Zynga

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ECOM6030 - WEB 2.0 STRATEGY AND INNOVATION
ECOM6030

CASE ANALYSIS OF ZYNGA HBS CASE

BY
LUK KA LAI
UID: 2012853746
FACULTY OF ENGINEERING OF THE UNIVERSITY OF HONG KONG
FACULTY
NOVEMBER 2012

Zynga is the world's fastest growing social game company, it brings online games with social platforms. According to Zynga reports of 2nd Quarter 2012 financial results
(http://investor.zynga.com/releasedetail.cfm?ReleaseID=695419), it has a DAU of
72million and MAU of 306 million. With the vast amount of active players, Zynga offers incentive opportunity for marketers.
As a case study, this paper gives a detailed analysis on Zynga's business model, its success key factors, competitive advantages as well as key challenges. Zynga
…show more content…
http://downloadsquad.switched.com/2010/05/24/farmville-ice-cream-zyngasvirtual-objects-enter-real-world-7/

Another example is Zynga associated with Fritro Lay to launch a so-called “Snack and Play” promotion scheme in 2012 March where players receive free exclusive virtual items needed for the game with purchasing specific Fritro snacks. This is a remarkable way to get brands work together , to bridge virtual and physical world.

http://www.examiner.com/article/zynga-and-frito-lay-want-you-to-snack-andplay
4. Application install of ads company
Application install is determined as biggest revenue generating for gaming 2.0. Zynga offered players rewards for installing applications, in which giving 10 times of marketing impression than transitional search engine marketing . Zynga charges 50% of each app installed. To conclude , there are 4 ways of how Zynga make money. Below the chart is giving an overview and estimation of Zynga's revenue
Source: NeXtUp Research

Key success factors of Zynga:
As a world leading provider of social game service, Zynga is providing more across the globe. Zynga's aim to connect the world through its games. This section will detail the 7 factors that directed Zynga to today's most popular gaming 2.0 company in the planet.
Gaming 2.0 is more than just a typical digital game, but a combination of
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