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A Study on Entry Strategy and Operation Strategy for Taiwan On-line Games Industry in the China Market
On-line Game,Entry Barrier,Network Externality,Value Net,Co-opetition Strategy,Core Competence,Collaborative Operation Mode,Social Networking Service Website,
|Publication Year :||2011|
一、 產品服務創新:台灣廠商必須在產品與服務上創新，開發利基市場或接入 先行者之開放平台取得互補資源，獲取超額利潤的可能性較高。
二、 在地化研發:實行在大陸市場的在地化研發，貼近消費者並迅速回應市場 需求。
“Mass is beauty” is a never-changing rule in the cyber world. “Preemption of first mover advantage” governs all players in the online game industry!
Online game market in Taiwan is gradually saturated while China market is with great potential. It is estimated that China will continue to be the largest online game market with the highest growth rate in next 3-5 years. Although Taiwanese leading companies have entered into and operated in China market for several years, they have neither been successful nor played any roles in the core of industry competition. This thesis aims to uncover the reasons behind this observation, support them with theoretical analysis and practical experience, and propose suitable solutions. Hopefully this thesis will provide a concrete and precise advice for Taiwanese on-line game companies on structuring their entry strategies and operation strategies in China market, as well as help them on better leveraging their core competencies to create competitive advantages and finally win the “Game” in the dynamically competitive environment with high entry barriers as a result of Chinese government’s protectionism policies.
We believe that the online game industry is characterized by network externality. The common phenomenon includes first-mover advantage, the bigger the stronger，the winner takes all, and lock-in effect. To break the existing network externality, Taiwanese online game companies can adopt the following strategies to penetrate the mainland market:
1. Product/service innovation: Taiwanese companies need to innovate products and services, develop niche markets, get complementary resources from pre-emptive open platform operators to generate higher profits.
2. Localized R&D: Taiwanese companies should establish R&D team in local China market to better explore customers’ needs and quickly respond to market demand.
3. Collaborative Operation: Establishing wholly owned subsidiaries and adopting vertically collaborative operation strategy makes it possible for Taiwan on-line game companies to achieve higher excess pay-off than pure licensing business mode under reasonable and manageable operation risks. It can simultaneously maintain flexibility of exit and reap the benefit of complementary resources. It is considered an ideal strategy for Taiwanese companies.
4. Innovative profit model: Adopting completely free play strategy, i.e. games and widgets (virtual items) are all free for customers to play while all charges go to advertisers.
5. Social networking service websites: Taiwanese companies can leverage social networking service websites and word-of-mouth marketing to attract and develop new customers and establish a more economic and effective marketing platform.
|Appears in Collections:||國際企業學系|
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