Angry Bird Case Ananlysis Essay

1579 Words Feb 20th, 2012 7 Pages
Table of Content 1. Introduction 2 2. The general environment for the gaming industry 2 3. The Industry Environment 3 3.1 Threat of new entrants 3 3.2 Power of suppliers 3 3.3 Power of buyers 3 3.4 Threat of product substitutes 3 3.5 Intensity of rivalry among competitors 3 4. The value chain 3 5. Core competencies of ROVIO 4 6. Business level strategy 4 7. Future opportunities and risks 4 8. Conclusion 5 9. References 6

Case study: Angry Birds
1. Introduction
In this day and age, with the development of technology and science, mobile phone has been used in multiple ways. With the exception of communication, there are a large number of applications for individuals’ entertainment. The mobile games have been
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3.4 Threat of product substitutes
The threat of product substitutes is very high as well. As mentioned above, there are thousands and tens thousands of mobiles games providing for customers. There are also other games attracting customers. It is unavoidable that the competition among developers. Moreover, many developers copied the idea of Angry Birds and developed many similar mobile games like Angry Birds. If Angry Birds cannot develop new ideas in the future, it will be replaced by its rivals fast and easily.
3.5 Intensity of rivalry among competitors
It is no doubt that the intensity of rivalry among competitors is very high because the mobile game industry can be accessed easily and the process of developing mobile games is very easy and low risk. Moreover, the ideas of the mobile games can be imitated by other developers. Therefore, the competition among competitors is very fierce.
4. The value chain
The most common value chain of the mobile game industry is in the figure 2 below (Behrmann, M., 2011).

Distributors
Customers
Developer

Figure 2: the most common value chain of the mobile game industry
The value chain of Angry Birds is the same as most mobile games. As stated previously, the costs of the development of mobile games are very low. Hence, a lot of mobile games can be self-funded by private investors or development studios. In addition, the value chain of Angry Birds is very short. Developers can earn the majority of

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