Team Assignment
Case Analysis, How to conduct a Case Analysis
Case Analysis Key PPTs
4. Team Case Analysis Best Practices
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This is a TurnItIn proctored TEAM Learning Assignment and is worth 100 points
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Module 2 , Textbook 1, Team Case Analysis Reports and Presentations:
Case 4 : ZYNGA: IS THE GAME OVER?
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Due Date:
Sunday, September 06, 2020 at 11:55 PM
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Dear International Strategic Management Executives:
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Please read from our Textbook 1, the following Strategic Management case assigned for this Learning Module and please analyze and answer the following questions:
Part I
* What’s this Strategic Management Business Case about?
* Which are the three most Critical Issues of this Strategic Management Business Case?
Please explain why? and analyze, and discuss in great detail …
* Which are the three most relevant Lessons Learned of this Strategic Management Business Case?
Please explain why? and analyze, and discuss in great detail …
* Which are the three most relevant Best Practices of this Strategic Management Business Case?
Please explain why? and analyze, and discuss in great detail …
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In addition, please double make sure to address ALL of the following Strategic Management Business Case sections in your Learning Team Case Analysis Report and Presentation:
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Part II
* Industry Analysis (PESTEL Analysis and Porter 5 Forces)
At LEAST 3 to 5 Bullet Points for EACH Force
Please explain why? and analyze, and discuss in great detail EACH Bullet Point …
* Business SWOT Analysis
At LEAST 3 to 5 Bullet Points for EACH SWOT Analysis Section …
Please explain why? and analyze, and discuss in great detail EACH Bullet Point …
* Detailed Financial Analysis
* Identification of Key Problems, Critical, and Strategic Issues
SAME as PART I
* Key Problems, Critical, and Strategic Issues Analysis
Please explain, analyze, and discuss in great detail EACH Key Problems, Critical, and Strategic Issues
* Identification of Alternatives for EACH Key Problem, Critical, and Strategic Issues
At LEAST 3 Bullet Points Alternatives for EACH Key Problem, Critical, and Strategic Issues
Please explain, analyze, and discuss in great detail EACH …
* Evaluation of Alternatives for EACH Key Problem, Critical, and Strategic Issues
Please explain, analyze, and discuss in great detail EACH …
* Recommended Course of Action
At LEAST 3 Recommended Course of Actions
At LEAST 3 Bullet Points for EACH Recommended Course of Action
Please explain, analyze, and discuss in great detail EACH …
* Implementation and Execution Plan for EACH Recommended Course of Action
At LEAST 3 Bullet Points for EACH Recommended Course of Action
Please explain, analyze, and discuss in great detail EACH …
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and the discussion questions, if any, asked in this Strategic Management Business Case.
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Finally, please answer ALL these Questions and Sections of this Strategic Management Business Case with great detail
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STEP BY STEP being extremely methodical and accurate in your answers. It is extremely important that for each Question and Section, you write the entire question and you LABEL and/or PLACE the appropriate headings and subheadings clearly for EACH part of the question and/or section.
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Please address, analyze, and discuss in great detail and thoroughly support and explain the what’s, how’s, and why’s of each of your answers.
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I expect high caliber Learning Teams Case Analysis Reports and Presentations with top analyses and interesting insights!! If you have any questions, please let me know.
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Jose Rocha
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Learning Assignment Guidelines
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Case Analysis
Executive Summary
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This case analysis executive summary should be a 1 to 2 pages typed professional written executive summary in Word and PDF format with:
– Line Space: 1.5 max
– Font: Times Roman or Calibri of 12 point maximum
– Margins: left, right, top, bottom margins of .8 inches maximum
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:
This document should be a typed professional written report in Word and PDF format with:
– Line Space: 1.5 max
– Font: Times Roman or Calibri of 12 point maximum
– Margins: left, right, top, bottom margins of .8 inches maximum
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** No Word and PDF format documents: No grading.
