Zynga Case Management Case Study Research Paper Essay

ZYNGA CASE
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1. Identify the major issues and challenges facing Zynga
Zynga has found itself being sued by several firms, many of whom are competitors and partners in the industry for intellectual property theft and breach of contractual terms respectively. It is an issue which has stemmed from the culture instituted by the CEO that to have a competitive advantage in the industry, they had to ‘steal’ from their competitors. This mentality slowed the company’s ability to innovate and grew its appetite to resort to unscrupulous methods to remain competitive and relevant in the industry.
The management had also established and brooded an awesome company culture. The management openly advised employees to steal intellectual property from their competitors. They also coined a very telling quote derived from google “don’t be evil,’ and they adapted it to ‘be evil’ which shows how the company culture celebrated toxic and unhealthy business practices in the work environment.
The company has earned a reputation for poor customer service. Most of the users of their products complain that their customer service is abysmal. They cite that the customer service team is hardly reachable to sort any issue and their emails go unanswered and unaddressed.
The company is also grappling with dwindling revenues compared to a few years ago. Its growth is not being translated into income, and it seems their marketing strategies are not translating to increased demand for their products.
2. Analyze the online gaming industry using the five forces analysis
1. Competition in the industry; there is a stiff competition in this industry. There are many companies such as EA games, Ubisoft, Nintendo, King, etc. the competition is not regional but global since games and gamers ‘speak universal’ language. Zynga is a new entrant dominated by companies with unignorable influence in the industry. The online gaming industry is almost a perfectly competitive market.
2. The potential of new entrants into the industry; there are new entrants into the industry who have creative ideas for new games. There are also individuals who develop their games using the tools available to other industry players. It is hardly impossible to establish barriers to entry in this industry, and it is likely that there will be more entrants in the foreseeable future.
3. The power of suppliers; the suppliers’ power in this industry is almost negligible. There is no shortness of the people who can script a good game and developers who can put it together. The bargaining power of supplier is deficient since the talent pool is big, skill differentiation very low and buyers’ concentration is high.
4. Power of customers; the power of cust...