International Strategy Presented by Claudia Hosky Tim Lynch Stanley Martin Jr Hieu Nguyen
Rovio: History & Situation Founded in 2003 by Niklas Hed, Jarno Väkeväinen, & Kim Dikert Mobile game development studio Focused on 2D games, first-person shooters, and creepy/nightmare scenario, many won awards Wanted to make an exclusive product: Angry Birds Accel Partners, Atomico and Felicis Ventures contributed $42 million in venture capital funds
Rovio: History & Situation 2010 - Angry Birds released for iPhone 2010 – opened American office in Palo Alto, CA Focus: port games to other platforms 2010 – Angry Birds for Android & Palm Pre 2011 – moved to new office in Espoo, Finland 2011 – opened corporate offices and marketing in China 2012 – opened new satellite office in Stockholm, Sweden Focus: game development & Finland market development
Department Heads
Angry Birds Continuing worldwide chart success Billionth download in 2012 Valued at $6 billion - $9 billion Angry Birds games include: Angry Birds Angry Birds Seasons Angry Birds Rio Angry Birds Space
Rovio: History & Situation Innovative Promotions Wal-Mart: merchandise opens levels T-Mobile: Seattle Space Needle China: Theme parks
Criteria to Assess International Strategy Operational 1. Strategic 2. Financial 3. Organizational 4. Growth 5. Capability 6. Development Client Satisfaction 7.
Game engineers & testers work for low budget Savings allow them to reinvest into new games like Amazing Alex “Simple” game style allows easy transfer across platforms, including standard computers 9 month turnaround time Virtual product – customer can purchase & play online No concern about inventory
No economy of scale – trouble with distribution & marketing iPhone allowed them to release games without large distributor iOS became primary concentration for development Strategic goal: To have a game that could be comprehended & played within 1 minute Fast upload, minimal “training” Instituted 1-3 star score to cater to casual and “hardcore” gamers Short game sessions, constant rewards
Chillingo pushed Apple to place Angry Birds as Game of the Week which catapulted it from #600 to #1 downloaded app Pursued merchandizing opportunities Expanded their roster from 28 to 224 employees Acquired Futuremark Game Studio Decided to push into Disney 2.0 market Hired former chairman/CEO of Marvel Entertainment, David Maisel Acquired Kombo Animation Studio to expand to cartoon animation
2011 earnings of $106.3 million 2011 revenue of $67.5 million 64% Rovio offers paid and free versions of Angry Birds Profit Margin Paid = $0.99 Free = advertising revenue Ad revenue is over $1 million/month 30% of profits
Family owned business with a vision Kaj Hed, Mikael Hed, Niklas Hed Kaj Hed invested 1 million euros into Rovio & still stands as the majority owner of the company Mikael is the CEO and Niklas is COO Structure is very flat and highly networked for communication Embrace and celebrate employees at all levels of the firm Will likely increase recruitment and retention Expansion is based off of market saturation Should they go public? In what country? Finland hopes gaming industry will be a mainstay of the Finnish economy
Work for hire while developing Angry Birds in spare time Fail to capture US & UK Markets Targeted smaller European markets Gain Brand recognition Work with Chillingo in US & UK markets Ported to multi platforms Android model – advertising Disney 2.0 30% total revenue from consumer products, merchandises and license Expanding toward: Animation industry Main stream high end game industry
Increased employees from 28 to 224 Same size as Valve Software Acquired Futuremark Game Studio 3DMark Vintage Engine Acquired Kombo Animation Studio Hired David Maisel, former chairman of Marvel Studios
Angry Birds was an overnight hit, moving from #600 to #1 on iOS devices Customer strategy was strong – answered every single tweet & e-mail Strategy to make a simple game worked… and didn’t Customers beat the game quickly, and wanted more Rovio couldn’t keep up with demand Other devices, new levels, more challenges… Inability to keep up with demand and correspondence almost killed the company – except for one thing, everyone wanted MORE Accidental shortage could have warranted higher pricing, but didn’t Angry Birds Space hit 50 million downloads in 35 days
1 billion Angry Birds downloaded 2011, Property of the Year At 500 million downloaded 2012, Overall Best Licensed Program of the Year #1 in 79 countries 2012, Best Character/Toy 1 billion Angry Birds downloaded 200,000 year played total Brand Program of the Year At 500 million downloaded 300 million minutes played daily #1 in 79 countries 200,000 year played total 2011, Property of the Year 300 million minutes played daily 2012, Overall Best Licensed Program of the Year 2012, Best Character/Toy Brand Program of the Year
Focus: Angry Birds Presented by Claudia Hosky, Tim Lynch, Stanley Martin Jr, and Hieu Nguyen Animators for short videos Future film in the works “Flipping the bird” in next game Focus: CHINA Angry Birds Theme Parks: Development team from 11 to 100 employees Finland Released video in tandem with China (20) Olympics & new Chinese game United States (many!) Research center for Chinese market Revenue growth expected: 300% Chinese products expected to go from 10% to 30% of revenue
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