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PowerPoint Presentations:
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5 slides summarizing your Case Analysis with
5 bullet points with one line (maximum two lines) per each slide in PPT and PDF format
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At the end, your Learning Team Case Analysis PowerPoint Presentation will have 25 bullet points in total (5 slides with 5 bullet points each slide).
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** No PPT and PDF format documents: No grading.
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** Learning Team Case Analysis Written Reports which do not follow ALL these Learning Assignment
Guidelines described in previous paragraphs will not be graded.
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Checklist of Documents to hand in Case Analysis Dropbox:
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Each Learning Team Captain must submit IN JUST ONE Document
(Word and PDF formats):
- Team, Certification of Authorship Assignment Cover Page
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- Case Analysis Executive Summary
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Case Analysis Written Report
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AND
- Case Analysis PowerPoint Presentation (PPT and PDF formats)
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This WORD document must have in JUST ONE word file the following sections:
· Team, Certification of Authorship Assignment Cover Page
· Case Analysis Executive Summary according to the Learning Assignment Guidelines required for this Learning Assignment.
· Case Analysis Written Report according to the Learning Assignment Guidelines required for this Learning Assignment.
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** Please use the Word document Template for this Learning Assignment:
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Template, Case Analysis Document
located at our Canvas Learning Management System section:
Course Content: 2.1 Class Learning Assignments Templates.
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*** Case Analysis WORD documents with:
TurnItIn Originality Score Index in
o Orange (50-74% similarity index) and/or Red (75-100% similarity index)
will NOT be graded and will be reviewed and assess for potential
Academic Dishonesty misconduct … ***
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Grading Rubric
This learning assignment will be graded according to the following grading rubrics :
· “Grading Rubric for Case Analysis Written Reports”
3.1 Grading Rubric for Case Analysis
3.2 Grading Rubric for Case Analysis Written Report, v. 3.0
and
· “Grading Rubric for Writing and APA Style use”
APA Style Rubric
located at our Canvas Learning Management System section:
Course Content: 2. Class Learning Assignments Guidelines, Grading Rubrics, and Peer Evaluation Forms
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Some Learning Tips for this Learning Assignment
Please take a moment to read and get familiarized with the following learning concepts:
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Executive Summary
What is an Executive Summary? How to develop an Executive Summary?
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According to the Writing@CSU | The Writing Studio at
https://writing.colostate.edu/guides/guide.cfm?guideid=76 (Links to an external site.)
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An Executive summary is:
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“Executive Summaries
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Executive Summaries are much like any other summary in that their main goal is to provide a condensed version of the content of a longer report.
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The executive summary is usually no longer than 10% of the original document. It can be anywhere from 1-10 pages long, depending on the report’s length. Executive summaries are written literally for an executive who most likely DOES NOT have the time to read the original [document].
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Executive summaries make a recommendation. Accuracy is essential because decisions will be made based on your summary by people who have not read the original.
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Executive summaries frequently summarize more than one document”
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Processes for Writing an Executive Summary
https://writing.colostate.edu/guides/page.cfm?pageid=1508&guideid=76 (Links to an external site.)
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In addition, please find the following Good and poor examples of executive summaries at
http://unilearning.uow.edu.au/report/4bi1.html (Links to an external site.)
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Finally, please find a more comprehensive definition and know how about Executive Summaries at the:
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University Writing Center at Texas A&M
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http://writingcenter.tamu.edu/Students/Writing-Speaking-Guides/Alphabetical-List-of-Guides/Professional-Writing/Executive-Summaries (Links to an external site.)
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Lessons Learned vs Best Practices
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Tips for Turning Lessons Learned into Best Practices:
http://www.projectsmart.co.uk/tips-for-turning-lessons-learned-into-best-practices. (Links to an external site.)
php
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Using APA Style and Tips in Writing
You can find several readings and support material for your writing learning assignments and APA Style use at our Canvas Learning Management System section:
Course Content: 1.2 Using APA Style and Tips in Writing
des13959_case04_013-018.indd 13 01/02/18 01:29 PM
CASE 4 :: ZYNGA: IS THE GAME OVER? C13
In 2017, Zynga not only struggled to remain relevant in the
gaming industry but fought to seem attractive to investors.
