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Case Study: Zynga

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Case Study: Zynga

Introduction
Thesis: Zynga’s business strategy is successful but not sustainable.
Purpose
This case study highlights the success of Zynga in online games. This forms an excellent basis for assessing the relationship between durable and virtual products. The continuous over- reliance of Zynga on Facebook is also another essential aspect of consideration in paper. Finally, the case study addresses the various implications of Zynga on the existing video game business.

Overview
Zynga is among the world’s most popular online gaming firms. The firm has been operational since 2007. During this period, Zynga’s popularity has increased because of its unique approach to online gaming. Whereas most gaming companies produce games with innovative features, Zynga relies on customer analytics (Laudon, 2012). This involves the assessment of trends evident among the gamers. For instance, Zynga analyzes the most popular game features among the users. Facebook forms the platform for more than 90% of Zynga’s games.

Question a:
Among the most notable strategies used by Zynga is the development of “durable” and virtual products. From the context of gaming, “durable” products encompass online goods whose lifespan is considerably longer compared to the “nondurables”. The phrase “virtual” comes into application because they are sold and used online. An example of a marketing relationship between the durable and virtual products is the use of sale of virtual real estate property (Hill, 2012).

This approach would attract many users and thus enhance the generation of revenues. The durable product attracts consumers to the virtual product. Without the virtual product, companies like Zynga would find it hard to remain profitable in the online business environment. The purchase of virtual products acts as the main source of revenues for Zynga. This

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