Zynga - Survival at Stake?

            

Details


Case Code : CLBS138
Period : 2009-2014
Publication date : 2015
Teaching Note :No
Subject :Business Strategy
Case Length : 05 Pages
Countries : USA
Industry : Gaming

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The case is about US-based gaming company Zynga Inc. (Zynga), which was founded in 2007. It pioneered social gaming with its popular games like Zynga Poker and FarmVille. Over the years its games grew highly popular and attracted million users and FarmVille went on to become the fastest growing social game. But the company was unable to maintain the momentum with the emergence of new mobile games. In July 2013, Don Mattrick (Mattrick) took over as CEO of the company, and released mobile versions of Zynga’s popular games. Still, the fall continued. Even after Mattrick had been at the helm for more than 16 months, the company was unable to come out with a hit game. Pressure was increasing on Mattrick to arrest the further downfall of the company.

Issues:

Understand how changing industry dynamics affect companies.
Analyze transition into new technologies and its impact on existing players.
Understand the need for long term strategy.

Introduction

For the three months ended September 30, 2014, the US-based gaming company Zynga Inc. (Zynga) reported that its revenues had fallen by 13% to US$ 176.6 million compared to the third quarter of 2013. Though the revenues increased by 15 %, the EBITDA fell from US$ 14 million compared to the second quarter of 2014. There was a 9% drop in the number of Daily Active Users too....

Questions:
1. What are the factors that contributed to the growth of Zynga?
2. From the facts given in the case what do you think of Zynga's long-term strategy?
3. What should Don Mattrick do to turn Zynga around?

Key words:
Social gaming, mobile gaming, Zynga, FarmVille, long-term strategy, venture capital, rise and fall







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