During the previous four years, the company had a new CEO
almost every year. In 2013, the founder Mark Pincus stepped
down and handed the charge to Don Mattrick, a 15-year
employee of Electronic Arts expecting to turn the company
around. In April 2015, Don Mattrick left the position, and
Pincus returned as CEO for the second time. Just a year later
in March 2016, Zynga announced the replacement of Pincus
by the new CEO Frank Gibeau, another 20-year employee of
Electronic Arts, again expecting to turn around the company.
Zynga’s lack of consistent leadership has been critical
to not formulating an effective turnaround strategy that
might have led to progress. Throughout the revolving door
of CEO replacements, Zynga has not developed a substan-
tially successful new game. Consequently, its revenues have
been falling over the past years accompanied by consistent
net losses. Though Zynga’s revenue rose by $53 million by
the end of 2015, it still posted a net loss of $121 million
for the year (see Exhibits 1 and 2). The primary reason for
the increase in 2015 revenue was a surge in the number of
CASES
CASE 4
ZYNGA: IS THE GAME OVER?*
* This case was developed by graduate students Eric S. Engelson, Dev Das,
Saad Nazir, and Professor Alan B. Eisner, Pace University. Material has been
drawn from published sources to be used for class discussion. Copyright © 2017
Alan B. Eisner.
EXHIBIT 1 Zynga Consolidated Income Statements ($ thousands, except per-share, user, and ABPU data)
Year Ended December 31:
2016 2015 2014
Revenue:
Online game $ 547,291 $ 590,755 $ 537,619
Advertising and other 194,129 173,962 152,791
Total revenue 741,420 764,717 690,4
10
Costs and expenses:
Cost of revenue 238,546 235,985 213,570
Research and development 320,300 361,931 396,553
Sales and marketing 183,637 169,573 157,364
General and administrative 92,509 143,284 167,664
Impairment of intangible assets 20,677 – –
Total costs and expenses 855,669 910,773 935,151
Income (loss) from operations (114,249) (146,056) (244,741)
Interest income 3,057 2,568 3,266
Other income (expense), net 6,461 13,306 8,248
Income (loss) before income taxes (104,731) (130,182) (233,227)
Provision for (benefit from) income taxes 3,442 (8,672) (7,327)
Net income (loss) $(108,173) $(121,510) $(225,900)
Net income (loss) per share attributable to common stockholders
Basic $ (0.12) $ (0.13) $ (0.26)
Diluted $ (0.12) $ (0.13) $ (0.26)
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders:
Basic 878,827 913,511 874,509
Diluted 878,827 913,511 874,509
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C14 CASE 4 :: ZYNGA: IS THE GAME OVER?
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EXHIBIT 2 Zynga Balance Sheets ($ thousands, except par value)
December 31,
2016
December 31,
2015
Assets
Current assets:
Cash and cash equivalents $ 852,467 $ 742,217
Marketable securities – 245,033
Accounts receivable 77,260 79,610
Income tax receivable 296 5,233
Restricted cash 6,199 209
Other current assets 29,254 39,988
Total current assets 965,476 1,112,290
Goodwill 613,335 657,671
Other intangible assets, net 25,430 64,016
Property and equipment, net 269,439 273,221
Restricted cash 3,050 986
Other long-term assets 29,119 16,446
Total assets $ 1,905,849 $ 2,124,630
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 23,999 $ 29,676
Income tax payable 1,889 –
Other current liabilities 75,754 77,691
Deferred revenue 141,998 128,839
Total current liabilities 243,640 236,206
Deferred revenue 158 204
Deferred tax liabilities 5,791 6,026
Other non-current liabilities 75,596 95,293
Total liabilities 325,185 337,729
Stockholders’ equity:
Common stock,
$0.00000625 par value, and additional paid in capital – authorized shares: 2,020,517; shares outstanding: 886,850
shares (Class A, 770,269, Class B, 96,064, Class C, 20,517) as of December 31, 2016 and 903,617 (Class A,
769,533, Class B, 113,567, Class C, 20,517) as of December 31, 2015
3,349,714 3,234,551
Treasury stock – (98,942)
Accumulated other comprehensive income (loss) (128,694) (52,388)
Accumulated deficit (1,640,356) (1,296,320)
Total stockholders’ equity 1,580,664 1,786,901
Total liabilities and stockholders’ equity $ 1,905,849 $ 2,124,630
Final PDF to printer
CASE 4 :: ZYNGA: IS THE GAME OVER? C15
des13959_case04_013-018.indd 15 01/02/18 01:29 PM
mobile users, accounting for 73 percent of the company’s
revenue in 2015.1 However, year-over-year decline in reve-
nues has been primarily attributable to the innovative prod-
uct pipeline, which Mr. Gibeau has tried to turn around
by focusing on development of high-quality mobile applica-
tions that had helped to shrink the net losses in 2015.
