Zynga Case Analysis Study Example | Topics and Well Written Essays - 2500 words

Zynga Analysis - Case Study Example This paper is divided into different sections, which present analyze aspects of Zynga identified in the article. Zynga, founded in 2007, competes against Electronic Arts, a giant in the gaming industry. Zynga struggles to establish itself in the industry despite different challenges. Zynga is in a relationship with Facebook, yet the relationship is a major source of most of Zynga’s problems. To solve this, Zynga needs to break away from Facebook and use its website as its major platform. It is also important for Zynga to develop ways of maintaining its existing customers and attracting new users. This analysis provides insights into the status of Zynga, and ways through which it can improve, as this is a promising company, which contributes to the economy. 2. Introduction Zynga, based in San Francisco, USA, is currently among the leading providers of social games, which are browser-based. Zynga has approximately 270m monthly users, and in 2011, Zynga was valued at $7 billion. Since social networks are popular among people, game developers use them as platforms for their games. Social networks are capable of ensuring interactivity of gamers in different areas. Additionally, a larger part of the population engages in social networking each day. For this reason, Zynga, and its competitors seek to expand their businesses. However, to be successful, Zynga needs to improve its strategy and business model. 3. Target Customers The primary target customers of Zynga include the hardcore gamers, while the secondary target customers include individuals with less exposure to computer games. In addition, Zynga, unlike other gaming companies, targets women gamers. While other companies are reluctant to target females, citing their disinterest in gaming, Zynga has designed its games in a way that will attract female gamers. Research shows that females in the West have an equal access to the internet as men, and spend more time online, compared to males (MacMillan 2012). Nonetheless, Zynga has not managed to bring all its target customers into its customer base. 4. SWOT Analysis This case analysis employs a SWOT analysis on the case of Zynga. This way, the challenges and potential of Zynga will be identified, and these will help to develop possible strategies for improving operations of Zynga. In addition, it is important to analyze the environment in which the company operates, and identify the major problems of the company, and possible solutions. a) Strengths Zynga develops highly addictive games, and this has helped the company to attract many gamers. The gamers easily get obsessed with the games, and spend more time playing the games, thus paying up more and adding to the profitability of Zynga. Zynga develops games that promote interactivity. People in different geographical locations can interact through the games. Therefore, when more people pay to compete in a game at a time, Zynga obtains more revenue. Therefore, this is a major strength, as it brings many people together to play a game, thus more profits for the company. Furthermore, the strong relationship with Facebook is a major strength. Zynga uses Facebook as its main platform, where gamers can access its games. Since Facebook is the most popular social network with the largest number of users, maintaining a relationship with