The study on competitive environment and strategies of online game industry in Taiwan

• Main Authors: Yu-HsiangJuan, 阮昱翔
• Other Authors: Ming-Long Wang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/40787267564382111820

碩士 === 國立成功大學 === 企業管理學系專班 === 101 === Abstract The development of the Taiwanese online game industry began in 2000. Within a decade it has emerged as a well-established industry. Generally the advance of information technology and universal service obligation (USO) from Chunghwa Telecom Inc. has benefited the booming development in the first stage. Leading companies such as Gamania Digital Entertainment and Softworld International Entertainment owned the first-mover advantage and thus gained excess returns. Although high capital investments posed a market entry barrier, still software developing companies encouraged to become involved because of few government regulations, and high return of cash rate. Yet now the industry has reached its climax and has shifted into a more competitive situation. Demanding customers require variety and have thus shortened the product life cycle. Instead of developing products themselves, industry. The business model has shifted from charge by package to unlimited usage for a monthly subscription fee as well as the emerge of virtual goods and shops. The type of massive multiplayer online role-playing game (MMORPG) dominated the industry that focused primarily on younger and low-income consumers. Currently the social network services (SNS), for example Facebook and Twitter, are flourishing and attract increasingly more registered members. Attached to SNS are the widely favored browser games are perceived as low-cost and associated with a short development cycle and the convenience of secure, online payments. The transaction fees are what make these browser games profitable for their owner companies. For example, a subsidiary of Softworld International Entertainment benefits from issuing Facebook Token.Cellphone usage has been influenced hugely by this recent development. Moreover, mobile applications (APP), especially APP Games, are widely spread to the users of smartphones and tablets through the SNS effect. Challenging the role of MMORPG in the online game industry, the APP Games are becoming a new Blue Ocean. The main point of this report is to find out how companies identify their core competence and how they remain to use their competitive advantages so that they can cope with their changing environment through transformation strategies. This report explores the strategies for online games companies by applying Porter’s Five Forces Analysis and SWOT Analysis and Prahalad’s Core Competence. Five Forces Analysis investigates the industry from a Competitive Advantage. Owning a world-class competence not only enables companies to develop domestically but also internationally.