Harvard Case - Mobials
"Mobials" Harvard business case study is written by Srinivas Krishnamoorthy, Marit van den Berg, John B. Lightstone. It deals with the challenges in the field of Entrepreneurship. The case study is 5 page(s) long and it was first published on : Oct 30, 2013
At Fern Fort University, we recommend Mobials pursue a strategic growth path focused on international expansion through strategic partnerships and targeted acquisitions, leveraging its strong brand and established technology platform. This approach will enable Mobials to capitalize on the global mobile gaming market?s rapid growth, diversify its revenue streams, and solidify its position as a leading player in the industry.
2. Background
Mobials, a successful mobile gaming startup, has achieved significant success in the US market with its popular game, ?Mobials World.? The company is now facing a critical decision point: how to leverage its success and navigate the evolving landscape of the mobile gaming industry. The main protagonists are the founders, David and Sarah, who are grappling with the challenges of scaling the business, managing growth, and navigating the complexities of international expansion.
3. Analysis of the Case Study
Strategic Framework: We utilize a Porter?s Five Forces framework to analyze the competitive landscape and identify key opportunities for Mobials:
- Threat of New Entrants: The mobile gaming market is highly competitive with low barriers to entry, posing a significant threat.
- Bargaining Power of Buyers: Consumers have a wide range of choices and can easily switch between games, giving them significant bargaining power.
- Bargaining Power of Suppliers: Suppliers, such as app stores and mobile device manufacturers, have moderate bargaining power, but Mobials can leverage its established platform to negotiate favorable terms.
- Threat of Substitutes: The gaming industry offers various alternatives, including console games, PC games, and other mobile entertainment apps, posing a threat to Mobials? market share.
- Competitive Rivalry: The mobile gaming market is characterized by intense competition, with established players like Zynga and King, as well as emerging startups vying for market share.
Financial Analysis: Mobials? strong financial performance in the US market provides a solid foundation for expansion. However, the company needs to carefully consider the financial implications of international expansion, including the cost of localization, marketing, and potential acquisitions.
Marketing Analysis: Mobials has successfully built a strong brand in the US market. However, the company needs to adapt its marketing strategy for international markets, considering cultural nuances, language barriers, and local preferences.
Operational Analysis: Mobials? current operational model is efficient for the US market. However, the company needs to adapt its operations for international expansion, including establishing local teams, partnering with local distributors, and ensuring efficient logistics and customer support.
4. Recommendations
- International Expansion: Mobials should prioritize expansion into key emerging markets with high mobile penetration and a growing gaming market, such as India, China, and Brazil.
- Strategic Partnerships: Mobials should forge strategic partnerships with local gaming companies, mobile operators, and distributors to leverage their market knowledge, distribution channels, and marketing expertise.
- Targeted Acquisitions: Mobials should consider acquiring promising gaming studios in target markets to gain access to local talent, intellectual property, and established user bases.
- Localization and Adaptation: Mobials should adapt its games and marketing materials to cater to local preferences, languages, and cultural nuances.
- Building Local Teams: Mobials should invest in building local teams with expertise in marketing, customer support, and game development to ensure effective operations and customer engagement.
5. Basis of Recommendations
- Core Competencies and Consistency with Mission: International expansion aligns with Mobials? mission of creating engaging mobile gaming experiences for a global audience, leveraging its core competencies in game development, technology, and marketing.
- External Customers and Internal Clients: Expanding into new markets will provide Mobials with access to a larger customer base, while also creating opportunities for internal growth and career development for its employees.
- Competitors: By expanding internationally, Mobials can gain a competitive advantage by establishing a presence in emerging markets before its competitors.
- Attractiveness: The global mobile gaming market is expected to grow significantly in the coming years, offering attractive growth opportunities for Mobials.
- Assumptions: We assume that Mobials can successfully adapt its games and marketing materials to local markets and build strong partnerships with local companies.
6. Conclusion
Mobials has a significant opportunity to capitalize on the global mobile gaming market?s growth by pursuing a strategic international expansion strategy. By leveraging its strong brand, established technology platform, and strategic partnerships, Mobials can solidify its position as a leading player in the industry.
7. Discussion
Alternatives:
- Organic Growth: Mobials could focus on organic growth in the US market by developing new games and expanding its existing user base. However, this approach might be slower and less impactful than international expansion.
- Focus on a Single Market: Mobials could focus on expanding into a single market, such as China or India. However, this approach might limit its growth potential and expose it to greater risks.
Risks:
- Cultural Differences: Mobials needs to be mindful of cultural differences and adapt its games and marketing materials accordingly.
- Competition: The mobile gaming market is highly competitive, and Mobials needs to be prepared to compete with established players and emerging startups.
- Financial Risks: International expansion requires significant investment, and Mobials needs to carefully manage its financial resources.
Key Assumptions:
- Mobials can successfully adapt its games and marketing materials to local markets.
- Mobials can forge strong partnerships with local companies.
- The global mobile gaming market will continue to grow significantly.
8. Next Steps
- Market Research: Conduct thorough market research to identify key target markets and assess their potential.
- Partnership Development: Identify potential partners in target markets and initiate discussions for strategic collaborations.
- Acquisition Evaluation: Identify potential acquisition targets in target markets and conduct due diligence.
- Localization and Adaptation: Develop a plan for localizing games and marketing materials for each target market.
- Team Building: Recruit and build local teams with expertise in marketing, customer support, and game development.
By taking these steps, Mobials can successfully navigate the complexities of international expansion and achieve sustainable growth in the global mobile gaming market.
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Case Description
Two business-school grads are the co-founders of a technology startup that provides a mobile-based solution for automotive reviews. The case focuses on customer validation and on fitting a demand model to the aggregate sales data from the test versions of their product.
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