify new strategies for international growths in the face of a rapidly changing growing gaming marketplace.
INTERNAL ANALYSIS
Value Chain
In terms of primary activities, it is proven that a huge amount of GREE’s margin growth in the past has been as result of their outbound logistic, marketing and sales efforts. More specifically, they main income came from paid services, which accounted for over 90% of total revenue in 2012.
VRIN
We can see that GREE’s other primary activities appear to be remarkably efficient. As a result, this process can be considered a valuable, rare, inimitable, and non-substitutable. As such, focusing on