Neopets Case Analysis

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1.What are the different ways in which Neopets industry can be defined? Do the different definitions lead strategic decision makers to adopt different perspectives/choices? How so? Explain. (10 points)

When considering its industry, Neopets is a very unique company. This is because the vision of Neopets executives, especially Doug Dohring, is so broad. First, Neopets could be defined as an online gaming website. This is due to the numerous mini-games that the website offers. Next, is a large submarket of online gaming, the MMORPG, or massive multiplayer online role-playing game. In this submarket users obtain a character, which they are free to customize. Additionally, this character is something they can come back to, and continue in later sessions. You can see this definition in the virtual pet feature. Another definition is an online information source. Due to the “real world” content, users are able to utilize the website for more than fun. The last definition is an online community. With the websites message board, newsletter, and ability to create websites for your virtual pet, users are able to participate in an online community in which they can interact with other Neopets users.

Of course all of these definitions would lead to different strategic choices and decisions. For example, an online gaming website would focus more on constantly developing new games. While a MMORPG site may focus on one game, and develop many different ways to further your character. Still, an information website would be different by focusing on different types on content that users would be interested in, focusing much more on real world information. Last would be the online community; for this definition the website would focus on the interaction between users. Adding more features to connect similar users and encouraging more avenues to express opinions.

2.Based on the information provided in the case, what do you think is the bargaining power of buyers and...
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