The Current Zynga Strategy Diamond Marketing Essay

The Current Zynga Strategy Diamond Marketing Essay Launched in 2007, Zynga has expanded its portfolio from exclusively Facebook API services to provide independent and multiplatform social gaming on personal computers, tablets and mobile devices (Zynga, p 1-2, 2013). However, less than a year after appearing on the stock exchange Zynga has fallen on hard times (Zynga, p 1, 2013). The challenge of satisfying evolving consumer needs and the microeconomic climate have severely impacted your bottom line. Your stock price has fallen over 70% and you have recorded net losses of nearly $53 million in Q3 2012 alone (Zynga, p 1, 2013). In order to stay relevant in todays market and return Zynga to the social gaming pioneer it once was, you must employ radical changes. I have identified four main challenges facing Zynga today. Firstly, Zynga is in the business of casual gaming with a social twist. But because casual games notoriously have the shortest life cycle it is hugely problematic that Zynga has neither innovated nor replicated successful games at the same rate that customers have grown tired of the available offerings. Secondly, Zynga does not have a sustainable source of revenue due to considerable customer churn. Cycling through customers and not generating repeat business is not a strategy for a freemium company. Thirdly, while Zynga is moving towards a more independent business model, the business was built on and still largely depends on Facebook. The close association between your corporations and your recent decision to sever ties with the social media giant has been negatively affecting your bottom line. Lastly, the corporate culture in place at Zynga thrives on imitation. Rather than being forward thinking and innovative, Zynga ha s enjoyed enormous success by mimicking already popular games and reverse engineering them for a simpler, social experience. Given these challenges I have developed a strategic recommendation to reinvent Zynga. Zynga must return to its original ambitions of being an independent social gaming giant and create a social gaming ecosystem unlike any other. By partnering with hardware manufacturers and developing a new operating system Zynga can not only reclaim its lost share of the social gaming market, but capture a population of consumers with unmet social gaming needs. With this innovative model, Zynga will once again demonstrate financial success. Goals and Objectives: The ultimate goal of my strategic recommendation is to revert Zyngas declining financial status and decreasing Monthly Average Users (MUAs). The new business model will pursue the goals upon which the company was founded upon: Reach, Retention and Revenue; however, these goals may only be achieved if Zynga remains true its original ambitions and strives for stable growth built on its own success, rather than piggybacking off the growth of another corporation. Contextual Analysis: Mark, you created Zynga to address an unrealized consumer need: socially integrated gaming. But while you correctly predicted that consumers wanted an immersive and integrated social gaming experience, as they do with most other tech experiences, you failed in your execution. The original customer reach, retention and revenue model aided the explosive growth you enjoyed in the past, but it did not create a foundation for your company to be further built on. You were too consumed with rapidly growing the company and collecting profits to see that strategically Zynga would have benefited from a slower, more premeditated climb to success. Your original ambitions to build an independent company were correct, yet instead you chose to piggyback off of the success of Facebook to catapult yourself into overnight, mass-market penetration. Accordingly, there are four challenges facing Zynga. Firstly, Zynga is in the business of casual gaming with a social twist. That is, simple games with uncomplicated, vibrant graphics and easy inputs and controls. Since casual games are not intimidating and easy to play, they appeal to a large audience (primarily [60%] a normally disinterested group of middle aged women). However, casual games notoriously have the shortest life cycle (Microsoft ). In fact, most estimates give casual games a 300 day life cycle (______). The gameplay in Zyngas games is particularly known for its simplicity (_____). Look at Farmville as an example. A users constant diligence and effort will ultimately be rewarded if they maintain their crops and animals (unless they choose to buy virtual currency with real currency to speed up the game). It is evident that there is hardly any skill component involved in casual gaming. Accordingly, game fatigue occurs relatively quickly. Your frequent introduction of new games is evidence that you understand this trend; ho wever, what you have not accounted for is that users become exhausted by the entire category of simple games. Once you have built a farm, city, mafia and castle using virtually indistinguishable principles, a similar game is less likely to be pleasing. This is especially true in a category of games that Zynga succeeds in: non goal-oriented games. That is games that have no definitive end or prize. It is hugely problematic that your company has neither innovated nor replicated successful games at the same rate that customers have grown tired of the available offerings. Cycling through customers and not generating repeat business is not a strategy. Secondly, you have neither a stable, nor sustainable source of revenue due to the previously discussed customer churn. Zynga operates on a freemium, free-to-play model. That is, the vast majority of your customers play your games for free while only