Product details

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Case
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Reference no. 9-508-066
Subject category: Marketing
Authors: David B Godes
Published by: Harvard Business Publishing
Originally published in: 2008
Version: 6 March 2008
Length: 26 pages
Data source: Published sources

Abstract

Glass Egg is an outsource games development firm in Vietnam. They are able to offer brand-name publishers - Microsoft EA,Atari - significant cost savings in the development of art assets for their video games. However, the firm''s management find themselves at a point at which they feel they need to make a strategic decision that will enable Glass Egg to grow more substantially and more quickly. They are evaluating three possible directions including expanding the sales force, expanding the scope of art development services they offer and, more radically, going into the games publishing business themselves. Besides offering a picture of an interesting firm in a growing, dynamic country and business, the case allows for an exploration of two important general themes: 1) Assessing alternative growth strategies. When should one pursue ''more of the same'' business vs offering another product vs looking for new customers? When is it better to develop an entirely different line of business with different customers and different products? (2) What are the differences between marketing to businesses vs marketing to consumers? Since one of the options the firm is considering involves a consumer product - on-line game development - the case supports a discussion about the important differences, not only in terms of the nature of the buying process and buying center but also in terms of the vastly different organizational resources and structures that are needed in each.
Size:
125 employees
Other setting(s):
2007

About

Abstract

Glass Egg is an outsource games development firm in Vietnam. They are able to offer brand-name publishers - Microsoft EA,Atari - significant cost savings in the development of art assets for their video games. However, the firm''s management find themselves at a point at which they feel they need to make a strategic decision that will enable Glass Egg to grow more substantially and more quickly. They are evaluating three possible directions including expanding the sales force, expanding the scope of art development services they offer and, more radically, going into the games publishing business themselves. Besides offering a picture of an interesting firm in a growing, dynamic country and business, the case allows for an exploration of two important general themes: 1) Assessing alternative growth strategies. When should one pursue ''more of the same'' business vs offering another product vs looking for new customers? When is it better to develop an entirely different line of business with different customers and different products? (2) What are the differences between marketing to businesses vs marketing to consumers? Since one of the options the firm is considering involves a consumer product - on-line game development - the case supports a discussion about the important differences, not only in terms of the nature of the buying process and buying center but also in terms of the vastly different organizational resources and structures that are needed in each.

Settings

Size:
125 employees
Other setting(s):
2007

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