In response to the wildly successful Clash of Clans by
SuperCell, Zynga released a new mobile game, Dawn of
Titans, at the end of 2016. Dawn of Titans features high-
quality graphics and options to play with other users in real
time. The 3D strategy game also allows users to create their
own fantasy kingdoms and develop strategy to stay ahead
of the other players. Prior to the introduction of Dawn of
Titans, the company had launched a new version of Zynga
Poker, which includes a sophisticated design and feature
set that inspires more competition, authenticity, and social
connections between players. Zynga also launched NFL
Showdown at the beginning of the NFL season with the
intention of adding new features based on customer feed-
back and play patterns. However, the new product-driven
growth was not able to reverse declines in the existing
online games.2
Zynga’s Background
At the time it incorporated in October 2007, Zynga had
become a dominant player in the online gaming field,
almost entirely through the use of social media platforms.
Located in San Francisco, the company was named by
CEO Mark Pincus to pay tribute to his deceased beloved
pet bulldog Zynga. Although this might have seemed
whimsical, Zynga was actually a quite powerful company.
Exemplifying Zynga’s prominence, Facebook was reported
to have earned roughly 12 percent of its revenue from the
operations of Zynga’s virtual merchandise sales.3
No other direct competitor was close to this revenue.
Zynga’s collection of games continued to expand, with more
and more success stories emerging. A relative newcomer
to the market, its quick success was astonishing. However,
Zynga’s impressive financials were possibly at risk because
of what some considered questionable decision making.
Many of Zynga’s competitors, and even some partners,
were displeased with the company’s actions and began to
show it in the form of litigation. Agincourt, a plaintiff in a
lawsuit brought against Zynga, stated, “Zynga’s remarkable
growth has not been driven by its own ingenuity. Rather
it has been widely reported that Zynga’s business model is
to copy creative ideas and game designs from other game
developers and then use its market power to bulldoze the
games’ originators.”4 If lawsuits and ethical issues contin-
ued to arise for Zynga, its powerful bulldog could start look-
ing more like a poodle.
The Products
With an abundance of software developers, the ability to
create and distribute online games increases by the day, and
the demand to play them is equally high. However, while
many people find these online games fun and, better yet,
therapeutic, others can’t understand the hype. The best way
to understand the sudden infatuation is to view online gam-
ing as simply a means of relaxation.
In the movies, at least, large executive offices are often
shown with putting greens, dartboards, or even a bar full of
alcoholic beverages. These amenities are all meant to serve
the same purpose: to relieve stress during a hard day’s work.
We’ve all been there and looked for a way to cope. However,
few of us have the opportunity to use such things as putting
greens to unwind at the workplace. And even if we did, how
long could we afford to engage in such an activity before
being pulled back to our desks?
Stress reduction at work is one of the many purposes
that virtual games fulfill: no need to leave our desks; no
need to make others around us aware of our relaxation
periods; and, better yet, no need to separate the task of
relaxation from sitting at our computers while we work.
