F. Business & Functional Strategy
I. Strategy Overview
Business Strategy: Differentiation strategy
As for business strategy we’re going to do is to concentrate on differentiation. The nature of gaming industry is that everyone is trying to be unique in terms of functionality and product quality to attract more customers including competitors’ customers as well. To be different, is what organizations strive for; companies and product ranges that appeal to customers and stand out from the crowd have a competitive advantage. We aim to provide similar types of game that customers are looking for like action gaming, a cerebral puzzler, a story-driven role-playing, and a socializing game. To be different, we’re going to use our characters from Disney and Marvel inside the game which are already well-known among people in different segment around the world to increase the potential of number of download.
Functional strategy
Marketing strategy
- Using social network to do viral marketing to increase engagement in social network.
- Apply marvel superhero and other Walt Disney cartoon character to mobile game.
- Provide birthday special promotion such as 50% in-application purchase discount.
- Provide game money for friend inviting.
- Update game theme every month to keep customers interaction
- Increase the advertising through social network
- Increase the variety of games item through our application
Operational strategy
- Maintaining update with the current technology to increase the attractiveness of our application and to reduce the cost of material.
- Increase more on employee benefit to promote the wellness of employee for the company such as stock option
- Training employee about to keep update with the current technology
- Walt Disney should train employee about cyber law
- Improve quality control by using total quality management
- Set commission for sale person
- Allocate developer from current department to interactive department
Financial strategy
- Hedging currency risk to reduce exchange rate risk
- Choose borrowing money from the bank to investment because lower interest rate
- The company can reinvest in internal or external project that give good rate of return
- Set the special budget for legal conflict
II. Industry Analysis
PESTEL analysis
U.S. Market Situation
US PESTEL analysis |
Opportunity |
Threat |
- Political
| - After Hamburger crisis in 2008, government tried to support all industries in countries.
- Corporate tax reduce
| - Increasing in US government corruption index
- Increasing in military expenditure
|
- Economic
| - Decreasing in interest rate reduce cost of debt
- Cost of skill labor are reducing because of higher unemployment rate from crisis
| - Decreasing in consumer spending
- Decreasing in retail sale
- Economic recession
|
- Social
| - Social trend change from watching TV to play internet in US
- Smartphone is booming in US
- Increasing in number of internet user in US every year
- Population growth in US
- Increasing in mobile game market in US
- Wide age range of mobile game player in US
| - Variety culture in US because US is multinational state
- US has variety of geographic
- US has lower birth rate
|
- Technology
| - Improving in smartphone operation system as IOS and Android
- Widespread of electronic device in US
- Improving in smartphone device for gaming such as smartphone joystick
- Application online store are developed for online application include mobile game
- Cost of improve mobile application reduce because technology improvement
- Quality of graphic increase because of technology improvement
| - Improvement in technology reduce barrier to entry to the market, therefore it increase competitors
|
- Environment
| - Application improvement is not create pollutant
- Application is the product that can resale to the whole country without reproduce
| - There are many substitute application that can take customer responsibility from our application
|
- Legal
| - Patent law is strongly apply in US
- Patent law of US cover application on online store
- There are efficiency process to look over illegal action about patent in US
| - Patent law is apply differently in each state
- Patent law is not cover illegal action which act in oversea
|
EU Market Situation
EU PESTEL analysis |
Opportunity |
Threat |
- Political
| - Most of EU countries has a political stability
- Corporate tax reduce is planned to apply in 2010
| - Some governments in EU are affected by crisis. Therefore , there are lower credit rating
- Significantly increasing in government debt in many counties in EU
|
- Economic
| - Decreasing in interest rate reduce cost of debt
- Euro tend to appreciate compare with US dollar
| - Decreasing in retail sale
- Significantly decreasing in GDP per capita
- Different economic strategy in each counties of EU
|
- Social
| - Social trend change from watching TV to play internet in EU
- Smartphone is booming in EU
- Increasing in number of internet user in EU every year
| - EU consist of many countries which is different in culture
- EU has variety of geographic
- There are many place of EU that internet are not expand to
- EU tend to be elderly society which is many elder reject to use new electronic device
- Many part of EU still live in traditional way
|
- Technology
| - Improving in smartphone operation system as IOS and Android
- Improving in smartphone device for gaming such as smartphone joystick
- Application online store are developed for online application include mobile game
- Cost of improve mobile application reduce because technology improvement
- Quality of graphic increase because of technology improvement
| - Technology is not equally widespread
- Many competitor in the market because low barrier to entry
|
- Environment
| - Application improvement is not create pollutant
- Application is the product that can resale to the whole country without reproduce
| - There are many substitute application that can take customer responsibility from our application
|
- Legal
| - Patent law is strongly apply in EU
- Patent law of EU can apply across the countries among of EU counties
- There are efficiency process to look over illegal action about patent in EU
| - Patent law is not cover illegal action which act in countries outside EU countries
- There are higher cost of pat count in EU compare to US
|
Asia Market Situation
Asia PESTEL analysis |
Opportunity |
Threat |
- Political
| - Government has support on foreign direct investment in many countries of Asia
- Government in Asia get lower damage from crisis compare with US and EU
| - Some counties in Asia have no political stability
- China government has very stick policy on screening online application
|
- Economic
| - Interest rate reduce in many countries in Asia
- More economic stability during the recession
| - Lower average GDP per capita compare to EU and US
- Lower consumer purchasing power compare to EU and US
|
- Social
| - Asia is the biggest population in the world
- Smartphone is popular in development countries such as China and Japan
- Lower age average of internet user in Asia
- Increasing in number of internet user in Asia every year
| - Asia consist of many countries which is different in culture
- Asia has variety of geographic
- Asia is the biggest part of the world . Therefore , there are many place that internet cannot expand to
- Many countries in Asia has negative attitude with game
- There are narrow age range of internet user compare to US and EU
|
- Technology
| - Improving in smartphone operation system as IOS and Android
- Improving in smartphone device for gaming such as smartphone joystick
- Application online store are developed for online application include mobile game
- Cost of improve mobile application reduce because technology improvement
- Quality of graphic increase because of technology improvement
| - Many countries in Asia cannot take advantage from technology improvement
- There are technology block in many part of Asia
- Most of new technology starting in EU and US
|
- Environment
| - Application improvement is not create pollutant
- Application is the product that can resale to the whole country without reproduce
| - There are many substitute application that can take customer responsibility from our application
|
- Legal
| - Cost of Pat count is lower than US and EU
- FDI promoted in many countries in Asia
| - Patent law is weakly apply in many Asia counties
- There are inefficiency process to look over illegal action in many counties in Asia
- Sometime patent crime are not adjust as illegal and have low punishment to illegal person
|
Smart phone, online mobile game and Internet industry
Global sale of game software
In the past twenty years, the video game industry has established itself as a significant contributor to the global entertainment economy. In 2009, the global video games market was estimated at US$40 billion and is expected to grow to over US$60 billion by 2015 due to many available multiple devices such as consoles, portables, and mobile devices through multiple channels such as retail and online.