a small portion of users constitute paying customers. Financial analysis reveals that over 83% of your revenue is generated by less than 3% of your customers. As such, Zynga faces grave financial risks if you lose the attention and enthusiasm of your core 3% of paying customers. Thirdly, while Zynga is moving towards a more independent business model, your business was built on and still largely depends on Facebook (Zynga 10-K, 2013). In 2012 86% of Zyngas revenue was from Facebook API services and revenues were down 20% from the prior year, while Facebook reported a 40% increase in gaming profit (Zynga, p , 2013) (Zynga 10-K, 2013). Note this discrepancy. Although the social nature of your games requires the use of a social network platform, Facebook is a social media monopolist. As such, you are buying and using services providing by a monopolist. This has severe financial implications for Zynga. When a company does not make considerable profits, it is not in Facebooks interest to charge a high transaction fee. Instead, Facebook encourages use of its services by maintaining low fees since the applications use increases the usage of Facebooks platform. However, if the company becomes financially successful, as Zynga did, Facebook begins to charge higher tra nsaction fees. This is standard microeconomics and a problem plaguing Zynga. Facebook is capitalizing on your success by taking over 30% of each transaction your games attract (Zynga, p , 2013). Additionally, the close association between your corporation and Facebook, as well as your recent decision to sever ties with the social media giant has been and will continue negatively affecting your bottom line. While costumers may recognize your games, your corporate brand has been dissolved and shadowed by Facebook. You should not have so closely associated Zynga with Facebook and so heavily relied on Facebook to grow your company. While Facebook will always have game developers to replace you, you will not always have the customer awareness you enjoyed on while using Facebooks API services. You are competing in an industry where you are highly replaceable and are at the mercy of your customers in your fight to stay relevant (Exhibit A). Lastly, the corporate culture in place at Zynga thrives on imitation. Zynga is present in the rapidly evolving industry of gaming in which technology is critical. Such an industry requires companies to be at the forefront of change and lead innovation. Normally companies employ sizeable RD teams that look to new game development (in your case to combat game fatigue and customer churn) as well as new distribution channels (in your case to combat the dependence on Facebook). You did genuinely pioneer social gaming, but that is where you stopped. While copying competitor games worked in the short term, it is not a sustainable strategy. You must refocus on innovation. Furthermore, this attitude blinded you to the importance of the smartphone as a new gaming platform. Only recently have you realized the potential of mobile games. Rather than being forward thinking and innovative, Zynga has enjoyed enormous success by mimicking already popular games and reverse engineering them for a simpl er, social experience. Strategic Options Alternatives: With regard to customer acquisition and retention, Pincus wondered whether Zynga should invest to improve its viral distribution model, or if the company needed to encourage users to connect with strangers who also happen to be Zynga game players. One of the unmet needs social media sites address is the desire to meet new people. Consumers enjoy being around like minded individuals and tend to seek out and gravitate to those who share similar interests and values. In most cases an individual has a set amount of friends in their social network that closely share their values, but not necessarily enough to satisfy their social needs. As such, it is in Zyngas best interest to encourage users to connect with strangers who also enjoy social gaming. Consumers would be attracted to the idea that they would be introduced to those most like them satisfying their social need. Furthermore, for Zynga the viral avenue is slowly disappearing since Facebook has amended its algorithm to limit game post viability to those who are not signed up for the Zynga services. Additionally, depending on a viral distribution model implies that there is a large enough customer base to promote to. Zyngas creation of an independent platform is a positive and progressive step, but you must remember that you will not have the same customer base that Facebook has, and it certainly will not attract 1 billion users overnight. With regard to product, Pincus debated whether he should invest primarily in evolving existing successful casual games, or if he should invest to expand Zynga into other markets, such as real money gambling and mid-core gaming. Zynga should invest in other markets. Social games have a very short life cycle and are becoming increasingly more expensive for Zynga to create and maintain. As such, Zynga should focus on investing and developing games that are more interactive, slightly more complex and retain customers for longer periods of time such as gambling games and mid-core games as these markets theoretically address the problems facing Zynga. With regard to corporate strategy, Pincus had to decide whether Zynga should continue to focus on being a content producer, or if it should focus on becoming a platform for hosting its own and 3rd party developers games. Zynga should not limit itself on content development as its only competency. You should begin building a platform or operating system or even venturing into hardware manufacturing in order to release yourself from