The ability to play these games on office computers and
“relax” now and then as the day goes by makes online gam-
ing enticing. This, of course, is just one of many uses for
the games. Some people play them after work or at the end
of a long day. With the onset of smartphones, people of all
ages play these games on the go throughout the day—sitting
on the bus, in the waiting room of a doctor’s office, or at
the Department of Motor Vehicles. Diverting game play is
readily available with the click of a button.
Market Size
Compared to other game developers with games present on
the Facebook platform, Zynga had once been a dominant
force, but by 2016 it failed to surface in the top 5 virtual-
gaming rankings (see Exhibits 3 and 4). The King Company
appeared to rule with its numerous popular games, includ-
ing the billion-dollar Candy Crush Saga.
Zynga’s virtual games provided the opportunity for
constant buildup and improvements, offering users virtual
goods and services to increase their gaming experience.
These items could be purchased using a credit card and
were often needed to accomplish fast progressions in the
games. These goods were advertised throughout the games
and the user was enticed by price cuts for larger purchases.
Zynga’s virtual games could be played both remotely and
through social media platforms, most commonly Facebook.
Five of Zynga’s games, FarmVille, CityVille, Empire and
Allies, CastleVille, and Texas HoldEm Poker, were among
the most popular games on Facebook. CityVille had over
100 million active monthly users within months of its
release in late 2010.5 On July 1, 2011, Zynga filed with the
Securities and Exchange Commission with intention of
raising up to $1 billion in its IPO, and its stock began trad-
ing on NASDAQ December 16, 2011.6
Of course, Zynga was not the only virtual-gaming com-
pany striving for this degree of success. There were and
are many others, in what seems to be one of the fastest-
growing industries. The capability to create online games
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C16 CASE 4 :: ZYNGA: IS THE GAME OVER?
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Toyland, Zoo World, Hero World, and MyCasino. Its most
played game, Zoo World, was a free social media applica-
tion whereby users tried to build the best zoo they could.
The company underwent a phase of major layoffs but con-
tinued to work on new and improved games.7
GameHouse, based in Seattle, Washington, was a
developer, publisher, and distributor of casual games.
GameHouse was acquired by RealNetworks for $14.6 mil-
lion cash and about 3.3 million shares of RNWK common
stock, which had an estimated value of $21 million at the
time.8 Prior to its acquisition, GameHouse generated an
impressive amount of revenue through the sale of games
on its own website, www.gamehouse.com, and through
third-party affiliates and other distributors. GameHouse
and RealArcade merged their websites into one portal in an
is widespread. Creativity and innovation are accepted to be
the grounds on which competing companies challenge each
other. With all competitors after the same audience, the
industry is prone to a significant amount of head-butting
rivalry.
Background of Competitors
RockYou was founded by Lance Tokuda and Jia Shen.
Their first product was a slide-show service, crafted to work
as an application widget. RockYou was one of the compa-
nies invited by Facebook to participate in the F8 event, in
which Facebook announced the start of an open platform
that would allow third parties to develop and run their own
applications on Facebook. RockYou then shifted toward
producing more in-depth social application games, such as
EXHIBIT 3 Monthly Users of Facebook Gaming, as of October 2016
Source: Statista 2016.
20 40 60 80 100 120 1400
Candy Crush Saga
Candy Crush Soda Saga
Farm Heroes Saga
8 Ball Poll
Clash of Clans
Criminal Case
Pet Rescue Saga
Subway Surfers
Dragon City
Trivia Crack
38.78
30.53
26.03
24.04
22.2
16.14
12.7
10
Monthly active users in millions
160
149.57
17.47
EXHIBIT 4 Top 5 Virtual-Gaming Developers of 2016
Rank Company 2015 Revenue ($ millions) Key Games
1 Machine Zone $1,000 Game of War, Mobile Strike
2 Supercell 2,300 Clash of Clans, Clash Royale, Boom Beach Hay Day
3 EA Mobile 504 Star Wars Galaxy of Heroes, NFL Madden Mobile, The Simpsons: Tapped Out
4 Mixi 2,000 Monster Strike
5 Com2uS 369 Summoners War
Source: www.pocketgamer.biz, 2016 top developers list.
