International Strategy Presented by Claudia Hosky Tim Lynch - - PowerPoint PPT Presentation
International Strategy Presented by Claudia Hosky Tim Lynch Stanley Martin Jr Hieu Nguyen Rovio: History & Situation Founded in 2003 by Niklas Hed, Jarno Vkevinen, & Kim Dikert Mobile game development studio Focused
Presented by Claudia Hosky Tim Lynch Stanley Martin Jr Hieu Nguyen
International Strategy
Rovio: History & Situation
Founded in 2003 by Niklas Hed, Jarno
Väkeväinen, & Kim Dikert
Mobile game development studio Focused on 2D games, first-person shooters,
and creepy/nightmare scenario, many won awards
Wanted to make an exclusive product:
Angry Birds
Accel Partners, Atomico and Felicis Ventures
contributed $42 million in venture capital funds
Rovio: History & Situation
2010 - Angry Birds released for iPhone 2010 – opened American office in Palo Alto, CA
Focus: port games to other platforms
2010 – Angry Birds for Android & Palm Pre 2011 – moved to new office in Espoo, Finland 2011 – opened corporate offices and marketing
in China
2012 – opened new satellite office in Stockholm,
Sweden
Focus: game development & Finland market
development
Department Heads
Angry Birds
Continuing worldwide chart
success
Billionth download in 2012 Valued at $6 billion - $9 billion Angry Birds games include: Angry Birds Angry Birds Seasons Angry Birds Rio Angry Birds Space
Rovio: History & Situation
Innovative Promotions Wal-Mart:
merchandise opens levels
T-Mobile:
Seattle Space Needle
China: Theme parks
Criteria to Assess International Strategy
1.
Operational
2.
Strategic
3.
Financial
4.
Organizational
5.
Growth
6.
Capability Development
7.
Client Satisfaction
Game engineers & testers work for low budget Savings allow them to reinvest into new games like Amazing
Alex
“Simple” game style allows easy transfer across platforms,
including standard computers
9 month turnaround time Virtual product – customer can purchase & play online No concern about
inventory
No economy of scale – trouble with distribution & marketing iPhone allowed them to release games without large distributor
iOS became primary concentration for development
Strategic goal: To have a game that could be comprehended &
played within 1 minute
Fast upload, minimal “training”
Instituted 1-3 star score to cater to
casual and “hardcore” gamers
Short game sessions, constant
rewards
Chillingo pushed Apple to place Angry Birds as Game of the Week
which catapulted it from #600 to #1 downloaded app
Pursued merchandizing opportunities Expanded their roster from 28 to 224 employees Acquired Futuremark Game Studio Decided to push into Disney 2.0 market Hired former chairman/CEO of
Marvel Entertainment, David Maisel
Acquired Kombo Animation Studio
to expand to cartoon animation
2011 earnings of $106.3 million 2011 revenue of $67.5 million
Rovio offers paid and free
versions of Angry Birds
Paid = $0.99 Free = advertising revenue
Ad revenue is over $1 million/month
30% of profits
Profit Margin
Family owned business with a vision Kaj Hed, Mikael Hed, Niklas Hed Kaj Hed invested 1 million euros into Rovio & still stands as the
majority owner of the company
Mikael is the CEO and Niklas is COO Structure is very flat and highly networked for communication Embrace and celebrate employees at all levels of the firm
Will likely increase recruitment and retention
Expansion is based off of market saturation
Should they go public? In what country?
Finland hopes gaming industry will be a
mainstay of the Finnish economy
Work for hire while developing Angry Birds in spare time Fail to capture US & UK Markets
Targeted smaller European markets Gain Brand recognition Work with Chillingo in US & UK markets
Ported to multi platforms
Android model – advertising
Disney 2.0 30% total revenue from consumer products,
merchandises and license
Expanding toward:
Animation industry Main stream high end game industry
Increased employees from 28 to 224
Same size as Valve Software
Acquired Futuremark Game Studio
3DMark Vintage Engine
Acquired Kombo Animation Studio Hired David Maisel, former chairman of Marvel Studios
Angry Birds was an overnight hit,
moving from #600 to #1 on iOS devices
Customer strategy was strong – answered every single
tweet & e-mail
Strategy to make a simple game worked… and didn’t
Customers beat the game quickly, and wanted more
Rovio couldn’t keep up with demand
Other devices, new levels, more challenges… Inability to keep up with demand and correspondence almost
killed the company – except for one thing, everyone wanted MORE
Accidental shortage could have warranted higher pricing, but didn’t
Angry Birds Space hit 50 million downloads in 35 days
1 billion Angry Birds downloaded At 500 million downloaded #1 in 79 countries 200,000 year played total 300 million minutes played daily 2011, Property of the Year 2012, Overall Best Licensed
Program of the Year
2012, Best Character/Toy
Brand Program of the Year
1 billion Angry Birds downloaded At 500 million downloaded #1 in 79 countries 200,000 year played total 300 million minutes played daily 2011, Property of the Year 2012, Overall Best Licensed
Program of the Year
2012, Best Character/Toy
Brand Program of the Year
Presented by Claudia Hosky, Tim Lynch, Stanley Martin Jr, and Hieu Nguyen
Focus: Angry Birds Animators for short videos Future film in the works “Flipping the bird” in next game Angry Birds Theme Parks:
Finland China (20) United States (many!)
Focus: CHINA Development team from 11 to 100
employees
Released video in tandem with
Olympics & new Chinese game
Research center for Chinese
market
Revenue growth expected: 300% Chinese products expected to go
from 10% to 30% of revenue
Sources
Chen B. (February 8, 2011). Android in-app payments begin with Angry Birds. Wired Magazine UK. Conde Nast Digital 2012. <http://www.wired.co.uk/news/archive/2011-02/08/angry-birds-android-