Case Study: Zynga Essay

Therefore, many Social Sites like Youtube, Myspace, Twitter, Tumblr, and Facebook are links for million of people around the world to connect with each other. Facebook is the biggest social media platform with about 1.3 million users. It is a plethora of people networking with family, friends, and other individuals with similar interests. This site is a constant conversation going on. The thoughts of people are influencing each other from across the globe. “Companies have quickly learned that social media works: 39 percent of companies we’ve surveyed already use social-media services as their primary digital tool to reach customers, and that percentage is expected to rise to 47 percent within the next four years.”(Divol, 2012) Company’s can use social media to monitor what is said about their brand, to influence a large scale of potential buyers, and to create personal connection with the consumer.

| 1.6-Safety & Privacy issues: user accounts hacked and misused, users quit(9,10)1.7-Too dependent on Zynga: 12% revenue 2011 of games & virtual goods, a significant number of pages generated by Zynga applications(11,12)1.8-Shut down because of Islam cultural clashes, blocked because of conservative moral

Online gaming is big business these days, with thousands of people connected to each other every

Facebook is a social networking website that was launched by Mark Zuckerberg in 2004. It was initially designed as a means for Harvard University students to communicate, but it quickly grew and now boasts over 1 billion users worldwide (Facebook 101, 2014). This paper will evaluate the business strategy of Facebook. An overview of the company will be presented, with identification of the company mission statement, financial performance and global operations; a SWOT analysis will be completed, and the strategic objectives will be identified with discussion of specific strategies and contingency plans that will need to be in place to recognize those goals. Lastly, the strategy will be critiqued, with suggested changes presented, if any.

Facebook, which was founded by Mark Zuckerberg in February 2004, is an online social networking platform with the mission of making the world more open and connected. Within a few years, Facebook attracted millions of new users, from 1 million Monthly Active Users to 845 millions Monthly Active Users. Though competing with global and regional corporations in the industry, Facebook kept growing rapidly. With the high expectation of investors, Facebook finally decided to go public. The “Red Herring” of Facebook stated that its goal was to connect all two billion global Internet users. Basing on our analysis of Facebook’s IPO, we would like to give several recommendations on the

Reid, B. (2010) elaborates on the creative perspective of collaboration by citing an examples of the famous social networking site Facebook joining hands with formally-stable industry Zynga games to provide an additional feature to its users. This collaboration was a so successful that, the revenue of the both the industries boosted so high that marked a record breaking hits. As this helped them to

Social Media: Social networks like all the online matter such as Youtube, Twitter and Facebook are so important that relevant companies should not defer their efforts to create the public image and enhance their both market and products’ effectiveness”

The company Zynga, which was conceived in 2007 by founder Mark Pincus, became a top company in the social gaming world. At first, they partnered with Facebook to get their games noticed. Soon enough, over a billion of their users were playing fun and addicting games like Poker and Words With Friends. Zynga.org was also created to help donate in-game profits to various nonprofit organizations to help better the future of many individuals through gaming. Not only that, their employees would also donate to the charity of their desire. A company like this would seem to be one that would excel in the market place. However, in recent times, various external and internal factors have been undeniably affecting them.

In this day and age, social media has become an integral part of our lives. It has created a platform for people to share information instantly and communicate with people all around the world. Facebook is the most outstanding example of successful social media network. According to the first quarter 2015 earnings announcement by Facebook, the site has achieved 1.44 billion active users per month, and 65% of which are daily active users. Other social networking sites such as Twitter, Instagram and LinkedIn are also a powerful means of communication. With such a large audience, social networking sites provide ample opportunities to acquire information, network, and connect with friends.

There was a lot of talk on how Social Networking as a model is doomed to fail but just looking at the way they are doing is enough to know that although it may not be paying off right now, it soon will. Sites like LinkedIn, Ryze, Yahoo 360, MySpace, etc seem to be attracting customers silently. Soon, they have multiple options on what to do with the huge customer

We cannot deny how big of an impact social media has on our lives now, not only on people but businesses too. It has opened a whole new door to the business world and given them a big opportunity to interact and attract a larger amount of customers. It’s given us a new and faster way of communication by exchanging pictures, stories, news, blogs, online discussions, etc. In exchange businesses have benefited by a long shot just by the click of a button. With the help of the Internet a company no longer is dependent on a particular customer base to survive because now it can reach out to a worldwide audience within seconds. It’s imaginable the countless business attributes of all social media to this day and still is growing. Social media

From Jewel Quest to World of War Craft, gaming has become a nook online. Combing power socials networks such as Facebook, a social network game was developed. Zynga, an American company is the provider of popular social media games today. Zynga was founded in July 2007, and headquartered in San Francisco, California by Mark Pincus. Zynga became one of the world’s fastest growing companies online. Zynga the name originated by the company’s CEO Mark Pincus’ late African bulldog, Zynga. The company uses a bull dog as their logo. Zynga launched its best known game, Farmville on Facebook in August 2009. Farmville reached 10 million daily active users within six weeks of the launch. As of January 2013 Zynga reached over 265 million daily users. Zynga had reached three of the top five games on Facebook which included Farmville, Texas Hold’Em poker and Chef Ville. Advertising on Facebook was fairly low, buying traffic was cheap. Many of Zynga games were played by desktop. Zynga was doing fairly well but soon everything changed and they could not recover back. “We founded Zynga with the simple premise that people could put play back in their lives,” Zynga CEO Mark Pincus said at the start of the event. “We have a lot further to still go to accomplish our mission of connecting the world through games.”(Mark Pincus- CEO of Zynga) Zynga games are available on almost all major platforms which include, Apple IOS, Google Android, Google plus +, Facebook and

Revenue streams are diverse and continue to grow 2012 estimates are $4.51 billion. The company has several major corporate business partners and in 2012 launched its first IPO. which has shown a strong initial stock performance. Facebook is an early adapter of technology and was one of the first social networking sites to optimize its platform for mobile devices. Its technical platform allows for millions of applications, including Zynga.

Also, Zynga’s strength is, in part, tied to the strength of Facebook. Though many people disagree with the immensity of Facebook’s valuation, few would disagree with the fact that it is one of the strongest, fastest growing companies. Farmville, one of Zynga’s staple products, is and has been tied to facebook since its inception. The relationship has proven mutually beneficial for both parties and so Zynga would probably have the chance to feature another game on Facebook. If this happens around the time that Facebook goes public, (if it ever does), then Zynga’s stock should see rapid and significant growth.

Upon research, there are numerous factors that influence the value of Facebook for the better and for the worse. This analysis looks at such factors as the economy, changes in consumer spending, interest rate, inflation, oil price fluctuations, and changing foreign and political situations. Most importantly, when it comes to a social media company such as Facebook, the nature of the foreign and political situation appears to be the most obvious factor influencing its valuation as a company. Repressive regimes such as China, North Korea, and Iran severely restrict access and limit user engagement that adversely impacts financial revenue and reduce shareholder’s equity. Although other factors are less obvious, they also play a strong part in influencing Facebook’s value.