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CASE 4 :: ZYNGA: IS THE GAME OVER? C17
des13959_case04_013-018.indd 17 01/02/18 01:29 PM
Background of the CEO
Mark Jonathan Pincus was the entrepreneur behind
Zynga. He was also the founder of Freeloader, Inc., Tribe
Networks, and Support.com.17 In prior years, Mark was
named CEO of the Year in the Crunchies awards,18 as
well as Founder of the Year.19 Prior to his entrepreneurial
endeavors, Pincus worked in venture capital and financial
services for several years. After graduating from Wharton,
he went on to obtain his master’s degree from Harvard
Business School. Soon after graduating, Pincus launched
his first start-up, Freeloader, Inc., a web-based push tech-
nology service. Individual, Inc., acquired the company only
seven months later for $38 million.20 Pincus later founded
his third start-up, Tribe.net, one of the first social networks.
Tribe.net focused on partnerships with major, yet local,
newspapers and was supported by The Washington Post,
Knight Ridder Digital, and Mayfield Fund.21 Unfortunately
for him, Pincus’s resume did not impress his competitors,
irritated by what they viewed as his questionable business
tactics, nor did it dissuade them from making their feelings
known via a lengthening laundry list of threats and lawsuits.
Intellectual Property and Ethical Issues
Nissan has claimed that its trademarks were used without
consent in Zynga’s game Street Racing. Zynga consequently
changed the thumbnail images and renamed all the cars that
were branded Nissan and Infiniti to “Sindats” and “Fujis.”22
Zynga was criticized on Hacker News as well as other social
media sites for filing a patent application involving the abil-
ity to obtain virtual currency for cash on gambling and other
gaming websites. Many said that the concept was not new
and that in fact significant prior art for the concept already
existed.23 The unveiling of the game Mafia Wars generated
a lawsuit from the creators of Mob Wars. An attorney of the
parent company of Mob Wars said that by making Mafia
Wars, Zynga “copied virtually every important aspect of the
game.”24 The lawsuit was later settled out of court for an
amount between $7 million and $9 million.25
California-based web developer SocialApps brought
Zynga to court seeking damages for alleged “copyright
infringement, violation of trade secrets, breach of written
contract, breach of implied-in-fact contract, and breach of
confidence.” SocialApps claimed to have entered into an
agreement with Zynga, allowing Zynga access to the source
code for SocialApps’ Facebook game MyFarm in exchange
for an undisclosed compensation. According to the suit,
Zynga was given the code, but failed to pay SocialApps.
SocialApps claimed that MyFarm’s source code was the
foundation of Farmville, as well as many of Zynga’s simi-
lar games.26 Following Zynga’s release of the game Hidden
Chronicles, Forbes’ Paul Tassi wrote that Zynga “refuses to
innovate in any way, and is merely a follower when it comes
to ideas and game design.”27
Ethical issues, though less tangible and definable than
intellectual property, were equally troubling in assessments
effort to create one massive distribution center. RealArcade
delivered its games on a downloadable demo basis, with a
60-minute trial time for most games. When the trial expired,
the user needed to purchase the full version to continue
playing. Users also had the option of purchasing a mem-
bership package for a monthly fee. GameHouse later began
offering the full version of many of its games, supported by
the sale of in-game advertising.9
EA Playfish, a subsidiary of Electronic Arts, began as
Playfish Ltd., a developer of social network games that were
free to play. Who Has the Biggest Brain? was the first suc-
cess of Playfish Ltd. and was the gateway to the company’s
ability to raise funding. The company, like many of its com-
petitors, generated revenue by selling virtual goods inside
its games. Electronic Arts later acquired Playfish for $400
million. Soon after, Playfish drew approximately 55 million
users a month, with over 37 million of those users coming
from Facebook.10 Users could purchase “Playfish Cards” at
Walmart, Walgreens, and Toys ‘R’ Us stores, at which point
they could register on the Playfish website to begin earn-
ing “Playfish Cash” that could be used to purchase virtual
goods within the games. Playfish announced the change
from Playfish Cash to individual cash for all games (except
Crazy Planets at that time) and allowed users to trade for
the new cash.11
CrowdStar, based in Burlingame, California, was another
developer of social games. Founded by Suren Markosian
and Jeff Tseng, it ranked fourth for most monthly active
users among Facebook applications.12 Its most popular titles
were Happy Aquarium and Happy Pets. CrowdStar turned
down an offer from Microsoft to acquire the company for
more than $200 million.13 The company subsequently
raised an additional $23 million and planned on using the
money to double its workforce and increase expansion on
a global scale. CrowdStar also planned to add about 100
employees, including game developers, server developers,
artists, producers, business analysts, and content managers.
