Case study - Business Model analysis

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Case study – Business Model analysis

  1. Can this site/business model be successful in China?

In my opinion, this business model could be successful in China. During the recent years, the web-based services have showed great potential to further development, especially the online gaming business which is doing very well in countries like China and South Korea.

  1. Why?

To analyze the business environment and the competition, I mainly use the SWOT analysis, and then part of Porter’s five forces analysis as a supplement.

SWOT Analysis:

  • Strengths
  • The game industry had surpassed the movie industry and become the No.1 global NDP Group. The East Asia have already become the advanced region in the development of online gaming. After the rapid growth in 2002, China has been promoted to the core market.
  • The favor of games is human’s nature. There is no limitation between sexes and nationalities. Online gaming is regarded as one of the most attractive entertainments suitable for everybody.
  • Compared with e-commerce businesses, the virtual world provided by the game is a relatively low-risk venture, since it doesn’t physically manufacture anything. Therefore it’s more flexible to increase the popular items and reduce the unpopular ones.
  • It’s a more different, interactive medium. Firstly, it delivers advertising to its visitors by offering the brand-name accessories, evaluating the effectiveness of campaigns and planning new ways to aim the next ads. Secondly, it’s a means of doing the market research, the items that sell well in the virtual market may be more likely to do well in the real world.
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  • Weaknesses
  • Each sector in the online gaming value chain does not develop evenly.
  • The user’s privacy may be offended.
  • There might be hostile attack to the operators.
  • There might be harm to the youth, who are used to be addicted in the virtual world. That might affect their physical and psychological health.
  • Opportunities
  • The increasing market size. The number of the web dwellers keeps a high growth rate in China, there’s large space and potential for the business development.
  • The worldwide network is looking for a better profitable pattern. Since the Chinese network market tends to ...

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