SWOT Analysis of Zynga

Zynga is a games service provider of social games. It was founded in July 2007 and headquartered in San Francisco, California, USA. The company has been creating social games that stand-alone runs on mobile phone platforms such as Apple iOS and Android, via Internet through its website, Zynga.com, and social networking websites which include Facebook, Google+, and Tencent.

Strengths

• The company has a strong user base which constitutes almost about 298 million users who spend a lot of time on this platform. The company’s premium business model proves to be a good bait to retain more customers and increasing the brand value simultaneously in order to position the brand as a leading gaming platform on a social site.

• The world’s leading provider of online social game services.

• Zynga‘s partnership with the most top leading gaming company i.e. bwin.party is a positive stride for the company. The company has unveiled its first offerings of games in the United Kingdom online which is also available in a downloadable format. This possibility of emerging as an online gambling market marks a strong potential for the company.

• The company is no longer dependent on Facebook i.e. they don’t have to pay a revenue sharing fees after strengthening its user base.

• The mobile usage has helped the company to increase its growth rapidly where active users on mobile have grown up to 75%.

• The company is also known to be the 5th largest mobile platform for the daily consumers who spend their time mostly on mobile.

Weaknesses

• The company’s daily online users got trickled down to 56 million from 72 million. This decline was also seen from the monthly active base which got reduced to 298 from 311 million users.

• The relationship with the Facebook Inc Company got weakened since facebook has been responsible for driving the user base and constant growth in revenue of Zynga. As the company went forward, their ties got weakened which will negatively affect the online dominant users and attracting the new ones.

• The users often times are reluctant to purchase online social games for a recurring basis which is a negative point for the company.

• The company has been facing a persistent loss in revenue since 2010.

Opportunities

• The major opportunity for the company lies ahead in its ability to enter as a real gaming market in the United States. Zynga can create an online ecosystem.

• The company can adapt to a market expansion strategy by entering in the states of Nevada where the company can use its technical knowhow and introduce a similar playbook which was previously launched in the UK market.

• The company can also boost its advertising business on its social platform. In this way, the company can engage more brand advertisers who command huge advertising budgets.

• Introducing new 3D games, the company’s latest version of Farmville got released in the 3D version. This can lead to a huge gaming revenue and cover up for more advertising revenue.

• Further expansion on other social platforms.

Threats

• The no of users of the company’s games are the casual players. This irregularity of players shows the sign that the site will stop performing its business altogether as many investors claim the social gaming industry as Fad.

• The company faces a huge threat from other competing gaming platforms.

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