Peter Relan, CrowdStar’s CEO, said the company needed to
raise money to exploit opportunities for global expansion in
Japan, China, Eastern Europe, and Brazil.14
Supercell Oy operated as a subsidiary of Tencent
Holdings Limited. Supercell Oy, based in Helsinki, Finland,
was another successful developer of mobile games with
additional office locations in United States, Japan, South
Korea, and China.15 The initial hit for the company was its
browser game called Gunshine.net. In 2011, the company
started developing games for tablets and smartphones, gain-
ing worldwide popularity over just a few years. The most
popular mobile games developed by Supercell included
Clash of Clans, Clash Royale, Boom Beach, and Hay Day,
free to download and play. The company had annual rev-
enue of about $2 billion, and its strategy game Clash of
Clans was a leading competitor of Zynga’s Dawn of Titans.
Supercell’s flagship game, Clash of Clans, had approxi-
mately 100 million daily users, which posed a big competi-
tive challenge for Zynga’s Dawn of Titans.16
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C18 CASE 4 :: ZYNGA: IS THE GAME OVER?
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begin creating true one-of-a-kind games—showing its capa-
bilities as a leader in the industry rather than a follower?
With all eyes on the company, it is certain that it won’t be
easy for Zynga to get away with some of its earlier stunts,
especially now as a public company. As a public company,
Zynga needs to watch its step or prepare to feel the wrath
of its shareholders.
ENDNOTES
1. http://www.pocketgamer.biz/list/62773/
top-50-mobile-game-developers-of-2016/entry/48/.
2. Zynga Q4 2014 earnings call transcripts.
3. www.vanityfair.com/business/features/2011/06/
mark-pincus-farmville-201106.
4. http://news.cnet.com/8301-31001_3-20093473-261/
zynga-targeted-in-patent-infringement-lawsuit/.
5. www.appdata.com/apps/facebook/291549705119-cityville.
6. www.reuters.com/article/2011/11/30/
us-zynga-ipo-idUSTRE7AT2FJ20111130.
7. http://techcrunch.com/2010/10/15/
rockyou-rocked-by-layoffs-as-it-switches-focus-to-social-games/.
8. http://investor.realnetworks.com/faq.cfm?faqid=2.
9. www.gamehouse.com/.
10. www.gamasutra.com/view/news/32496/Playfish_Social_Games_
Reaching_55_Million_Monthly_Players.php.
11. www.insidesocialgames.com/2011/04/19/exclusive-playfish-ending-
playfish-cash-going-almost-all-in-on-facebook-credits/.
12. www.appdata.com/devs/30679-crowdstar.
13. www.businessweek.com/news/2010-03-31/crowdstar-said-to-break-off-
talks-to-be-bought-by-microsoft.html.
14. http://venturebeat.com/2011/05/23/
social-game-leader-crowdstar-raises-23m-from-intel-and-time-warner/.
15. http://www.bloomberg.com/research/stocks/private/snapshot.
asp?privcapId=127260687
16. http://www.gamespot.com/articles/100-million-people-play-clash-of-
clans-devs-games-/1100-6435433/
17. http://company.zynga.com/about/leadership-team/zynga-management.