the fetters of Facebook. In truth, this is the hardest strategy because it has the highest risk, but if properly implemented, it would also reap the great ROI as well as serve as the most long term option. Strategic Recommendation: Successful tech companies are those that do not just create products, services or experiences, but rather immerse their users into complete, closed ecosystems. Google, Amazon and Apple are three examples of lucrative companies that have enjoyed stable growth throughout the past decade of tumultuous technological uncertainty. They have fully integrated their consumers by enticing them to choose a digital lifestyle that is almost controlled by their gadgets and software. For instance, Google has vertically and horizontally integrated to provide social services (Google+) and created not one, but two platforms (Android and Chrome) available on a multitude of devices (computers, tablets, smartphones) to engage consumers on all levels. Apple has done the same with its iPhones, Macs and iPads and its OS. Amazon has the Kindle and Amazon Prime. In each company, consumer hardware is fully integrated with the other products and the platform/software addresses both known and unmet social needs. This occurs while the hardware and software provide the standard professional and personal solutions expected of computing devices. Even Facebook, your rival is making its foray into software and hardware integration with the release of its operating system: Home. Like Google, Apple and Amazon, Facebook will now have its own ecosystem to lock its users into. Creating an ecosystem employs the walled-garden concept where a company locks a consumer into its product by providing all the services necessary to address the consumer needs and effectively locks a consumer into the product. Zynga should follow lead and focus on creating a social gaming ecosystem with high walls (barriers to entry) by leaving the consumer facing high switching costs. The best way to create this ecosystem is by developing your own, independent platform and operating system and partnering with hardware manufacturers to deliver integrated devices to fanatical gamers. Implementation Plan Zynga should begin to secede from Facebook in a gradual 3 year plan. Each year you should refrain from renewing 1/3 of the games on the Facebook API service. Zynga should begin with the weakest performing games and gradually the best games to retain maximum customer awareness through the succession process. The goal will be to not only retain current Facebook customers and move them to Zynga.com, but also to generate enough buzz to secure to customers directly through Zynga.com. By slowly transitioning existing Facebook users to Zynga.com the customer base of your social network will grow and attract new users. Year One: Zynga should reach out to hardware manufacturers HTC is a great candidate to negotiate a contract and develop a smart phone and tablet adapted for Zynga games. Simultaneously, Zynga should begin developing the OS and gaming platform for the device. It is also important to reach out to retailers and wireless companies to secure subsidy contracts for the new device. It is also necessary for Zynga to pursue marketing and promotional partnerships with both the device manufacturer(s) and the wireless carrier(s) in order to split the cost of an aggressive marketing campaign. Year Two: During Q1 and Q2, Zynga should begin production and continue the marketing campaign. Zynga should also focus on developing a robust network of games to be deployed on its device. It would benefit Zynga to allow third party developer rights to innovate games for Zynga. In Q3 Zynga should begin selling the device. Year Three: Zynga should focus on a 10 month life cycle for its devices to stay relevant to consumers. As such, RD and production of the generation two Zynga device should take place during the middle of Q1 2016 and conclude at the end of Q2 2016. Sales of the gen 2 device should begin at the beginning of Q3 2016. Exhibit 1: Porters Five Forces: Competitive Rivalry High Zynga, Wooga, 5 Minutes, Playfish, Playdom, Kabam, Crowdstar, EA, among others. Power of Buyers Moderate to High Customers dictate the content and their needs change daily. Because there are so many alternate companies providing the same/similar services, game providers have to adapt to retain customers. Power of Suppliers Moderate to High While there are many game hosting platforms, few garner the attention of mass amounts of users. As such, the power of the supplier fluctuates based on its user base. Threat of New Entrants Very High The cost and time required to develop a social game is very low (single-digit millions and months) relative to the cost of developing a more traditional graphic-intense console game (tens of millions and years). This lower cost allows much smaller game developers to try their hand at developing the next big hit and has resulted in a proliferation of new competitors. Substitute Products Very High There are not only identical products out there by competitors, but also there are many substitute products: hardcore games, board games, tv, blogs, anything people use to pass the time. Exhibit 2: Current Zynga Strategy Diamond Arenas Casual gaming Vehicles exclusivity contracts, social platforms (mainly Facebook), early stages of their own social platform. Differentiators highly integrated social features. Economic Logic freemium business model. 97% of consumers receive free services while 3% of consumers pay to advance quickly through game and receive premium services. Monetization relies on 3 revenue streams, affiliate offers, virtual goods sales and advertizing Staging biweekly game updates. Release new games every ____.

