Case Study: Zynga Essay

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Case Study: Zynga Introduction Thesis: Zynga’s business strategy is successful but not sustainable. Purpose This case study highlights the success of Zynga in online games. This forms an excellent basis for assessing the relationship between durable and virtual products. The continuous over- reliance of Zynga on Facebook is also another essential aspect of consideration in paper. Finally, the case study addresses the various implications of Zynga on the existing video game business. Overview Zynga is among the world’s most popular online gaming firms. The firm has been operational since 2007. During this period, Zynga’s popularity has increased because of its unique approach to online gaming. Whereas most gaming companies…show more content…
This unique strategy has been instrumental in Zynga’s success in online gaming via social media platforms like Facebook (Laudon, 2012). Question b: It is risky for Zynga to continue relying on the success of Facebook. Although Facebook enjoys a greater market share in the social networking industry, numerous firms are growing rapidly. For instance, Twitter is increasingly popular with celebrities and famous people. This will have adverse implications upon the performance and popularity of Facebook. As a result of this trend, more people will shift to other social networks. This is extremely precarious from Zynga’s point view. The decline in Facebook’s popularity will undermine Zynga’s capacity to negotiate lucrative deals with clients. This will result into a decline in the company’s financial performance (Hill, 2012). The continuous reliance on Facebook is also risky because of the lack of innovativeness. The readily available audience on Facebook has created some sense of laxity from Zynga’s point of view. This approach might not be feasible in the future as a result of consumer dynamics. The tastes and preferences of online consumers change rapidly. This might have serious marketing implications on Zynga’s strategy for business. Reliance on Facebook is also risky in that the profitability of social media firms is subject to volatility. In the event that Facebook collapses in

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