Identify the major issues and challenges facing Zynga

Zynga Case Study
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Zynga Case Study
Identify the major issues and challenges facing Zynga
The lawsuits filed against Zynga are what make up the first challenge for the organization. Having been involved in the theft of intellectual property, the company found itself answerable to the law and thus far has lost a lot of money fighting these suits.
The plummeting revenue is also another major issue facing Zynga. In 2015, Zynga lost $226 million in revenue. This is a big loss and the company is yet to recover from it.
The third issue is the bad company culture that had been cultivated by the company’s former CEO Mark Pincus. Pincus had created a culture that made it okay to steal other people’s work. He was against creativity and always shot down any credible and original ideas some of his employees had. This culture needs to be weeded out and Zynga needs to reclaim its spot in the gaming industry.
Poor customer service is also another negative characteristic of the company. Customers have complained about this issue and many say that their calls are never answered and their email messages never replied. This means that when one has a problem, it will probably never be attended to.
Analyze the online gaming industry using the five forces analysis
The threat of New Entrants
The threat of new entrants is quite high in the gaming industry. Aside from new companies making their entry into the industry, there are tools that allow people to create their own games today. The threat of new entrants is thus quite high and Zynga ought to be cautious.
Competition
Competition in the gaming industry is quite high (Anderton, 2017). Having been dominated the gaming world for some time, Zynga now finds itself further down the list of the most profitable gaming organizations. Additionally, it is crucial to note that the competition is at the global stage which makes it a little harder for companies like Zynga which are on a slippery slope right now.
Power of Buyers
The clients in any industry have immense power and in the gaming industry, this is made possible because of the many substitutes. Clients are sensitive to how they are being treated by the customer care desk as well as to the prices of games.
Power of Suppliers
Well, the power of the suppliers can be said to be average because at the moment there are thousands of people who can code or script games. While they sti...