Zynga Company. Major Issues and Challenges Facing Zynga

Zynga Company
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Zynga Company
Major Issues and Challenges Facing Zynga
In a recent study, Zynga has been identified to have lost a significant number of users. The number has been dropping notably by 27 percent annually, and the number of active users is now down to 21 percent (Machajewski, 2013). Among the major problems is the leaving of the CEO of the company, David Lee in December without giving a reason. His sudden departure has brought managerial issues and rearrangement of tasks in the company (Machajewski, 2013). In 2016, the debut of Zynga’s key new games, dawn of the Titans and CSR2 was pushed out from the Q4 2015 launch. In addition, Facebook transformed due to the many dislikes about online games.
Porters Five Forces
However, Zynga can analyze the competition and bring back the company back to its profitability and position in the competitive market using Porters five forces. The first force is competitive rivalry. The force evaluates the current intensity of the competition in the market, assessed by the strength and amount of competitors. Zynga’s high competition will be when there are few businesses offering the same product because the consumers can easily switch among the competitors offering lower prices (Machajewski, 2013). Therefore, Zynga should advertise to gain more customer advantage. The other force is the bargaining power of the supplier of the service. The power indicates the control the supplier has over the users of a service. They can raise or lower the charges, according to the desired level of profitability. In this case, Zynga should analyze the charges from the competitors in order to set charges that will favor the company.
The next force is the bargaining power of the users. The force works to the advantage of the customer when they have options of stating the amount they are willing to pay for an offering (Machajewski, 2013). Such a situation is possible, mostly when they are few but there are many sellers offering the same service. Zynga should make their offering different from that of the competitors.
Moreover, the threat of having new entrants in the market is a...