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Master Thesis 1 Master's Programme in International Marketing, 60 credits MASTER Key Success Factors behind Mobile Games THESIS A Business Model for the Chinese mobile game market Zhao Yue Wen 890717-T261 International marketing, 15 credits 2015-09-29 1 Abstract The research question is formulated as “what are the key success factors making a mobile game become a big success in China? ” to view the key success factors behind new launched mobile games and how company’s business model and marketing strategy that bring them into and help them succeed in the China market. A qualitative method with the deductive approach has been using in this paper to be able to answer and interpret the studied questions. Four in-depth interviews were conducted to collect the primary data, which have been following as the purpose is to do a cross-case analysis to identify the similarities and difference of each company behave their business model and marketing strategy, to contribute game success in China market. The main factors contributing to the success of mobile game in China market including internally strategic factors and externally tactic factors. Technical skill and resource, R&D ability and market knowledge and experience as the internal key success factors behind mobile game success in China. The mobile game companies use localization, wide distribution channel collaboration and social integration to suit the market needs and requirements. From the results of the study have been identified to as to how is the business model for the China mobile game market. Through collaborating with abroad local distribution channel can increase their knowledge capacity of the local market to create a better value proposition. In China mobile game market, social integration and cross promotion can be seen as very important and through collaborating firms can work around these factors and create, capture and deliver better value to the customers. Acknowledgement Luckily, after two years departed days from Sweden, I came back and still obtained a good opportunity to work with my final master dissertation. Working with this dissertation has been a challenging task and great learning experience for me. I am trying my best to achieve this task in limited time and condition. This will never be possible without the constant support from my supervisors, previous colleagues, friends and family. At this very moment, I dedicate my sincere desire to them. Firstly I would like to thank my supervisor Klaus Solberg Søilen for his endless guiding suggestions and useful study technique, which leading to me toward a new domain and assist in accomplishing final goal for this study while we both have long distance to discuss my thesis. Next I would like to thank you to previous Martti, a person who always encourage me and support me to continue with the completion of my master thesis. During the study process, he gave me a lot of suggestions and guidelines to get deeper understand of relevant phenomenon and organization. Thanks for the representatives from four mobile game companies, who provided me with interesting communication and important information during the interviews. Finally, give to my great family and friends who granted best wishes and constant encouragements, patience from the beginning to the end. A special thank you goes to my friend Rickard Strandberg, I will always remember your encouragement and the sincere wishes. Halmstad University, 10th August 2015 1 Table of Content CHAPTER 1. INTRODUCTION .................................................................................. 1 1. The Research Background .................................................................................. 1 1.1 Mobile gaming .................................................................................................. 2 1.2 Problem discussion ........................................................................................... 4 1.3 Research question ............................................................................................. 5 1.4 Delimitation ...................................................................................................... 6 1.5 Layout of the thesis ........................................................................................... 7 CHAPTER 2. METHODOLOGY ................................................................................. 8 2.1 Research approach ............................................................................................ 8 2.2 Research method ............................................................................................... 9 2.3 The selection of company ............................................................................... 10 2.3.1 Tencent Technology Co., Ltd ...................................................................... 10 2.3.2 iDreamSky Technology .............................................................................. 11 2.3.3 MyGamez Ltd .............................................................................................. 11 2.3.4 Yodo1 .......................................................................................................... 12 2.4 Data collection ................................................................................................ 12 2.4.1 Primary data ................................................................................................. 12 2.4.2 Secondary data ............................................................................................. 14 2.5 Reliability and validity ................................................................................... 14 CHAPTER 3. OVERVIEW OF THE MOBILE GAME INDUSTRY ........................ 17 3.1 A history of the mobile games industry ......................................................... 17 3.1.1 Video game raises from handsets ................................................................ 17 3.1.2 Platform evolvement and rise of the smartphones ....................................... 19 3.1.3 The big chance caused ................................................................................. 20 3.2 Elements and player of the mobile game industry ......................................... 21 3.3 Global market size and growth of the mobile game industry ......................... 23 3.4 Chinese mobile game industry ........................................................................ 24 3.4.1 Mobile market characteristic in China ......................................................... 24 CHAPTER 4. LITERATURE REVIEW ................................................................... 25 4.1 New product launch ........................................................................................ 25 4.1.1 Product launch in China .............................................................................. 26 4.2 Critical success factor of new product launch ................................................ 26 4.2.1 Internal direct factors ................................................................................... 26 4.2.2 External direct factors .................................................................................. 28 4.3 Business model ............................................................................................... 29 4.3.1 Definition of business model ..................................................................... 29 4.3.2 Components of business model ................................................................... 33 CHAPTER 5. EMPIRICAL FINDINGS ..................................................................... 36 5.1 Tencent Technology ....................................................................................... 36 5.1.1 Launch mobile game in China ..................................................................... 37 5.1.2 Key factors of game launch for Tencent ...................................................... 39 5.2 iDreamSky Technology .................................................................................. 41 5.2.1 Launch mobile game in China ..................................................................... 42 5.2.2 Key factors of game launch for iDreamSky ................................................ 46 5.3 MyGamez Ltd ................................................................................................. 48 5.3.1 Launch mobile game in China ..................................................................... 49 5.3.2 Key factors of game launch for MyGamez ................................................. 52 5.4.1 Yodo1 .......................................................................................................... 54 5.4.1 Launch mobile game in China ..................................................................... 55 5.4.2 Key factors of game launch for Yodo1 ....................................................... 59 CHAPTER 6. CROSS-ANALYSIS ............................................................................. 62 6.1 Tencent: Launch mobile games in China ....................................................... 62 6.1.1 Internal direct factors of Tencent ................................................................ 63 6.1.2 External direct factors of Tencent ................................................................ 65 6.1.3 Business model ............................................................................................ 66 6.2 iDreamSky: Launch mobile game in China ...................................................
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