18. http://venturebeat.com/2010/01/11/crunchies-winners-facebook-bing/.
19. http://techcrunch.com/2011/01/21/
congratulations-crunchies-winners-twitter-takes-best-startup-of-2010/.
20. http://startup2startup.com/2009/06/24/june29-markpincus-zynga/.
21. www.nytimes.com/2007/03/03/technology/03social.
html?pagewanted=1&_r=1&ei=5088&en=f718f182170673a4
&ex=1330578000.
22. http://mafiawars.wikia.com/wiki/Zynga.
23. http://allfacebook.com/zynga-patent-currency_b20985.
24. www.bizjournals.com/sanfrancisco/stories/2009/07/13/story7.html.
25. http://techcrunch.com/2009/09/13/
zynga-settles-mob-wars-litigation-as-it-settles-in-to-playdom-war/.
26. www.joystiq.com/2011/07/18/
lawsuit-filed-against-zynga-over-farmville-source-code/.
27. www.forbes.com/sites/insertcoin/2012/01/06/
zynga-stock-falls-as-second-post-ipo-game-fails-to-impress/.
28. http://blog.games.com/2010/09/08/
zynga-ceo-to-employees-i-dont-f-ing-want-innovation/.
29. http://blogs.sfweekly.com/thesnitch/2011/11/zynga_corporate_culture.
php.
30. www.sfweekly.com/2010-09-08/news/farmvillains/4/.
31. http://forbrukerportalen.no/Artikler/2010/
Facebook_and_Zynga_reported_to_the_Data_Inspectorate.
of Zynga’s operations. A former employee of the company
revealed firsthand quotes from CEO Mark Pincus, such
as: “You’re not smarter than your competitor. Just copy
what they do and do it until you get their numbers.” One
contractor said he was presented with freelance work from
Zynga related to imitating a competitor’s application and
was given precise instructions to “copy that game.”28 Other
past employees, even those at the senior level, spoke out
about the corrupt ways that Pincus had apparently decided
to operate the business. One quoted the banter of employ-
ees in the office, “Do Evil,” a twist on the Google motto,
“Don’t Be Evil.”29
A former high-level Zynga employee provided an insight
into the company’s culture, as regarding any emphasis on
creativity and originality. According to the employee, a
group of designers brought a new and innovative idea to
the table, only to have it turned down by Pincus because of
his wariness toward a new idea that didn’t fit the “tried-and-
true” mold of other successes.30
Zynga was accused of taking advantage of its end cus-
tomers, pertaining to a lack of security and safekeeping of
consumer information. The Norwegian Consumer Council
filed a complaint against Zynga to the Data Inspectorate
concerning breaches of the Data Protection Act. According
to the Consumer Council, Zynga’s terms of use “do not
offer a clear description of what is being collected in terms
of information or what this information is being used for.
Nor do they state how long the information is stored for
or how it is protected against unauthorized access.” The
Consumer Council went even further with its forewarning:
“Many of the gravest examples of unreasonable and one-
sided terms of use can be found in games providers such
as Zynga.”31
Zynga Going Forward
Although Zynga game users tend to be pleased with Zynga’s
games, many note there seem to be recurring obstacles
that limit that pleasure. Many Zynga users complain of lag
time while playing the games. Even more complain that
when problems arise, Zynga support staff are nowhere to
be found. The company has no customer service initiative
and forces users to resort to sending their claims through
e-mail—which many believed is ignored, or never read.
Further, many believe that the company makes it too dif-
ficult for users to make real strides in the games without
spending ridiculous sums of money. Based on their experi-
ences, many users believe that Zynga is all about revenue
generation and that everything else comes second.
As Zynga looks to the future, where might its next big
hit come from? With all the criticism aimed at Zynga’s
past behavior, will the company continue on the path it
has become notorious for and reap further accusations of
imitating its competitors’ games? Or will Zynga change its
approach, gain a reputation for intellectual integrity, and
Final PDF to printer
- CASE 4: Zynga: Is the Game Over?