Question

Firm Strategy of Zynga Inc.

Answer 1

The firm Zynga is trying to outsmart the competition in the market when it comes to the product development and bringing a shift in their strategy. The company hired top-level executives of the rival companies to gain a competitive advantage. The mistake of the company was that they were targeting only the development of new content and games. Now they have planned to concentrate more on player engagement and encourage the players to make use of their products. They have a very good player base but the churn rate was increasing and this decreased the revenue for the company. The company has started believing in building strong relationships with the players in order to increase the revenue. The CEO of the company has said that the company will try to create a lucrative segment so that they can flourish in the online gaming industry. They are considering three new pillars as a part of their strategy and they are outsmarting the competition, doubling down on online services, and making the most out of players. In order to develop quality content, the company is investing a lot in the research & development. This can result in new exciting games that can create a new wave in the industry.