The Causes of the Showa Restoration :: Historical Periods Showa Restoration Essays

The Causes of the Showa Restoration Sonno joi, "Restore the Emperor and expel the Barbarians," was the battle cry that ushered in the Showa Restoration in Japan during the 1930's.Footnote1 The Showa Restoration was a combination of Japanese nationalism, Japanese expansionism, and Japanese militarism all carried out in the name of the Showa Emperor, Hirohito. Unlike the Meiji Restoration, the Showa Restoration was not a resurrection of the Emperor's powerFootnote2, instead it was aimed at restoring Japan's prestige. During the 1920's, Japan appeared to be developing a democratic and peaceful government. It had a quasi-democratic governmental body, the Diet,Footnote3 and voting rights were extended to all male citizens.Footnote4 Yet, underneath this seemingly placid surface, lurked momentous problems that lead to the Showa Restoration. The transition that Japan made from its parliamentary government of the 1920's to the Showa Restoration and military dictatorship of the late 1930s was not a sudden transformation. Liberal forces were not toppled by a coup overnight. Instead, it was gradual, feed by a complex combination of internal and external factors. The history that links the constitutional settlement of 1889 to the Showa Restoration in the 1930s is not an easy story to relate. The transformation in Japan's governmental structure involved; the historical period between 1868 and 1912 that preceded the Showa Restoration. This period of democratic reforms was an underlying cause of the militarist reaction that lead to the Showa Restoration. The transformation was also feed by several immediate causes; such as, the downturn in the global economy in 1929Footnote5 and the invasion of Manchuria in 1931.Footnote6 It was the convergence of these external, internal, underlying and immediate causes that lead to the military dictatorship in the 1930's. The historical period before the Showa Restoration, 1868-1912, shaped the political climate in which Japan could transform itself from a democracy to a militaristic state. This period is known as the Meiji Restoration.Footnote7 The Meiji Restoration of 1868 completely dismantled the Tokugawa political order and replaced it with a centralized system of government headed by the Emperor who served as a figure head.Footnote8 However, the Emperor instead of being a source of power for the Meiji Government, became its undoing. The Emperor was placed in the mystic position of demi-god by the leaders of the Meiji Restoration. Parliamentarians justified the new quasi-democratic government of Japan, as being the "Emperor's Will." The ultra-nationalist and militaristic groups took advantage of the Emperor's status and claimed to speak for the Emperor.Footnote9 These then groups turned the tables on the parliamentarians by claiming that they, not the civil government, represented the "Imperial Will." The parliamentarians, confronted with this perversion of their own policy,

Exercise 29 Statistices

Exercise 29 – Statistics work book SUMITHA THOMAS GRAND CANYON UNIVERSITY Exercise 29 – Statistics work book Name:____Sumitha K Thomas________________________________________ Class: ____________________ Date: ___3/10/2013______________________________________________________________________________ ? EXERCISE 29 Questions to be Graded 1. Were the groups in this study independent or dependent? Provide a rationale for your answer. Groups are independent in this study.According to the above data independent groups define as if the two sets of data were not taken from the same subjects and if the scores are not related. In this study subjects are two different genders which is men and women and scores are not even related each other. Therefore this is an independent study. 2. t = ? 3. 15 describes the difference between women and men for what variable in this study? Is this value significant? Provide a rationale for your answer. T = -3. 15 describes the mental health variab ility. This is a significant value because it’s provides the degree of freedom.According to the data above the significance of a t ratio can be determined by comparison with the critical values in a statistical table for the t distribution using the degree of freedom for the study. The value is significant because p value of it is 0. 002 which is smaller than alpha value set for this test that is 0. 05 3. Is t = ? 1. 99 significant? Provide a rationale for your answer. Discuss the meaning of this result in this study. t = -1. 99 is significant because it represent health functioning variables between men and women which compares men and women for perceived coping, quality of life and social support.Smaller P value indicates more significant findings. The P value for health functioning is 0. 049 which is smaller than the alpha level 0. 05 in this study. 4. Examine the t ratios in Table VI. Which t ratio indicates the largest difference between the males and females post MI in this study? Is this t ratio significant? Provide a rationale for your answer. The largest difference between the males and females post MI indicates the mental health. It has t ratio of -3. 15. This is a significant ratio because it has a p value of 0. 02 which is smaller than alpha value that being sent for 0. 05 5. Consider t = ? 