Digital Chocolate

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Contents
Trip Hawkins Background1
Core Values2
Strategy of Digital Chocolate2
Vast Network2
Why acquire Sumea?2
Why acquire Small Device?2
Why acquire Spanish team?3
Effective Communication3
Limitations3
Competitors & Market Revenues3
Target Market4
Mode of Penetration5
Distribution through Carriers5
Disadvantages5
Distribution through Consumer Marketplaces5
Advantages5
Alternative Approach6
Teamwork6
Proposed Solutions6
Solution#1:Buy a Start-up6
Solution#2:Specify the Offices6
Solution#3:Form Tracks of Social Gaming Teams7
Recommended Solution7
Implementing Recommended Solution7

Digital Chocolate

Digital Chocolate was founded by Trip Hawkins also known as Gaming Legend in 2003 in order to develop differentiated games for mobile devices. Headquarter of Digital Chocolate was situated in San Mateo, California. As the CEO of this organization, Hawkins drives this company to increase creativity and innovation in order to maximize the revenues and profits. To meet his goal of maximization of profits, Hawkins established four different wings of this company in four different locations i.e. California, Finland, India and Spain. Three of them have been acquired by Digital Chocolate to enhance their products to have an edge on competitors’ product. As the trend is changing so do peoples mind, it has become necessary for Digital Chocolate to cope up with this advancement by introducing new interactive social games to claim its right on gaming market. Change has already started in mobile industry particularly after the launch of Apple’s iPhone in market and now it has become necessary for Digital Chocolate to adapt quickly to these changes and start catering this new segment. In order to focus on this new market, Digital Chocolate has to redirect its resources towards iPhone games and to do that they have experienced personals at their disposal. Trip Hawkins Background

From early childhood Trip Hawkins started developing board games. Hawkins went to business school at Stanford, after that he joined Apple in 1978 as one of the first members of the marketing staff. Later, he started his own company known as Electronic Arts (EA) in 1982. He served as the CEO of EA till 1991 during which the company sold over 600 unique titles by earning nearly a revenue of $200 million. At the time he left to start 3DO, a new venture in which company would design devices with video and audio features along with gaming functionality. But due to its high prices, Hawkins shut down 3DO but did not deviate from his path. In early 2000s Hawkins realized that in coming years people in the world would be carrying mobile phones, so why not start developing games for that market. He believed that there would be tremendous opportunities in this sector and in 2003 Hawking founded Digital Chocolate just to focus on this new market. After the completion of his business plan, Hawkins immediately raised funds from top Silicon Valley venture capital firms. And in 2006 Digital Chocolate raised around $34.8 million just in three rounds of funding. In 2006 the company became profitable.

Core Values
Hawkins believed in E-I-E-I-O i.e. Energy, Innovation, Excellence, Integrity and Ownership. These are the qualities which Hawkins suggested that are the main factors behind any organizations success. Furthermore cultural fit enables us to retain only those people who share organizations value. While letting go of any valuable person if they don’t fit in their team. Strategy of Digital Chocolate

As the CEO of Digital Chocolate, Hawkins has set the direction of the organization towards developing new interactive social games. For this purpose he has completely worked on the vision of Digital Chocolate i.e. “to be on top every game developer”. To achieve his goals Hawkins has made a strategy which differentiates Digital Chocolate among his competitors. Vast Network

Without deviating...
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