Business Strategy: Marketing Management Answers Assessment Answer
Answer:
Introduction
The study concentrated in the process of developing a proper situation analysis of the selected organization Zynga. SWOT Analysis is one of the most important marketing tools, which is used to scan the factors of both the inner environment as well as the outer environment of the business (Kotler and Armstrong, 2012). Strength and Weakness are the two factors which comprise the internal environment and on the other hand, Opportunities and Threats are the two factors, which comprise the external environment (Kotler and Keller, 2012). The following part of the study will analyze each factor of both the external environment as well as the internal environment of the organization.
Background of the Organization
The selected organization in the study is Zynga. Zynga is an American organization, which is a service provider of social video game services founded in the year 2007, and it’s headquarter is situated in San Francisco, California, United States. The CEO, of the organization is Frank D Gibeau and the organization maintains overall revenue of 764 million USD (Zynga.com, 2016).
Critical Analysis of the Study
Strength
- The organization maintains a strong user base, which is about 289 million, who spend a lot of time in this particular platform.
- Zynga is a company, maintain a strong brand value.
- Zynga is no longer dependent on other social media platforms. It develops its own business operation in the proceedings.
- The organization is known for its fifth largest mobile platform for the daily customers who spend time in mobile.
Weakness
- Based on the latest statistical report, the average usage of the users has gone down to 56 million from 72 million.
- The users are often reluctant to spend money towards online social media games, on a recurring basis, which is one of the most negative impacts for the organization.
- The organization is facing certain persistent loss in the revenue since 2010.
Opportunity
- The company has a huge business opportunity with the view of developing a proper expansion process in other key cities of the country.
- The company holds a strong position in the US gaming market.
- The world is changing at a rapid pace due to technological advancement. Introduction of 3D games provided certain technological opportunities for the selected organization.
- Further expansion on other social platforms will provide an additional opportunity in the organization.
Threats
- The numbers of users in the organization are majority of casual social media players.
- One of the major threats is the organization is facing major threats from the other gaming platforms.
- Due to lack of consistency of the users, the organization faces certain ups and downs in the revenue.
Conclusion
The study analyzed all the major factors, with the view of scanning both the inner as well as the outer environment of the organization. With the application of a proper SWOT Analysis, the management will be able to identify its Strength, Weakness, Opportunities and Treats. All the important factors of both the inner environment as well as the outer environment are analyzed in an effective way.
Reference List
Kotler, P. and Armstrong, G. (2012). Principles of marketing. 1st ed. Boston: Pearson Prentice Hall.
Kotler, P. and Keller, K. (2012). Marketing management. 1st ed. Upper Saddle River, N.J.: Prentice Hall.
Zynga.com. (2016). Online Games & Mobile Games | Free Games by Zynga. [online] Available at: https://www.zynga.com/ [Accessed 15 Nov. 2016].
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