Angry Bird Case Ananlysis

Topics: Mobile game, Handheld video game, N-Gage Pages: 5 (1580 words) Published: February 26, 2012
Table of Content
1. Introduction2
2. The general environment for the gaming industry2
3. The Industry Environment3
3.1 Threat of new entrants3
3.2 Power of suppliers3
3.3 Power of buyers3
3.4 Threat of product substitutes3
3.5 Intensity of rivalry among competitors3
4. The value chain3
5. Core competencies of ROVIO4
6. Business level strategy4
7. Future opportunities and risks4
8. Conclusion5
9. References6

Case study: Angry Birds
1. Introduction
In this day and age, with the development of technology and science, mobile phone has been used in multiple ways. With the exception of communication, there are a large number of applications for individuals’ entertainment. The mobile games have been becoming more and more popular in our daily life. There is no question that Angry Birds is one of the most successful mobile games in recent years. In this report, I will analyse the game in details. First, I will introduce the overview of the whole games industry. Following this, I will analyse the business environment, why Angry Birds is so successful, the values which are generated by it, and so on. At the last part, I will do some analysis about the future of Angry Birds which it will suffer from. It includes not only the opportunities but also risks. 2. The general environment for the gaming industry

In recent years, the development of games industry is prosperous. However, the majority of the market share is the mobile gaming industry. The ranges of games are very wide and they can be played on the mobiles easily. Now, people can enjoy high quality mobile games at anytime and anywhere. In 2010, the worth of the mobile entertainment industry is approximately 33 billion US dollars. This is because of the success of the iPhone and a large number of Android system devices (Max, R., 2011). Nowadays, there are a lot of factors which have crucial effects on the major changes in the mobile game industry. For example, all the mobile games can be published to the App Stores easily. As a developed, the cost of developing a mobile game is very low. Whether the mobile games are free or not cannot have effects on the profits of the developers. The developers can earn money from other ways when their games are published. For example, the mobile games can be offered through the use of the advertisings. It is an example of this. The advertising can be seen obviously in the frame (Briley, 2011).

Figure 1: the advertisings are used in the games
In addition, the number of the female players which are increasing has broken the record. The percentage of female mobile gamers is 53 per cent now. 3. The Industry Environment
As there are thousands and tens of thousands of mobile games in the industry, the competition among developers is very fierce. I will analyse this in five forces below, 3.1 Threat of new entrants
The threat of new entrants is high. There are a lot of factors. First, the costs for developers are very low. They can enter this industry easily. On the one hand, low costs mean low risks. On the other hand, many people can access this sector easily. If they have good ideas and some knowledge of programming, a popular mobile game can be developed. Furthermore, the potential profits attract more and more new entrants to share the mobile game market. 3.2 Power of suppliers

The power of suppliers is very low, even zero sometimes. This is because the value chain of the mobile game industry is very simple. The third party is only App Store. The developers can develop the mobile games and sell them via App Store or to customers directly. The process of developing the mobile games is very easy. Everyone can do it at home if he have related knowledge. 3.3 Power of buyers

The power of buyers is very high. Whether a mobile game is successful or not depends on the volume of sales. Thus, customers play a crucial role in the development of the mobile games. It illustrates the values of the...
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