Harvard Case - Tower of Saviors or Toilet of Plagiarists? The Tale of a Mobile Game
"Tower of Saviors or Toilet of Plagiarists? The Tale of a Mobile Game" Harvard business case study is written by Yanfeng Zheng, Chris Corbishley. It deals with the challenges in the field of Strategy. The case study is 24 page(s) long and it was first published on : Jan 26, 2015
At Fern Fort University, we recommend a multi-pronged strategy for "Tower of Saviors" to regain its lost market share and secure a sustainable future. This strategy focuses on leveraging existing strengths, addressing weaknesses, and capitalizing on emerging opportunities in the mobile gaming market. We propose a combination of business model innovation, strategic partnerships, aggressive marketing, and product development to revitalize the game and establish a strong competitive advantage.
2. Background
The case study revolves around 'Tower of Saviors' (TOS), a popular mobile game developed by Mad Head Limited in Hong Kong. TOS experienced phenomenal success in its early years, particularly in the Asian market, but faced declining user engagement and revenue due to stiff competition and criticism of its gameplay mechanics. The case study highlights the challenges faced by Mad Head Limited in navigating the dynamic mobile gaming landscape and the need for a strategic response to regain market share and ensure long-term growth.
The main protagonists are the management team at Mad Head Limited, tasked with charting a course for TOS's future amidst a rapidly evolving industry.
3. Analysis of the Case Study
To analyze the situation, we utilize a combination of frameworks:
1. SWOT Analysis:
- Strengths: Strong brand recognition in Asia, established user base, existing infrastructure for game development and operations, experienced team with a proven track record.
- Weaknesses: Dependence on a single game, limited global reach, declining user engagement, negative perception due to plagiarism accusations, lack of innovation in gameplay mechanics.
- Opportunities: Growing mobile gaming market, potential for expansion into new markets, emergence of new technologies like AI and AR, increasing demand for social and competitive gaming experiences.
- Threats: Intense competition from established players, evolving user preferences, potential for regulatory changes, piracy and counterfeiting.
2. Porter's Five Forces:
- Competitive Rivalry: High due to the presence of numerous established players and new entrants with innovative games.
- Bargaining Power of Buyers: Moderate, as players have a wide range of choices and can easily switch games.
- Bargaining Power of Suppliers: Low, as the market for game development tools and services is highly competitive.
- Threat of New Entrants: High, due to the low barriers to entry and the availability of game development platforms.
- Threat of Substitutes: High, as players can easily switch to other forms of entertainment, including social media, streaming services, and other mobile games.
3. Value Chain Analysis:
- Primary Activities: Game development, content creation, marketing and promotion, player support, monetization.
- Support Activities: Research and development, IT infrastructure, human resources, finance.
4. Business Model Canvas:
- Value Propositions: Engaging gameplay, social interaction, collectible characters, competitive elements.
- Customer Segments: Casual gamers, hardcore gamers, collectors, social gamers.
- Channels: App stores, social media, online advertising, partnerships.
- Customer Relationships: In-game events, community forums, social media engagement.
- Revenue Streams: In-app purchases, advertising, subscription models.
- Key Resources: Game development team, intellectual property, IT infrastructure, marketing resources.
- Key Activities: Game development, content creation, marketing, player support.
- Key Partnerships: Game developers, marketing agencies, social media platforms.
- Cost Structure: Development costs, marketing expenses, server maintenance, employee salaries.
4. Recommendations
1. Business Model Innovation:
- Diversification: Develop new mobile games with unique gameplay mechanics and target different demographics.
- Subscription Model: Introduce a subscription model offering exclusive content, features, and rewards to incentivize player retention.
- Strategic Partnerships: Collaborate with other game developers, publishers, and influencers to expand reach and cross-promote games.
- E-sports Integration: Develop a competitive e-sports scene for TOS, attracting a more dedicated and engaged player base.
2. Aggressive Marketing:
- Global Expansion: Target new markets, particularly in regions with high mobile game adoption rates, through localized marketing campaigns.
- Social Media Marketing: Leverage social media platforms to build a strong community, engage with players, and promote new content.
- Influencer Marketing: Partner with popular gaming influencers to generate awareness and drive user acquisition.
- Content Marketing: Create engaging video content, tutorials, and behind-the-scenes glimpses to attract new players and retain existing ones.
3. Product Development:
- Gameplay Innovation: Introduce new gameplay mechanics, features, and modes to address player feedback and keep the game fresh.
- Enhanced Social Features: Develop more robust social features, allowing players to interact, compete, and collaborate with friends.
- AI Integration: Implement AI-powered features, such as personalized recommendations, adaptive difficulty levels, and automated content creation.
- AR/VR Integration: Explore the potential of augmented and virtual reality to enhance the gaming experience and create new revenue streams.
4. Corporate Social Responsibility:
- Transparency and Accountability: Be transparent about game development practices and address plagiarism concerns head-on.
- Community Engagement: Foster a positive and inclusive community through active engagement and support.
- Environmental Sustainability: Implement sustainable practices in game development and operations.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of the company's strengths, weaknesses, opportunities, and threats. They are aligned with the company's mission to create engaging and innovative mobile gaming experiences. The recommendations are also designed to address key concerns such as declining user engagement, negative perception, and limited global reach.
The recommendations are supported by quantitative measures such as market research data, industry trends, and competitor analysis. They are based on the assumption that the mobile gaming market will continue to grow, and that players are seeking innovative and engaging gaming experiences.
6. Conclusion
Mad Head Limited has a unique opportunity to revitalize 'Tower of Saviors' and secure its future in the competitive mobile gaming market. By embracing business model innovation, aggressive marketing, product development, and a commitment to corporate social responsibility, the company can regain lost market share, attract new players, and establish a sustainable competitive advantage.
7. Discussion
Alternative options include focusing solely on cost leadership, attempting to acquire other game studios, or simply shutting down the game. However, these options present significant risks and are not as likely to achieve long-term success.
The key assumptions underlying the recommendations include the continued growth of the mobile gaming market, the willingness of players to embrace new gaming experiences, and the company's ability to execute the strategic plan effectively.
8. Next Steps
The implementation of the recommended strategy should be phased and iterative, with a focus on continuous improvement and adaptation. Key milestones include:
- Phase 1 (Short-Term): Introduce a new game mode, implement a subscription model, and launch a global marketing campaign.
- Phase 2 (Mid-Term): Develop a new mobile game, expand into new markets, and integrate AI and AR features.
- Phase 3 (Long-Term): Establish a strong e-sports presence, build a diverse game portfolio, and become a leading innovator in the mobile gaming industry.
By taking these steps, Mad Head Limited can transform 'Tower of Saviors' from a struggling game into a thriving success story.
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Case Description
The case illustrates how Mad Head Limited ("Mad Head"), the developer of a smash hit mobile game, Tower of Saviors ("TOS"), became financially successful by imitating another well-known product on the market. The story presents background on the founders and the company from its inception as an e-cards business to the release of TOS. The case is intended to stimulate debates on topics such as imitation vs. innovation, viable business models for start-ups and the ethical concerns associated with an imitative approach. If time permits, the instructor can also guide discussion to more in-depth topics such as the distinction between Schumpeter's and Kirzner's views on entrepreneurship and their economic implications.
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