2. 50 and t = ? 2. 54. Which t ratio has the smaller p value? Provide a rationale for your answer. What does this result mean? t = -2. 50 has a p value of 0. 01 whereas t = -2. 54 has the p value of 0. 007 which is smaller than p value of 0. 01. This result means that t = -2. 54 has more significant findings, which indicate that better role- physical after post MI between men and women than the physical component score. 6. What is a Type I error?Is there a risk of a Type I error in this study? Provide a rationale for your answer. According to the data above, a type 1 error occurs when the researcher rejects the null hypothesis when it is in actuality true . The type 1 error is often represented by the Greek letter alpha (a). In this study the level of significance or alpha was set at 0. 05 and multiple p value has gone above 0. 05 such as socioeconomic p value0. 58, family p value 0. 51. Therefore, there is type 1 error in this study. 7. Should a Bonferroni procedure be conducted in this study?Provide a rationale for your answer. Because this study has a risk of a type 1 error, a boneferroni procedure should be conducted. This procedure is used to correct the risk of a type 1 error. The boneferroni procedure is a simple calculation in which the alpha is divided by the number of t-tests run on different aspect of the study data. 8. If researchers conducted 9 t-tests on their study data. What alpha level should be used to determine significant differences between the two groups in the study? Provide your calculations.Alpha/ number of t tests performed on study data = more stringent study to determine the significance of study results 0 . 05/9 = 0. 0055. 0. 005 is the alpha level should be used to determine significant differences between the two groups in the study. 9. The authors reported multiple df values in Table VI. Why were different df values reported for this study? The author used multiple df values in table VI because according to the data above, significance of a t ratio can be determined by comparison with the critical values in a statistical table for the t distribution using the degrees of freedom for the study.DF is a mathematical equation that describes the freedom of a particular scores’ value to vary based on the other existing scores values and the sum of the score. The formula for the df = number in group 1+ number in group 2-2. This way author is becoming more specific by providing different df values which shows the comparison and differences between 2 independent groups. 10. What does the t value for the Physical Component Score tell you about men and women post MI? If this result was consistent with previous research, how might you use this knowledge in your practice?The t value tells us about the differences between men and women post MI physical component score. In my practice using this t value, I would be able to work differently between men and women after post MI. Teaching might provide to women more about physical functioning, role physical, bodily pain and general health since these are all included in physical component score. The physical component score for women is 48. 5 compared to men 51. 1 (standard deviation). Therefore, women might need to educate more about the physical components than men.

The Education System Of The United States - 1174 Words

Understanding the importance of education is like understanding life. They go directly hand and hand, because learning is apart of the daily life of a child, and is extremely essential in a child’s development. Children are introduced to the education system for the purpose to learn and thrive in todays society. The education system is used to set a model for children to become successful adults for American society to prosper. Rarely, do we think about school conditions and the stress pushed upon educators to make what it takes to have a thriving school year. In the United States, the budget for education primarily comes from state and local taxes. Usually, the budget from state and local are not enough, and year after year, many are getting cut. Schools are desperately in major need for additional funding, and they gladly utilize these federal funds as much as they can. Once federal funding is accepted to help these schools, so come the high standards and expectations. The use of Federal funding creates high stake environments, that effect students and teachers differently. With these high expectations for standardizing test scores, teachers are promised large bonus incentives in return. In 2009, schools were given the option to apply for funding by The Race to the Top Fund, and these expectations cause teachers and students to have high stress and anxiety in standardized school testing. The new expectations from federal funding change the educational curriculum, inducesShow MoreRelatedThe Education System Of The United States829 Words   |  4 PagesRecent surveys and articles state that Over 30% of kids in the United States never finish high school. For minority kids, it s over 50%.1. The public education system in the United States seems to be failing to meet the needs of the children and thus affecting their future outcomes. The average quality of education in Elementary, Middle and High school that a child deserves, is far from superior. 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